Ally vs. Capital One 360

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Online banking is the wave of the future. And Ally and Capital One 360 are two of the hottest online banks out there. But which one is better? We put them head to head in this battle of the banks. Read on to find out which one is the right choice for you.

HighlightsCapital One 360Ally Bank
AccountsSavings, Checking, Money Market, CDsSavings, Checking, Money Market, CDs
Online Deposits
Physical Branches
FDIC Insurance
ATM Reimbursement

About Ally Bank and Capital One 360

About Ally Bank

Ally Bank is one of the best-known and most trusted online banks. More than 1 million customers have taken advantage of its interest-paying checking and savings accounts, as well as a suite of mortgage and auto loans.

What do people love best about Ally? Well, its no-fee policy is a good place to start. That's right — there are no pesky maintenance fees to eat away at your hard-earned money.

Plus, there are the generous interest payouts from Ally's savings accounts, as well as a checking account that pays interest too!

Because Ally doesn't have a single brick-and-mortar branch location, it can pass these savings along to you.

There's good reason to trust this bank too. Its history stretches back 100 years, when General Motors founded Ally's “ancestor,” GMAC, to help everyday folks finance a car. Today Ally Bank is a subsidiary of Ally Financial (which also owns Ally Invest). Together, these products can give you a one-stop-shop for all of your savings and investing needs.

About Capital One 360

Capital One 360

Capital One 360's history doesn't go back nearly as far as Ally's. Its parent, Capital One, was founded in 1995 to offer credit cards. In 2012, Capital One bought the ING Group's banking operations and rebranded them as Capital One 360.

Now, Capital One 360 is mainly an online bank, but there are brick-and-mortar branch locations as well. You'll find them in Connecticut, Delaware, Louisiana, Maryland, New Jersey, New York, Texas, Virginia and Washington, D.C.

However, the rates and features the bank offers are in line with other online banks, rather than the typical old-school brick-and-mortar operations. And as with Ally Bank, Capital One 360 charges no maintenance fees ever.

How Are They the Same?

Both banks offer a lot of features. First, let's discuss the similarities between the companies.

Accounts Offered Checking, savings, money market and CD accounts
ATM Reimbursement Both banks offer to reimburse your fees if you use an out-of-network ATM
Online Deposits Both banks allow you to make deposits online
FDIC Insurance Both banks offer FDIC insurance of up to $250,000 per account
No Maintenance Fees Neither bank charges maintenance fees on accounts

Next, let's check out how these banks compare when it comes to account options.

Checking Account Comparison

Even among online banks, it can be rare to find a checking account that pays interest. But with both Ally Bank and Capital One 360, you're in luck!

Now, keep in mind annual percentage yields (APYs) for checking accounts won't be as great as what you'll get with a savings or CD account. But it's certainly better than what you'll likely get elsewhere — nothing!

In addition to paying interest, both Ally Bank and Capital One 360 checking accounts include a debit card that you can use free at select ATMs. If you use an out-of-network ATM, both banks will reimburse you up to a point.

Ally Bank Interest Checking Capital One 360 Checking
Monthly Fees $0 $0
Minimum Deposit $0 $0
Interest APY $0–14,999: 0.10%
$15,000+: 0.50%
TIE — If you have $15,000 or less to deposit, Ally Bank offers a higher APY. Otherwise, Capital One 360 has the better rate.

Savings Account Comparison

If you want an interest-paying savings account, it's good to know that both banks pay more than the national average. However, as you'll see, one offers a much higher rate.

Ally Bank Online Savings Capital One 360 Savings
Monthly Fees $0 $0
Minimum Deposit $0 $0
Interest APY 1.50% 1.50%
TIE — Ally Bank and Capital One 360 offer the same APY for all accounts.

Money Market Account Comparison

Money market accounts are enhanced savings accounts. They offer higher interest rates, but you're prohibited from making more than six withdrawals via check, debit card or automatic bill pay per month. (You're not limited when it comes to ATMs.)

Ally Bank Money Market Capital One 360 Money Market
Monthly Fees $0 $0
Minimum Deposit $0 $0
Interest APY 0.75% $0–9,999: 0.85%
$10,000+: 2.00%
TIE — For amounts smaller than $10,000, Ally Bank offers a higher APY. Otherwise, Capital One 360 has the better rate.

CD Account Comparison

Certificates of deposit (CDs) are extremely popular savings tools. Although they tie your money up for a predetermined term, they generally offer higher APYs.

Ally Bank offers a couple of CD options, but here we've chosen to compare the most basic CD accounts. See our Ally review for more information on additional CD products.

Ally Bank High Yield CD Capital One 360 CDs
Minimum Deposit $0 $0
Three-month APY 0.75% N/A
Six-month APY 1.00% 0.60%
Nine-month APY 1.25% 0.75%
One-year APY 2.75% 2.70%
18-month APY $0–4,999: 2.40%
$5,000–24,999: 2.55%
$25,000+: 2.60%
Two-year APY N/A 2.80%
Three-year APY $0–4,999: 2.50%
$5,000–24,999: 2.60%
$25,000+: 2.65%
Four-year APY N/A 2.90%
Five-year APY 3.00% 3.10%

Customer Service

Ally Bank is strictly online only. There are no branch offices anywhere that you can go into if you have a pressing question about your account. That might bother some folks. But others will find that to not be an issue, especially since Ally Bank offers plenty of other ways to contact customer service. You can give the bank a call or open a live chat from 7 am – 10 pm, 7 days a week (Eastern Time).

With Capital One 360, on the other hand, you can find support at more than 550 local branches, including trendy branded cafes. However, the support you find may be limited. For full support, you can call Capital One from 8 am to 8 pm Eastern Time, seven days a week.

Winner —


Both banks take your security seriously. And both banks are FDIC insured.

Ally Bank uses two-step authentication and other strategies to protect your private information. In addition, the bank offers a security center, where you'll find tips on identifying fraud and identity theft, safely using social media and even protecting your mobile device from malware.

Capital One 360 pioneered the SwiftID system. It's a bit complicated to explain, but basically, it bypasses the usual pesky security questions (“What's the name of your great-aunt's second favorite cat?”). The SwiftID system can identify your particular device with a swipe of the screen.

TIE — Both Ally Bank and Capital One 360 take security seriously.


Currently, neither Ally Bank nor Capital One 360 is offering a promotion. Keep an eye on this space in case that changes!


So which bank is better?

That's a tough question. Both banks shine when it comes to a lack of maintenance fees and minimum deposits. And both offer higher APYs than you'll find at a traditional brick-and-mortar bank.

However, I'm inclined to give Ally Bank a slight edge. That's because you'll earn twice as much interest on savings accounts. Plus, you can give the bank's customer service team a holler anytime you want.

That's not to say Capital One 360 isn't great too. In fact, you might find better CD rates here, depending on your desired terms. Plus, there's the convenience of a bank branch if you need one.

Ultimately, the choice is up to you!

Kat Peach

Although Katherine Peach originally intended to become an archaeologist, she has now been working as an editor in the financial publishing industry for more than 10 years. (Unearthing ideas about improving your personal finances isn’t such a bad career alternative!)

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  1. One important difference for me is that Ally does not allow VPN access to your accounts. Capital One does, with two-factor verification, of course. I’ve been with Ally bank for a few years now and this new policy of ‘no VPN access’ is causing me to close my accounts at Ally. I can’t do business with a bank who restricts my access to my money for the sake of their own sense of security.

  2. This is helpful, thanks! Just curious, where Ally’s 2.2% APY came from? I only see 1.6% online and 1.7% for CapitalOne.

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