Aspiration Vs Ally Bank In 2023 [Complete Comparison Guide]
Choosing the right online bank for your needs can be daunting, especially with the sheer number of options available. Two of the leading contenders in 2023 are Aspiration and Ally Bank, both offering a range of products and services to meet different banking needs.
In this article, we'll take an in-depth look at Aspiration vs Ally Bank to see which one is better in terms of fees, interest rates, tools, features, security measures, customer service, etc., so you can make an informed decision choose the best online bank for your needs.
Let us get started by learning more about both of these online banks.
What Is Aspiration - A General Overview
Aspiration is a financial institution founded in 2013 with the mission of providing banking services that help people save money and create positive change in their lives.
Based in Los Angeles, California, Aspiration is a sustainability-as-a-service company that operates on a “triple bottom line” basis: people, planet, and profit.
All of its offerings are designed to help customers live more sustainable lives while also benefiting from financial services.
Unlike many traditional banks, Aspiration focuses on customers' needs and wants to make banking more accessible through user-friendly digital tools, low fees, and rewards for doing good.
As a green organization, they make it plainly apparent on their website that no customer funds are utilized to finance fossil fuels or Capitol Hill lobbyists who advocate anti-environmental policies. 10% of its profits are donated to charity, and its products are designed with the environment in mind.
Aspiration offers two main services:
- Banking Services: Aspiration provides users with an advanced Hybrid Checking Account and Savings Account when they open their accounts. With Aspiration's Spend & Save program, you are able to benefit from responsible shopping habits by earning rewards! Customers can also opt for a basic account with a 'Pay What Fair' monthly fee, which may be $0 Is.
- Investment Services: If you're looking for an ethical and conscious way to invest, look no further than Aspiration's Redwood fund and Flagship Fund. Just $10 will start your journey towards building a better future for the world - with just that same amount required as an ongoing balance too! You can choose to open either Individual Taxable or Traditional Retirement Investment accounts (or both) depending on your specific needs. With Aspiration, investing in a more sustainable tomorrow has never been so easy!
What Is Ally Bank - A General Overview
Ally Bank, which began as GMAC Bank in 1919, is a full-service online bank offering a wide range of banking products and services. Headquartered in Detroit, Michigan, GMAC Bank was rebranded as Ally Bank in 2009.
Ally offers services such as car finances, online banking, and credit cards, as well as mortgages, personal loans, and other financial products. It has become known for its competitive interest rates, low fees, and award-winning customer service team.
Ally is the one-stop for all your Banking needs! With a vast range of accounts, including high-yield savings accounts, checking accounts, and money markets to certificates of deposits - Ally has you covered. So don't worry about what type of account you need. Ally's got it all! It also offers mortgage loans, auto loans, credit cards, and investment options as well.
Now that we better understand both banks, let us move ahead on our Aspiration vs Ally Bank comparison. We will focus on the following key areas: fees, interest rates, tools and features, security measures, customer service, etc. This will help us understand which online bank is better for different banking needs.
Uncovering the Best Financial Partner: Aspiration Vs Ally Bank
When looking for a financial partner, the choice can be overwhelming. However, when it comes to Aspiration and Ally Bank, let's look at how they stack up against each other in order to make the best decision possible.
We will compare different aspects of both banks and finally make a conclusion on which one is best for you.
In Terms Of Bank Accounts:
Aspiration: Aspiration is committed to providing financial services that are accessible to everyone. The Spend and Save account, their flagship product, combines checking and savings accounts into one powerful tool that yields up to 3% APY in addition to ample cashback rewards.
However, Aspiration offers this rate on the first $10,000.00 of your balance when certain conditions are met.
A minimum deposit of only $10 is required to open an Aspiration Spend and Save account; regardless, there are no balance requirements. Plus, you can 'Pay What You Want' as a service fee - giving you full control over your savings experience.
You can also upgrade your account to Aspiration Plus (Paid account- $7\month) to earn 5% interest on the first $10,000 of savings.
With Aspiration, you gain access to the 'Aspiration Impact Measurement score,' which assesses your effects on the Earth based on purchases that you have made. This innovative tool reveals how every purchase impacts our environment in real-time.
