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The bottom line: Ally and Synchrony have some of the best savings accounts right now. They also have similar CDs and money market accounts. Choosing between these two banks may depend on which one offers a higher interest rate on the account you want to open or slight preferences in banking features. If you’re looking to get a checking account, note that Ally will be your only option because Synchrony doesn’t have one.
Ally and Synchrony are two online-only banks with strong high-yield savings accounts, money market accounts, and CDs. So how do you decide which is the right choice for you?
We’ve compared individual Ally and Synchrony accounts so you can determine which accounts are better fits. We’ll also assess each bank’s trustworthiness for you to learn more about how the institutions respond to customer issues.
Pros and Cons of Ally
ProsCons
Pays high interest rates
Variety of additional banking services, like mortgages, loans, and investment accounts
Savings account and checking account with buckets feature
Unable to deposit cashNo physical locations
Pros and Cons of Synchrony
ProsCons
24/7 customer support
Pays high interest rates
Savings account comes with an ATM card
A+ rating from the Better Business Bureau
Unable to deposit cashNo checking accountNo physical locations
Ally vs. Synchrony Savings Account Comparisons
Ally High Yield Savings AccountSynchrony High-Yield Savings AccountAPYAlly High Yield Savings Account Annual Percentage Yield (APY)Synchrony High-Yield Savings Account Annual Percentage Yield (APY)Minimum opening depositAlly High Yield Savings AccountSynchrony High-Yield Savings AccountMonthly service feeNoneNonePerksSavings buckets allow you to separate money and create individual goalsSurprise savings tools automatically transfer extra money from your checking account to help you saveATM card includedCaveatsTo deposit cash, you’ll need to transfer money from another Ally account or an external bank accountTo deposit cash, you’ll need to transfer money from an external bank accountNext stepsAlly High Yield Savings AccountSynchrony High-Yield Savings Account
At their core, the Ally High Yield Savings Account and Synchrony High-Yield Savings Account are pretty much the same. Both high-yield savings accounts have a $0 minimum opening deposit, charge no monthly service fees, and pay similar interest rates.
If you would like to easily withdraw money from your account, you might like Synchrony more than Ally. The Synchrony High-Yield Savings Account comes with an ATM card, so you’ll be able to directly withdraw money from your account. At Ally, you’ll have to take extra steps. You’ll need to transfer money to another Ally account or an external bank account first, then withdraw money from that account.
You may prefer Ally over Synchrony if you prioritize savings tools, though. Ally has a savings tool called savings buckets. Savings buckets allow you to save for specific savings goals. You can assign labels for a goal — for example, “emergency savings” or “vacation” — and track your progress by setting a goal amount.
Winner: Synchrony
Ally and Synchrony savings accounts share many similar features. The Synchrony High-Yield Savings Account narrowly wins in this category because it offers a higher interest rate than Ally right now.
Ally vs. Synchrony CD Comparisons
Ally High Yield Certificate of DepositSynchrony CDTerms lengths3 months to 5 years3 months to 5 yearsMinimum opening depositAlly High Yield Certificate of DepositSynchrony CDAPYAlly High Yield Certificate of Deposit Annual Percentage Yield (APY)Synchrony CD Annual Percentage Yield (APY)Early withdrawal penalties60 to 150 days of interest90 days to 365 days of interestTypes of CDsHigh-yield CDs, No Penalty CD, Raise Your Rate CD, IRA CDTraditional CDs, No Penalty CD, Bump Up CDs, IRA CDNext stepsAlly High Yield Certificate of DepositSynchrony CD
When it comes to CDs, Synchrony and Ally stand out for the same reasons.
The two online banks offer traditional CDs with high interest rates and $0 minimum opening deposits.
You’ll also have a variety of CD types to choose from at either bank. Synchrony and Ally both have a no-penalty CD, which is a type of CD that let’s you take out money from your account without facing an early withdrawal penalty. Both banks also offer CDs that can raise rates before a term ends (the Ally Raise Your Raise CDs and Synchrony Bump Up CD).
