Chime Vs Ally Bank In 2023 Which Is Better? [Financial Advice]

Updated On: 03/08/2023
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In digitalization and new advancements, staying up-to-date with the most reliable banking options is essential. As we enter 2023, two of the banking sector's leading contenders, Chime and Ally Bank, are vying for the top spot - what sets them apart?

Both provide customers with innovative features to help make financial management easier than ever before. But where do these banks differ in terms of offerings?

This blog post contains a comprehensive breakdown of the advantages and disadvantages they each offer, allowing you to make an educated decision on which one is best suited for your requirements. Let us take a glimpse into Chime Vs Ally Bank In 2023!

What Is Chime?

What Is Chime?

Chime is an American financial technology company founded in 2012 based in San Francisco. It is a mobile-only banking platform offering customers a wide range of secure and convenient features to help manage their finances, such as no-fee overdraft protection, direct deposits, and even sending money with a phone number.

Customers can also access their bank accounts via an app or website, which provides real-time insights into their spending and financial health.

Although not a bank, Chime has brought tremendous innovation to the financial space. The majority of its revenue comes from the collection of interchange fees.

Moreover, since Chime does not have any physical branches or locations, its cost structure is significantly lower than traditional banks resulting in it being able to offer higher returns and attractive savings bonus opportunities.

What Is Ally?

What Is Ally?

Ally is an American banking giant that has been providing financial services since 1919. Its roots trace back to GMAC (General Motors Acceptance Corporation), and its headquarters remain in Detroit, Michigan.

Ally offers customers car finance loans, online banking options, mortgages, and vehicle insurance policies, along with a cutting-edge electronic trading platform.

Ally stands in a league of its own with unbeatable rates, exceptional customer service, and an easy-to-understand fee structure. Additionally, it offers top-notch products and services customized to suit any clientele's needs.

Boasting 2 million depositors across America, Ally holds one of the highest assets owned by banks nationwide - not to mention their different accounts offer customers the potential for earning interest on deposits!

Comparison: Chime Vs Ally Bank In 2023

Comparison: Chime Vs Ally Bank In 2023

Looking to decide between Chime Vs Ally Bank in 2023? While they share some commonalities, there are also a variety of differences that make them unique. Let's examine the similarities and disparities between these two financial institutions to see which one best suits your needs!

In Terms of Accounts:

  • Savings Account

Chime offers different account services, including its Chime Savings Account, which boasts no minimum balance and no overdraft fees, and customers can earn up to 2.00% annual percentage yield (APY).

This makes this account competitive with the best savings accounts available. By utilizing Chime's avant-garde automated savings features, customers can easily top up their accounts with the difference from each transaction. This helps them effortlessly save money over time!

In comparison, Ally Bank's Online Savings Account requires no minimum deposit to open and has neither a monthly fee nor any balance requirement.

It satisfies customers with an astonishing 3.40% APY return on all deposits - making it one of the top interest rates among online banking options! Furthermore, it has buckets to help people organize their savings and keep track of their progress.

  • CDs

In this area of comparison, Chime does not offer any certificates of deposit (CD) accounts for customers. However, Ally provides three CD options: High Yield, No Penalty, and Raise Your Rate.

High Yield CDs offer up to 5% APY with terms ranging from 3 months to 5 years. With a No Penalty CD, customers can earn up to 4.00% Annual Percentage Yield (APY) and withdraw their money without penalties.

Raise Your Rate CDs offers customers up to 3.30% APY on deposits for terms of two or four years. Certificate of Deposits is a standout feature of Ally that sets it apart from Chime and other banks, particularly since no minimum deposit requirements are needed to open an account.

  • Checking Account

If you want to open a checking account, Chime and Ally are great options. Chime's Checking Account stands out with its no-fee structure - no opening or closing charges!

There is also no requirement for a minimum balance; instead, enjoy unlimited fee-free cash withdrawals from their extensive network of 60,000 ATMs across the US.

This bank also provides an amazing $200 overdraft facility, which is free of charge! On top of that, your paycheck can be received up to two days earlier compared to other banks – talk about convenience!

In comparison, Ally Bank's Interest Checking Account provides customers with no monthly fees or minimum balance requirements. On top of that, their Early Direct Deposit allows customers to access their funds up to two days ahead.

