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Ally Bank vs Capital One 360 Accounts: Which Products Are Better?

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You can’t really go wrong with Ally Bank or Capital One, as they both offer competitive rates and have been among the top online banks for quite some time. However, it’s worth noting that Ally Bank was selected as the top online bank of 2019 by MagnifyMoney for a reason — it offers consistently high rates on the majority of its products. And while Capital One offers solid rates and products compared to most banks, Ally Bank clearly outshines it on about every front, as you can see from our match up below.

Founded in 1919 and rebranded as Ally Financial in 2010, Ally Bank is an entirely online bank. Choose from products in a variety of categories, including banking, credit cards, auto loans, home loans and investment opportunities.

Capital One, the largest direct bank in the U.S. The bank rebranded its online products as Capital One 360 in 2013, after Capital One acquired ING Direct’s U.S. business. Enjoy a variety of product offerings, including several savings and checking account options.

In this review, we’ll compare and contrast Ally Bank and Capital One 360 products to help you decide which bank is the best fit for you.

Ally Bank vs Capital One: How their rates compare

One of the most important things to look for when opening a new account, is the rate it’s attached to. Even a few percentage points can make a big difference in the amount of interest you’ll earn, so make sure your money is hard at work for you.

Both Ally Bank and Capital One offer select rates that surpass national and online bank averages, but neither beats every mark. Generally speaking, Ally Bank’s savings account rates more than double that of Capital One. As for checking, Capital One offers better rates for two different types of customers — those with a minimum account balance less than $15,000 and those with more than $100,000 — but Ally Bank comes out on top for the rest. For one year CDs, Ally Bank has a slightly better rate, but the two banks offer the same above-average rate on five year CDs

Overall, Ally Bank is the better choice, because most of its rates just can’t be beat.

 AllyCapital OneNational average*
Online bank average*
Savings1.80% APY


1.00% APY
0.270% APY
1.52% APY
Checking0.10% APY, less than $15,000 minimum daily balance

0.50% APY, minimum daily balance of $15,000 or more
0.20% APY, minimum account balance of $0.01 to $49,999.99

0.50% APY, minimum account balance of $50,000 to $99,999.99

0.75% APY, minimum account balance of $100,000
0.189% APY0.41% APY
1 year CD
2.00% APY2.20% APY
1.356% APY
2.09% APY
5 year CD
2.25% APY1.60% APY
2.255% APY
2.70% APY

Ally Bank vs Capital One: Which has better account options?

Since both banks have similar account options, it really comes down to choosing the bank that offers the best rates. In that case, Ally Bank is the better choice, because its rates are more competitive. Putting your money in an account with a higher rate will maximize your earning power.

Ally's Top Deposit Accounts
APY
Minimum Balance to Earn APY
Online Savings Account
1.80%$0.01

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on Ally Bank’s secure website

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High Yield 12-Month CD
2.00%$0.01

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on Ally Bank’s secure website

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Both banks offer one standard checking account, but Capital One also has a Money teen checking account. Available only online, you’ll have full access to your child’s account — log in with your own username and password.

When it comes to savings accounts, both Ally Bank and Capital One offer standard savings, money market, IRA and CD options. Similar to checking, Capital One also has a Kids Savings Account. You’ll have full access to your child’s savings account, including the added ability to transfer money, set up automatic savings and manage account details.

Both banks offer several different types of CDs, including high-yield CDs and IRA CDs. However, Ally Bank takes it up a notch with its Raise Your Rate CD and No Penalty CD. The former gives you the chance to raise your rate once over a two-year term or twice over a four-year term, if Ally Bank’s rate increases for your term and balance tier. The latter allows you to withdraw all your money after the first six days of funding and keep the interest earned with no penalty.

Ally Bank vs Capital One: How they compare on fees

 AllyCapital One
Standard savings account
No monthly maintenance fees
No monthly maintenance fees
Standard checking account
No fee for everyday services and transactions
No fee for everyday services and transactions
ATM feeUse any Allpoint ATM in the U.S. for free and enjoy an up to $10 reimbursement per statement for ATM fees outside the network.
Enjoy complimentary access to 39,000 Capital One and Allpoint ATMs. Some banking products come with an up to $15 monthly reimbursement for ATM use beyond the network and outside the country.
Overdraft feeOverdraft transfer service is free, but you’ll be charged $25 — maximum one fee per day — for overdraft items paid or returned.

