Banking Bank Reviews

Capital One vs. Ally Bank [2025]: The Better Choice Depends on What You Need

Capital One 360 and Ally Bank both offer no-monthly-fee online bank accounts and high rates, but Capital One is better for families, while Ally may be better for saving.

By Christy Rakoczy
and Lauren Graves

Edited by Stephanie Trejos

Updated July 7, 2025

2025 award winner Best Overall Checking Account

4.9

Earn a $250 bonus by opening a 360 Checking
No fees, no minimums
Terms Apply¹ 1. Open a 360 Checking account on or after August 22, 2024, using promotional code CHECKING250. 2. Set up and receive at least 2 Qualifying Direct Deposits each of $500 or more to your 360 Checking account within 75 days of account opening. 3. Capital One will deposit the bonus into your account after the first two requirements listed above are completed. See full offer details and when the bonus will be posted at <a href="https://www.capitalone.com/bank/checking250/affiliate/">https://www.capitalone.com/bank/checking250/affiliate/</a>.

Our view

Whether you choose to bank with Ally or Capital One 360, you'll avoid most annoying banking fees and minimums, earn good interest rates, and have convenient access to your accounts through user-friendly digital platforms and large ATM networks. But though these full-service banks are similar, they're not equal. There are key differences between the two in terms of account options, banking benefits, and access.

The better bank for you will depend on how you prefer to manage your money and the accounts you want. Overall, Ally has the edge over Capital One for long-term saving and growing your money, but Capital One wins out for family banking. We recommend Capital One 360 for parents because it has bank accounts for kids and teens, and we also like the bank for in-person service (though the branch network is very limited compared to other banks).

How we evaluate products

Capital One 360 vs. Ally Bank: Overview

	Capital One 360	Ally Bank
Year founded	1994	1919
Number of branches	257	None
Number of fee-free ATMs	70,000+	75,000+ Allpoint ATMs
Checking accounts offered	360 Checking Account MONEY Teen Checking Account	Spending Account
Savings accounts offered	360 Performance Savings Kids Savings Account	Savings Account Money Market account
CD options	360 CDs	High Yield CD Raise Your Rate CD No Penalty CD
FDIC insurance	Member FDIC (Cert. #4297)	Member FDIC (Cert. #57803)
	Read our Capital One 360 review	Read our Ally Bank review

When to go with Capital One 360

We'd recommend Capital One 360 to you if:

You want to get a debit card for your teen.
You want to open a savings account for your child.
You want in-person customer support (and live near a branch).
You want a CD term not offered by Ally.

Capital One is a hybrid bank with a full-featured digital platform and a network of fewer than 300 in-person branches (for comparison, Bank of America has over 3,600 branches). If you become a customer, you can manage your accounts entirely online, visit a branch, or both. Capital One branches are mostly along the East Coast.

Capital One offers a wide variety of banking products, including checking and savings accounts, credit cards, auto loans, and business banking solutions. Unlike many banks, including Ally, the company provides dedicated kids' and teens' accounts.

Pros

Checking accounts for kids and teens
Automated savings features
Phone support seven days a week
Moderately competitive rates on savings accounts and CDs

Cons

No money market account
No ATM reimbursements for out-of-network ATMs
No flexible CDs or CDs with terms of less than six months

Visit Capital One 360 Checking | Read our Capital One 360 Review

When to go with Ally Bank

On the other hand, Ally Bank might be better for you than Capital One 360 if:

You want a penalty-free or bump-up CD or an MMA.
You need help saving more.
You want to open a checking and savings account.
You use ATMs often.

Ally Bank, one of the largest online-only banks in the U.S., offers deposit accounts, credit cards, investment accounts, and loans. Ally is known for paying high interest rates on savings accounts and stands out for its flexible CDs and automated savings features.

Pros

Automated savings features, including savings buckets
24/7 phone and live chat support
Many CD terms and types
Highly competitive rates on savings

Cons

No brick-and-mortar bank branches
No dedicated accounts for kids and teens
Poor mobile app reviews on Google Play

Read our Ally Online Savings Account Review

Ally Bank and DEI

Ally Bank has long been a champion of DEI in banking and has prided itself on its wide-reaching social impact, but the bank has de-emphasized such initiatives and quotas since April 2025. This doesn't mean Ally no longer cares about diversity, equity, and inclusion, but it may mean that we'll be seeing this lens a little less in news about the bank.

