Ally vs. Synchrony Which Online Bank Is Right for You?

Ally vs. Synchrony Which Online Bank Is Right for You?

Ally vs. Synchrony: A Comprehensive Comparison

When it comes to choosing the right bank for your savings, Ally and Synchrony are two online-only options that stand out. Both banks offer high-yield savings accounts, money market accounts, and CDs. However, deciding between the two can be a tough choice. In this article, we will compare the pros and cons of Ally and Synchrony, their savings accounts, CDs, money market accounts, and checking accounts. We will also examine their trustworthiness based on customer reviews and ratings from the Better Business Bureau.

Pros and Cons of Ally Bank

Ally Bank is known for its strong savings tools and user-friendly interface. One of its standout features is the savings buckets, which allows users to save for specific goals by assigning labels and tracking progress. Ally also offers a free checking account, the Ally Spending Account, with no monthly service or overdraft fees.

However, it’s worth noting that Ally Bank doesn’t have an ATM card for easy cash withdrawal from its savings account. Customers need to transfer funds to another Ally account or an external bank account first, which can be inconvenient for some.

Pros and Cons of Synchrony Bank

Synchrony Bank, on the other hand, offers a higher interest rate on its high-yield savings account compared to Ally Bank. It also provides an ATM card, allowing customers to directly withdraw money from their account. However, Synchrony Bank doesn’t have a checking account, which might be a disadvantage for those who are looking for a comprehensive banking solution.

Ally vs. Synchrony Savings Account Comparisons

Both Ally and Synchrony offer high-yield savings accounts with no minimum opening deposit and no monthly service fees. The interest rates are similar between the two banks. However, Synchrony Bank has an advantage when it comes to easy cash withdrawal with its ATM card, while Ally Bank offers savings buckets to help users track their savings goals.

• PayPal stock falls due to concerns over weak margins and growth.
• Hasbro to sell film and TV unit, lowers forecast due to Hollywood s...
• Pret A Manger founder and Itsu CEO urges people to stop overreactin...

Winner: Synchrony Bank, as it currently offers a higher interest rate.

Ally vs. Synchrony CD Comparisons

When it comes to CDs, both Ally and Synchrony offer traditional CDs with high interest rates and no minimum opening deposits. They also provide unique types of CDs, such as no-penalty CDs and CDs with rate increases. The choice between the two banks depends on the interest rates offered and preferences for cashing out the CD.

Winner: Synchrony Bank, as it offers more term lengths to choose from.

Ally vs. Synchrony Money Market Account Comparisons

Ally and Synchrony have similar money market accounts with no minimum opening deposits, zero monthly service fees, and paper check/ATM card accessibility. The main differences lie in the interest rates and reimbursement of out-of-network ATM fees. Currently, Ally Bank offers a higher interest rate and a higher reimbursement amount for out-of-network ATM fees.

Winner: Ally Bank, as it pays a higher interest rate and reimburses more in out-of-network ATM fees.

Ally vs. Synchrony Checking Account Comparisons

If you’re looking to open a checking account, Ally Bank is the clear winner since Synchrony doesn’t offer one. The Ally Spending Account is a solid choice with no monthly service fees, no overdraft fees, and reimbursement for up to $10 in out-of-network ATM fees per month.

Winner: Ally Bank, as it is the only option for a checking account.

Ally vs. Synchrony: Which Bank is More Trustworthy?

When considering the trustworthiness of banks, it’s essential to look at customer reviews and ratings from reliable sources. Synchrony Bank has been involved in some public controversies, including allegations of making unreasonable phone calls to debtors. They have also been required to pay settlements. On the other hand, Ally Bank has received a good rating from the Better Business Bureau (BBB). While they have a few unresolved complaints, it indicates that Ally Bank takes customer issues seriously.

It’s important to note that BBB ratings are not the sole determining factor for trustworthiness. Checking online customer reviews and talking to current customers can provide additional insights into the banks’ reliability.

Ally vs. Synchrony: Frequently Asked Questions

1. What are the main differences between Ally and Synchrony banks?

• Ally Bank offers savings tools like savings buckets and a checking account, while Synchrony Bank has a higher interest rate on its high-yield savings account and offers more term lengths for CDs.

2. Which bank has a higher interest rate on savings accounts?

• Currently, Synchrony Bank offers a higher interest rate compared to Ally Bank.

3. Can I easily withdraw money from my savings account at Ally Bank?

• No, Ally Bank requires transferring funds to another Ally account or an external bank account before withdrawing cash.

4. Does Synchrony Bank offer a checking account?

• No, Synchrony Bank does not provide a checking account option.

5. Which bank has a better reputation?

• While Synchrony Bank has faced controversies, Ally Bank has a good rating from the BBB and takes customer issues seriously.

In conclusion, both Ally and Synchrony banks have their strengths and weaknesses. Choosing the right bank depends on your specific needs and preferences. Consider factors such as interest rates, ease of cash withdrawal, availability of checking accounts, and the banks’ trustworthiness when making your decision. Remember to do your research, read customer reviews, and compare the features and services offered by both banks to find the best fit for you.

• Ally
• PFI Reviews
• Synchrony