Online banks have become very popular in the United States. In fact, the Ipsos-Forbes Advisor U.S. Weekly Consumer Confidence Survey found that 78% of Americans prefer to use online banking via a mobile app or bank website.
What’s more, online banking has even evolved to create banks that are online only. This means there is no physical branch to visit, everything is digital. This has led to benefits like greater access to services, lower fees, and better interest rates.
As online banking has grown in popularity, so have companies that offer these services. This article will look at Chime® and Ally, two completely digital banks, to help you choose between the two.
Chime vs. Ally at a Glance
| Ally Bank | Chime® | |
| Checking Account | Tiered APY, use any amount to open your account. | No minimum deposit to open the account. |
| Savings Account | 4.00% APY, no minimum opening deposit. | 2.00% APY3, use as little as $0.01 to open your account. |
| Other Accounts | Money market account with daily compounded interest (4.00% APY) CDs – high-yield, raise your rate, and no penalty. | Credit builder with a minimum start of $200 |
| Fees | Low cost and minimal fees. The most expensive fee is $25/hour for account research. No overdraft fees. | Third-party fees like out-of-network ATMs. No overdraft fees. |
Chime
Chime offers online banking services; however, it is technically not a bank. It’s a financial technology company whose banking services are provided by the Bancorp Bank, N.A. or Stride Bank, N.A., member FDIC. They offer checking, savings, and credit builder accounts.
Chime Checking Account
The Chime checking account is also fee-free, except for those from third parties. Additionally, there is no minimum balance required.
Chime checking accounts come with a debit card and access to fee-free1 ATMs at 60,000+ locations.
To open an account, you will need to sign up using your email address, a valid driver’s license or passport, and Social Security number (SSN). Chime also requires all users to be United States citizens and at least 18 years old.
Chime Savings Account
To open a savings account with Chime, you must have a Chime checking account already set up and at least one penny to deposit into savings. Some perks included with this type of account include encryption, 2.00% variable annual percentage yield (APY), and automatic savings tools.
Additionally, there are no fees associated with Chime savings accounts. However, their website does state that third parties may have their own fees. An out-of-network ATM is an example of a third-party fee.
Chime Credit Builder
Chime also offers a way for users to begin building credit for free. Like their other accounts, the credit builder account is low-cost with no annual or interest fees. To apply, you will need a Chime checking account and a minimum deposit of $200.
Their credit builder account works like a secured credit card where your credit limit is the same amount as your deposit. The company does allow customers to use their deposits to make payments on their outstanding credit balance.
Pros & Cons of Chime
Pros:
- No monthly fees, no foreign transaction fees, no minimum balance fees, no overdraft fees
- Early direct deposit2
- FDIC-insured
- Cash deposit at select locations
- Overdraft protection
- Autosave feature, which pulls a select amount from every paycheck
Cons:
- No physical branch to visit
- No joint bank accounts
- Minimal customer support
- No money management tools
Ally Bank
In 1919, Ally began as General Motors Acceptance Corporation (GMAC), which aimed to help finance car dealerships. In 2009, they rebranded and evolved into what we know today. Now, Ally offers digital banking services through Ally Bank and is an FDIC member and Equal Housing Lender. Their offerings include checking, savings, money market accounts, and more.
Ally Online Savings Account
The savings account offered by Ally Bank has no minimum deposit fee. It offers features like buckets, and their annual percentage yield (APY) is 4.00%. There are no monthly maintenance fees or overdraft item fees. You can also get online statements and cashier’s checks for free.
Ally Bank does have some fees for things like excessive transactions and expedited delivery. The list of these fees and their costs are available online.
Ally Online Interest Checking Account
Similar to their savings account, Ally is free from monthly maintenance fees, low daily balance fees, and overdraft item fees. What they do charge for is clearly stated and readily available.
Their checking account offers other benefits beyond minimal charges. The key features included are early access to payday deposits, round-up tools to help you save, and ways to protect you from overdrawing your account.
Ally Money Market Account
Like a savings or checking account, a money market account earns interest as long as funds remain in the account. The difference is that interest is compounded daily rather than monthly, and interest rates may fluctuate. Currently, their APY sits at 4.00%.
Additional Accounts by Ally
Ally Bank also provides various certificate of deposit accounts, providing users with a fixed interest rate on deposited funds for a set period. Their terms are as short as three months or as long as five years. They offer three types of certificates of deposit (CDs):
- High-yield CD
- Raise your rate CD
- No penalty CD
The APY and term lengths will vary from type to type.
