Ally vs. Capital One 360: Which Bank Is Better for You?

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Ally Bank and Capital One 360 are two of the best-known online banks. But which one is best for you? Read on to find out how they compare on rates, features and benefits.

About Ally Bank

Ally Bank is owned by Ally Financial, which has a total net worth of $6.71 billion. Ally Bank offers checking, savings, money market accounts, CDs, home loans and even has an investment arm that provides self-directed trading for stocks and ETFs. It has also been named Best Online Bank in GOBankingRates’ annual Best Banks rankings.

About Capital One 360

Capital One 360 is the online arm of Capital One Bank, offering checking, savings and high-yield CDs along with the convenience and personal service of in-person branches or Capital One Cafes. In late 2022, Capital One reported a net income of $1.16 billion. Capital One has also been named one of the Best Banks of 2023 in GOBankingRates’ annual rankings.

Ally vs. Capital One 360: At a Glance

Here is a quick look at how these two banks compare.

Feature Capital One Ally Bank
Interest Checking No fees or minimums, APY No fees or minimums, up to APY
Savings APY, no fees or minimums APY, no fees or minimums
CDs Terms from 6 to 60 months, APYs range from to Terms from 3 months to 5 years. APYs from to
Money Markets No Yes
FDIC Insured Yes Yes
ATM Network 70,000+ ATMs -43,000+ ATMs through AllPoint Network
-$10 fee reimbursement for out-of-network ATMs
In-person Branches Yes No
Checking and Savings for Kids and Teens Yes No
Early Direct Deposit Yes Yes
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Ally Bank Interest Checking

Ally Bank’s Interest Checking has everything you could ask for in an online checking account, including free ATM access through the AllPoint network, plus up to $10 in reimbursements for using out-of-network ATMs that may collect their own fees.

Ally Bank offers some of the highest interest rates for a checking account, with a APY for balances under $15,000 and APY for balances above that. There are no fees, minimum balance requirements or minimum opening deposit required to open an account.

Spending buckets for checking and savings make it easy to track your spending and maintain a budget.

Capital One 360 Checking

Capital One’s 360 Checking is an online, interest-earning checking account that also provides personalized service at local Capital One branches. The checking account has no fees, no minimum balance requirements or required minimum opening deposit, and it pays interest on all balance tiers.

You can use Capital One or AllPoint ATMs with no fees. Capital One does not charge for out-of-network ATM use, but also does not reimburse fees charged by out-of-network ATMs.

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You can deposit money into your account at CVS locations, in branches, at ATMs or through mobile check deposits.

Ally Bank Savings Accounts

Ally Bank offers two savings accounts: a regular savings account and a money market account. The bank’s Online Savings account delivers an APY of with no fees and no minimum requirements. Features like recurring transfers, round-ups on purchases and “surprise savings,” can make it even easier for you to save money.

Ally Bank’s Money Market account offers APY on all balance tiers. There is no monthly maintenance fee, no overdraft fees, and — for the time being — the bank is also refunding excessive transaction fees, which are permitted by law.

Capital One 360 Performance Savings

Like Ally, the Capital One 360 Performance Savings account has no monthly maintenance fees and no minimum balance requirements. Rather than using buckets to separate your savings for different purposes, you can open multiple accounts to track and achieve your financial goals. The account lets you schedule automatic transfers, as well. Capital One 360 Performance Savings offers a APY.

Ally Bank CDs

Ally Bank offers a wide variety of CDs, including High Yield CDs, Raise Your Rate CDs and No Penalty CDs. APYs range from for a three-month CD up to for an 18-month CD.

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The Raise Your Rate CD account lets you increase your APY if the rate goes up once during the two-year term or twice during a four-year term. The No Penalty CD allows you to withdraw all your money at any time after the first six days of funding the account with no penalties. You can also keep the interest you earned, which makes this CD a great place to save money for an emergency.

Capital One 360 CDs

With terms starting at six months, Capital One 360 CDs offer a flexible savings vehicle to earn high interest if you’re saving for a specific event. The bank’s two-year CDs offer a APY, with no minimum balance to open an account.

Who Is Ally Bank Best For?

Ally Bank is best for those seeking an online-only bank with excellent interest rates and many ways to save.

Who Is Capital One 360 Best For?

Capital One 360 is best for customers who want the personalized service of in-person banking combined with the high interest rates associated with an online bank. Families with children may want to consider Capital One 360 for its checking and savings products for children and teens, as well.

Final Take

Both of these banks have a long-standing history and offer a variety of accounts that are bound to fit most banking needs. When picking one over the other, you should consider what is most important to you, whether that is specific accounts, ATM availability or having in-person access to your accounts.

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More on Ally Bank

More on Capital One Bank

FAQ

Here are the answers to some of the most frequently asked questions regarding Ally vs. Capital One 360.
  • Which is better: Capital One or Ally Bank?
    • Both Capital One and Ally Bank are reputable, FDIC-insured financial institutions. Both banks have a variety of products delivering high interest rates. Whether you are looking for a bank with a brick-and-mortar presence or not may influence your decision to choose Capital One over Ally.
  • What are the disadvantages of Ally Bank?
    • As an online-only bank, Ally Bank has no brick-and-mortar presence. While there are no monthly maintenance fees and no minimum balance requirements, there are a few fees associated with wire transfers. Additionally, you may have early withdrawal penalties for closing a CD early.
  • What are the cons of Capital One 360 Checking?
    • A con of the Capital One 360 Checking account would be the fees for outgoing wires and a few other services. You can also find online checking accounts with higher interest rates than Capital One's current offering.
  • Are Ally and Capital One the same?
    • Ally and Capital One are not the same. They are two different financial institutions, both offering checking, savings, CDs, mobile banking and more.

Rates are subject to change; unless otherwise noted, rates are updated periodically. All other information on accounts is accurate as of March 20, 2023. 

Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.

Our in-house research team and on-site financial experts work together to create content that’s accurate, impartial, and up to date. We fact-check every single statistic, quote and fact using trusted primary resources to make sure the information we provide is correct. You can learn more about GOBankingRates’ processes and standards in our editorial policy.

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About the Author

Dawn Allcot is a full-time freelance writer and content marketing specialist who geeks out about finance, e-commerce, technology, and real estate. Her lengthy list of publishing credits include Bankrate, Lending Tree, and Chase Bank. She is the founder and owner of GeekTravelGuide.net, a travel, technology, and entertainment website. She lives on Long Island, New York, with a veritable menagerie that includes 2 cats, a rambunctious kitten, and three lizards of varying sizes and personalities – plus her two kids and husband. Find her on Twitter, @DawnAllcot.
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