The bank rounds up all your purchases and transfers any spare change from your checking account into savings so you can reach those goals quicker! In addition, you can get up to 0.25% APY on your checking balance which is a higher interest rate than what the Chime Checking account offers - zero!

  • Money Market Account

Again, Ally is the clear winner in this category as it offers customers a money market account with up to 3.40% APY, whereas Chime offers no money market account. This is a great way to invest your money and earn more from it than typical savings accounts usually offer.

Ally's Market Money Account offers a debit card and check-writing features - something that Chime does not offer!

In Terms of Accessibility:

With Chime and Ally, you can easily access your funds from wherever you are. Their websites and apps offer a seamless interface that allows customers to check their balances quickly, browse services, and easily transfer money without leaving the comfort of home.

Chime's mobile app and online banking platform help customers move their money, pay bills, or deposit checks from anywhere. Customers can also take advantage of its SpotMe feature, which allows them to overdraft their account up to $200 without incurring fees!

On the other hand, Ally's mobile and online banking platform has various features that make it easier to manage your finances.

Chime and Ally offer superbly rated apps on both IOS and Android, guaranteeing their customers a dependable yet effortless banking experience.

In Terms Of Customer Services:

In this day and age, the demand for exceptional customer service is at an all-time high. Both Chime and Ally banks have earned excellent customer feedback scores because of their fantastic support services.

Whether you need assistance with your financials at any time of the day or night, rest assured that both institutions are up to the task: Chime provides toll-free 24/7 phone support while Ally offers around-the-clock live chat and telephone backup - whatever issue may arise can be promptly resolved!

In Terms of ATM Services:

Chime customers are given access to an incredible 60,000 ATMs across the United States– more than three major banks combined! Withdraw your money easily and with no hidden fees.

Make fee-free cash withdrawals at any MoneyPass ATM in a 7-Eleven location or any Allpoint/Visa Plus Alliance ATM; charges may apply if you use an out-of-network ATM. Take advantage now - never worry about extra transaction costs again!

On the other hand, Ally also provides access to 43000+ Allpoint ATMs in the US without charging any fees.

Moreover, they provide ATM reimbursement of up to $10 per statement cycle for any fees charged at non-Allpoint ATMs. With Ally, you can now enjoy taking out money without worrying about extra costs!

In Terms of Mortgage:

Here, Ally undoubtedly stands out. They offer mortgage products for home purchases and refinancing and tools such as a loan calculator, including an affordability calculator, mortgage payment calculator, and Refinance calculator to help you decide which option is best for your financial situation.

Chime does not offer any mortgages and thus cannot compete in this category.

In Terms of Loans:

Here also, Ally stands out as they offer a wide range of financial products, including personal loans and lines of credit to cover unforeseen expenses like medical costs, educational fees, or home renovations.

On the flip side, Chime provides only credit card services and overdraft protection options which are far more limited in comparison.

In Terms of Credit Cards:

Chime offers Visa Credit Builder cards as an affordable and efficient way to build your credit score effortlessly. Unlike other options, this card has no annual fees or interest charges, so you won't have to worry about costly bills.

Applying for the card is straightforward since it does not require a credit check or minimum security deposit! With Chime's Credit Builder program, you can improve your credit without damaging your bank account balance - what more could one ask for?

On the other hand, Ally provides Credit Cards issued by Ally Bank Member FDIC, with competitive rates. However, you can apply for Ally Credit Card only if you have received an offer from the bank online or via mail. In comparison, Chime surpasses Ally when it comes to credit cards.

In Terms of Locations:

Both Ally and Chime provide online-only banking services and do not have any physical branches. You can access and manage your accounts remotely, anytime, and from anywhere.

Therefore, in terms of locations, you can consider them neck-to-neck.

In Terms of Safety and Security:

When it comes to security, both Ally and Chime offer top-notch services. Their advanced encryption technology helps protect your personal information from cybercriminals.

At Chime, deposits are insured by the FDIC up to $250,000 through the Bancorp Bank, N.A. and Stride Bank, N.A., Members FDIC. You can instantly block your cards whenever you lose them or realize it was stolen. You can use their two-factor authentication feature for added safety.

Ally is also a Member of FDIC, so you know your funds are secure. Ally has a robust security system with a secure login process and encryption. They use two-step authentication for added security. So whether you choose Ally or Chime, you can rest assured that your funds are safe and secure.