Pros & Cons of Ally Bank
Pros:
- No minimum deposit amounts
- Low and minimal fees that are clearly listed
- 24/7 customer support
- FDIC-insured
- Buckets for budget management
Cons:
- Their savings and money market accounts have transaction limits
- No cash deposits
- No ATM card available for the savings account
- Cannot switch a savings account to a money market account or vice versa
Other Considerations
Whether you are choosing between Ally, Chime, or another online bank, there are other considerations to bring your attention to.
The first is security. You should select a banking system with robust security features. Multifactor authentication, credential confidentiality, and online and mobile security are some examples. These security measures ensure your data is kept safe and secure.
You should also consider what your bank account will be used for. If you are looking to improve your budgeting skills, then you should consider an account with those tools. If you want to build credit, you should consider which service allows you to do so.
Or perhaps your needs extend beyond personal banking, and you need business banking as well. For instance, businesses also have credit scores. A net-30 account can help your business credit because they provide an extended period to pay your bills and report account activity to the major business credit bureaus.
Alternative Banks to Chime and Ally
If Chime or Ally isn’t quite the right fit for you, there are other online banking options worth considering. Below are three alternatives that offer fee-free accounts, early direct deposit, mobile banking, and extra perks that can help you manage your money better.
Current
Current is a mobile-first banking platform designed for speed and flexibility. You won’t pay monthly maintenance fees, and you can get paid up to two days early with direct deposit. The mobile app is simple to use and includes features like instant spending notifications, spending insights, and savings tools.
Current also offers a way to earn up to 4.00% APY on savings through their Savings Pods feature—on balances up to $6,000. Another standout feature is the ability to build credit with your debit card purchases, no borrowing required.
Stash
Stash combines banking with beginner-friendly investing. You can open a Stash account with no credit check, no overdraft fees, and no monthly maintenance fees when qualifying conditions are met. It also includes early direct deposit and access to over 55,000 fee-free ATMs through the Allpoint network.
What makes Stash different is the Stock-Back® Card. Every time you spend, you earn stock from well-known companies. That means you’re building an investment portfolio just by buying groceries or filling your gas tank.
SoFi
SoFi offers a combined checking and savings account with no monthly fees, overdraft fees, or minimum balance requirements. You can earn up to 4.60% APY on savings and 0.50% APY on checking when you set up direct deposit.
SoFi also offers early direct deposit and access to more than 55,000 fee-free ATMs worldwide through the Allpoint network. The app makes it easy to manage your money, and SoFi members get access to additional perks like credit score tracking, budgeting tools, and member discounts.
Bottom Line
Ally and Chime both provide different experiences for online banking. If you are just getting started and want to begin building credit, then Chime could be the correct choice for you. Unfortunately, their APY is significantly lower than Ally’s, and there are only three different account types.
Ally has a much higher APY for their savings account and offers several more features and account types than Chime. That said, there are a few downsides to Ally. There is no way to deposit cash into any of your Ally accounts. They also only allow a limited number of monthly transactions with your money market and savings accounts.
Both online banks are solid options, so you’ll have to choose which features outweigh the cons for each.
Still unsure about which online bank to choose? Check out some of our other articles for a deeper dive into Ally and Chime:
Maybe you have decided Ally is not for you, but you are still unsure about Chime. Check out some of our other comparisons.
Frequently Asked Questions
Does Chime or Ally work better for direct deposit?
Both banks offer early direct deposit, but Chime is known for getting you paid up to two days early more consistently. Ally offers early access as well, but availability may depend on your employer or payment provider.
Can I use mobile check deposit with Chime or Ally?
Yes, both Chime and Ally offer mobile check deposit through their apps. However, you must meet certain eligibility requirements, like having direct deposits set up with Chime before this feature becomes available.
Which bank is better for traveling internationally?
Ally is generally better for international use because it reimburses up to $10 per statement cycle for ATM fees and doesn’t charge foreign transaction fees. Chime also has no foreign transaction fees but may lack global ATM support in some regions.
Can I open a joint account with Chime or Ally?
Ally offers traditional joint accounts, making it a good option for couples or anyone managing shared finances.
Chime doesn’t offer a joint account in the conventional sense, but they do provide a shared account feature. It allows two people—like partners or family members—to open and manage a shared account together, with equal access to deposits, spending, and account activity. Both users must provide full identification and meet Chime’s eligibility requirements.
How do customer support options compare between Chime and Ally?
Ally offers 24/7 customer support by phone, live chat, and email. Chime provides support through the app, email, and phone, but their support hours are more limited and may take longer to respond.
