Banking » Compare Banks » Ally vs Marcus: Which Online Bank Is Better?
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Ally vs Marcus: Which Online Bank Is Better?

Both Ally and Marcus offer a fee free savings account with a decent rate, their CD rates are also similar. However, Marcus has a minimum deposit requirement of $500 for its CDs. Neither bank has a credit card option, but while Ally offers mortgages, Marcus has more conventional personal loans.
Author: Lorraine Smithills
Lorraine Smithills

Writer, Contributor

Experience

Lorraine is a freelance finance writer with years of experience in the banking sector and after a successful career in one of the largest retail and commercial financial services providers. She has a passion for helping people with less financial confidence to get control of their money through budgeting, saving, and responsible credit practices.
Interest Rates Last Update: September 20, 2023
The banking product interest rates, including savings, CDs, and money market, are accurate as of this date.
Author: Lorraine Smithills
Lorraine Smithills

Writer, Contributor

Experience

Lorraine is a freelance finance writer with years of experience in the banking sector and after a successful career in one of the largest retail and commercial financial services providers. She has a passion for helping people with less financial confidence to get control of their money through budgeting, saving, and responsible credit practices.
Interest Rates Last Update: September 20, 2023

The banking product interest rates, including savings, CDs, and money market, are accurate as of this date.

We earn a commission from our partner links on this page. It doesn't affect the integrity of our unbiased, independent editorial staff. Transparency is a core value for us, read our advertiser disclosure and how we make money.

Table Of Content

When Ally Bank Wins?

Ally has a banking product line that rivals conventional, high street banks. This comprehensive variety of products includes a checking account, savings account, CDs, mortgages, auto loans, personal loans, retirement products, and investments.

Ally Bank can be a better choice than Marcus if:

  • You want a savings account and checking account

  • You want to earn interest on your checking account balance

  • You don’t want to be restricted to a minimum deposit on your CD

ally bank
ally bank

When Marcus Wins?

Marcus’ banking product line is a little more specialized. As part of the Goldman Sachs Group, the Marcus product line reflects its investing pedigree. You’ll find CDs, high yield savings, investment options, and a variety of loans.

However, there is no checking account option. So, if you want an alternative to a conventional bank, this is not a good option. But, if you are new to investing, this could be a good choice for you.

Marcus online account can be a better choice than Ally if:

  • You need same day transfers

  • You don’t need a checking account

  • You may require access to more extensive lending products

Marcus logo
Marcus logo
Ally
Marcus
Savings Accounts
Checking Accounts
CDs
Money Market Account
Debit Card
Credit Cards
Personal Loans
Mortgage
Government Mortgage
Business Loans
Investing Capabilities

Savings Account

The Ally and Marcus savings accounts appear very similar. Both accounts offer a higher rates compared to national average and there are no account fees. When you start to look closely, there are some different features that allow the banks to distinguish themselves.

For example, the Ally account has “buckets”. This allows you to organize your money into different funds if you want to save for various financial goals, without needing multiple accounts.

A stand out feature of the Marcus account is it offers same day transfers for up to $100k both to and from the account.

Ally
Marcus
APY
4.25%
4.40%
Fees
$0
$0
Minimum Deposit
$0
$0
Checking Needed?
No
No
Main Benefits
  • Buckets to organize your savings, so you can allocate funds and work towards your savings goals
  • 24/7 support via chat, email or phone
  • No fees or minimum deposits
  • Same day transfers up to $100,000 to and from other banks
  • Access to 24/7 support and learning resources

Checking Account

This is an area where there is no comparison. While Ally has a fee free, interest bearing checking account with no minimum deposit, Marcus does not have a checking account option. The Ally account has some nice features including remote check deposits and round ups. This helps you to build your savings each time you make a debit card purchase.

For example, if you spend $8.65 with your debit card, $9 will be billed to your account. Ally will automatically direct the $0.35 difference to your designated savings bucket. These amounts are so small that you are not likely to notice day to day, but they could add up over the course of a month or two.

Ally
APY
0.25%
Fees
$0
Minimum Deposit
$0
Main Benefits
  • Remote check deposit using your smartphone
  • Rounds up your checking account purchases into your linked savings account
  • Easy transfers with Zelle and Ally Skill, an Amazon Alexa compatible voice transfer system.
  • ATM network of over 43,000 fee free machines

CDs

The Ally and Marcus CD products require a closer comparison. 

