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Banking

Review of Xoom: The Money Transfer Service by PayPal

Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews, statements or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

Xoom, a PayPal company, is a money transfer service that allows you to make international digital payments that are quick, easy and secure. If your loved ones are scattered across the globe, Xoom lets you send money, pay bills and reload minutes on mobile phones from afar. Xoom services are available in 132 countries, meaning there’s a pretty solid chance that the location you’ll need falls under its umbrella.

In this review, we’ll walk you through the basics of sending money through the platform and help you decide if it meets your needs.

A brief history of Xoom

Xoom was founded in 2001, and PayPal acquired the company in 2015 for roughly $1.1 billion. In 2016, Xoom upgraded its features to allow recipients to request funds and by 2017, the company expanded its presence from 40 receive markets to 67 markets.

Xoom’s international money transfer services have also been integrated into PayPal, making it easier for you to send money outside the U.S. on the PayPal platform as well.

According to its website, Xoom and PayPal have a “shared vision” of making the international payment platform accessible to millions more people throughout the world, so expect it to grow in the future.

Xoom key features

  • High transfer limits: Xoom allows U.S. residents to send up to $100,000 USD within a 180-day period — do note that sending limits are set at three different levels, with different amounts requiring different sets of identification documents. Providing additional information and documents allows for your account to be upgraded.
  • Several ways to pay: Any Xoom service — i.e., sending money, reloading phones and paying bills — can be funded with a bank account, debit card or credit card, as well as a PayPal account.
  • Fees vary: The transaction fee you’re charged for using Xoom’s services fluctuates according to payment method, amount of money sent, where the money is sent and currency selected for disbursement.
  • Fast money transfers: In most cases, money is available to recipients in a matter of minutes, but transfers can take up to a few days. However, if you send more than $10,000 USD within 24 hours, the funds won’t be received for two to three business days, plus the standard processing time.
  • Instant bill pay: Enjoy the ability to pay a variety of utility bills on a loved one’s behalf in Mexico, Colombia, the Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua, Panama, Costa Rica and Vietnam. Bills are paid instantly, with the exception of Telmex bills in Mexico, which take two business days.
  • Xoom app: You can send money, reload phones and pay bills from the app. Available for iPhones and Android devices, the app lets users check the status of all transactions.

Sending a money transfer with Xoom

How long does a transfer take?Most transfers are completed in minutes, but the process can take up to a few days.
Where can you send money?Xoom allows you to send money to recipients in 132 countries.
How much can you send?Sending limits are set at three different levels (for more detail, see the chart below). Top tier senders in the U.S. — Level 3 — can send up to $100,000 USD within a 180-day period.

To send money via Xoom, you’ll need to create a free account or log in with your PayPal account. If you create an account, you’ll be asked to create a password and provide basic information, including your name, email address, phone number and country of residence. Afterwards, you’ll receive a verification email to activate your account. To connect a payment source to your account, add a bank account, credit card or debit card, and use it in a transaction. Payment sources can be updated or deleted from your “My Account” page.

Senders are categorized into three different levels. Each level has a limit on the amount of money you’re allowed to send during a certain time period. Different information and documents are required to reach each level. During your transaction, Xoom may ask questions, and if you need to provide more information, the company will email you with instructions.

Here’s a look at the sending limits and requirements for U.S. residents, as per the provider’s website.

Level24-hour limit30-day limit180-day limitRequired information and documents
1$2,999 USD$6,000 USD$9,999 USDSender profile information
2$10,000 USD$20,000 USD$30,000 USDSocial Security Number or passport
3$50,000 USD$60,000 USD$100,000 USD
  • Driver’s license, passport or green card

  • Bank statement or pay stub

  • Answer security questions Xoom sends via email


In most cases, the recipient will receive the funds minutes after they’re sent, but it can take a few days. Several factors can affect transfer times, including the country where your money is headed, the method in which funds are received — either bank deposit, cash pick up or home delivery — and the payment type — from a bank account, debit card or credit card.

In addition to sending limits, this provider also caps the amount of money recipients can receive, based on the sending level of the person(s) transferring the funds — do note that the receiving limits apply across senders. Any transaction that exceeds a recipient’s designated maximum will be canceled.

Here’s a look at the receiving limits from U.S. senders, as per the provider’s website.

From24-hours30-days180-days
Level 1 senders$15,000 USD$25,000 USD$55,000USD
Level 2 senders$15,000 USD$25,000 USD$55,000 USD
Level 3 senders$75,000 USD$90,000 USD$120,000 USD

Additionally, Xoom’s partners — these include banks, cash pick up locations and home delivery services — have restrictions that vary by country. These could include the amount of money that can be paid in a single transaction or to a recipient in a certain time period.

