Ally Bank vs. Capital One 360 2024: Which Is the Right Choice for You?

BANKING - BANK REVIEWS
Ally Bank and Capital One 360 both charge no monthly fees and pay a competitive APY, but there are important differences between them to consider.
Updated Oct. 19, 2023
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Ally and Capital One 360 both offer bank accounts with no monthly fees. But if you want in-person customer service or accounts for kids and teens, then you may find Capital One is a better option. If you prefer customer service over the phone, or want a penalty-free certificate of deposit (CD), then you may decide Ally is the right choice.

This guide provides more insight into Ally vs. Capital One 360 so you can pick the best bank for you.

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In this article

Key takeaways

KEY TAKEAWAYS
  • Ally Bank and Capital One 360 both offer checking with no monthly maintenance fees and no required minimum balance.
  • Both Ally Bank and Capital One 360 also offer savings accounts and CDs with competitive annual percentage yields (APYs).
  • There are differences between the two in terms of customer service, account types, and ATM access.
  • Parents may prefer Capital One's dedicated accounts for teens and children.
  • Those who want ATM reimbursement would be better off with Ally Bank.

Ally Bank vs. Capital One 360 comparison

Ally Bank Capital One 360
Year founded 1919 1994
Number of branches None 281
Number of fee-free ATMs 43,000+ Allpoint ATMs 70,000+
Checking accounts
  • Spending Account
  • 360 Checking Account
  • MONEY Teen Checking Account
Savings accounts
  • Savings Account
  • 360 Performance Savings
  • Kids Savings Account
CDs
  • High-Yield CD
  • Raise Your Rate CD
  • No Penalty CD
  • 360 CDs
MMAs
  • Money Market Account
  • None
FDIC Member FDIC Member FDIC
Visit Ally Bank Visit Capital One 360

Our verdict

Both Ally Bank and Capital One 360 offer checking with no minimum balance or monthly maintenance fees, savings accounts at competitive rates, and a choice of CDs for investing.

However, while Capital One has a larger ATM network, Ally reimburses out-of-network ATM fees for up to $10 per statement cycle. Capital One offers physical branches and Capital One Cafes for those who need in-person support, while Ally is online-only. But Ally provides 24/7 phone support.

Your best option will depend on whether you prefer online or in-person support and whether you want to use any ATM without worrying if it's in your network.

How does Ally Bank work?

Ally Bank offers online banking with no monthly fees. Checking, savings, money market accounts (MMAs), and CDs are all available, and both the CDs and MMAs offer competitive APYs. Ally even offers a No Penalty CD that doesn't require a long-time commitment; you can take your money out of it after as few as six days, penalty-free.

Pros
  • Reimburses up to $10 a month in out-of-network ATM fees
  • 24/7 phone support
  • Savings Account Buckets make it easier to prioritize investing for different goals
  • Savings accounts and CDs offer competitive yields including on a penalty-free CD
Cons
  • There are no physical bank branches to get support
  • There's no dedicated kids or teen checking accounts
  • Ally's 43,000+ ATM network is smaller than Capital One's 70,000+ network

Read our Ally Online Savings Account review

How does Capital One 360 work?

Capital One offers a wide variety of banking products, including checking and savings accounts, credit cards, auto loans, and business banking solutions. The company provides fee-free checking and savings accounts, including its 360 Performance Savings Account as well as dedicated kids and teens accounts.

Capital One savings accounts and CDs both come at competitive rates, although all CD options require a minimum of a six-month commitment.

Pros
  • 70,000+ ATMs you can use fee-free
  • 281 local branches for in-person support
  • Kids and teens checking accounts for young people learning about money
  • Savings accounts and CDs with competitive rates
Cons
  • No money market account
  • No ATM reimbursement when you use out-of-network ATMs
  • No CDs with a term less than six months

Read our Capital One 360 review

Ally Bank vs. Capital One 360: What both companies excel at

  • Both Ally Bank and Capital One 360 offer competitive APYs on savings accounts and CDs.
  • Both offer limited fees for checking, which is important when looking for the best banks to keep your money in.
  • Both provide access to many fee-free ATMs.