Fees vary according to your overdraft settings. Those with a fee include the Overdraft Line of Credit — you pay interest on the overdrawn amount for the entire borrowing period — and Next Day Grace — you have one business day to repay the overdrawn amount or you’re charged a $35 fee.

Ally Bank and Capital One both offer savings and checking accounts without monthly maintenance fees, but overall, Ally Bank is the better choice. This call is made on the fact that Ally Bank clearly lists all possible fees, whereas Capital One is a bit more elusive about potential charges you could incur.

When you read the fine print, Capital One notes there could be charges for overdraft on credit — as highlighted in the table above — as well as overnight check delivery, overnight delivery of a replacement card, a stop payment, or if you write a rejected check.

On the other hand, Ally Bank charges a fee for cross border/currency conversion transactions, returned deposit items, overdraft items paid or returned — as noted in table above — stop payment items, rush delivery of debit cards or other items, overnight bill pay — delivery by mail — same-day bill pay — electronic delivery when available — outgoing wires — domestic only, international isn’t available — and account research.

Who should bank with Ally Bank?

Ally Bank is the best choice for independent customers who want an entirely online banking experience. Live customer service is available on a 24/7 basis, but the bank has no brick-and-mortar locations. This means features like face-to-face conversations with a bank teller and the ability to deposit cash are not available, so take this into consideration before opening an account.

If you plan to maintain a $15,000 minimum daily balance in your checking account, the bank’s 0.50% APY is highly competitive. However, its 0.10% APY for checking accounts with less than a $15,000 minimum daily balance falls short of both the national average and the online bank average.

Ally Bank’s competitive rates also make it an excellent choice to park your money in a traditional savings account or CD. The bank’s 1.80% APY for savings accounts, 2.00% APY for one year CDs and 2.25% APY for five year CDs surpass both the national average and the online bank average, allowing you to maximize interest profits.

Who should bank with Capital One?

Capital One offers the convenience of online banking, with the ability to stop by a Capital One cafe. If you want to do most of your banking online, but want the peace of mind in knowing you can visit your bank in person, this could be a good choice for you.

If you plan to maintain a high checking account balance, a 360 Checking account can be a great option. Both the 0.50% APY attached to a minimum account balance of $50,000 to $99,999.99 and the 0.75% APY offered with minimum account balance of $100,000 seriously exceed both the national average and the online bank average.

Based on rates alone, Ally Bank is the better choice for both a savings account and a one year CD, but the two banks currently tie for a five year CD. There’s no minimum deposit required to open a CD at either bank. However, Capital One charges an early withdrawal penalty of six months’ worth of interest for CD terms greater than 12 months, while Ally Bank charges a slightly less 150 days’ worth of interest for CDs with terms of five years or more.

Alternatives

Before opening a new savings or checking account, it’s important to shop around to find the best fit for your needs. MagnifyMoney offers free comparison tools that allow you to find the best rates on banking products.

*National and Online bank averages and any fees mentioned in this article were compiled and are accurate as of the date of publishing.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Laura Woods
Laura Woods |

Laura Woods is a writer at MagnifyMoney. You can email Laura here

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Reviews, Strategies to Save

Review: Capital One 360 Savings

Review: Capital One 360 Savings

Online savings accounts leave traditional banks in the dust when it comes to paying out interest. Your neighborhood bank probably offers less than 0.10% APY while holding your cash. In comparison, an online savings account like Capital One 360 Savings gives you 0.75% APY. Why earn minimal interest if there’s an opportunity to make more? Here’s all you need to know about 360 Savings.

The Capital One 360 Savings Account Overview

The 360 Savings account has no monthly fee. There’s also no minimum deposit required to open an account. The account is FDIC insured, so you won’t have to worry about money disappearing if something happens to Capital One 360. The insurance covers your funds up to $250,000, like any other traditional bank.

To manage your funds, Capital One 360 offers 24/7 online and mobile account access. If you want to speak with a live agent, you can connect with them by phone 7 days a week from 8 a.m. to 8 p.m.

