Table Of Content
While they have some products in common, Ally and Chime have a different banking product line, but does this mean one is a better bank?
We’ll need to look a little closer to make that determination.
When Ally Bank Wins?
Ally has quite a comprehensive banking product line that could easily rival a conventional bank. There is a savings account, checking account, CDs, investments via Ally Invest, retirement products, personal loans, auto loans, and mortgages available.
Ally Bank can be a better choice than Chime if:
You want to earn interest on your checking account
You want to access loans and mortgages
You’re interested in CDs
When Chime Wins?
Chime’s product line is more streamlined. All Chime products are structured to help customers rebuild or build credit. There is just one savings account, one checking account and one credit card option.
Open account on Chime can be a better choice than Ally if:
You want a secured credit card
You want to build your credit
You want access to a fee free overdraft facility.
Ally | Chime | |
|---|---|---|
Savings Accounts | ||
Checking Accounts | ||
CDs | ||
Money Market Account | ||
Debit Card | ||
Credit Cards | ||
Personal Loans | ||
Mortgage | ||
Government Mortgage | ||
Business Loans | ||
Investing Capabilities |
Savings Account
As of [month-year], Ally savings rates are higher. Neither account has a minimum deposit, so you can enjoy a great rate regardless of how much you hold in your account.
However, there are some stand out features for both banks. For example, the Ally savings account has buckets to allow you to organize your savings. This means that you can allocate funds for different savings goals without needing to manage multiple accounts.
However, Chime has a When I Get Paid feature that automatically saves a percentage of your paycheck each time you get paid. Both these account features are designed to make it easier to save towards achieving your financial goals.
Ally | Chime | |
|---|---|---|
APY | 4.25% | 2.00% |
Fees | $0 | $0 |
Minimum Deposit | $0 | $0 |
Checking Needed? | No | No |
Main Benefits |
|
|
Checking Account
Both banks offer a fee free checking account, but Ally has an interest bearing account. The Ally account also has some attractive features including round up. This feature is becoming more common on checking accounts, but essentially, each time you make a debit card purchase, the amount billed to your account is rounded up and the difference between this amount and the purchase amount is automatically directed into your savings.
However, Chime’s checking account does offer a fee free $200 overdraft facility, subject to qualification and terms.
Ally | Chime | |
|---|---|---|
APY | 0.25% | 0% |
Fees | $0 | $0 |
Minimum Deposit | $0 | $0 |
Main Benefits |
|
|
CDs
There is no CD comparison, as while Chime does not offer CDs, Ally has an impressive selection. There is no minimum deposit and the rates are tailored to incentivize committing to a longer term CD.
There is the potential highly competitive within the marketplace with Ally CDs, particularly with no minimum deposit requirements. Here are Ally CD rates as of September 2023:
CD Term | APY | Early Withdrawal Penalty |
|---|---|---|
3 Months | 3.00% | 60 days of interest
|
6 Months | 3.50% | 60 days of interest
|
9 Months | 5.00% | 60 days of interest
|
12 Months | 4.85% | 60 days of interest
|
11 Months – No Penalty | 4.55%
| / |
36 Months | 4.25% | 90 days of interest |
60 Months | 4.10% | 150 days of interest
|
Credit Cards
In this area of comparison, Chime has the edge. Chime has a secured card designed to help you to build your credit score. There are no annual fees or credit checks on application.
However, you will need to provide a security deposit, but Chime does not have a minimum requirement. When your card is in use, Chime reports your monthly repayments to the major credit bureaus, which will help you to start building your credit. Chime claims to have helped its members experience an increase of 30 score points on average.
Previously, there was an Ally credit card, but T.D Bank, the card issuer converted all the accounts over to a T.D Cash credit card. This has left Ally without a credit card option at the moment.
Mortgage
Ally has a selection of mortgage products for home purchase or refinancing. You’ll find adjustable rates, fixed rates, and jumbo loans.
However, Ally also has some nice home loan tools including calculators and guides to help you to choose the right product. Ally also takes pride in providing customers pre approval in as little as three minutes.