Ally Bank vs. Capital One 360: checking accounts

When choosing a checking account, it's important to look at minimum balance requirements, monthly fees, and ATM access. The best checking accounts do not charge many or any fees and provide easy access to your funds.

Here's how Ally Bank vs. Capital One 360 compare. Neither bank charges monthly maintenance fees or overdraft fees. Ally has a smaller ATM network than Capital One, but it reimburses up to $10 in out-of-network ATM fees per statement cycle.

And while not all checking accounts pay interest, both Ally and Capital One offer interest checking. On checking accounts, Ally offers a higher interest rate of 0.25% (as of Sep. 18, 2023) APY, while Capital One offers 0.10% (as of Jan. 10, 2024) APY.

Ally Bank checking account: Capital One 360 checking account:
  • 0.25% (as of Sep. 18, 2023) APY on checking accounts
  • No monthly maintenance fees
  • No overdraft fees
  • 43,000+ fee-free ATMs plus reimbursement of up to $10 in ATM fees monthly
  • 0.10% (as of Jan. 10, 2024) APY on 360 Checking Account
  • Checking account available for teens
  • No monthly maintenance fees
  • No overdraft fees
  • 70,000+ fee-free ATMs

Ally Bank vs. Capital One 360: savings accounts

When it comes to savings accounts, the APY and fees are the most important factors to consider. For their high-yield savings accounts, Ally Bank and Capital One don’t charge monthly maintenance fees or require a minimum deposit upon opening.

You'll also want to pay attention to how easy it is to move money into savings and to save for different financial goals. With an Ally Savings Account, you can use Buckets to organize your savings into different categories. With Capital One, you can create multiple Performance Savings accounts for each of your financial goals.

Ally Bank savings account: Capital One 360 savings account:
  • 4.35% (as of Feb. 8, 2024) APY
  • No monthly maintenance fee
  • $0 minimum opening deposit
  • Buckets allow you to save for different goals
  • Fund transfers are easy, and recurring transfers are an option
  • Ability to round up purchases to the nearest dollar and move money to savings automatically
  • 4.35% (as of Mar. 4, 2024) APY
  • No monthly maintenance fees
  • $0 minimum opening deposit
  • Savings account available for kids
  • Multiple Performance Savings accounts allow you to manage different financial goals
  • Fund transfers are easy
  • Automatic savings plan allows you to grow your savings account balance effortlessly.

Ally Bank vs. Capital One 360: CDs

With CDs, you'll want to compare the term length so you know how long your money will be tied up, the APY you are offered for investing, and the minimum amount you must deposit to invest.

Ally offers a High-Yield CD, Raise Your Rate CD, and a No Penalty CD, so it’s more flexible than Capital One 360 when it comes to CD options and term length.

Ally Bank CDs: Capital One 360 CDs:
  • High-Yield CD terms range from 3 months to 5 years and earn up to 5.15% (as of Sep. 18, 2023) APY
  • Raise Your Rate CD offers a 2-year or 4-year term, and starting APY is 4.00% (as of Oct. 17, 2023)
  • No Penalty CD allows you to withdraw funds penalty-free after being invested for as little as 6 days, and offers an APY of 4.55% (as of Oct. 17, 2023)
  • No monthly maintenance fees
  • No minimum balance required to invest
  • CD rates range from 6 months to 60 months
  • APY ranges from 4.10%-5.25% (as of Sep. 7, 2023) depending on length of term
  • No monthly maintenance fees
  • No minimum balance required to invest

Ally Bank vs. Capital One 360: MMAs

Ally Bank offers a money market account, but Capital One 360 doesn’t. When choosing an MMA, consider the rate, fees, and minimum balance requirements.

Ally Bank MMAs: Capital One 360 MMAs:
  • 4.40% (as of Oct. 17, 2023) APY
  • No monthly maintenance fees
  • No minimum balance requirements
  • N/A

3 important differences between Ally Bank and Capital One 360

Here are some of the biggest differences between Ally Bank vs. Capital One 360.

1. Capital One offers dedicated account options for kids and teens

Ally offers only one checking account option, while Capital One provides a dedicated MONEY Teen Checking Account as well as a Kids Savings Account. Parents will appreciate being able to teach their children about money with these joint accounts that come with no fees and offer kid-friendly features such as an easy-to-use mobile app.

