Ally vs Discover Bank: Which Bank Should You Choose? – DIGIWIZ CENTRAL

Ally vs Discover Bank: Which Bank Should You Choose?

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The bottom line: Ally and Discover offer strong savings, checking, CD, and money market accounts. The best option for you will likely depend on small differences, like minimum opening deposits and interest rates.

Ally and Discover Bank are two popular online banks that are great options if you don’t want to deal with common bank fees. 

To help you analyze the differences between each bank, we’re comparing savings, checking, CD, and money market accounts and determining which ones are the most appealing. We’re also comparing financial institutions in trustworthiness.

Ally Pros and Cons 

ProsCons

24/7 customer service over the phone or through live chat

No minimum opening deposit on all accounts

Savings tools

High interest rates on savings, money market accounts, and CDs

A rating from the BBB

No physical locations

Discover Pros and Cons

ProsCons

24/7 customer service over the phone or through live chat

Checking accounts that lets you earn cash back on your debit card 

Variety of CDs

A- rating from the Better Business Bureau

High interest rates on savings, money market accounts and CDs

Only 1 branch, which is in DelawareHigh minimum opening deposit required for CD and money market accounts

Ally vs. Discover Checking Account Comparisons

 Ally Interest Checking AccountDiscover Cashback Debit AccountAnnual Percentage Yield (APY)Ally Interest Checking AccountDiscover Cashback Debit AccountMinimum opening depositAlly Interest Checking AccountDiscover Cashback Debit AccountMonthly service feesAlly Interest Checking Account – Fees DisplayDiscover Cashback Debit Account – Fees DisplayPerksEarn interest on accountReimburses up to $10 in out-of-network ATM feesEarly direct depositSpending buckets to help manage expensesEarn up to 1% cash back on up to $3,000 in purchases per monthEarly direct depositCaveatsNo physical locationsOnly 1 location, which is in MarylandDebit cards only work in the US, Canada, Mexico, and the CaribbeanNext stepsAlly Interest Checking Account – CTA TextDiscover Cashback Debit Account – CTA Text

Winner: Tie

The Ally Interest Checking Account lets you earn interest on your account and reimburses you for up to $10 in out-of-network ATM fees per month. But the Discover Cashback Debit Account – Product Name Only is a great option if you want a cash-back checking account.

Ally vs. Discover Savings Account Comparisons

 Ally High Yield Savings AccountDiscover Online Savings AccountAnnual Percentage Yield (APY)Ally High Yield Savings AccountDiscover Online Savings AccountMinimum opening depositAlly High Yield Savings AccountDiscover Online Savings AccountMonthly service feesAlly High Yield Savings Account – Fees DisplayDiscover Online Savings Account – Fees DisplayPerksSavings buckets feature allows you to create specific goalsSurprise savings tools automatically transfer extra money from your checking account to help you save

None

CaveatsNo physical branches to deposit cashOnly 1 branch location, which makes it difficult to deposit cash if you don’t live in DENext stepsAlly High Yield Savings Account – CTA TextDiscover Online Savings Account – CTA Text

Winner: Discover

The Discover Online Savings Account and the Ally High Yield Savings Account have similar opening requirements. Both accounts pay competitive rates, but the Discover savings rate is a little higher right now.

Ally vs. Discover CD Comparisons 

 Ally High Yield Certificate of DepositDiscover CDTerm lengths3 months to 5 years3 months to 10 yearsMinimum opening depositAlly High Yield Certificate of DepositDiscover CDAnnual Percentage Yield (APY)Ally High Yield Certificate of DepositDiscover CDEarly withdrawal penalties60 to 150 days of interest3 months to 2 years of interestTypes of CDsHigh-yield CD, No Penalty CD, Raise Your Rate CD, IRA CDHigh-yield CD, IRA CDNext stepsAlly High Yield CD – CTA TextDiscover CD – CTA Text

Winner: Ally

Ally wins because it doesn’t require a minimum opening deposit. Discover’s minimum deposit is pretty steep, but its CDs still might be worth exploring if you’re interested in long-term CDs over five years.

Ally vs. Discover Money Market Account Comparisons

 Ally Money Market AccountDiscover Money Market AccountAnnual Percentage Yield (APY)Ally Money Market AccountDiscover Money Market AccountMinimum opening depositAlly Money Market AccountDiscover Money Market AccountMonthly service feesAlly Money Market Account – Fees DisplayDiscover Money Market Account – Fees DisplayPerksPaper checks and debit cardReimbursements on out-of-network ATM feesPaper checks and debit cardNo excess transactions feesCaveats$10 excess transaction fee if you exceed the limit (6 transactions per month)Must have at least $100,000 in your account to earn the highest interest rateNo reimbursements on out-of-network ATM feesDebit cards can’t be used outside of the US, Canada, Mexico, and the CaribbeanNext stepsAlly Money Market Account – CTA TextDiscover Money Market Account – CTA Text

Winner: Ally

The Ally Money Market Account and Discover Money Market Account both come with paper checks, a debit card, and no monthly service fees. However, Ally’s account has a lower minimum opening deposit.

Ally vs. Discover Bank Trustworthiness and BBB Rating

The Better Business Bureau rates businesses according to how they deal with customers’ issues and complaints.

Discover Bank has received an A+ rating from the Better Business Bureau because its profile is being reviewed. Ally has an A rating.

Keep in mind that a good BBB rating doesn’t necessarily mean your relationship with the bank will be smooth. Talk to current customers or read online customer reviews to see if one of these banks might be a good option for you. 

Neither financial institution has been involved in any recent public scandals. 

Read the original article on Business Insider
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