Local Capital One branches can handle certain 360 Savings services like disputing transactions, changing contact information or printing tax statements.

Depositing Funds into Capital One 360 Savings

There are five ways to deposit money into your 360 Savings account. You can deposit checks using remote deposit, meaning you take a photo of your check and then upload it to your account using a computer or the mobile app. You can also set up direct deposit into the account if you want to put part of your salary into savings. Capital One 360 accepts physical checks if you mail them in. Your last two options are transferring funds into 360 Savings from another account using the online account management or over the phone.

Funds deposited are held for 5 business days. For verification reasons, your very first deposit will be held for 10 business days.

Withdrawing Funds from Capital One 360 Savings

The fastest way to withdraw money from your 360 Savings account is by transferring it to a connected 360 Checking account. When you do an internal transfer, the money clears instantaneously. Since 360 Checking accounts come with a debit card, you can head to an ATM after making a transfer to withdraw cash right away.

If you have a checking account with another bank or a regular Capital One account, you can still get access to your money pretty quickly. Online or over-the-phone transfers clear in 2 business days.

Like any other savings account, 360 Savings limits you to 6 withdrawals per statement period because of federal law. If you go over 6 withdrawals in a month multiple times, you risk having your account shut down.

Fees and Gotchas

The 360 Savings account is light on fees. Capital One 360 considers a lack of fine print one of its major selling points. The only two fees noted in the account disclosure are for wire transfers and statement copies. If you request a wire transfer (and it’s approved), you may be charged a $40 fee. If you need duplicate copies of your statement, you may be charged a $5 fee per statement.

Pros and Cons

Pros

The 360 Savings account has high interest and no fine print – both great benefits. Capital One 360 doesn’t nickel-and-dime you, which is another plus. There’s no minimum balance to open a 360 Savings account, or a 360 Checking account, for that matter. You can easily open two 360 accounts (savings and checking) to take advantage of quick internal transfers.

Cons

As for the negatives, the APY on the 360 Savings account isn’t the highest available in the competitive world of online savings accounts. But what the 360 Savings account lacks in interest, it makes up for in the convenience of managing your money.

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Alternatives to the Capital One 360 Savings Account

The Barclays Online Savings Account offers 1.65% APY with no minimum deposit necessary to open the account. However, you need to keep at least $1 in the account to keep it open. There are no maintenance fees. You can deposit money to the account with mobile check deposit or set up direct deposit from your employer. You can also mail in checks. Withdrawing from your Barclays account to an external account can take 2 to 3 business days.

Barclays

Who Will Benefit the Most from the 360 Savings Account

The convenience of withdrawing money quickly and the lack of fees are key benefits of the 360 Savings account. You can get higher interest elsewhere, but this account is still a good choice if you want to be able to tap into your savings quickly.

promo-savings-wide

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Taylor Gordon
Taylor Gordon |

Taylor Gordon is a writer at MagnifyMoney. You can email Taylor here

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Best of, Eliminating Fees, Reviews

Capital One 360 Checking Account Review

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If you’re searching for a checking account with minimal fees, you’ve likely considered depositing your money into an online bank. But with so many online banks vying for your business, you may wonder which account is best suited for your needs.

The Capital One 360 Checking Account boasts no fees and no minimum balance to open which is pretty standard in the online banking world. However, there are other unique features of this account that set it apart.

The Capital One 360 Checking Account At A Glance

Let’s start with the basics. To qualify for 360 Checking you must be 18 years or older and a U.S. citizen or permanent resident with a social security number.

These are the perks ofopening a 360 Checking Account:

  • No monthly fees
  • FDIC insurance coverage
  • A free MasterCard debit card
  • No minimum balance to open or earn interest. Rates are variable and account APY ranges from 0.20% to 1.00% depending on your balance.
  • Use of Bill Pay. Send bill payments directly from your checking account for free. And set up eBills to receive electronic bills from participating merchants.
  • Person2Person payments. Send money free of charge to people who bank with Capital One 360 and elsewhere. Transfers to Capital One 360 accounts occur instantaneously. Transfers outside of the bank take up to two business days to authorize once the recipient approves it.
  • Access to 38,000+ Allpoint and Capital One ATMs for free. Drawing cash from an online account or making a deposit is a breeze, just search for an in-network ATM on Capital One’s mobile app or website.
  • Use of CheckMate for check deposits. Take photos of your checks from your mobile phone to make deposits. No standing in line or locating an ATM necessary.
  • Turn your card on and off. You can deactivate a card yourself online which is helpful if it’s stolen or missing.
  • No overdraft fees. Instead of a fee they offer an Overdraft Line of Credit that charges you a competitive interest rate if your account falls below zero.

