Banking Checking Accounts

Chime® vs. Ally: Which Online Bank Deserves Your Business?

Chime® and Ally have plenty in common, but Ally tends to win the race with its larger account selection and savings features.

Updated Sept. 13, 2024
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Chime®
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    No monthly fees or minimum balance requirements
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    Early access to direct deposits1
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    Fee-free overdraft up to $200 for eligible members
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    Large network of fee-free ATMs
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    Automatic savings features
VS
Ally Bank
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    Relatively high APY
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    No monthly maintenance fees or minimum deposit
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    Multiple features to help organize and maximize savings
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    24/7 customer service
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Our view

I’m all about banking online today, not only for the convenience, but also for the lower fees and higher APYs. Chime®2 and Ally are fierce competitors, but I strongly think Ally takes the cake.

Unless you just need a basic checking account and don’t care about earning interest, Ally offers an interest-bearing checking account, plus many other options to grow your money, including CDs and traditional investment accounts.

How we evaluate products

Chime vs. Ally comparison

Chime Ally
Number of fee-free ATMs 60,000+3 43,000+
Products offered
  • Chime® Checking account
  • Chime high yield savings account4
  • Secured Chime Credit Builder Visa® Credit Card56
  • Checking
  • Savings
  • Money markets
  • CDs
  • Credit cards
  • Investment accounts
  • Mortgage loans
  • Auto loans
  • Personal loans
Checking APY None 0.25% (as of 06/26/24) annual percentage yield (APY)7
Savings APY 2.00% (as of Sept. 9, 2024) 4.20% (as of 08/09/24)
Best features
  • SpotMe® Overdraft Coverage8
  • Early direct deposit access 9
  • Cashback deals in the Chime app
  • Second chance banking
  • Overdraft protection with CoverDraft
  • Early access to direct deposit
  • Savings buckets for savings goals
Best for Easy access to your money via ATMs and mobile banking services3 Earning interest on your money
Visit Chime Visit Ally

When to go with Chime

Both Chime and Ally don’t charge monthly maintenance fees or have minimum deposit requirements, but you may consider Chime if:

  • You need a more robust ATM network
  • You want your federal tax refund early
  • You want to earn cash back

You need a large ATM network

Both Chime and Ally use the Allpoint network, but Chime also uses the MoneyPass and Visa Plus Alliance networks. So rather than access to only 43,000 ATMs, you could have access to over 60,000 ATMs.3

This is a nice feature since Chime charges a $2.50 out-of-network fee if you use an ATM outside the network.

You want your federal tax refund early

Along with early direct deposit of your paycheck, Chime offers early access to your federal tax refund, usually up to six days early. Chime will even alert you when the money hits your account so you know when you have it.

You want to earn cash back

Chime offers cash back on everyday purchases through the Chime app, called Chime Deals™. Before shopping, simply browse the app and activate the deal you want. There are often deals on groceries, gas, and local restaurants. Be careful — each deal has an expiration, so be sure you complete the purchase before it expires.

To get the deal, you must check out with your Chime Visa debit card or Secured Chime Credit Builder Visa. You’ll receive any cashback earned within 10 days in your Chime account.10

When to go with Ally

  • You might use ATMs outside the network
  • You have several savings goals
  • You want to invest

You need access to out-of-network ATMs

Chime charges a fee of $2.50 to use out-of-network ATMs, plus you must pay whatever fee the ATM provider charges. Ally, however, reimburses you for any out-of-network ATM fees up to $10 per month. If you travel frequently or know you’ll need easy access to an ATM and might need to go out of network, Ally may be a better option to keep more money in your pocket.

You have many savings goals

Ally’s high-yield savings account offers the option to set up savings buckets. You can think of savings buckets as digital envelopes to set money aside for specific goals. For example, if you’re saving up for vacation, an emergency fund, and to buy a new household appliance, you can set up three different buckets so you can see how close you are to each goal.

You want to invest, not just save

Ally offers more than just a savings account. While their high-yield savings account pays a healthy APY, they also offer a money market account and CDs, each of which pay high yield rates, helping you earn more interest.