While Ally does allow custodial accounts, parents focused on teaching their children about smart money management will appreciate Capital One's more specialized offerings.

Winner: Capital One because two accounts for kids is better than none

2. Ally Bank offers better savings options for people who don't want to lock up their money

Capital One doesn’t offer an MMA, and the shortest available CD term is six months.

Ally provides an MMA with a competitive APY as well as a CD that comes with no penalties and enables you to withdraw money after just six days. Those who want more flexibility but the higher yields that a CD or money market account can offer will prefer Ally's selection of offerings.

Winner: Ally because of its penalty-free CD and money market account, neither of which Capital One offers

3. Ally and Capital One 360 provide different access to ATMs and customer support

Capital One has 281 local branches and cafes for customers looking for in-person support and a network of 70,000+ fee-free ATMs.

Ally Bank doesn’t have any local branches but provides 24/7 phone support. And while Ally's network of ATMs is smaller at just 43,000+ ATMs, Ally does reimburse for up to $10 monthly in out-of-network ATM fees, while Capital One doesn’t reimburse for any out-of-network ATM fees.

Winner: Ally because 24/7 phone support and ATM fee reimbursement both provide more flexibility in how you access assistance or your cash

Which company should you choose?

When you should choose Ally Bank

  • If you want a penalty-free CD
  • If you want to use out-of-network ATMs without paying fees
  • If you prefer phone support to in-branch assistance
  • If you want to invest in a money market account

When you should choose Capital One 360

  • If you want to open a checking account for your teen or a savings account for your child
  • If you want in-person customer support
  • If you want access to more in-network ATMs

What factors to consider before choosing

Both Ally and Capital One 360 are great options if you’re looking for limited fees for checking or savings accounts offering a competitive APY. But to decide which bank is best for you, you'll need to consider what's most important to you.

  • Do you want to be able to use any ATM? Ally Bank could be a better option as you get reimbursed for out-of-network ATM fees.
  • Are you a parent who wants to teach their kids about money? Capital One offers accounts for kids and teens that make it easy to develop smart money habits when they’re young.
  • Do you want penalty-free CDs or an MMA? Ally Bank offers both, while Capital One offers neither.
  • Do you want in-person customer support? Capital One offers it at local branches, while Ally Bank offers only phone and web support.

Ally vs. Capital One 360 FAQ

What is the downside of Ally Bank?

The downside of Ally Bank is that the bank doesn’t have any in-person branches. You won’t have support from someone you can talk to at a local branch, nor will you get the other benefits of a local bank such as access to a notary or to a safety deposit box.

What are the differences between Ally and Capital One?

Ally and Capital One differ in their ATM networks. Capital One offers access to 70,000+ ATMs while Ally offers only 43,000+. However, Ally reimburses out-of-network ATM fees, and Capital One doesn’t.

Access to local branches is another important difference. Capital One has physical locations, but Ally Bank is online only.

Finally, Capital One provides access to checking and savings accounts for kids and teens, which Ally doesn't have, but Ally offers an MMA and penalty-free CD, which Capital One doesn’t make available.

What is better than Ally Bank?

The right bank for you depends on your goals. If you’d prefer in-person support or a larger ATM network, Capital One 360 may be a better banking option than Ally Bank.

Ally Bank vs. Capital One 360: bottom line

Both Capital One and Ally offer great checking and savings account options, and they’re both FDIC insured. If you want phone support, a penalty-free CD, or an MMA, Ally is your best bet. If you want in-person customer support or checking or savings accounts for kids and teens, Capital One 360 is the right choice for you.

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Author Details

Christy Rakoczy Christy Rakoczy has a Juris Doctorate from UCLA Law School with a focus in Business Law, and a Certificate in Business Marketing with an English Degree from The University of Rochester. As a full-time personal finance writer, she writes about all things money-related but her special areas of focus are credit cards, personal loans, student loans, mortgages, smart debt payoff strategies, and retirement and Social Security. Her work has been featured by USA Today, MSN Money, CNN Money and more, and you can learn more at her LinkedIn profile.

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