On the other hand, Chime does not offer any mortgage products.
Loans
Ally has a loans division called Ally Lending. You can access loans for medical bills or home renovations with no down payments or application fees. However, there are no straight personal loans.
Chime does not currently offer lending products apart from its credit card and overdraft service.
Ally | |
|---|---|
APR | 6.99% – 24.99%
|
Loan Amount | $3,500 – $40,000
|
Terms | 36-72 months
|
Customer Service
Ally has 24/7 customer service. In fact, the bank claims a typical wait time for customers calling in of just one minute.
Chime also has a toll free number that is available 24/7, so you can access the customer service team at any time if you have any queries or questions.
However, consumer review ratings are a mixed bag. Ally has a Trustpilot rating of just 2 out of 5 while Chime’s is far better at 3.7 out of 5.
Online/Digital Experience
Both Ally and Chime have an easy to use website to help you access help and guidance with various finance topics and browse the product line. This ensures a great user experience, particularly if you’re not 100% on which banking services and products are the best choice for you.
Both the banks also have highly rated apps. Ally’s app is rated 4.7/5 for Apple and 4.2 out of 5 for Google, while the Chime app is rated 4.8/5 on Apple and 4.7/5 on Google.
These apps allow you to not only transfer funds and manage your transactions, but you can access support and manage your card.
Which Bank is The Winner?
Both Ally and Chime offer fee free accounts, but Chime is more geared towards those who want to build their credit. On the other hand, Ally has a far more comprehensive product line. While both banks offer similar rates on savings, Ally also has an interest bearing checking account.
FAQs
Does Ally offer a promotion?
Ally’s primary promotion is that the accounts have no hidden fees or account minimums. Currently, there is no cash or cashback bank promotion for new accounts.
Does Chime offer a promotion?
Chime appreciates that customers of traditional banks can pay billions of dollars each year. So the primary Chime promotion is to offer overdrafts of up to $200 with no fees.
Does Ally Offers Car Loans?
Ally offers car financing packages with flexible terms to suit virtually any budget. You can set up easy payment options and manage your account online. There are also specialty vehicle financing options if you need accessibility features such as a wheelchair lift.
Ally also has Ally SmartLease, which has lower payments and shortened financing terms, so you can trade up more often.
Is Ally ready for recession?
Since Ally is a fully online bank, it does not need to support the infrastructure of a large, branch network. This can help Ally to weather more challenging financial times.
However, since the bank has only been operating since 2009, we have no data on how it handled previous recessions
Is Chime suitable for Millenials?
Millennials prefer convenience and simplicity, which Chime can provide. Even if you don't have a problem with your credit, the fee-free checking account and impressive savings account are a great way to manage your money. The online platform is simple to use, and there is an accompanying app that allows you to manage your finances while on the go.
If you require more from your bank than a checking account, savings account, and secured credit card, this is not the bank for you.
Does Chime Allow Joint Accounts?
Chime does not currently support joint accounts or the use of secondary cards on your account. Chime recognizes the importance of sharing your bank account with your spouse and is working to add this feature to the accounts, but for the time being, if you want a joint account, you'll need to look into other banks.
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Ally offers a much broader range of traditional banking products. In addition to checking, savings, and CD accounts, there are investment and retirement products, mortgages, auto loans, and personal loans available.
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Ally Bank is an online bank that arose from the banking division of General Motors Acceptance Corporation. GMAC used to be an auto financing company before being purchased by Ally Bank. This bank now offers a wide range of products. Among the products available are credit cards, home loans, investing products, savings accounts including certificates of deposit, and checking account options. Ally Bank serves millions of customers and provides high-quality banking services.
Axos is a well-established online-only banking service. It has been in business since 2000 and is constantly expanding its services for both individuals and businesses. The bank is a subsidiary of Axos Financial and is headquartered in San Diego, California. Despite the fact that the bank has three locations, the vast majority of its customers are served online.
