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
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
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 |
|
|
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 |
|
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.
FAQs
What are the requirements for creating an ally account?
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.
Is Ally bank worthwhile as a student?
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.
Does Marcus offer a free checking account?
No, although Marcus offers savings, CDs, and loans, the bank’s product line does not include a checking account at this time.
Is Marcus ready for recession?
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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