When it comes to online banking both Ally and Capital One 360 should be top of the list. Ally is an online-only bank while Capital on 360 is the online operation of Capital One. Both these online banking service providers offer various excellent banking services to their users.
Key Takeaways
- Ally Bank is USA’s most trusted online bank with more than 1 million account holders
- Capital One 360 is an online bank and provides its banking service to the customers like any other online bank
- Both Ally bank and Capital One 360 don’t have any type of account maintenance fees
- Ally savings account has 0.50% APY on all balances while Capital One 360 savings account has 0.40% APY on all balances
Overview of Ally Bank
Ally Bank is America’s one of the leading online-only banks. In fact, it is USA’s most trusted online bank. This bank has more than 1 million account holders who have taken advantage of its interest-paying checking and savings accounts. Apart from that Allay bank also offers mortgage and auto loans to its users. One of the many reasons people prefer Ally for an online banking solution over other banks is its no-fee policy. If you have an Allay account then you don’t have to pay any pesky maintenance fees. Moreover, Ally’s savings accounts provide generous interest payouts which are very rare for other online banks. Ally Bank was founded in 2009 and it has a long history of over 100 years of providing financial service to Americans.
Overview of Capital One 360
Capital one bank was established in 1995 and initially, it was only providing credit card service to its customers. Later in 2012, Capital One bank bought the ING Group’s banking operations and launched Capital One 360, the online banking activities of Capital One bank. Capital One 360 basically works like an online bank and provides its banking service to the customers like any other online bank. Though Capital One 360 bank has some brick-and-mortar branch locations but it still offers banking services in line with other online banks. Moreover, like the Ally bank, Capital One 360 also doesn’t have any type of account maintenance fees!
Comparison between Ally and Capital One 360
| Type | Ally Bank | Capital One 360 |
| Rating | 8/10 | 7.5/10 |
| Savings | 0.50% APY | 0.40 APY |
| CD | 0.15% to 1.20% APY. Terms of 3 months to 5 years. 12-month CD APY of 0.75% | 0.25% to 1.20% APY. Terms of 6 months to 5 years. 12-month CD APY of 0.80% |
| Checking | 0.10% APY for daily balances less than $15,000. 0.25% APY for daily balances over $15,000 | 0.10% APY |
| Money Market | 0.50% APY | N/A |
| Customer Service | 24/7 | 24/7 |
| ATMs | Over 43,000 no-fee All point ATMs | Over 40,000 no-fee Capital One & All point ATMs |
| IRA CD | N/A | 0.25% to 1.20% APY. Terms of 6 months to 5 years. 12-month CD APY of 0.80%. |
| Locations | Online Only | Online Only |
| Mortgage | Yes | No |
| Business Loans | No | Yes |
| Minimum Deposit | No minimum deposit | No minimum deposit |
| Fees | $0 | $0 |
| Checking Needed | No | No |
Savings Account Comparison between Ally and Capital One 360
The savings account of Ally and Capital One 360 are quite similar. Both Ally and Capital One 360 offer free accounts and require no minimum deposits. But there are some significant differences. For example, Ally offers 0.50% APY while Capital One 360 offers 0.40% APY. Apart from that Capital One 360 account has more features than the Ally savings account.
| Type | Ally Savings Account | Capital One 360 Savings Account |
| APY | 0.50% APY on all balances | 0.40% APY on all balances |
| Fees | $0. | $0. |
| Minimum Deposit | No minimum deposit | No minimum deposit |
| Checking Needed | No | No |
| Monthly service fee | None | None |
| Sign-up bonus | N/A | N/A |
Checking Accounts Comparison between Ally and Capital One 360
Like the savings account, checking accounts of both Ally and Capital One 360 offer no fees, no minimum deposit, etc. Moreover, both checking accounts are interest-bearing but the interest rate of the Ally checking account is higher than the Capital One 360 checking account. The Capital One 360 checking account has a feature that allows the account holder to have early access to direct deposit salary up to two days early. You won’t have this feature in Ally checking account.
| Type | Ally Checking Account | Capital One 360 Checking Account |
| APY | 0.10% APY on balances of less than $15,000.0.25% APY on balances of $15,000 or more. | 0.10% |
| Fees | $0. | $0. |
| Minimum Deposit | No minimum deposit | $50 |
| Checking Needed | No | No |
| Monthly service fee | None | None |
| Sign-up bonus | N/A | N/A |
CD Comparison between Ally and Capital One 360
Both Ally and Capital One 360 has Certificate of Deposit account and both the accounts don’t have any minimum balance requirements. But there is some difference in the APY rates. For example, Ally offers an APY rate that ranges from 0.55% to 0.80%, while Capital One 360 offers an APY rate that ranges from 0.20% to 0.80%. So, if you want a short-term CD then Ally will be the better option.
