Chime Vs Ally Bank 2022 (Complete Comparison Guide)

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Chime and Ally are two popular online banks that you might want to consider. Here’s a quick comparison that should help you decide which one is best for your needs.

Chime offers a debit card and a savings account, but no checking account. Chime has no monthly fee and no foreign transaction fees. Chime has an awesome app with cool features like allowing you to sync your other banks’ accounts to Chime. has 24/7 customer service available by phone or live chat.

Ally offers checking and savings accounts in addition to a credit card and two CDs for fixed-term investments. Ally has no monthly fees but charges $0.25 for each debit card transaction. Like Chime, Ally has free ATM reimbursement that applies nationwide and it reimburses up to $10/month in other bank surcharges as well. They have great customer service available by phone 24/7 or live chat Monday – Friday during banking hours.

The comparison on the following points:

  • In terms of human employees:

Chime often advertises better customer service than other banks, but in reality, Chime has fewer human employees than Ally does. This reduces Chime’s overhead costs, which allows Chime to offer more competitive fees.

  • In terms of marketing:

Chime uses digital ads by Google and Chime also advertises on sites such as Facebook. Chime often provides customers with free swag, which is a tactic aimed at making Chime seem like a hip young bank that appeals to millennials. Chime focuses more on marketing while Ally bank spends more money on software development and other types of tech.

  • In terms of fees:

In terms of fees, Chime wins hands down. Chime has lower fees than Ally which makes Chime a great option for people who frequently use ATMs, transfer money overseas or have high account balances. Chime often offers incentives such as free swag and targeted advertising instead of more competitive interest rates which is one reason some people prefer Ally Bank.

  • In terms of target customers:

Chime tends to target millennials while Ally Bank is well-known for targeting baby boomers.

What is Chime Bank?

Chime is a fintech company so Chime is not owned by a larger bank or financial institution. Chime’s parent company is Chime Holdings, Inc., which currently has three subsidiaries including Chime Money Transfer, LLC (“Chime”), Chime Bank, Member FDIC (“Chime Bank”), and Chime Merchant Services, LLC ( Chime Merchant Services “).

Chime got started when Chime’s CEO and Founder, Chris Britt, was unable to find a checking account that he liked and Chime was created. Chime is different from most banks because Chime attempts to make its services more user-friendly, financial education-focused, and secure rather than just another bank account.

What is Ally Bank?

Ally Bank is a well-established online banking company located in New York, New York. Ally Bank was founded in 1919 as General Motors Acceptance Corporation or GMAC. Ally no longer consists of just automobile loans; Ally’s recent acquisitions have allowed Ally to become a nationwide bank with deposits encompassing over $148 billion dollars. Ally originally started out providing auto financing but quickly expanded its customer base by acquiring financial institutions across the United States. Ally has been known for its innovative marketing strategy and is a pioneer in online banking.

What does Chime offer?

Chime offers a unique approach to banking by attempting to educate its users on how they can manage their money better and save more, which many believe is the biggest problem that financial service companies need to solve.

Chime has been able to increase its user base from 100,000 in 2014 to 1 million Chime users and Chime is adding approximately 10,000 users a month. Chime has been able to expand into the market because Chime was designed based on customer feedback, 60% of Chime users are under 35 years old and Chime offers low fees for their banking services.

What does Ally offer?

Ally offers many interest-generating and convenient services that make Ally one of the most popular banks in the United States: Ally’s high-interest checking account with no fees, ATM fee reimbursements at Ally ATMs, Ally’s free online Bill Pay, Ally’s $10 overdraft protection fee reimbursement every year, Ally Invest (Ally Bank’s low-fee investment brokerage), Ally Home Loans with lower rates, Ally Auto loans, Ally No Penalty CD which allows you to withdraw your money anytime without penalty fees, and worldwide Ally customer service by Ally professionals.

Ally has several checking accounts to choose from including Ally Interest Checking which offers free online Bill Pay and unlimited check writing abilities as well as Ally’s high-interest checking account that allows you to earn up to 0.25% APY.

Ally also offers its customers free Ally checking which is a simple form of banking that allows Ally customers to write checks, receive their funds via direct deposit or ACH, and receive Ally ATM fee reimbursements.

What are the pros and cons of Chime Bank?