Aspiration's Checking Account offers services like ATM Withdrawals and a Debit Card. You can earn up to 10% cashback rewards when you use your debit cards to shop with Aspiration's socially conscious partners.
Earn an incredible 3% APY when you keep up to $10,000 in your checking account! Moreover, you can receive a welcome bonus from Aspiration if you make purchases of up to $1000 within the first 60 days after opening your account.
Whenever you swipe your debit card, you get an opportunity to plant a tree and give back to the environment.
Ally Bank: In comparison, Ally Bank offers a wide range of services, including checking, savings, money market, and certificate of deposit accounts.
Ally offers unmatched convenience by eliminating minimum deposits and balance requirements when you open any of their accounts – what more could one ask for?
Ally's Online Savings Account offers a competitive 3.40% APY on all balances, regardless of how much you have in your account.
Ally also offers additional features such as the Buckets tool to organize your savings and the Surprise Savings tool to analyze any linked checking account to transfer funds to your savings automatically.
Ally's Checking Account offers only 0.25% APY, which is quite disappointing compared to Aspiration's 3% APY. However, Ally does offer three different CD ( Certificate of Deposits ) options with varying interest rates and maturity dates, from short-term to long-term.
You can earn up to 5.00% APY on Ally's High Yield CD; it is also available as an IRA product. Similarly, Raise Your Rate CD provides up to 3.40% APY for two different time periods, 2 years and 4 years; and above all, No Penalty CD gives you 4.00% of APY, and you can withdraw all your money anytime after completion of 6 days after funding your account.
The Ally Bank Money Market Account also offers up to 3.50% APY on all balance tiers, which is very competitive compared to other banks.
When it comes to features and services offered by bank accounts, both banks are excellent. Aspiration edges out Ally Bank in terms of Savings and Checking Accounts, while Ally Bank shines with its CD and Money Market Accounts.
When considering which bank is best for you, take into account your specific financial requirements and objectives.
In Terms Of Fee Structure:
With an Aspiration account, you won't be charged any ATM fees, check deposit fees, debit card fees, or account inactivity charges. Plus - it comes with a $0 monthly maintenance fee!
If you wish to upgrade to the Aspiration+ membership, though, there is a small cost associated with that option- $7.99 per month or $5.99 per month if you pay annually.
Meanwhile, Ally Bank does not charge any maintenance or monthly fees for its savings, checking, and money market accounts - which is great news! With no out draft item fees and absolutely free Standard/Expedited Transfers and Incoming Wires, your banking experience with Ally Bank can be stress-free.
However, it does charge $20 for each outgoing domestic wire transfer. Additionally, there are certain other charges that apply to Ally bank's CD account, such as early withdrawal penalties, and also, $10 is charged as an Exessive Transaction fee. While Aspiration and Ally Bank may be neck-and-neck in terms of fees, it is clear that Ally takes the lead when it comes to out-of-network ATM withdrawal fees.
This is because they offer up to two free out-of-network reimbursements each month for withdrawals- a more advantageous option than Aspiration's one free reimbursement per month, which only applies to Plus members; Third-Party ATM charges are applied to all standard account holders who take money from an external machine outside their network.
In Terms of Accessibility:
Whether you have an iPhone or Android, Aspiration's and Ally Bank’s highly-rated mobile apps are accessible on both the App Store and Google Play. With just one download, you can now conveniently access your banking needs from either of your smartphones!
The Aspiration Mobile app helps you keep track of all your spending from one dashboard and offers personalized insights on how you can be a smart spender. You can check your bank balance and recent transactions, transfer funds between accounts, and pay bills.
Additionally, the app allows you to quickly deposit checks using your phone camera by snapping a picture! The app used two-factor authentication and Touch ID login for added security. Moreover, you can log in to your Aspiration account and begin banking on the official website.
On the other hand, Ally Bank's app is also pretty straightforward and simple to use. You can check your account balances, view transactions, deposit checks, transfer money, pay bills and even find nearby Allpoint ATMs using the GPS locator feature on the app.