Ally also offers two traditional investing accounts:

  • Automated investing: Ally manages this built-for-you portfolio, so all you have to do is deposit the funds in the account and ensure it aligns with your goals.
  • Self-directed investing: You can set up and manage your own investment account, including stocks, bonds, and ETFs.

Key differences between the two

Ally and Chime have a lot in common as online-only financial institutions with minimal fees, but there are differences that can make one better than the other for you.

APYs on savings and checking products

Both Chime and Ally offer accounts that earn you interest, but they do so in different ways. Chime offers interest just on its savings account and caps rates at 2.00% (as of Sept. 9, 2024) APY.11 This is a decent rate, but not a great one.

Ally offers interest on both its savings and checking accounts. Its checking APY is low at just 0.25% (as of 06/26/24), but considering most checking accounts offer no interest at all, Ally’s is one of the best checking accounts around. Ally’s APY is much higher at 4.20% (as of 08/09/24) for its savings account.

Winner: Ally is the clear winner when it comes to offering interest because it provides higher rates on both its savings and checking products.

Number and type of accounts

Chime and Ally offer basic checking and savings accounts, but Ally goes above and beyond with a much larger account selection, including:

  • Money market
  • High-yield CD
  • Raise your Rate CD
  • No Penalty CD
  • Four credit cards
  • Automated investing
  • Self-directed investing

Winner: If you’re looking for more than a checking or savings account, Ally is the clear winner. However, Chime does a great job with its checking and savings accounts.

Automatic savings

Saving money is easy with both Chime and Ally. Both offer automatic savings features like round-ups that help put savings on autopilot.12 Chime also offers the ability to move a percentage of money over to savings each paycheck.

But Ally steps up its saving features, surprising you with extra savings when your budget allows. Ally carefully looks at your spending and finds small amounts of money to move to savings from time to time. Ally also helps you save for individual goals through savings buckets, but the high 4.20% (as of 08/09/24) APY applies to your total balance, so those savings buckets won't affect your compound interest earnings.

Winner: Ally comes out slightly on top, offering a few extra features that make saving uncomplicated.

FAQ

Is Chime worth banking with?

Absolutely. Chime is a worthwhile fintech company for customers looking for an easy-to-use mobile banking experience. No monthly fees make it a popular option, as proved by the millions of customers currently using Chime.

What is Ally’s biggest downside?

Ally’s biggest drawback is the criteria for its checking account. While its checking offer seems appealing at first, you can only earn the highest APY if you have a balance of over $15,000.

What is the downside of Chime?

Unlike many fintech companies that offer APYs in the 4% to 5% range, Chime caps its savings APY at just 2.00% (as of Sept. 9, 2024) — respectable but not the highest in the biz.11

Bottom line

The best financial companies give you a combination of compelling features that make managing your money easy. While Ally and Chime each fit the bill, Ally has a bit more to offer customers, especially if you want a one-stop shop for all your banking needs, or earning interest on your checking account balance is important to you.

That doesn’t mean Chime doesn’t have its benefits, though. Chime stands out for its credit-build focus, offering one of the only no-annual-fee, no-security-deposit, and no-credit-check secured credit cards.13 Paired with its savings APY and huge ATM network, a variety of customers will find a lot to appreciate.3 (Note that you can only open a savings account if you have a checking account.)

Ally takes the cake because it focuses on providing the highest APYs on both checking and savings products. It also provides extra features like overdraft protection and savings buckets to help you meet your savings goals.

Author Details

Christopher Murray

Christopher Murray is a seasoned personal finance writer with a passion for empowering individuals to achieve financial independence while embracing sustainable practices. Over the last few years, he has focused on various facets of personal finance—specifically saving, budgeting, investing (with an emphasis on alternative investments), credit building, and sustainability.

Author Details

Samantha Hawrylack

Samantha Hawrylack is a writer with more than five years of experience. Her work has been published in Newsweek, MarketWatch, USA Today, Rocket Mortgage, BiggerPockets, Crediful, and many more. She holds a Bachelor of Science in Finance and a Master of Business Administration from West Chester University of Pennsylvania, and she was previously a brokerage investment professional with Series 7 and 63 licenses at Vanguard.