Pros of Chime Bank

  • No Monthly Fees
  • FDIC Insured
  • No Overdraft Fees
  • No Foreign Transaction Fees
  • Free Spam Protection for Email, Texts, and Phone Calls

Cons of Chime Bank

  • Lack of Personal Touch
  • ATM Charges
  • Limited Services
  • Spending Limits

What are the pros and cons of Ally Bank?

Pros:

  • Great Interest Rate
  • ATM Fee Reimbursement
  • High-Interest Checking
  • Easy to use application
  • No Overdraft Fees

Cons:

  • Unable to deposit funds
  • No physical branch
  • Penalty

Why should you choose Chime Bank?

  • Chime doesn’t charge a monthly fee for Chime’s accounts. Chime would rather motivate Chime users to manage their money responsibly with Chime’s goal of increasing Chime users’ financial knowledge and Chime does this by charging Chime users no monthly fees. In fact, not only does Chime not charge a fee, they actually refund Chime users for any fees Chime users are charged by Chime’s partnered banks.
  • Chime accounts are FDIC insured, which means Chime account holders would be covered in the event of Chime Bank closing. Chime uses an FDIC pass-through insurance structure so each depositor at Chime is insured to at least $250,000, which includes principal and any accrued interest up to that amount.
  • Chime doesn’t charge Chime users overdraft fees. Chime users can overdraft their accounts because Chime allows Chime users to link their checking accounts with a debit card. Chime’s overdraft fee policy is that Chime Chime will not charge Chime user overdraft fees.
  • Chime doesn’t charge any foreign transaction fees, which means every time a Chime user makes a payment in Chime, or whatever currency that is not US Dollars or local to the area where the transaction was made there are no foreign transactions fees.
  • Chime offers free spam protection for text messages, phone calls, and emails to protect its users from fraudulent activity associated with financial service providers such as stealing money from Chime.

Why should you choose Ally Bank?

  • Ally has a great interest rate on its savings account as well as competitive CD rates.
  • Ally offers ATM fee reimbursements at Ally ATMs as well as worldwide customer service by Ally professionals that makes Ally one of the best online banks in America.
  • Ally’s high-interest checking is also a major advantage for Ally customers because it allows you to have unlimited check writing abilities with Ally’s high-interest checking account.
  • Ally has its own app that allows Ally customers to use Ally features on the go which is convenient when you are in a hurry.
  • Ally also offers overdraft protection reimbursement at Ally ATMs which is great for people who are not able to handle Ally’s overdraft fees. Ally No Penalty CD offers great interest rates plus the convenience of being able to withdraw your funds without penalty fees.

Why should you not choose Chime Bank?

  • The con of Chime bank is the lack of personal touch. Although Chime has a great online banking system, there is no in-person customer service available. For example, if a Chime user wanted to discuss their account with someone at Chime they would have to schedule a call. Chime does have a customer service phone line on the website for questions and answers but it isn’t 24/7 available.
  • The services available with Chime are limited. There isn’t an ability to schedule future payments on Chime’s website either so any scheduled payments have to be done manually.
  • If using an ATM, however, there will be fees if using an ATM outside of Chime, or whatever currency that is not US Dollars.
  • Chime users are limited to the amount of money they can spend per month.

Why should you not choose Ally Bank?

  • Ally customers can’t use Ally ATMs to deposit funds into Ally accounts.
  • There is also Ally’s monthly fee that is charged when you don’t meet the Ally monthly deposit requirement that makes Ally one of the best online banks in America.
  • Ally doesn’t have a branch or any Ally employees that you can walk into from Ally. Ally customers can contact Ally via phone, text, and email for any questions.

Who can open Ally Bank Account?

Chime Bank is for Chime users, Chime users can create Chime accounts once Chime users are thirteen years old and over. Chime also allows users to link Chime accounts for those that don’t have Chimes such as parents and grandparents of Chime users as well as friends and family members.

Who can open Ally Bank Account?

Ally customers must be 18 years or older. Ally is not currently accepting Ally customers who are residents of Indiana, Puerto Rico, and New York due to Ally bank’s terms and conditions.

Who is Chime Bank best for?

Chime bank is best for Chime users that are looking for an easier way to manage Chime accounts on the go. Chime users can track through Chime’s app, Chime notifications, and set up scheduled payments to meet Chime’s account goals. Chime bank is also best for users that are looking for Chime to be only checking accounts. Chime users who want Chime bank to be the only checking account can withdraw Chime’s paychecks through the Chimes app and then deposit the money into Chime’s checking account.

