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.

By Christopher Murray
and Samantha Hawrylack

Edited by Melinda Sineriz, ABFP™

Updated Dec. 17, 2024

4.6

No monthly fees or minimum balance requirements
Early access to direct deposits¹ Early access to direct deposit funds depends on the timing of the submission of the payment file from the payer. We generally make these funds available on the day the payment file is received, which may be up to 2 days earlier than the scheduled payment date.
Fee-free overdraft up to $200 for eligible members
Large network of fee-free ATMs
Automatic savings features

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 Chime is a financial technology company, not a bank. Banking services and debit card provided by The Bancorp Bank, N.A. or Stride Bank, N.A.; Members FDIC.  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 <p>Out-of-network ATM withdrawal and over the counter advance fees may apply except at MoneyPass ATMs in a 7-Eleven, or any Allpoint or Visa Plus Alliance ATM.</p>	43,000+
Products offered	Chime® Checking account Chime high yield savings account⁴ <p class="">Chime Checking Account is required to be eligible for a Savings Account.<br></p> Secured Chime Credit Builder Visa® Credit Card⁵ <p>The secured Chime Credit Builder Visa® Credit Card is issued by The Bancorp Bank, N.A. or Stride Bank, N.A., pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa credit cards are accepted. Please see the back of your card for its issuing bank.  To apply for Credit Builder, you must have an active Chime® Checking Account.</p>	Checking Savings Money markets CDs Credit cards Investment accounts Mortgage loans Auto loans Personal loans
Checking APY	None	0.25% (as of 10/28/24) annual percentage yield (APY)⁶ <p class="">The product and annual percentage yield (APY) data displayed on this website is gathered from various sources and may not reflect all of the offers available in your area. Although we strive to provide the most accurate data possible, we cannot guarantee its accuracy. Always verify account details and availability with the financial institution before opening an account.<br></p>
Savings APY	2.00% (as of Sept. 9, 2024)	4.00% (as of 10/28/24)
Best features	SpotMe® Overdraft Coverage⁷ <p>SpotMe® for Credit Builder is an optional, no interest/no fee overdraft line of credit tied to the Secured Deposit Account; SpotMe on Debit is an optional, no fee service attached to your Chime Checking Account (individually or collectively, “SpotMe”). Eligibility for SpotMe requires $200 or more in qualifying direct deposits to your Chime Checking Account each month. Qualifying members will be allowed to overdraw their Chime Checking Account and/or their Secured Deposit Account up to $20 in total, but may be later eligible for a higher combined limit of up to $200 or more based on member’s Chime account history, direct deposit frequency and amount, spending activity and other risk-based factors. Your SpotMe Limit will be displayed to you within the Chime mobile app. You will receive notice of any changes to your SpotMe Limit. Your SpotMe Limit may change at any time, at Chime or its banking partners’ discretion. Although there are no overdraft fees, there may be out-of-network or third party fees associated with ATM transactions or OTC cash withdrawal fees at retailers. SpotMe won't cover non card transactions, including ACH transfers, Pay Anyone transfers, or Chime Checkbook transactions. <a href="https://www.chime.com/policies/">SpotMe on Credit Builder Terms and Conditions</a>.</p> Early direct deposit access ¹ <p> Early access to direct deposit funds depends on the timing of the submission of the payment file from the payer. We generally make these funds available on the day the payment file is received, which may be up to 2 days earlier than the scheduled payment date.</p> 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 <p>Out-of-network ATM withdrawal and over the counter advance fees may apply except at MoneyPass ATMs in a 7-Eleven, or any Allpoint or Visa Plus Alliance ATM.</p>	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 Out-of-network ATM withdrawal and over the counter advance fees may apply except at MoneyPass ATMs in a 7-Eleven, or any Allpoint or Visa Plus Alliance ATM.

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.⁸ Eligibility requirements and limits apply. See the Chime app for details. <a href="https://www.chime.com/chime-deals-terms/">Terms and Conditions</a>.

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.⁹ The Annual Percentage Yield (“APY”) for the Chime Savings Account is variable and may change at any time. The disclosed APY is accurate as of September 20, 2023. No minimum balance required. Must have $0.01 in savings to earn interest.  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 10/28/24), 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 4.00% (as of 10/28/24) 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.¹⁰ Round Ups automatically round up debit card purchases to the nearest dollar and transfer the round up from your Chime Checking Account to your savings account.  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 4.00% (as of 10/28/24) 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.⁹ The Annual Percentage Yield (“APY”) for the Chime Savings Account is variable and may change at any time. The disclosed APY is accurate as of September 20, 2023. No minimum balance required. Must have $0.01 in savings to earn interest.

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.¹¹ Money added to Credit Builder will be held in a secured account as collateral for your Credit Builder Visa card, and you can spend up to this amount. You can use money deposited in your Secured Deposit Account to pay off your charges at the end of every month. Paired with its savings APY and huge ATM network, a variety of customers will find a lot to appreciate.³ Out-of-network ATM withdrawal and over the counter advance fees may apply except at MoneyPass ATMs in a 7-Eleven, or any Allpoint or Visa Plus Alliance ATM. (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.