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

June 19, 2018
Banking, Banks & Credit Unions, CDs, Checking Accounts, Savings Accounts
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Online banks typically offer higher annual percentage yields, or APYs, than traditional banks, which gives customers the chance to earn more on their savings. Fees also tend to be lower at online banks.

Ally Bank and Capital One 360 are shining examples of these trends. 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 bank is best for you.

Snapshot comparison

Checking accounts

Ally Interest Checking

  • No monthly fee
  • No minimum deposit

Capital One 360 Checking

  • No monthly fee
  • No minimum deposit
Savings accounts

Ally Savings

  • Interest rate: 1.65%
  • No monthly fee

  • Capital One 360 Savings

  • Interest rate: 1.00%
  • No monthly fee
  • Certificates of deposit

    Ally CD interest rates

  • 1 year: Up to 2.30% APY
  • 5 years: Up to 2.75% APY
  • No minimum deposit

  • Capital One 360 CD interest rates

  • 1 year: 2.25%
  • 5 years: 2.80%
  • No minimum deposit

  • Overdrafts, ATMs, customer service
    • Overdraft fee: $25, maximum of once per day

    • Overdraft protection transfer fee: $0

    • Branches: 0

    • ATMs: 43,000

    • Customer service: available 24/7 by phone

    • Overdraft fee: $35, up to four times per day, but customers enrolled in Next Day Grace service have one business day to bring their account out of the red and avoid the fee

    • Overdraft protection transfer fee: $0

    • Branches: Limited support at about 650 Capital One branches and access to several Capital One 360 Cafés across the country

    • ATMs: 39,000

    • Customer service: available by phone 8 a.m.-8 p.m. seven days a week

    Choose Ally if:

    Choose Ally if:

      • You’re looking to earn a competitive APY on your savings
      • 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’re looking to receive some assistance at a branch
      • 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
    • A higher rate on larger balances
    • 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
    • Reimburses up to $10 per month for domestic out-of-network ATM fees
    • Free access to over 39,000 ATMs nationwide
    • No charge for using out-of-network ATMs (ATM owner may charge a fee)
    » Want to see how other banks stack up? Read NerdWallet’s best checking accounts
    These accounts are better than most
    But there are slight differences: 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.


    Savings accounts

     Ally SavingsCapital One 360 Savings
    Monthly fees$0$0
    Minimum opening deposit$0$0
    Interest on balances1.65% APY1.00% APY
    Automatic transfer from linked checkingYesYes
    » For more great options, check out NerdWallet’s best savings accounts
    Both banks’ rates are significantly higher than the national average
    Again, differences are fairly minor: Capital One 360 offers a free money market account with a 1.50% APY for balances over $10,000 while Ally’s basic savings APY of 1.65% is available for all balances.


    Certificates of deposit

     AllyCapital One 360
    Minimum opening deposit$0$0
    APY on one-year term Up to 2.30%2.25%
    APY on three-year term Up to 2.50%2.40%
    APY on five-year term Up to 2.75%2.80%
    » To compare, see our latest top CD rates
    Excellent APYs across the board
    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, on the other hand, 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)4.7 out of 5 stars for iOS; 3.4 out of 5 for Android4.6 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
    Both options make it easy to bank on the go
    Along with user-friendly 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 4 times a day; Next Day Grace service gives you 1 business day to bring your account out of the red to avoid a fee
    Overdraft protection fee$0$0
    Extended overdraft fee$0$0
    Capital One 360 provides more flexibility
    Frequent overdrafters will 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 excellent options, but your specific needs should dictate which bank you choose. If, for example, you overdraw your accounts frequently, go with Capital One 360. If you’re looking for a high-rate savings account with no minimum balance requirements, Ally would be a good fit.

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