However, Ally has no minimum deposit, while Marcus requires a minimum deposit of $500. This allows Ally to take the edge in this comparison, as there is no real benefit to tying up a larger amount.

Ally
Marcus
Minimum Deposit
$0
$500
APY Range
3.00% – 5.15%
3.70% – 5.10%

Mortgage

This is another area where there is no comparison possible. Ally has mortgages for home purchase or refinancing. These include fixed and adjustable rate packages, and jumbo loans.

What’s good about Ally is that the bank has a number of home loan tools including calculators and guides that will help you to choose the right home loan for you. Ally also states its customers can obtain pre approval in less than five minutes.

However, Marcus does not have any home loans or mortgage products at this time.

Loans

Ally has its own lending division called Ally Lending. This solution provides loans for medical bills or home renovations. The loans have no application fees or down payments.

However, Marcus offers more conventional personal loans. You can apply for a loan of up to $40,000 with no sign up fees, prepayment fees or even late fees. The loans have fixed rates of 6.99% to 19.99%, however, there is a rate discount of 0.25% if you sign up for auto pay.

Another nice Marcus feature is that the bank offers a payment break. If you make 12 consecutive monthly payments on time and in full, you will be able to skip a month and not incur any penalties.

Marcus
APR
6.99% – 24.99%
Loan Amount
$3,500 – $40,000
Terms
36-72 months

Customer Service

Ally offers 24/7 customer service and advertises a typical wait time for its customers calling in of less than one minute.

Marcus has several toll free numbers, arranged by query area. However, none of the Marcus lines are available 24/7. Typically the departments are open 8 am to 10 pm EST.

While both banks advertise superior customer service, this is not indicated by their consumer review ratings. On Trustpilot, Ally has a low 2/5 score, whie Marcus is only a little better at 2.6/5.

Online/Digital Experience

Both Ally and Marcus have an intuitive website to check products and access the support resources. This ensures a solid user experience, especially if you’re not sure exactly what banking products are the best option 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. The Marcus app is rated 4.9/5 on the Apple Store and 4 out of 5 on Google. These apps allow you to manage your account including transferring funds and checking transactions. You can also use the app to access support and manage your card.

Which Bank is The Winner?

These banks offer different products and services, so does this mean one is a better bank? We’ll need to delve a little deeper to make that determination.

Both Ally and Marcus offer a fee free savings account with a decent rate, their CD rates are also similar.

However, Marcus has a minimum deposit requirement of $500 for its CDs. Neither bank has a credit card option, but while Ally offers mortgages, Marcus has more conventional personal loans.

ally bank
Marcus logo
The Smart Investor Logo
APY Savings The annual percentage yield (APY) is a percentage that represents the amount of money or interest earned on your savings account over the course of a year. The APY factored in compound interest. A savings calculator can help you quickly determine how much you'll earn with a given APY.
4.25%
4.40%
Up to 5.02%
Checking Fee The monthly fee on checking account
$0
Not Available
Compare Banking
Mobile App Rating
4.7/5 on iOS
4.1/5 on Android
4.9/5 on iOS
4.3/5 on Android
Various Banks
Learn More
Learn More
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FAQs

To open an Ally account, no minimum balance is required. Simply go to the product page for the account you want to open and click the “Open Account” button. You will be required to provide some personal information as well as financial information.

Ally will notify you via email once your application has been approved. You can also apply by phone or by downloading and mailing the application form.

Although Ally does not offer a student account, the standard checking and savings accounts are excellent. There are no fees with these accounts, and you can earn 0.50 percent on your savings balance. The disadvantage is that Ally is a completely online bank.

As a result, there are no branches to visit if you have a problem, and Ally does not provide credit cards. This means that, while your basic banking needs are met, Ally may fall short if you require more.

No, although Marcus offers savings, CDs, and loans, the bank’s product line does not include a checking account at this time.

Marcus has only been around for approximately five years, so we have no track record of how the bank has handled previous recessions. However, this bank is part of the Goldman Sachs Group, which has a long history.

In the 2007 financial crisis, Goldman Sachs did receive a $10 billion government bail out, but the bank was the first Wall Street bank to repay its loan. 

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Lorraine Smithills

Lorraine Smithills

Lorraine is a freelance finance writer with years of experience in the banking sector and after a successful career in one of the largest retail and commercial financial services providers. She has a passion for helping people with less financial confidence to get control of their money through budgeting, saving, and responsible credit practices.
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