| Type | Ally Certificate of Deposit account | Capital One 360 Certificate of Deposit account |
| Term lengths | 3 months to 5 years | 6 months to 5 years |
| Minimum opening deposit | None | None |
| APY | 0.55% to 0.80% | 0.20% to 0.80% |
| Early withdrawal penalties | 60 to 150 days of interest | 30 to 60 days of interest |
| Types of CDs | High-yield CD, No Penalty CD, Raise Your Rate CD, IRA CD | Regular CD |
| Minimum Deposit | $0 | $0 |
| Three-month APY | 0.75% | N/A |
| Six-month APY | 1.00% | 0.60% |
| Nine-month APY | 1.25% | 0.75% |
| One-year APY | 2.75% | 2.70% |
| 18-month APY | $0–4,999: 2.40%$5,000–24,999: 2.55%$25,000+: 2.60% | 2.70% |
| Two-year APY | N/A | 2.80% |
| Three-year APY | $0–4,999: 2.50%$5,000–24,999: 2.60%$25,000+: 2.65% | 2.85% |
| Four-year APY | N/A | 2.90% |
| Five-year APY | 3.00% | 3.10% |
Feature Comparison between Ally and Capital One 360
There are lots of similarities in the accounts offered by both Apply and Capital One. Therefore, it’s very hard to pick a winner. Both Ally and Capital One 360 stand out from one another in several ways. Therefore, let’s compare the features of these two banks and see who beats whom!
1. Types of Accounts
Ally bank only offers one online savings account. The savings account is free and has 24/7 customer service support. In this account, the user is limited to six withdrawals per month. So, if you want other types of accounts then Ally also offers CDs and a money market account. The money market account of Apply offers access to debit and checks to make transactions.
On the other hand, Capital One 360 also has a savings account, and most of the features of this bank account are quite similar to Ally’s savings account. Capital One 360 also has CDs and a Kids savings account.
2. Multiple Savings Accounts
People nowadays have multiple savings accounts to organize their funds and savings. If you think that multiple savings accounts can ease your financial work then you can choose Ally because the savings account of Ally is packed with lots of amazing features that will do the work of multiple accounts. The bucket feature of Ally’s savings account will allow you to split your savings account into ten different buckets. This way you can easily organize your savings.
But, if you require more than three accounts then Capital One 360’s Performance Savings account will be the best option for you. With this Performance Savings account, you are allowed to open up to twenty-five different savings accounts! So, you can use each account differently to serve a different purpose.
3. Customer Service
This is a very important factor for online banks. Both Ally and Capital One 360 have customer service that is available for customers 24/7. The round-the-clock customer service is more important for Ally than Capital One 360 because Ally doesn’t have any physical branches. This is where Capital One 360 is slightly ahead because it has physical branches in Connecticut, Delaware, Louisiana, Maryland, New Jersey, New York, Texas, Virginia, and Washington, D.C. You can contact both Ally and Capital One 360’s customer services through email or chat. Moreover, you can also contact me via phone.
4. Security
You will be pleased to know that all the Ally savings accounts are FDIC-insured accounts. It means all your savings are protected by the federal government by up to $250,000. So, if you have an Ally Bank savings account then you can rest assured that your money is safe. Moreover, your bank account is protected with a 2-step authentication process. On the other hand, Capital One 360 Performance Savings accounts are also FDIC-insured. Moreover, it also has a feature named SureSwipe. SureSwipe is a custom swipe pattern that you can use to log in to your account as well as protect your account. Also, if there are any suspicious activities on your account then you will receive real-time alerts on your smartphones!
Final Verdict
Finally, both Ally and Capital One 360 are two excellent options when it comes to online banking. Which bank is more suitable for you depends on your specific needs. If you want better customer service with 24/7 customer support then Ally bank would be the right choice for you. On the other hand, if you want both online and offline banking facilities then Capital One 360 is the right option for you. Now you decide, which bank you should pick!
References:
https://www.nerdwallet.com/article/banking/ally-bank-vs-capital-one-360-comparison
https://www.businessinsider.com/personal-finance/ally-vs-capital-one-360-comparison-review
Last Updated on November 11, 2022 by Magalie D.
Magalie D. is a Diploma holder in Public Administration & Management from McGill University of Canada. She shares management tips here in MGTBlog when she has nothing to do and gets some free time after working in a multinational company at Toronto.
