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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.
Compare Ally vs. Synchrony
Editor’s Rating
Editor’s Rating
Pros and Cons of Ally
Pros and Cons of Synchrony
Ally vs. Synchrony Savings Account Comparisons
At their core, the Ally 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.
Synchrony High Yield Savings Account
Fees
no monthly service fee
Annual Percentage Yield (APY)
4.75%
Minimum Deposit Amount
$0
- Competitive APY
- Comes with an ATM card
- No required opening deposit or minimum account balance
- No monthly service fee
- No physical branch locations
- Only reimburses up to $5 of out-of-network ATM fees per month
Product Details
- Access your cash online, by phone or via ATM
- Manage your accounts from virtually anywhere in the Synchrony app
- No minimum balance
- Interest compounded daily, paid monthly
- FDIC insured
Ally vs. Synchrony CD Comparisons
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.
Synchrony Bank CD
Annual Percentage Yield (APY)
2.25% to 5.50%
Minimum Deposit Amount
$0
- Competitive APY
- Variety of term lengths
- No minimum deposit
- No terms over 5 years
- Standard-to-high early withdrawal penalties
Insider’s Take
Synchrony Bank pays some of the best CD rates for people who don’t have much money to open an account, because it has a $0 minimum deposit. Synchrony Bank is also a good choice for people who want to work with a well-known bank, or who want to open multiple types of CDs. It has a no-penalty and bump-up CD, plus multiple terms for regular CDs — and they all pay competitive rates.
Synchrony Bank CD
Product Details
- Terms ranging from 3 months to 5 years
- Early withdrawal penalty of 90 days simple interest for terms of 12 months or less; 180 days simple interest for terms over 12 months but under 48 months; 365 days interest for terms of 48+ months
- When you’re ready to cash out your CD, you must call Synchrony
- Interest compounded daily, paid monthly
- FDIC insured
Ally vs. Synchrony Money Market Account Comparisons
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 4.40% APY. In comparison, the Synchrony Money Market Account pays 2.25% APY. Ally will also reimburse more in out-of-network ATM fees.
Ally Money Market Account
Fees
no monthly service fee
Annual Percentage Yield (APY)
4.40%
Minimum Deposit Amount
$0
- No opening deposit or minimum account balance
- No monthly service fee
- Access to a debit card
- Access to paper checks
- Out-of-network ATM reimbursements of up to $10 per month
- 24/7 customer service
- Easy-to-use mobile app
- Link to other Ally bank accounts
- Not the highest money market account APY
- No physical branch locations
- $10 excess transaction fee (paused during COVID-19)
Product Details
- Access to checks and a debit card
- Interest compounded daily, paid monthly
- FDIC insured
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 Spending 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.
Ally Spending Account
Fees
no monthly service fee
Annual Percentage Yield (APY)
0.10% to 0.25%
Minimum Deposit Amount
$0
- Spending buckets to manage expenses
- Competitive APY
- No initial deposit
- No minimum account balance
- No monthly service charge
- Connect your account with Zelle
- Easy-to-use mobile app
- Early direct deposit
- Reimburses up to $10/month in out-of-network ATM fees
- Online bill pay
- 24/7 customer service
- No overdraft fees
- Overdraft protection
- No physical branch locations
- No way to deposit cash
Product Details
- You can deposit checks right from your smartphone
- Manage expenses by creating spending buckets
- Ally reimburse’s up to $10 per statement cycle for fees charged at other ATMs nationwide
- Transfer money with your voice through Ally Skill™ for Amazon Alexa
- Interest compounded daily, paid monthly
- FDIC insured
Ally vs. Synchrony: Which Bank is More Trustworthy?
Synchrony has been involved in a few public controversies. In 2023, Synchrony was required to pay $2.6 million in a settlement when accused of calling customers about bank accounts they didn’t have. In 2021, the bank also was required to pay $3.5 million in a settlement when accused of making unreasonable phone calls to debtors living in California.
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.
Ally vs. Synchrony: Frequently Asked Questions
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 types of savings accounts.
Right now, the Synchrony High-Yield Savings Account pays 4.75% APY, while the Ally Savings Account pays 4.35% APY. Synchrony has more competitive CD rates for more terms, but Ally’s money market account pays more than Synchrony’s money market account.
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