The iOS version of the app boasts more robust features than its Android counterpart. Ally's website, however, has all the features necessary for managing your banking needs at home or on the go.
If it's user-friendliness you desire, both Aspiration and Ally Bank are great options. However, if sustainability investing isn't your cup of tea, then Ally Bank may be the better choice for you due to their wealth of financial advice and information on their website.
Meanwhile, Aspiration is more engaged with environmentally friendly investments, so not much guidance can be obtained there in this area.
In terms of Customer Support:
Aspiration customers can visit their toll-free number from 6 am to 6 pm every weekday and 8 am to 4 pm on Saturdays and Sundays. Alternatively, you may connect with their customer service representatives through Aspiration email support anytime.
Ally offers comprehensive customer service, with representatives available to provide assistance 24 hours a day. You can reach out to them through phone, email, or live chat – whatever method works best for you!
As it stands, Aspiration and Ally Bank offer good customer service, but the latter's 24/7 customer support gives it an edge over its competition.
In Terms of Investment Options:
Aspiration Investment Services target at those who are looking to invest sustainably, as they offer a variety of ESG (environmental, social, and governance) investment options.
Aspiration proudly provides two investment accounts: an Individual Taxable Account and a Traditional IRA. Furthermore, you can take advantage of its professionally managed mutual fund option – the glorious Aspiration Redwood Fund!
Redwood Fund: It helps you to build a portfolio of stocks and be socially responsible with investments. It is completely fossil fuel-free and allocates assets to energy-focused companies that are focused on mitigating climate change.
Discover the key features of Aspiration's investment accounts below:
- Minimum opening deposit: $10
- Balance Requirement: No
- Account Service Fees: Pay what you want (even $0)
In comparison, Ally Invest offers plenty of investment options and no minimum balance requirement for opening an account. Following are their investment options:
- Self-Directed Trading
- Wealth Management
- Managed Portfolios
Ally's investment choices include:
- Commission-free ETFs
- Margin accounts
- Mutual Funds
Ally's investment service team is available to assist customers with their investments, as well as provide insights and advice.
Overall, both Aspiration and Ally Bank offer a good choice of investment options, so you're sure to find something that suits your needs.
Aspiration's socially responsible investments may be attractive for some investors, while Ally's wider selection of low-cost funds and no minimum balance requirement may appeal to others. It all depends on what you're looking for in an investment platform.
In Terms of Loans and Mortgage:
Aspiration does not currently offer loans or mortgages, so if you're looking for financing options, you'll want to look elsewhere.
Ally Bank is the perfect place to look for your financing needs. They have a variety of loan and mortgage options, including auto loans, personal loans, business loans, home loans, refinancing opportunities, and home equity lines of credit with competitively low-interest rates.
For those who need larger amounts than normal, Ally also offers jumbo-size loans! What's more? Applying for these services through their online banking platform could not be easier - apply anytime, anywhere, just a few clicks away!
Overall, Ally Bank offers more of a one-stop shop when it comes to loans and mortgages, while Aspiration does not currently offer any loan or mortgage products.
In Terms of Credit Cards:
Aspiration has a single credit card option - the Aspiration Zero Card. The main focus of the card is to help consumers work towards the goal of being carbon-neutral.
It offers a rewards program that enables cardholders to donate their points towards carbon-offsetting projects. With this card, you can get up to 0.5% rewards on qualifying purchases and access the bonus round-ups feature! Plus, there's only a low $60 Annual Fee that comes with it.
In contrast, Ally Bank offers an array of credit card options that you can apply for online if you receive a mail or email offer from the bank. The following credit card options are available with Ally:
- Ally Platinum
- Ally Everyday Cash Back
- Ally Unlimited Cash Back
- Ally Unlimited Cash Back for Nurses and Educators
In Terms of ATM Services:
Aspiration offers over 55,000 fee-free ATMs throughout the US. If you're an Aspiration Plus Member, not only can you get a reimbursement for 1 out-of-network purchase per month, but you also enjoy up to 10% cash back on eligible purchases with your debit card!