Fees and fine print

Fees and Penalties
Transfer feesXoom charges a transaction fee to send money internationally. Fees can vary according to several factors:
  • your payment method

  • the amount of money sent

  • where the money is sent from

  • the currency selected for disbursement


For certain destination countries, you can avoid fees by paying with a bank account, but not every country.

Xoom’s variable fee schedule is on par with other money transfer companies. It’s very common for fees to be calculated based on the criteria used by Xoom. For example, to send $1,000 to the United Kingdom, there are no fees to send from a bank account, but a $30.49 fee to send funds from a debit or a credit card.

Is Xoom a good money transfer service to use?

ProsCons
  • Xoom app: You can send money, reload phones and pay bills from the app. Available for iPhone and Android, the app lets users check the status of all transactions.
  • Funding options: Users may pay with a bank account, debit card or credit card.
  • Fast cash: Most money transfers are available to the recipient within minutes, but can take a maximum of a few days. When sending more than $10,000 USD within a 24-hour period, it can take between two to three business days, in addition to standard processing time.

  • Variable fees: Xoom charges a transaction fee that can vary according to several factors, including payment method, amount of money sent, where the money is sent and currency selected for disbursement.
  • Limited availability: Money transfer services are available in 132 countries, fewer than competing services.
  • Receiving Limits: The amount of money recipients can receive is determined by the sending level of the sender(s). Receiving limits are also cumulative across senders.




Alternative money transfer options

WorldRemit and MoneyGram are international money transfer companies providing similar services to Xoom.

WorldRemit

  • Where can you send money? Send money to recipients in more than 145 countries, a broader reach than Xoom’s 132 countries.
  • How long does a transfer take? In most cases, funds are immediately transferred to the recipient; however, some transfers may take longer, depending on the mode of receipt. WorldRemit displays the expected delivery time before you make a payment.
  • How much can you send? The maximum amount you may send is determined by the country where you live, and can also vary according to your method of payment.
  • Fee to send money: The cost to send money is based on each individual transaction. All fees and exchange rates are displayed outright.

WorldRemit is based in London, with regional offices in the U.S., Canada, Australia and New Zealand. Since it serves more countries than Xoom, it could be a good alternative if your destination country isn’t on Xoom’s list.

MoneyGram

  • Where can you send money? MoneyGram’s global network of nearly 350,000 locations, along with retailers and businesses, in more than 200 countries and territories. In addition, you can transfer money within the U.S.
  • How long does a transfer take? In many cases, funds are available within a few hours. However, factors including destination country and banking hours can affect the amount of time a transfer takes.
  • How much can you send? When sending money to most countries, there is a maximum of $10,000 per online transfer and up to $10,000 every 30 calendar days. You can send additional funds from a MoneyGram agent location.
  • Fee to send money: The cost to transfer funds varies according to where the money is going, the total amount sent and the method of payment. Fees are generally lower when paid with a bank account than a credit or debit card.

MoneyGram could be a good alternative to Xoom if you need to make both domestic and international transfers. Since its services are available in more than 200 countries and territories, it could also be an option if your destination country isn’t part of the Xoom network.

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

Barclays Personal Loan Review

Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews, statements or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

Disclosure : By clicking “See Offers” you’ll be directed to our parent company, LendingTree. Based on your creditworthiness you may be matched with up to five different lenders.

Barclays
APR

5.74%
To
20.99%

Credit Req.

700

Minimum Credit Score

Terms

36 to 60

months

Origination Fee

None

SEE OFFERS Secured

on LendingTree’s secure website

Barclays is a global bank with customers in 40 countries. ... Read More

Barclays Personal Loan Details
TermsFees and Penalties
  • Term lengths: 36 to 60 months
  • APR range: 5.74% to 20.99%
  • Loan amounts: $5,000 to $35,000
  • Time to funding: A few business days
  • Credit check: Soft Pull
  • Origination fee: None
  • Prepayment fee: None
  • Late payment fee: None

Barclays product details

One of the most unique features of the Barclays personal loan is the complete lack of late fees — your balance will still accrue interest if your payment is late, which could increase your total loan payment, but you won’t incur a penalty.

When you check your personal loan rate, Barclays performs a soft pull that won’t affect your credit score. This allows you to comparison shop, without lowering your score. Do note, the bank will check your credit score to determine your creditworthiness after you submit an application.

Eligibility requirements

  • Minimum credit score: 700
  • Minimum credit history: Not specified
  • Maximum debt-to-income ratio: Not specified

Specific eligibility requirements for personal loans are not available on the Barclays website.

Applying for a personal loan from Barclays

The Barclays personal loan application is entirely online. To begin the process, click “Check your rate,” follow the prompts and choose the options that best meet your needs. You do not need an invitation code to apply, but if you have one, click “Use my invitation code” at the top of the page to receive your customized rate.

