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

Banking, Banks & Credit Unions, CDs, Checking Accounts, Savings Accounts
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Ally Bank vs. Capital One 360 Head-to-Head Comparison

Online banks typically offer higher annual percentage yields, or APYs, than traditional brick-and-mortar banks and keep fees to a minimum.

That includes Ally Bank and Capital One 360, two leading online banks. Both offer a variety of accounts and services and have strong websites and customer service. Our head-to-head comparison can help you figure out which one is best for you.

Snapshot comparison

 Ally BankCapital One 360
Checking APYUp to 0.60%Up to 1%
Savings APY1.35% 1%
Money market APY0.90% for balances of less than $25,000 and 1.00% for balances of $25,000 or more1.40% for balances of at least $10,000, 0.60% for balances below $10,000
Five-year CD APY ($5,000 deposit)2.30%2.45%
Free ATMsOver 43,000 free ATMsOver 39,000 free ATMs

Choose Ally if:

Choose Ally if:

    • You’re looking to earn a high APY on savings under $10,000
    • You want a large ATM network and monthly fee reimbursements for out-of-network machines
    • You value having several ways to reach customer service, including online chat

Choose Capital One 360 if:

Choose Capital One 360 if:

    • You have savings of at least $10,000 and are open to using a free money market account
    • You want to put some of your savings in a certificate of deposit
    • You’ve incurred more than a few overdraft fees in the past

Below is a detailed breakdown of how the banks compare on checking, savings, CDs, bank experience and overdraft fees.

Checking accounts

 Ally Interest CheckingCapital One 360 Checking
Monthly fees$0$0
Minimum opening deposit$0$0
Interest on balances
  • 0.10% APY on balances of less than $15,000
  • 0.60% APY on balances of $15,000 or more
  • 0.20% APY on balances of less than $50,000
  • 0.75% APY on balances between $50,000 and $99,999
  • 1% APY on balances above that
ATM network
  • Free access to more than 43,000 Allpoint ATMs
  • Ally will reimburse customers up to $10 per month for domestic out-of-network ATM fees
  • Free access to over 39,000 ATMs nationwide
  • Capital One won’t charge customers for using out-of-network ATMs, but the ATM owner might

What you need to know: Both accounts are better than most, but Capital One 360 offers a higher rate for balances below $15,000 while Ally is a better option for those looking to use out-of-network ATMs every now and then.

» Curious how other banks stack up? Read NerdWallet’s best checking accounts

Savings accounts

 Ally SavingsCapital One 360 Savings
Monthly fees$0$0
Minimum opening deposit$0$0
Interest on balances1.35% APY1% APY
Automatic transfer from linked checkingYesYes

What you need to know: Although Ally’s basic savings APY is higher, Capital One 360 offers a free money market account with a 1.40% APY for balances over $10,000.

» For more great options, check out NerdWallet’s best savings accounts

Certificates of deposit

 AllyCapital One 360
Minimum opening deposit$0$0
APY on one-year term ($5,000 deposit)1.70%1.65%
APY on three-year term ($5,000 deposit)1.90%2%
APY on five-year term ($5,000 deposit)2.30%2.45%

What you need to know: Ally has a Raise Your Rate option that lets you increase your APY if the bank’s rates go up. (Capital One 360’s CDs have fixed rates.)

Bank experience

 Ally BankCapital One 360
Branches0Limited support at around 650 Capital One branches and access to several Capital One 360 Cafés across the country
Banking apps (current ratings from app store users)4.6 out of 5 stars for iOS; 3.4 out of 5 for Android4.3 out of 5 stars for iOS; 4.6 out of 5 for Android
Customer service 24/7 live supportLive support available seven days a week, including evening hours

What you need to know: Along with easy-to-use websites, Ally and Capital One 360 have mobile apps with features such as check deposit and bill pay.

Overdraft fees

 Ally BankCapital One 360
Overdraft fee$25, up to once per day$35, up to four times per day, but people have one business day to bring their account out of the red and avoid the fee
Overdraft protection fee$0$0
Extended overdraft fee$0$0

What you need to know: If you frequently overdraw your accounts, you’ll be better served by Capital One 360. Options include enrolling in Next Day Grace (detailed above), free transfers from a linked Capital One 360 savings account and an overdraft line of credit. The default option is simply having your transaction declined.

Two excellent options

Ally and Capital One 360 are both at the top of their game; your specific wants and needs should dictate where you end up. If, for example, you overdraw your accounts frequently, go with Capital One 360. If you’re looking for a high-rate savings account for balances under $10,000, sign up with Ally.

» See how Ally Bank compares to other good online banks:
vs. Simple
vs. Synchrony

Tony Armstrong is a staff writer at NerdWallet, a personal finance website. Email: Twitter: @tonystrongarm.

Updated Dec. 19, 2017.