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Ally Bank vs. Synchrony Bank: Which Is Best for You?
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Alice Holbrook Assigning Editor | Homebuying, savings and banking products
Alice Holbrook is a former editor of homebuying content at NerdWallet. She has covered personal finance topics for almost a decade and previously worked on NerdWallet's banking and insurance teams, as well as doing a stint on the copy desk. She is based in Ann Arbor, Michigan.
Online banks Ally and Synchrony can earn you more interest than traditional banks can, partly because they don’t have to shell out money to maintain branches.
But the two banks have differences that can matter: Synchrony has no checking accounts, but its savings rates are competitive enough to consider if you're focused on accounts with high annual percentage yields.
Snapshot comparison
Ally Bank
Synchrony Bank
Checking accounts
Ally Spending Account
Monthly fee: $0.
Minimum opening deposit: $0.
N/A
Savings accounts
Ally Savings
APY: 4.00% APY on all balances for standard accounts.
Monthly fee: $0.
Synchrony High Yield Savings
APY: 4.30% APY on all balances for standard accounts.
Monthly fee: $0.
Certificates of deposit
Ally High Yield CD interest rates
1 year: 4.50% APY.
5 years: 3.75% APY.
Minimum deposit: $0.
Synchrony CD interest rates
1 year: 4.40% APY.
5 years: 4.00% APY.
Minimum deposit: $0.
Overdrafts, ATMs, customer service
Ally details
Overdraft fee: $0.
Overdraft protection transfer fee: $0.
Branches: 0.
ATMs: 43,000+.
Customer service: Available 24/7 by phone, live chat and email.
Synchrony details
Overdraft fee: N/A.
Overdraft protection transfer fee: N/A.
Branches: 0.
ATMs: Thousands worldwide with the Visa Plus and ACCEL logos (see more details).
Customer service: Available by phone 8 a.m.-10 p.m. ET, Monday-Friday, 8 a.m.-5 p.m. ET on weekends; live chat is also available.
NerdWallet's ratings are determined by our editorial team. The scoring formulas take into account multiple data points for each financial product and service.
NerdWallet's ratings are determined by our editorial team. The scoring formulas take into account multiple data points for each financial product and service.
+ Click here for analysis of Synchrony and Ally's checking accounts
Ally offers checking, and Synchrony doesn't. If you're shopping for a new checking account, Ally has a lot to offer. The account even reimburses some ATM fees and earns interest, which are rare features for checking accounts.
Ally Bank vs. Synchrony Bank: Basic savings accounts
Ally Savings
Synchrony High Yield Savings
APY
4.00% APY on all balances for standard accounts.
4.30% APY on all balances for standard accounts.
Monthly fee
$0.
$0.
Minimum deposit to open
$0.
$0.
Sign-up bonus
None.
None.
+ Click here for analysis of Synchrony and Ally's savings accounts
Both banks' savings accounts are very similar, but Synchrony's interest rate is a bit higher. You can't go wrong with either. Their rates are significantly better than the national average savings rate of 0.46%.
Ally Bank vs. Synchrony Bank: Certificates of deposit
Ally
Synchrony
Minimum opening deposit
$0.
$0.
APY on one-year term
4.50%.
4.40%.
APY on three-year term
2.25%.
4.00%.
APY on five-year term
3.75%.
4.00%.
+ Click here for analysis of Synchrony and Ally's CDs
Neither bank requires a minimum deposit, and both have competitive rates.
Ally Bank vs. Synchrony Bank: Banking experience
Ally
Synchrony
Branches
0.
0.
Banking apps (ratings from app store users)
4.7 out of 5 stars for iOS.
3.6 out of 5 for Android.
4.8 out of 5 stars for iOS.
4.7 out of 5 stars for Android.
Customer service
Available by telephone 24/7.
Social media support available.
Live chat support available.
Available by telephone 8 a.m.-10 p.m. ET, Monday-Friday, 8 a.m.-5 p.m. ET on weekends.
Social media support available.
Live chat support available.
+ Click here for analysis of Synchrony and Ally's banking experiences
Ally and Synchrony have very similar bank experiences. Both banks are online-only and have strong websites and solid mobile apps. As far as customer service, you can reach either bank by phone, chat or Twitter.
If you’re an Android user you might prefer Synchrony, whose app gets higher ratings than Ally’s.
Ally Bank vs. Synchrony Bank: Overdraft fees
Ally
Synchrony
Overdraft fee
$0; you have six business days to bring your balance back to positive to avoid your account being limited.
N/A
Overdraft protection transfer fee
$0.
N/A
Extended overdraft fee
$0.
N/A
+ Click here for analysis of Synchrony and Ally's overdraft fees
Neither bank charges overdraft fees, but only Ally offers a checking account. Because Synchrony doesn't offer a checking account, it doesn't allow an overdraft to occur.
Ally offers a checking account, but no longer charges a fee for for overdrafts. The median fee among big banks is $34, and some don't have a daily maximum for overdraft fees.
Ally is hard to beat
Synchrony’s rates on savings products and minimum balance requirement are pretty much on par with Ally's. But Synchrony’s overall game doesn’t quite compete in terms of product offerings, because it doesn’t offer a checking account. If you’re looking to keep your checking and savings accounts under the same roof, you’ll be disappointed by Synchrony. Ally’s accounts, meanwhile, are among the best we’ve come across for any bank.
If the idea of joining an online bank appeals to you but you want more options, take a look at our list of the best online checking accounts.
4.50%SoFi members with Direct Deposit or $5,000 or more in Qualifying Deposits during the 30-Day Evaluation Period can earn 4.50% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. Members without either Direct Deposit or Qualifying Deposits, during the 30-Day Evaluation Period will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Only SoFi members with direct deposit are eligible for other SoFi Plus benefits. Interest rates are variable and subject to change at any time. These rates are current as of 8/27/2024. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.
4.50%4.50% APY for $0 to <$250k; 4.80% APY for $250k+ balance
Min. balance for APY
$0
These cash accounts combine services and features similar to checking, savings and/or investment accounts in one product. Cash management accounts are typically offered by non-bank financial institutions.
These cash accounts combine services and features similar to checking, savings and/or investment accounts in one product. Cash management accounts are typically offered by non-bank financial institutions.
5.00%*Current promotional rate; annual percentage yield (variable) is 4.50% as of 9/20/24, plus a .50% boost available as a special offer with qualifying deposit. Terms apply; if the base APY increases or decreases, you’ll get the .50% boost on the updated rate. Cash Reserve is only available to clients of Betterment LLC, which is not a bank; cash transfers to program banks conducted through clients’ brokerage accounts at Betterment Securities.
Min. balance for APY
$0
CDs (certificates of deposit) are a type of savings account with a fixed rate and term, and usually have higher interest rates than regular savings accounts.
CDs (certificates of deposit) are a type of savings account with a fixed rate and term, and usually have higher interest rates than regular savings accounts.