During the application process, you’ll be asked to provide your name, address, contact information, Social Security number, employment details, and personal financial information. Barclays will send you a message through its secure application center to request written documents needed to evaluate your application. These items can be uploaded through the bank’s secure application center.

Before you sign your loan application, you’re free to cancel it at any time. If you choose to accept your loan, Barclays will issue the money within a few business days. You’re able to have the funds deposited in a U.S. checking or savings account or direct the bank to pay off up to five of your credit card balances without touching the funds yourself.

Pros and Cons of a Barclays Personal Loan
ProsCons
  • No fees: Barclays personal loans come with zero fees. This includes origination fees, prepayment penalties and late fees, which can result in significant savings.
  • Soft pulls: Checking your rate will not impact your credit score, because Barclays uses a soft credit inquiry that is not reported to creditors or credit reporting agencies.
  • Flexible terms: Choose a repayment period that fits your budget, as Barclays offers terms of 36, 48 and 60 months.
  • Competitive baseline APR: Barclays offers a baseline APR of 5.74%, which is lower than most lenders. However, rates are based on creditworthiness and length of term requested, so depending on your unique situation, you could end up with the maximum 20.99% APR.
  • Loan amounts: Barclays only offers loans between $5,000 to $35,000. This can be problematic if you’re looking for a smaller amount.
  • Time to funding: After you’re approved for a Barclays loan, it takes at least few business days to get you the money. The bank notes that delays are possible based on the policies and procedures of your financial institution.

Who’s the best fit for a Barclays personal loan?

A Barclays personal loan might be a great fit if you’re opposed to paying fees of any kind. The lack of origination fees, prepayment penalties and even late fees can result in serious savings.

Considering loan amounts range from $5,000 to $35,000, this product will only work if you need to borrow a substantial amount of cash. Due to the seriously competitive baseline 5.74% APR, it’s also a better choice if you have a low credit score. Rates are based on creditworthiness and length of term requested, so if your credit isn’t the best, you could end up with the highest rate, which tops out at 20.99% APR.

Since Barclays’s personal loans offer a fully digital experience, this is also a better choice for the tech savvy crowd. While a customer service team is always a phone call away, you might become frustrated with the self-service features and the lack of face-to-face interaction if you prefer more a more personalized banking experience.

Before deciding on a personal loan, it’s smart to read Barclays reviews and comparison shop to see what other lenders have to offer. LendingTree has a personal loan tool that can be used to quickly and efficiently explore your options. Barclays loans have no origination fees, and below are a few alternatives that also offer this benefit.

Alternative personal loan options

LightStream

APR

3.99%
To
16.99%

Credit Req.

660

Minimum Credit Score

Terms

24 to 144

months

Origination Fee

No origination fee

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on LendingTree’s secure website

Advertiser Disclosure

LightStream is the online lending division of SunTrust Bank.... Read More


Your APR may differ based on loan purpose, amount, term, and your credit profile. Rate is quoted with AutoPay discount, which is only available when you select AutoPay prior to loan funding. Rates under the invoicing option are 0.50% higher. Subject to credit approval. Conditions and limitations apply. Advertised rates and terms are subject to change without notice. Payment example: Monthly payments for a $10,000 loan at 3.99% APR with a term of 3 years would result in 36 monthly payments of $295.20.

LightStream, a division of SunTrust Bank, offers personal loans from $5,000 to $100,000. Rates are extremely competitive — the bank is willing to beat any qualifying lower rate offered by another lender by 0.10% — and vary by loan purpose. There are no fees attached to the loan, including prepayment penalties. This can be a good choice if you’re looking for a fee-free loan, but need a higher amount than Barclays offers.

SoFi

SoFi
APR

5.99%
To
16.24%

Credit Req.

680

Minimum Credit Score

Terms

24 to 84

months

Origination Fee

No origination fee

SEE OFFERS Secured

on LendingTree’s secure website

Advertiser Disclosure

SoFi offers some of the best rates and terms on the market. ... Read More


Fixed rates from 5.990% APR to 16.240% APR (with AutoPay). Variable rates from 5.75% APR to 14.60% APR (with AutoPay). SoFi rate ranges are current as of March 18, 2019 and are subject to change without notice. Not all rates and amounts available in all states. See Personal Loan eligibility details. Not all applicants qualify for the lowest rate. If approved for a loan, to qualify for the lowest rate, you must have a responsible financial history and meet other conditions. Your actual rate will be within the range of rates listed above and will depend on a variety of factors, including evaluation of your credit worthiness, years of professional experience, income and other factors. See APR examples and terms. Interest rates on variable rate loans are capped at 14.95%. Lowest variable rate of 5.75% APR assumes current 1-month LIBOR rate of 2.50% plus 4.28% margin minus 0.25% AutoPay discount. For the SoFi variable rate loan, the 1-month LIBOR index will adjust monthly and the loan payment will be re-amortized and may change monthly. APRs for variable rate loans may increase after origination if the LIBOR index increases. The SoFi 0.25% AutoPay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account.

