Ally vs Capital One 360: Which Online Bank is Better?

Online banking has become a popular way for people to manage their finances without ever having to step into a physical bank. Two of the most well-known online banks are Ally and Capital One 360. But which one is better? In this article, we’ll take a closer look at Ally vs Capital One 360 to help you decide which one is right for you.

Ally vs Capital One 360: Which Online Bank is Better?

Overview of Ally

Ally, formally known as GMAC Bank, was founded in 1919 and rebranded as Ally Bank in 2009. It’s an online-only bank that offers a full range of financial products, including checking accounts, savings accounts, money market accounts, CDs, and IRAs.

One of the most significant benefits of banking with Ally is its high-interest rates on savings accounts and CDs. Additionally, it doesn’t charge any monthly maintenance fees or minimum balance requirements for its accounts.

Overview of Capital One 360

Capital One 360 was launched in 2013 after Capital One acquired ING Direct. Like Ally Bank, Capital One 360 is an online-only bank that provides customers with access to a full array of banking products.

Capital One’s biggest advantage over other online banks like Ally is its nationwide network of ATMs. Customers have access to over 39,000 ATMs throughout the U.S., making it easy to withdraw cash without worrying about paying ATM fees.

Interest Rates

When it comes to interest rates on savings accounts and CDs, both banks offer competitive rates that are much higher than those offered by brick-and-mortar banks.

As previously mentioned, one of the big selling points of Ally Bank is its impressive rates on savings accounts and CDs. Currently, the APY on Ally’s high-yield savings account is between .50% – .60%, depending on your balance.

Capital One also offers competitive interest rates, with its savings account offering an APY between .40% – .50%. However, Capital One 360’s CDs offer a much lower rate than Ally Bank’s.

Fees

Another crucial factor to consider when comparing online banks is the fees they charge. Both Ally and Capital One 360 are fee-friendly online banks that don’t impose any monthly maintenance or service charges.

With Ally Bank, there are no minimum balance requirements for its accounts. In comparison, Capital One 360 requires customers to maintain a specific balance ($500 in a checking account) to avoid monthly fees.

Mobile App

In today’s digital age, many people rely on mobile banking apps to manage their finances. Both banks offer robust mobile apps that allow customers to perform various banking activities quickly and easily.

Ally’s app has a clean and straightforward interface that enables users to check their balances, transfer funds, deposit checks and pay bills from anywhere. The app also features an “Ally Assist” chatbot that can help answer questions and provide support quickly.

Capital One 360’s mobile app is just as intuitive and user-friendly as Ally’s. It comes with all the essential features like mobile deposit capture, bill pay capabilities, account alerts and money transfers making it an excellent choice for those who prefer doing most of their banking through their phones.

Customer Service

Good customer service is essential when choosing the right bank. As online-only banks, both Ally and Capital One 360 have invested heavily in providing excellent customer service options for their customers.

Both banks offer 24/7 phone support, email support options as well as live chat services available during business hours.

Additionally, both banks have extensive knowledge bases available on their websites that include frequently asked questions (FAQs), articles explaining how various products work & tutorials on using mobile banking apps or managing your accounts online without visiting a physical branch office.

Account Features

When it comes to account features, Ally Bank and Capital One 360 offer similar options. Both banks provide several checking account choices, including interest-bearing accounts, as well savings accounts and CDs with high-interest rates.

One key difference between the two is that Ally Bank also provides a money market account which pays interest but also comes with check writing capabilities – an option that isn’t available through Capital One 360.

Final Thoughts

Overall, both Ally and Capital One 360 are excellent online banking options for individuals looking to manage their finances without having to visit a physical branch or pay monthly fees.

Ally offers higher interest rates on savings and CDs than Capital One does making it a preferred choice for savers looking for better returns. It also doesn’t require any minimum balance to maintain its accounts. On the other hand, Capital One 360 stands out with its nationwide ATM network making cash withdrawals more accessible and convenient for customers.

Ultimately, your preference will depend on what factors matter more to you personally. We encourage you to compare all the features carefully before choosing your favored online bank – regardless if it is Ally or Capital One 360 or another institution altogether!

FAQs

What are the fees for using Ally and Capital One 360?

Both banks offer no monthly maintenance fees or minimum balance requirements.

Which bank has better interest rates for savings accounts?

Ally currently offers a higher interest rate for savings accounts at 0.50% compared to Capital One 360’s rate of 0.40%.

Can I deposit cash into my account with either Ally or Capital One 360?

Unlike traditional brick-and-mortar banks, both online banks do not have physical branches which makes it difficult to deposit cash. However, Capital One 360 offers in-person cash deposits at select ATMs and retail locations while Ally offers a mobile check deposit feature.

What are the ATM fee reimbursements for these online banks?

Ally reimburses up to $10 per statement cycle for any out-of-network ATM fees while Capital One 360 does not charge any ATM fees but doesn’t offer reimbursements either.

Are there any overdraft fees with either of these online banks?

Both Ally and Capital One 360 offer overdraft protection where they transfer funds from a linked account or line of credit without charging a fee. However, if there are insufficient funds in the linked accounts, a fee may be charged by the financial institution providing the backup funding.

How long does it take for checks to clear with either bank?

Generally, both banks state that checks will clear within two business days but it can take longer depending on various factors such as the amount of the check and verification processes.

Can I open multiple accounts with either bank?

Yes! Both Ally and Capital One 360 allow customers to open multiple savings and checking accounts under one login for easy management.

What types of investment options are available with these online banks?

Capital One 360 offers investment and retirement accounts while Ally offers a range of investment options such as stocks, bonds, and mutual funds through their self-directed trading platform.

Do either banks offer credit cards?

Capital One 360 offers a variety of credit cards with rewards programs while Ally does not currently offer any credit cards.

How is customer service with these online banks?

Both Ally and Capital One 360 offer customer service 24/7 via phone, email, and chat. However, some customers have reported longer wait times with Capital One 360 compared to Ally.

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