Who is Ally Bank best for?

Ally is best for Ally customers that are looking for a great Ally interest rate on their savings account as well as CD rates. Ally customers also benefit from Ally’s ATM fee reimbursements which allow Ally customers to use Ally ATMs worldwide fee-free and unlimited check writing abilities with Ally’s high-interest checking account.

For example, Ally customers earn up to 0.25% APY plus Ally’s $10,000 Ally Bank checking bonus is added to Ally’s High-Interest Checking account which allows Ally customers to also receive free Ally checking with no monthly fee or minimum balance required.

Is Chime Bank worth it?

Chime bank is Chime worth it Chime users can earn Chime points for free food, travel, and entertainment with Chimes partner stores such as Applebee’s, Macy’s, Target, and more. Chime is also available on Chime devices which is a plus for Chime users who use Chimes products.

In conclusion, Chime bank is Chime worth it Chime users can earn Chime points, the Chimes app is available on Chimes devices, and Chime users can set up Chime notifications.

Is Ally Bank worth it?

Ally Bank has been widely recognized as one of the best online banks in America because it offers great interest rates, fast customer service, and a simple website. Ally’s website is easy-to-use and allows customers to have 24-hour access to Ally accounts or Ally can contact you via phone, text, or email to help you with Ally questions. Ally offers several types of accounts and services that can benefit just about any type of customer and is FDIC insured.

Ally has been known for its promotions, which makes opening an Ally Bank account even more enticing. Ally Bank’s interest rates, simple website, and customer service make Ally one of the best online banks in America. Ally has earned a place as one of the best online banks by providing its customers with an unbeatable experience each time they use Ally Banking services.

Some of Chime and Ally Bank alternatives:

  • Current Bank

Current Bank is a large financial services company that provides three different products. Current Bank has been in the banking business for several decades and today offers state-of-the-art web, mobile, and software solutions for its customers. Current Bank prides itself on researching new technologies to provide high-quality solutions to meet customer needs. Current Bank provides top-notch customer service and strives to provide superior products at all times. Current Bank is dedicated to its customers above all else, even over profitability.

  • Varo Bank

Varo mobile account comes with full access to your money in any location. The bank is FDIC insured and there are no fees for making international wire transfers – which allows ex-pats and digital nomads to save a lot of money on currency exchange (which usually takes place when transferring funds back home).

The best thing about this bank is that it doesn’t charge any monthly fees for holding an account. The Varo debit card doesn’t charge foreign currency transaction fees or ATM withdrawal fees, but it also has additional perks.

  • N26 Bank

N26 Bank is a part of N26, N26 Bank’s parent company. N26 was started in 2013 by Valentin Stalf and Maximilian Tayenthal. N26 offered internet bank accounts, but they were only available online to residents of Germany until 2015 when N26 opened itself up to the rest of Europe. By February 2016 N26 was serving over 50,000 customers across the entire continent.

N26 customers are able to easily view their account activity in real-time through N26’s mobile application. N26’s mobile app is very easy to use and N26 is looking to make it even better by including features such as a PIN generator, digitizing checks, and making N26 Black customers’ insurance coverage extend to their homes.

The Bottom Line

Chime is an excellent choice for people who prefer online banking. Chime is a startup bank with no physical locations; Chime allows customers to open accounts online. Chime tends to offer more incentives than Ally Bank, mainly because Chime has few fees but invests heavily in customer service.

ChIME offers fee-free ATM withdrawals at over 43,000 Allpoint ATMs nationwide. Chime uses Accel Partners, a VC firm, to provide Chime with financial backing. In addition, Chime has partnered with Visa and MasterCard. Chime is a highly-recommended banking alternative for freelancers and people who telecommute because Chime offers fee-free international ATM withdrawals worldwide.

My Recommendation

Both Chime and Ally are good choices for your first online bank, but Chime might be better if you don’t need a checking account or live close to an ATM that reimburses other banks’ fees. Chime is also great if you want really cool features like the ability to sync other bank accounts to Chime.

Chime is better if you want an awesome debit card with great benefits like no foreign transaction fee and 1% cashback on all purchases. Chime also has 24/7 customer service available by phone or live chat while Ally only offers the same Monday – Friday during banking hours without the cool new features like Chime.

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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