Pros And Cons of Chime

Pros:

  • No monthly fees
  • Fee-free Overdraft
  • High-yield Savings account
  • Access to over 60,000 fee-free ATMs
  • Get paid up to two days earlier with direct deposit
  • No minimum balance requirement
  • Pay friends through the mobile app
  • Automatic savings transfers
  • Credit Builder Card
  • FDIC-Insured
  • Get real-time-transaction notifications

Cons:

  • Cannot make a Chime ATM deposit
  • Out-of-network ATM charges
  • Lack of mortgage and loan products
  • Limits on daily withdrawal and transfer amounts
  • No CD options
  • No Money Market Accounts
  • Lack of investment accounts

Pros And Cons Of Ally

Pros:

  • Competitive interest rates
  • No fees and no minimums
  • Access to more than 43,000 fee-free ATMs in the U.S.
  • Secure online banking with two-step authentication
  • Different CD options
  • Mortgage and loan products are available
  • Money Market Accounts available
  • Investing options available
  • Around-the-clock customer support via chat, email, or phone
  • FDIC insured

Cons:

  • No options to deposit cash
  • No physical locations
  • There are conditions for applying for Credit Card

Which Banking Institution Is Most Reliable: Chime Vs Ally Bank?

Which Banking Institution is Most Reliable: Chime Vs Ally Bank?

After carefully comparing both banking institutions, it is clear that they provide their own set of features and benefits.

If you are looking for a safe and secure online-only banking option with no monthly fees or minimum balance requirements, Chime is the best choice. It offers an excellent Credit Builder Card program to help build credit without hurting your bank account balance.

However, Ally Bank is the way to go if you want a banking institution with more investment options and loan products.

With competitive interest rates, no fees or minimums, access to fee-free ATMs, customer support available round the clock, and insured funds – Ally provides an excellent option for those looking to save or invest their money.

So, in conclusion, both Chime and Ally Bank offer secure banking options with a wide range of features tailored to meet your needs. But remember to do your research before making any decision that might impact your financial future.

FAQs: Chime Vs Ally Bank

Is Chime Better Than Ally?

When selecting a banking institution, it is essential to consider Ally and Chime's respective features and benefits. If you're looking for minimal fees without stringent minimum balance requirements, Chime offers the best solution.

However, Ally Bank might be better if you want more investment options and loan products.

What is the Downside of Chime?

Chime charges fees for cash deposits and out-of-network ATMs. Chime also has limits on daily withdrawal and transfer amounts and offers no CD or Money Market Account options. Additionally, Chime does not offer mortgage and loan products.

Who Can Use Chime?

US citizens aged 18 or above are eligible to open a Chime account. All you need is a valid Social Security Number and address in the US.

Does Chime Have Fee-Free Overdrafts?

Absolutely! With Chime, you can make debit card purchases and cash withdrawals without overdraft fees. The limits start at $20 and reach a maximum of $200.

Its SpotMe feature eliminates the hassle of dealing with pesky overdraft charges altogether.

Can I Apply for an Ally Credit Card Even if I Don’t Get an Offer?

No, at present, there is no such facility available. You must receive an offer from Ally Bank to apply for the credit card.

Is Ally Bank a Reputable Bank?

Yes, Ally Bank is a highly reputable bank with an excellent reputation in the banking industry. It is insured by the FDIC and is among the top-rated online banks in the United States, offering various banking services that meet the needs of its customers.

What is So Good About Ally Bank?

The best thing about Ally Bank is its no-penalty CD options, competitive interest rates, and wide range of financial services, including mortgage and loan products, money market accounts, and investing options.

Is Ally a Safe Bank?

Yes, Ally Bank is a safe bank. It is FDIC-insured, and your funds are insured up to $250,000. Ally offers two-step authentication and other security features to protect your data further. So, you don't need to worry about your funds or data when banking with Ally.

Final Thoughts:

This blog post, ‘Chime Vs Ally Bank in 2023’, has successfully compared the two banking institutions. Chime and Ally Bank offer secure online-only banking options with many different features to help you save or invest your money.

We hope this post has helped you decide which institution best suits your financial needs.

Michael Restiano

I lead product content strategy for SaltMoney. Additionally, I’m helping our broader team of 4 evolve into a mature content strategy practice with the right documentation and processes to deliver quality work. Prior to Instacart, I was a content strategy lead at Uber Eats and Facebook. Before that, I was a content strategist at SapientNitro, helping major Fortune 500 brands create better, more useful digital content.

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