Ally vs Chime: A Side-by-Side Review of Leading Online Banks for Maximum Financial Convenience (2023 Edition)

Similarities between Ally and Chime

• High-Interest Saving Accounts

Both Chime and Ally bank offer great interest rates for their savings accounts. Their rates are similar at somewhere above 2% per annum. However, Chime’s savings account interest rates are variable; they are subject to change depending on the institution.

You also don’t need to have a checking account with either to open a savings account. You can just go ahead to open a free saving account without minimum deposit requirements. Furthermore, the account opening process for both is quite straightforward, and you can open the account in the comfort of your home. All you need is a smartphone or computer and an internet connection.

Finally, with both Chime and Ally, you can set up direct deposits to your accounts so that you can receive your paycheck in your checking or savings account.

• Debit Cards

Both Chime and Ally Bank offer secure debit cards linked to your checking account so that you can access and spend your money. Each of their checking accounts comes with distinct features that make them attractive. Ally has a round-up feature that directs a certain amount to your linked savings account every time you spend money from your checking account. On the other hand, Chime gives you up to $200 with no overdraft fees depending on your eligibility.

• Loans

Both banks provide services through which you can get some money that you can pay back later. Ally has a lending division through which you can access loans for certain things like medical bills but no personal loans. Their loans typically do not require any application fees.

While Chime does not directly offer loans, its credit card services and free overdraft feature may present the same benefits for you. In a way, you can take these as personal loans that you will repay later.

• Online Banking Services Provided

You can access Ally and Chime’s comprehensive services via the internet. Chime is like an online bank offering mobile banking services through its app. Via the app, you can access all of their services without needing to visit physical locations for anything.

If you need anything, Chime has a comprehensive help page with answers to most of your questions. Furthermore, it has FAQs to answer customers’ most pressing questions. And if you need to speak to a customer care staff, you can contact both of them either through email or phone call.

Differences Between Ally and Chime

• Bank vs Financial Technology Company

This is the biggest difference between the two establishments. While Ally is registered as a bank under Ally Financial in the United States, Chime is not a bank. As such, Chime does not offer some extensive banking services that Ally offers, like mortgages and investment services.

That said, Chime offers a few banking services which are provided by the organization’s affiliates, namely The Bancorp Bank or Stride Bank. However, both are members of the Federal Deposit Insurance Corporation (FDIC), meaning that your money with either one of them is safely insured.

• Checking Accounts

Checking accounts are a type of transactional bank account used mostly for making purchases. A checking account can be called your spending account since you can deposit cash and withdraw from it at will, unlike savings accounts, which are meant to store later money.

Both banks offer free checking accounts. Chime follows the traditional no-interest model for its checking accounts, but with Ally, you get some interest on the money in your cash account at a rate of between 0.10% – 0.25%. While this rate is quite low, it is way better than what you get from most other financial institutions.

• Credit Cards

One big difference between both institutions is that Ally Bank does not offer credit cards to all its customers. Before 2022, Ally did not offer credit cards at all. However, in early 2022, they announced the launch of three different credit cards with attractive features. But these cards are invite-only, meaning that you cannot simply apply for the card.

On the other hand, Chime also offers three different credit cards. But anyone with an account with them can apply for the card that suits their taste. Notably, they have a Chime Credit Builder Secured Credit Card with zero APR, no credit check to apply, and no minimum security deposit requirement.

The features of this card make it such that almost anybody can qualify for it. Therefore, in terms of credit building, Chime is a much more convenient platform than Ally.

• Foreign Transaction Fees

Foreign transaction fees are usually a percentage of the money involved in the transaction. Ally charges up to 1% on foreign transactions, which is one of the lowest rates available. However, Chime’s foreign transactions are fee-free, and there are no hidden fees, although there may be charges by the ATM owner depending on the kind of ATM you use overseas.

Conclusion 

Chime is a great financial technology company offering simplicity, deposit benefits, and interest rates. On the other hand, as a bank, Ally offers you robust opportunities like CDs and investment opportunities. You also get great interest rates, although they don’t offer credit cards, so you may find it difficult to build your credit with them.

The truth is that the best institution for you will depend solely on your needs as they do not provide exactly the same services. Both institutions are great in their own right, objectively speaking. So, the best way for you to decide which you would go for is to go through their features, pros, and cons and pick the one that favors you best when starting or managing your ecom business.