With the incredible benefits that come along with being an Aspiration Plus member, why would anyone wait any longer?
As for Ally Bank, they have over 43,000 fee-free ATMs and partner with Allpoint, which gives their users access to an even larger network of over 55,000 fee-free ATMs! Plus, Ally reimburses up to $10 per statement cycle for out-of-network ATM fees.
In summary, Aspiration and Ally Bank remain unparalleled in terms of ATM services. With their straightforward access to no-fee ATMs plus reimbursement for any out-of-network usage, you can trust that your banking needs are always met with ease.
In Terms of Security:
Aspiration is not licensed as a bank but still uses financial institution-level security measures to protect data. These include multi-factor authentication, SSL encryption, and a secure connection.
Furthermore, they are insured by the FDIC up to $250,000 per depositor in case of a bank collapse. Their balance is distributed among eight banks covered under the FDIC insurance program; this gives each customer as much as $2 million worth of FDIC protection.
Ally Bank is also an FDIC-insured online bank, which provides the same level of security as a traditional brick-and-mortar.
Ally Bank has adopted best practices with its online banking experience to ensure customers' accounts are safe and secure. This includes two-step authentication, encryption technology, and 24/7 monitoring to detect suspicious activity. Additionally, the deposits are insured by the FDIC up to $250,000 per depositor.
Although the investment products provided through Ally Invest are not FDIC-insured and hence come with an inherent risk, they do qualify for SIPC coverage. Customers can be protected up to $500,000 if their accounts held at a member firm of the SIPC are lost or stolen.
In conclusion, both Aspiration and Ally Bank offer their customers a high level of security. With transparent policies and extensive protection measures, you can trust that your funds are kept safe no matter your choice.
Who Can Open An Aspiration Account?
To open an Aspiration Spend and Save Account, the candidate must:
- Be 18 years or older
- Be a US Citizen or Permanent Resident
- Have a Social Security Number
- Have a valid and permanent US address
- Have a Checking or Savings account with a US Bank or Credit Union to fund the account
Once you have collected all this information and met the qualifications, you can open an Aspiration account online in a few minutes.
Signing up for an Aspiration account is easy; you can sign up online or download the mobile app on Android or Apple and create your account from there.
After your account is created, you will be equipped with a digital card for transactions right away that you can use until your physical card arrives via mail.
How To Open An Ally Bank Account?
No matter which account you choose, Ally Bank makes it easy to open an account online. To get started, you will need the following information:
- Your full name, date of birth (you must be 18 years old or above), and occupation
- Your Social Security Number
- Valid US address
- Contact Information (email and phone number)
- Transfer information for your initial deposit
Once you have collected all this information, you can open an Ally Bank online in a few minutes. All you must do is go to Ally.com and find the “Open Account” button under the “Checking & Savings” tab. Then, pick the account type and click “Open Account” to officially start the process.
After that, you will receive an email from Ally Bank confirming your account details and providing your online banking credentials.
Pros and Cons Of Aspiration:
- Boost your savings as you earn up to 3.00% APY on your savings account
- Get a chance to plant a tree with every card swipe
- Sign-up bonus of $50
- Get paid two days prior to your payday
- No monthly fees or minimum balance requirements
- Highly secure and FDIC-insured up to $2 million per customer
- User-friendly mobile app allows you to manage your account on the go
- More than 55,000 fee-free ATMs nationwide
- Personal impact score allows you to gauge your financial impact on society
- Purchase assurance and extended protection provide coverage on eligible items
- 10% Cash Back on using a debit card at selected merchants
- No physical branches
- No checking account and CDs
- Only a single credit card option
- $10 is charged as the minimum opening deposit
- Limited investment options
- No loans and mortgages
- No APY on Checking account
- Only one free out-of-network ATM reimbursement per month
- No overdraft service
- Limited customer support
Pros and Cons Of Ally Bank:
- Competitive interest rates on savings account
- No minimum balance requirement
- No monthly fees
- 24/7 customer service
- Mobile and Online banking capabilities
- Extensive selection of investment products
- Fee-free overdraft service
- Mortgages and Personal and Auto loans
- FDIC insured up to $250,000 per depositor (SIPC covers investment products)
- 43,000+ fee-free ATMs nationwide
- No physical branches
- A low-interest rate on checking accounts
- No cash deposits at branches
- Fees charged on outgoing domestic wires
- No credit card services currently
- No sign-up bonus
The Final Verdict: Aspiration Vs Ally Bank - Which One Is Better?