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Ally vs SoFi
Since the bank's inception, the SoFi product line has come a long way. You can now get access to investment products, mortgages, and loans, in addition to its hybrid checking and savings account. SoFi even offers insurance. The only thing missing from this bank are CDs and traditional savings accounts.
Ally offers a much broader range of traditional banking products. In addition to checking, savings, and CD accounts, there are investment and retirement products, mortgages, auto loans, and personal loans available.
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Ally vs Aspiration
Aspiration has a streamlined banking product line that includes a hybrid account with a $7.99 per month upgrade option and only one credit card option. Aspiration's premise is to help you live a greener life, so the products are heavily weighted in this category. This means that you can earn cash back and other rewards for making environmentally conscious purchases and taking action.
Ally offers a much broader range of banking products. In addition to checking, savings, and CD accounts, you can also get investment and retirement products, mortgages, auto loans, and personal loans. This brings it more in line with a traditional bank, which may make switching from your high street bank easier.
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Ally vs Capital One
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Capital One began as a credit card company, but it has since expanded into a variety of other banking services. You can access auto finance, loan refinancing, and children's accounts in addition to savings and checking accounts.
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Ally vs Marcus
Marcus' banking product offering is more specialized. Marcus' product line reflects its investment pedigree as part of the Goldman Sachs Group. CDs, high-yield savings, investment options, and a variety of loans are available.
Ally has a banking product line that competes with traditional, high-street banks. A checking account, savings account, CDs, mortgages, auto loans, personal loans, retirement products, and investments are among the numerous products available.
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Ally vs Chime
Ally has a robust banking product offering that rivals that of a traditional bank. Savings accounts, checking accounts, CDs, investments, retirement products, personal loans, auto loans, and mortgages are all available.
Chime's product line has been simplified. All Chime products are designed to assist customers in rebuilding or establishing credit. There are only two savings accounts, one checking account, and one credit card available.
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Chime differs from many banks and other financial institutions in that it screens customers in an unusual way. If you don't have perfect credit or are still building your credit history, this may make it easier to open an account with Chime.
Varo, a mobile-only bank, was established in 2015. As a result, there are no bank branches. To use Varo's services, first download and sign into the bank's Apple and Android mobile apps. Varo offers a lot of functionality for on-the-go users, which may entice you to go online.
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Aspiration and Chime both have a fairly streamlined banking product offering. Aspiration offers only one hybrid account with a $7.99 per month upgrade option and one credit card option. Chime offers a savings account, a checking account, and a credit card. The product lines' premise, however, differs.
While Aspiration is a banking service aimed at assisting people in living a more environmentally friendly lifestyle, Chime's products are aimed at assisting those who want to build their credit. This will help you decide whether Aspiration or Chime is a better fit for you.
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Chime vs Marcus
Marcus, a Goldman Sachs Bank division, provides online savings accounts, CDs, and personal loans. Marcus has no physical locations, so you can only access your accounts through the Marcus website, mobile app, or phone-based customer service.
In addition to assisting you in avoiding typical bank fees, Chime includes useful new features such as early direct deposits and automatic saving. While Chime does not provide credit cards or loans, its savings options and competitive interest rates make it an excellent choice, especially for younger people.
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Chime vs SoFi
SoFi's online Spend and Save account, like the Chime online checking account, is fee-free, but it has some different checking account features. Chime, for example, offers a $200 fee-free overdraft facility subject to terms, whereas SoFi provides cash back if you have recurring direct deposits of $500 or more each month.
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Chime Disclosure:
- *The Annual Percentage Yield (“APY”) for the Chime Savings Account is variable and may change at any time. The disclosed APY is accurate as of November 17, 2022. No minimum balance required. Must have $0.01 in savings to earn interest.
- Chime is a financial technology company, not a bank. Banking services provided by, and debit card issued by, The Bancorp Bank or Stride Bank, N.A.; Members FDIC. Credit Builder card issued by Stride Bank, N.A. Chime Spending Account and $200 or more qualifying direct deposit required to apply for the secured Chime Credit Builder Visa® Credit Card. See chime.com to learn more.
