When it comes to choosing a bank, the options can be overwhelming. Ally Bank and Capital One 360 are two popular choices, each with its own set of features and benefits. In this article, we will compare these two banks to help you decide which one might be the best fit for your financial needs.

What to Know About Ally Bank?

With a healthy overall net worth of $6.71 billion, Ally Bank, a division of Ally Financial, is a major force in the financial industry. In addition to savings and checking accounts, money-market funds, certificates of deposit (CDs), house loans, and investment options, the bank offers a wide range of other financial products and services.

Interestingly, Ally Bank has expanded its services to include an exchange-traded fund (ETF) and a self-directed stock trading platform, enabling users to make investments. The bank was named the Most Outstanding Online Bank in GOBankingRates' yearly Best Banks rankings because of its increased recognition for its secure online banking and customer-centric philosophy.

Pros of Ally Bank

Absolute ATM Access

By waiving withdrawal fees, Ally Bank offers a wide range of ATM access. Roughly 40,000 Allpoint ATMs are free to use, and Ally will reimburse users for up to $10 in fees from residential out-of-network ATMs each month.

Better Mobile Application

In comparison to Capital One 360's limitations, the upgraded Ally mobile app offers better functionality and ease of use, including a higher mobile depositing limit of $50,000 per day or $250,000 per 30 days. For Microsoft users, the app is available through the Windows store.

Cons of Ally Bank

No Fixed Address

People who like in-person banking may find it inconvenient that there are no real bank locations. Proof of address and identity may also need to be mailed to open an account, which worries some consumers about document security.

Overdraft Charge of $25

Despite Ally's best efforts to avoid overdrafts, if there isn't an affiliated Ally savings plan or enough money to pay the overdraft, there will be a $25 overdraft fee. For as long as the account is in the negative, this fee is charged once every day.

What Is Capital One 360?

Offering a range of financial products and services, Capital One 360 is the online banking arm of Capital One Bank. These products and services include high-yield certificates of deposit (CDs), savings accounts, and checking accounts.

What makes Capital One 360 unique is its dedication to offering clients a flexible banking experience by fusing the ease of online banking with the accessibility of in-person services through branches or Capital One Cafes. Capital One recorded a net income of $1.16 billion for the fiscal period ending in late 2022, demonstrating the stability and strength of its finances.

As a result of the bank's achievements, GOBankingRates has recognized it as one of the Best Banks of 2023. This recognition demonstrates Capital One 360's commitment to providing affordable financial solutions and upholding its stellar reputation in the banking sector.

Pros of Capital One 360

Large ATM Access

Capital One 360 provides access to 2,000 Capital One and partner ATMs in addition to about 40,000 Allpoint ATMs. They do not charge for using domestic ATMs outside of their network, but they also do not reimburse ATM firms' fees.

No Standard Overdraft Fee

Capital One 360 doesn't charge a typical overdraft fee. As an alternative to conventional overdraft costs, they provide consumers the opportunity to borrow money at a reduced interest rate.

Cons of Capital One 360

Savings APY

Capital One 360 has a lower savings account APY than certain other online banks, including Ally, even if it is still higher than that of major banks.

Charge for Checkbooks

Capital One 360 charges $5 for each checkbook after the first fifty are processed. Those who write checks on a regular basis, especially small business owners or elderly people, may find this troubling.

Comparing Capital One 360 vs. Ally

To assist you in selecting the banking option that best suits your needs, let's examine a head-to-head comparison.

Checking Accounts: Capital One 360 vs. Ally

Both Ally and Capital One 360 provide user-friendly checking account alternatives with no monthly fees and no minimum starting deposit when compared to one another. Ally offers a flat Annual Percentage Yield (APY) of 0.10%, while Capital One 360 offers an APY structure with a higher 0.25% on balances of $15,000 or more and 0.10% on balances under $15,000.

About ATM access and fees, Ally reimburses up to $10 monthly for domestic out-of-network ATM fees and offers free use of over 43,000 Allpoint ATMs.However, Capital One 360 provides free access to more than 70,000 ATMs and does not charge for utilizing ATMs that are not part of the network. However, the owner of the ATM may charge a fee. A sign-up bonus is not offered by either account.

Capital One 360 vs. Ally: Savings Accounts

Again, offering competitive options with a 4.35% APY on all balances, Ally and Capital One 360 are good choices for savings accounts. There are no monthly fees or minimum deposits needed to open either account. Furthermore, no sign-up bonuses are available for these accounts. All things considered, both banks offer a competitive savings account choice with appealing interest rates.

Certificates of Deposit in Ally v. Capital One 360

Regarding certificates of deposit (CDs), Ally and Capital One 360 have a $0 minimum required opening deposit. Both banks provide the same APY (5.00%) on one-year term CDs. Ally offers an APY on three-year term CDs that is somewhat higher than Capital One 360's 4.10% APY.

On the other hand, both banks offer the same APY (4.00%) on five-year term CDs. Those who are interested in CDs can discover attractive possibilities at Capital One 360 or Ally, with somewhat differing rates for varying term durations.

The Bottom Line!

Choosing between Ally Bank and Capital One 360 depends on your unique financial priorities. If high interest rates and a robust mobile app are your top priorities, Ally Bank might be the better fit. On the other hand, if you value the convenience of an extensive ATM network and want to integrate various financial products seamlessly, Capital One 360 could be the right choice.