At the end of the day, analogizing Aspiration Vs Ally Bank is a matter of personal preference. Both banks offer excellent rates, fees, services, and accessibility, so you can't go wrong either way! Ultimately, when deciding between Aspiration and Ally Bank, the choice comes down to your unique financial needs.
One of the greatest advantages of banking with Aspiration is its commitment to responsible spending. Aspiration has an ethical approach to investing and encourages consumers to impact their communities, environment, and economy positively.
They offer “Pay What Is Fair” pricing for its products, allowing users to pay what they believe is fair for banking services.
However, Ally Bank may be the better option if you want more features, such as overdraft protection, a larger selection of investment products, and access to personal loans and mortgages.
Both banks offer great services with competitive rates – you need to decide which type of account best fits your needs.
FAQs: Aspiration Vs Ally Bank
What Is An Eco-Friendly Debit Card?
An eco-friendly debit card is a debit card that provides an incentive for using it in an environmentally responsible way.
It rewards users for purchasing with merchants who practice sustainability and ethical practices and offers additional benefits such as cashback on certain purchases or donations to environmental causes.
At Aspiration, the debit card is made with recycled ocean plastic and helps to fund environmental-conscious merchants.
Is Aspiration A Trustworthy Bank?
Aspiration is completely trustworthy and is a member of the FDIC. All you need to know is Aspiration is not a bank but an online financial services provider. All deposits are insured up to $250,000 per person, so you can rest assured your money is safe with Aspiration.
What Are The Disadvantages Of Ally Bank?
Ally Bank has a few drawbacks, including the lack of physical branches, low-interest rates on checking accounts, and no cash deposits at branches.
Also, Ally Bank charges fees on outgoing domestic wires and does not currently offer credit card services or sign-up bonuses.
What Is The Withdrawal Limit For Aspiration?
Your security is a top priority, so to protect you from fraud and keep your account safe, we have limited the frequency and amount of transfers made using ATMs. You can withdraw up to $500 daily with your Aspiration Debit Card!
Is Ally Bank Free?
The answer is yes! Ally Bank customers aren't charged monthly maintenance fees, and there are no ATM withdrawal fees. Additionally, Ally Bank offers free overdraft protection to help protect you from unexpected transactions.
Does Ally Bank Have No ATM Fees?
Yes, Ally Bank does not charge any ATM fees for customers. Ally Bank is part of the Allpoint network of over 43,000 fee-free ATMs across the US.
Moreover, the Bank reimburses up to $10 in ATM fees at the end of each month for customers who use a non-Allpoint ATM.
Does Ally Have International Transaction Fees?
Indeed, Ally Bank bills a currency conversion or cross-border payment fee of up to 1% on total transactions when you use your debit card in foreign countries or acquire items from abroad.
Unfortunately, no method is available to transfer funds directly with an international recipient besides these fees.
Who Are Ally Bank's Competitors?
Ally Bank's main competitors are Chase, Bank of America, Wells Fargo, Novo, Redbank, and Chime. Each offers a range of banking products, including checking accounts, savings accounts, credit cards, and online and mobile banking services.
Can I Withdraw Money From My No Penalty CD Before it Matures?
Yes, you can withdraw all or part of your money from an Ally No Penalty CD without penalty after the first 6 days following the date you fund your account.
Today's blog post was all about Aspiration vs Ally Bank. It has provided a comprehensive overview of Aspiration and Ally Bank, detailing their advantages and drawbacks. We hope you have found this information helpful as you make your final decision.
Whichever one you choose, make sure to compare fees and interest rates before making a commitment. This will help ensure you get the best deal and can make informed decisions about which bank is right for you.