How checking accounts compare

Winner: Tie

	Ally Bank	Capital One 360
Accounts	Spending Account	360 Checking MONEY Teen Checking
APY	0.10% (as of 05/02/25) APY on checking accounts	0.10% (as of 04/28/25) APY on 360 Checking 0.10% (as of 05/02/25) MONEY Teen Checking
Fees	No monthly maintenance or overdraft fees	No monthly maintenance or overdraft fees
Minimums	None	None
ATMs	75,000+ fee-free ATMs plus reimbursement of up to $10 in ATM fees monthly	70,000+ fee-free ATMs

Earn a $250 Bonus With 360 Checking — No Fees, No Minimums

4.9

2025 award winner Best Overall Checking Account

CapitalOne 360 Checking Benefits

Earn a $250 bonus by opening a 360 Checking
No fees, no minimums
Terms Apply¹ 1. Open a 360 Checking account on or after August 22, 2024, using promotional code CHECKING250. 2. Set up and receive at least 2 Qualifying Direct Deposits each of $500 or more to your 360 Checking account within 75 days of account opening. 3. Capital One will deposit the bonus into your account after the first two requirements listed above are completed. See full offer details and when the bonus will be posted at <a href="https://www.capitalone.com/bank/checking250/affiliate/">https://www.capitalone.com/bank/checking250/affiliate/</a>.

4.9

Open Account

Early direct deposit

For everyday checking accounts, we like Ally and Capital One about equally. In addition to having no fees or minimum deposit and balance requirements, they both offer early direct deposit so you can get your paycheck up to two days before it's scheduled to arrive.

ATMs

That said, Ally has a slightly more extensive ATM network than Capital One and reimburses out-of-network fees, so we recommend Ally if cash access is important to you. Ally is also the better option for people interested in savings accounts, and we'll cover this more next.

Family/teen banking

However, for teen banking, I'd recommend Capital One. The MONEY Teen Checking account is one of the best kids' bank accounts you'll find from a big bank, and it has no minimums or fees. We even prefer it to popular options like Greenlight for parents who want to avoid monthly subscription fees. But MONEY Teen Checking is best for kids over 13 (despite being available to kids eight and older) because the account doesn't offer much in the way of educational tools and parental controls over spending.

Interest

While Ally and Capital One both technically offer interest checking, their rates leave something to be desired. On checking, Ally pays a higher interest rate of 0.10% (as of 05/02/25) APY, while Capital One pays 0.10% (as of 04/28/25) APY. Some of the best checking accounts earn yields that blow these rates out of the water.

How savings accounts compare

Winner: Tie

	Ally Bank	Capital One 360
Accounts	Savings Account	360 Performance Savings Kids Savings Account
APY	3.50% APY² <p class="">The APY of 3.50% is accurate as of 6/19/25. Rates are subject to change and may vary by account type and financial institution. </p>	3.50% APY on 360 Performance Savings³ <span>A rate of 3.50% Annual Percentage Yield (APY) applies to all account balances. Advertised rates are variable and effective as of 06/26/25. Rates are subject to change at any time before or after account opening.</span> 2.50% APY on Kids Savings Account
Fees	No monthly maintenance fee	No monthly maintenance fee
Minimums	None	None
Features	Savings buckets within one account Recurring automatic transfers Rounds Ups (booster) Surprise Savings (booster)	Multiple accounts for different goals Recurring automatic transfers

APYs and fees

For savings accounts, APYs and fees are the most important factors to consider because they determine how much your money grows — and how much growth you get to keep. Ally Bank and Capital One savings accounts earn respectable yields, though not quite the highest you'll find in the best savings accounts. They also don't charge monthly maintenance fees that could cut into your earnings or require a minimum deposit to open and earn interest.

Automated savings features

Features to help you save more are a bonus, and this is where Ally comes out on top with its buckets and "boosters." With an Ally Savings Account, you can use Buckets to organize your savings into different categories and enable Round Ups and Surprise Savings to automatically send money from your checking to your savings account.

Round Ups work by rounding up your debit card transactions to the nearest dollar and saving the extra, and Surprise Savings scans your checking for money you're not using. You can also schedule recurring transfers, but this isn't a unique feature for savings accounts today.

Good to know

To take advantage of Ally's many savings features, you also need a Spending Account, which could be a barrier if you're happy with your current bank account

With Capital One, you can create multiple Performance Savings accounts to separate funds for your different financial goals and schedule automatic transfers to save regularly.

Family saving

Capital One has fewer tools than Ally to automate your savings. But again, Capital One wins specifically for families because it offers a Kids Savings Account. This earns 2.50% APY, which is pretty high for a kids' savings account, and has no fees or minimums. It's a joint account controlled by parents, and you can open one for your child if they're at least 12.

Ally Bank vs. Capital One 360: CDs

Winner: Ally

	Ally Bank	Capital One 360
Accounts	High Yield CD Raise Your Rate CD No Penalty CD	360 CDs
Terms	High Yield CD Three months Six months Nine months One year 18 months Three years Five years Raise Your Rate CD Two years Four years No Penalty CD 11 months	Six months Nine months 11 months One year 18 months Two years 30 months Three years Four years Five years
APYs	High Yield CD: Up to 3.90% (as of 06/23/25) APY Raise Your Rate CD: starts at 3.50% (as of 07/07/25) APY No Penalty CD: 3.40% (as of 07/07/25) APY	From 3.50%-4.00% (as of 07/07/25)
Fees	No monthly maintenance fees, early withdrawal penalty between 60 and 150 days' interest for High Yield and Raise Your Rate CDs	No monthly maintenance fee, early withdrawal penalty between three and six months' interest
Minimum balance	None	None

CD terms

For CDs, available terms are just as important as APYs because they determine whether an account can fit into your saving strategy. Both Capital One and Ally offer 10 CD terms to choose from, but Capital One only offers one type of CD, while Ally offers three — High-Yield CDs, Raise Your Rate CDs, and a No Penalty CD.

CD rates

When you directly compare rates between Ally and Capital One, Ally comes out on top again (though rates are comparable for longer terms, and Ally only has a slight margin on many others). Ally also offers a loyalty interest bonus to customers who renew their CDs and a Ten Day Best Rate Guarantee that ensures your account locks into the highest rate offered for 10 days after opening. However, you might prefer Capital One for CDs if you don't see the exact term you're looking for with Ally for standard CDs (such as two years, 30 months, or four years).

Ally Raise Your Rate CD

Raise Your Rate CDs are bump-up or bump-rate CDs that let you increase the rate your account earns once during your term if the available rate for new accounts with Ally goes up after you open. Typically, CDs earn fixed interest rates for the duration of their term.

Ally No Penalty CD

The No Penalty CD is also unlike most standard CDs. It doesn't require a long-term commitment; you can withdraw your money penalty-free in as little as six days after funding your account. Generally, CDs charge penalty fees equal to a percentage of the interest earned for withdrawing funds before the term is up.

How money market accounts compare

Winner: Ally

Ally Bank Money Market	Capital One 360
APY: 3.50% (as of 06/23/25) APY Fees: None Minimums: None Spending: Debit card and checks	N/A

Ally Bank has a money market account, while Capital One 360 doesn't. Ally's MMA earns a pretty good APY and stands out from other MMAs for allowing unlimited monthly withdrawals and capping other transactions at 10 per month (compared to six for many MMAs). Ally also reimburses up to $10 in out-of-network ATM fees each statement period for MMA withdrawals. Ally's account doesn't have a minimum deposit or balance you have to meet to open and earn interest, which is also unusual, and there's no monthly maintenance fee to worry about either.

Tip

Money market accounts earn variable interest rates that can change at any time, like savings account rates. But unlike savings accounts, they often come with cash access in the form of debit cards, ATM cards, and/or checkbooks. Many people use MMAs for emergency funds or as a secondary checking account for funds they might need to dip into more frequently than savings but less than regular spending money.

Access and customer support

Winner: Tie

Branches and ATMs

Capital One has 257 local branches for customers looking for in-person support. Ally Bank doesn't operate any branches. Ally has 75,000+ fee-free ATMs (plus fee reimbursements), while Capital One has 70,000+.

Customer reviews

Ally Bank has an A+ rating with the Better Business Bureau (BBB). Its consumer rating is 1.4 out of 5 stars on Trustpilot, which is not unusual for a bank.

Capital One 360 has an A+ rating with the BBB. Its consumer rating is 1.3 out of 5 stars on Trustpilot. While these consumer ratings are low, remember that angry customers often yell the loudest. Read reviews for yourself to get an idea of what customers are unhappy with and whether these patterns may affect you.

Customer support

To get in touch with a customer service representative with Ally, you can call, live chat, or send a secure message through your online portal. To contact support with Capital One, you can call, send a secure message, or visit a branch.

FAQs

Is Capital One 360 FDIC insured?

Yes, Capital One 360 is FDIC insured. The Federal Deposit Insurance Corporation (FDIC) insures its accounts up to standard limits of $250,000 per depositor, per account ownership category. Capital One's FDIC certificate number is 4297.

Is Ally Bank FDIC insured?

Yes, Ally Bank is FDIC insured. The FDIC insures its accounts up to standard limits of $250,000 per depositor, per account ownership category. Ally Bank's FDIC certificate number is 57803.

Bottom line

Both Capital One and Ally offer appealing checking and savings account options with helpful online banking features to make it easy to manage your accounts. If you want phone support, a penalty-free CD, or an MMA, Ally is your best bet. If you want in-person customer support or checking or savings accounts for kids and teens, Capital One 360 is the right choice for you.

Earn a $250 Bonus With 360 Checking — No Fees, No Minimums

4.9

2025 award winner Best Overall Checking Account

CapitalOne 360 Checking Benefits

Earn a $250 bonus by opening a 360 Checking
No fees, no minimums
Terms Apply¹ 1. Open a 360 Checking account on or after August 22, 2024, using promotional code CHECKING250. 2. Set up and receive at least 2 Qualifying Direct Deposits each of $500 or more to your 360 Checking account within 75 days of account opening. 3. Capital One will deposit the bonus into your account after the first two requirements listed above are completed. See full offer details and when the bonus will be posted at <a href="https://www.capitalone.com/bank/checking250/affiliate/">https://www.capitalone.com/bank/checking250/affiliate/</a>.

4.9

Open Account