Depositing Cash and Checks

Before taking the leap to online banking you may feel apprehensive about giving up access to a live teller for bank deposits. Fortunately, 360 Checking offers several simple ways to fund your account.

You can transfer money from another bank or set up direct deposit from your employer. You can also deposit cash and checks at 360 Cafe and Capital One branch ATMs. Find deposit locations near you with its ATM locator map.

Avoid using an ATM altogether for deposits and take snaps of your checks and upload them using CheckMate. The 360 Checking website offers a short demo to show you exactly what’s involved with depositing remotely.

A Closer Look at Overdraft Protection

promo-checking-halfThe 360 Checking account has a pretty lenient overdraft policy. If you apply for the Overdraft Line of Credit the daily interest on overdrafts will cost you pennies. Though you should keep in mind that during the application process for the line of credit, Capital One will perform a “hard pull” and it can affect your credit score. However, this dip of 5 to 10 points is well worth the protection to avoid overdraft charges.

The rate for overdraft is currently 12.50% APR variable and Capital One offers a convenient overdraft calculator to show you how much you can expect to be charged if your account goes into the red. For example, an overdraft of $100 for 10 days will cost you just $0.31 based on its estimate.

What happens if you pass on the Overdraft Line of Credit and your account goes into the negative? There’s no mention of the repercussions on the 360 Checking website. However, customer service confirmed there’s still no fee, the transaction is simply declined. They do advise transferring funds into your account promptly, otherwise you run the risk of having your account shut down. Keep in mind that while it’s great you don’t have a fee levied against you, declining a charge could mean an important bill goes unpaid.

Additional Fees to Consider

Although 360 Checking has no monthly fee, it’s important to note that there are some other fees for extra services associated with the account. For instance, sending out overnight checks will cost you $20 and an overnight card replacement costs $25. Your first checks are free, but future checkbooks cost $5. Additionally, if a check is returned for insufficient funds you’ll incur a $9 Rejected Check Charge. And to place a stop payment on a check you’ll have to pay $25.

What Sets 360 Checking Apart From Other Online Accounts?

The ability to make cash deposits at select ATM machines is a key differentiator of this checking account. Other popular online banks like Ally, The Bank of Interest USA, EverBank and Charles Schwab don’t currently accept cash deposits.

In other areas like customer service and fees, 360 Checking has some stiff competition. The Ally Bank Interest Checking Account has no monthly fee or minimum balance requirement as well, but they offer 24/7 customer service. Capital One 360 provides customer service from 8 am to 8 pm.  Furthermore, miscellaneous fees for checkbooks, stop payments and expedited delivery services are higher with 360 Checking than Ally Interest Checking.

How does the Capital One 360 Stack Up With Interest?

This account is decent for earning interest if you can’t put more than $100 into it initially. If you have a little bit more money to deposit, there are other options that will earn you more interest.

For instance, the Bank 5 Connect High-Interest Checking Account currently offers APY of 0.76% for balances over $100 at opening. In order for you to make that type of interest with a 360 Checking account you need to maintain a balance over $50,000.

Just keep in mind that you shouldn’t be hoarding tons of cashing in your checking account. It’s much better to keep high amounts of cash in a savings account, which offers better fraud protection.

A Good Deal if You Value Convenience

Overall Capital 360 checking may not be your first choice if your primary goal is to find a checking account with the highest interest. But it should be at the top of your list if you value conveniences like easy access to your money at thousands of ATMs for free, the option to deposit cash, the ease of bank transfers and no overdraft fees.

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Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Taylor Gordon
Taylor Gordon |

Taylor Gordon is a writer at MagnifyMoney. You can email Taylor here