Choosing between these two banks may ultimately depend on which institution offers the higher interest rate for the type of CD that you want.
You’ll also want to consider whether you have a preference on how you’ll withdraw money from a CD. At Synchrony, you must call customer service to cash out your CD. Meanwhile, Ally lets you cash out your CD through online banking. You may log into your account and submit a transfer request under the tab “Manage CDs” up to one year before your CD matures.
Winner: Synchrony
Ally and Synchrony both have CDs with perks that you won’t find at many banks — most notably, $0 opening deposits and unique types of CDs. However, Synchrony edges out Ally because it has more competitive CD rates.
Ally vs. Synchrony Money Market Account Comparisons
Ally Money Market AccountSynchrony Money Market AccountAPYAlly Money Market Account Annual Percentage Yield (APY)Synchrony Money Market Account Annual Percentage Yield (APY)Minimum opening depositAlly Money Market AccountSynchrony Money Market AccountMonthly service feesNoneNonePerksPaper checks and debit cardReimbursements $10/month in out-of-network ATM feesPaper checks and a debit cardReimburses $5/month in out-of-network ATM feesCaveats$10 excess transaction fee if you exceed the limit (6 transactions per month)$10 excess transaction fee if you exceed the limit (6 transactions per month)Next stepsAlly Money Market AccountSynchrony Money Market Account
Ally and Synchrony have very similar money market accounts. Both money market accounts have $0 minimum opening deposits, zero monthly service fees, and paper checks/ATM card accessibility.
The only significant distinctions between the two accounts right now are the differences in interest rates and reimbursements of out-of-network ATM fees. The Ally Money Market Account currently pays Ally Money Market Account APY. In comparison, the Synchrony Money Market Account pays Synchrony Money Market Account APY. Ally will also reimburse more in out-of-network ATM fees.
Winner: Ally
The Ally Money Market Account narrowly edges out the Synchrony Money Market Account because it pays a higher interest rate right now and reimburses more in out-of-network ATM fees. Keep in mind that interest rates can fluctuate, so our top pick could change in the future.
Ally vs. Synchrony Checking Account Comparisons
If you’d like to open a checking account, then you’ll prefer Ally over Synchrony. Synchrony doesn’t offer a checking account.
The Ally Interest Checking Account is still a strong checking account, though. It doesn’t charge monthly service fees or overdraft fees. The online bank also reimburses up to $10 in out-of-network ATM fees each month.
Winner: Ally
Ally is our default winner for this category because Synchrony doesn’t have a checking account. The interest-earning checking account is a solid free checking account, and it may catch your eye if you’re looking to avoid overdraft fees.
Ally vs. Synchrony: Which Bank is More Trustworthy?
Neither Ally nor Synchrony has any public scandals.
We also use ratings from the Better Business Bureau so you can see how a bank deals with customer issues.
Ally received an A rating from the BBB because it has three unresolved complaints. Meanwhile, The Better Business Bureau has given Synchrony an A+ rating.
A good BBB rating isn’t necessarily the be-all and end-all. Talk to current customers or read online customer reviews to see if a financial institution might be a good fit.
Winner: Synchrony
Synchrony wins in this category because it efficiently responds to customer complaints. However, this doesn’t mean that Ally is an untrustworthy option.
Ally vs. Synchrony: Frequently Asked Questions
Is Synchrony or Ally better?
The best option for you will depend on which accounts you’d like to open. If you’re planning to open a checking account, Ally will easily be the clear choice since Synchrony only has savings accounts.
Deciding between Synchrony and Ally savings accounts, money market accounts, and CDs may ultimately hinge on which one pays the higher interest rate for the account you want. However, also take into consideration that rates can always change.
Which bank, Synchrony or Ally, has the highest interest rate?
Right now, the Synchrony High-Yield Savings Account pays Synchrony High-Yield Savings Account APY, while the Ally High-Yield Savings Account pays Ally High Yield Savings Account APY.
Most Synchrony CDs and Ally CDs are comparable, but Ally’s money market account pays more than Synchrony’s money market account.
Read the original article on Business Insider
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