All rates, terms, and figures are subject to change by the lender without notice. For the most up-to-date information, visit the lender's website directly. To check the rates and terms you qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull.

See Consumer Licenses.

SoFi Personal Loans are not available to residents of MS. Minimum loan requirements might be higher than $5,000 in specific states due to legal requirements. Fixed and variable-rate caps may be lower in some states due to legal requirements and may impact your eligibility to qualify for a SoFi loan.

If you lose your job through no fault of your own, you may apply for Unemployment Protection. SoFi will suspend your monthly SoFi loan payments and provide job placement assistance during your forbearance period. Interest will continue to accrue and will be added to your principal balance at the end of each forbearance period, to the extent permitted by applicable law. Benefits are offered in three month increments, and capped at 12 months, in aggregate, over the life of the loan. To be eligible for this assistance you must provide proof that you have applied for and are eligible for unemployment compensation, and you must actively work with our Career Advisory Group to look for new employment. If the loan is co-signed the unemployment protection applies where both the borrower and cosigner lose their job and meet conditions.

Terms and Conditions Apply. SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. To qualify, a borrower must be a U.S. citizen or permanent resident in an eligible state and meet SoFi's underwriting requirements. Not all borrowers receive the lowest rate. To qualify for the lowest rate, you must have a responsible financial history and meet other conditions. If approved, your actual rate will be within the range of rates listed above and will depend on a variety of factors, including term of loan, a responsible financial history, years of experience, income and other factors. Rates and Terms are subject to change at anytime without notice and are subject to state restrictions. SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers such as Income Based Repayment or Income Contingent Repayment or PAYE. Licensed by the Department of Business Oversight under the California Financing Law License No. 6054612. SoFi loans are originated by SoFi Lending Corp., NMLS # 1121636. (www.nmlsconsumeraccess.org)

SoFi grants personal loans from $5,000 to $100,000. There are zero fees attached to the loans and SoFi’s unemployment protection benefit allows you to temporarily pause payments, while helping you find work if you lose your job. If you’re looking to borrow more than the maximum Barclays personal loan limit or want to spread your payments out across a longer term, a SoFi personal loan can be solid option.

Earnest

Earnest
APR

6.99%
To
18.24%

Credit Req.

680

Minimum Credit Score

Terms

36 to 60

months

Origination Fee

No origination fee

SEE OFFERS Secured

on LendingTree’s secure website

Instead of offering credit-based loans, Earnest has taken a very nontraditional approach using a merit-based system.... Read More

Earnest offers personal loans that range from $5,000 to $75,000 and you’re able to choose your desired monthly payment. You might also score a more competitive rate with Earnest, as the lender analyzes your entire financial profile to calculate your APR, instead of relying solely on your credit score. Earnest could be a good choice if you need more money than the maximum Barclays limit or you feel like your credit score doesn’t properly represent your financial standing.

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.

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

TAGS:

Advertiser Disclosure

Banking

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

Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews, statements or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

You can’t really go wrong with Ally 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 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 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 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 and Capital One 360 products to help you decide which bank is the best fit for you.

Ally 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 and Capital One offer select rates that surpass national and online bank averages, but neither beats every mark. Generally speaking, Ally’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 comes out on top for the rest. For one year CDs, Ally has a slightly better rate, but the two banks offer the same above-average rate on five year CDs

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

 AllyCapital OneNational average*
Online bank average*
Savings2.20% APY


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

0.60% APY, minimum daily balance of $15,000 or more
0.20% APY, minimum account balance of $0.01 to $49,999.99

0.75% APY, minimum account balance of $50,000 to $99,999.99

1.00% APY, minimum account balance of $100,000
0.189% APY0.41% APY
1 year CD
2.70% APY2.70% APY
1.356% APY
2.09% APY
5 year CD
3.00% APY3.00% APY
2.255% APY
2.70% APY

Ally 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 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
2.20%$0.01

LEARN MORE Secured

on Ally Bank’s secure website

Member FDIC

High Yield 12-Month CD
2.70%$0.01

LEARN MORE Secured

on Ally Bank’s secure website

Member FDIC

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 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 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’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 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 and Capital One both offer savings and checking accounts without monthly maintenance fees, but overall, Ally is the better choice. This call is made on the fact that Ally 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 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 Bank Ally?

Ally 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 0.60% 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’s competitive rates also make it an excellent choice to park your money in a traditional savings account or CD. The bank’s 2.20% APY for savings accounts, 2.70% APY for one year CDs and 3.00% 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 0.75% APY attached to a minimum account balance of $50,000 to $99,999.99 and the 1.00% 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 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 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

TAGS: