Chime® vs. Ally: Which Online Bank Deserves Your Business?

Chime vs. Ally comparison

When to go with Chime

Both Chime and Ally don’t charge monthly maintenance fees or have minimum deposit requirements, but you may consider Chime if:

• You need a more robust ATM network
• You want your federal tax refund early
• You want to earn cash back

You need a large ATM network

Both Chime and Ally use the Allpoint network, but Chime also uses the MoneyPass and Visa Plus Alliance networks. So rather than access to only 43,000 ATMs, you could have access to over 60,000 ATMs.³

This is a nice feature since Chime charges a $2.50 out-of-network fee if you use an ATM outside the network.

You want your federal tax refund early

Along with early direct deposit of your paycheck, Chime offers early access to your federal tax refund, usually up to six days early. Chime will even alert you when the money hits your account so you know when you have it.

You want to earn cash back

Chime offers cash back on everyday purchases through the Chime app, called Chime Deals™. Before shopping, simply browse the app and activate the deal you want. There are often deals on groceries, gas, and local restaurants. Be careful — each deal has an expiration, so be sure you complete the purchase before it expires.

To get the deal, you must check out with your Chime Visa debit card or Secured Chime Credit Builder Visa. You’ll receive any cashback earned within 10 days in your Chime account.¹⁰

When to go with Ally

• You might use ATMs outside the network
• You have several savings goals
• You want to invest

You need access to out-of-network ATMs

Chime charges a fee of $2.50 to use out-of-network ATMs, plus you must pay whatever fee the ATM provider charges. Ally, however, reimburses you for any out-of-network ATM fees up to $10 per month. If you travel frequently or know you’ll need easy access to an ATM and might need to go out of network, Ally may be a better option to keep more money in your pocket.

You have many savings goals

Ally’s high-yield savings account offers the option to set up savings buckets. You can think of savings buckets as digital envelopes to set money aside for specific goals. For example, if you’re saving up for vacation, an emergency fund, and to buy a new household appliance, you can set up three different buckets so you can see how close you are to each goal.

You want to invest, not just save

Ally offers more than just a savings account. While their high-yield savings account pays a healthy APY, they also offer a money market account and CDs, each of which pay high yield rates, helping you earn more interest.

Ally also offers two traditional investing accounts:

• Automated investing: Ally manages this built-for-you portfolio, so all you have to do is deposit the funds in the account and ensure it aligns with your goals.
• Self-directed investing: You can set up and manage your own investment account, including stocks, bonds, and ETFs.

Key differences between the two

Ally and Chime have a lot in common as online-only financial institutions with minimal fees, but there are differences that can make one better than the other for you.

APYs on savings and checking products

Both Chime and Ally offer accounts that earn you interest, but they do so in different ways. Chime offers interest just on its savings account and caps rates at 2.00% (as of Sept. 9, 2024) APY.¹¹ This is a decent rate, but not a great one.

Ally offers interest on both its savings and checking accounts. Its checking APY is low at just 0.25% (as of 10/28/24), but considering most checking accounts offer no interest at all, Ally’s is one of the best checking accounts around. Ally’s APY is much higher at 4.00% (as of 10/28/24) for its savings account.

Winner: Ally is the clear winner when it comes to offering interest because it provides higher rates on both its savings and checking products.

Number and type of accounts

Chime and Ally offer basic checking and savings accounts, but Ally goes above and beyond with a much larger account selection, including:

• Money market
• High-yield CD
• Raise your Rate CD
• No Penalty CD
• Four credit cards
• Automated investing
• Self-directed investing

Winner: If you’re looking for more than a checking or savings account, Ally is the clear winner. However, Chime does a great job with its checking and savings accounts.

Automatic savings

Saving money is easy with both Chime and Ally. Both offer automatic savings features like round-ups that help put savings on autopilot.¹² Chime also offers the ability to move a percentage of money over to savings each paycheck.

But Ally steps up its saving features, surprising you with extra savings when your budget allows. Ally carefully looks at your spending and finds small amounts of money to move to savings from time to time. Ally also helps you save for individual goals through savings buckets, but the high 4.00% (as of 10/28/24) APY applies to your total balance, so those savings buckets won't affect your compound interest earnings.

Winner: Ally comes out slightly on top, offering a few extra features that make saving uncomplicated.

FAQ

Bottom line

The best financial companies give you a combination of compelling features that make managing your money easy. While Ally and Chime each fit the bill, Ally has a bit more to offer customers, especially if you want a one-stop shop for all your banking needs, or earning interest on your checking account balance is important to you.

That doesn’t mean Chime doesn’t have its benefits, though. Chime stands out for its credit-build focus, offering one of the only no-annual-fee, no-security-deposit, and no-credit-check secured credit cards.¹³ Paired with its savings APY and huge ATM network, a variety of customers will find a lot to appreciate.³ (Note that you can only open a savings account if you have a checking account.)

Ally takes the cake because it focuses on providing the highest APYs on both checking and savings products. It also provides extra features like overdraft protection and savings buckets to help you meet your savings goals.

Get Your Paycheck Early

4.6

FinanceBuzz writers and editors score products and companies on a number of objective features as well as our expert editorial assessment. Our partners do not influence our ratings.

Chime® Benefits

• Get fee-free overdraft up to $200⁸with SpotMe®
• Get paid up to 2 days earlier¹⁴than you would with some traditional banks
• 24/7 live support with a real human
• FDIC insured through The Bancorp Bank, N.A. or Stride Bank, N.A., Members FDIC

4.6

FinanceBuzz writers and editors score products and companies on a number of objective features as well as our expert editorial assessment. Our partners do not influence our ratings.

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