Banking » Compare Banks » Axos Vs Ally Bank Comparison – Which Is Better in 2023?
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Axos Vs Ally Bank Comparison – Which Is Better in 2023?

Obviously, Ally is a bigger brand compared to Axos, but does this mean it is a better bank? We’ll need to look a little closer to make that determination.
Author: Baruch Mann (Silvermann)
Baruch Mann (Silvermann)

Writer, Contributor

Experience

Baruch Silvermann is a financial expert, experienced analyst, and founder of The Smart Investor, which helps consumers make better financial decisions.  Silvermann’s areas of expertise include investing, banking, and credit cards. Silvermann has contributed to Yahoo Finance and cited as an authoritative source in financial outlets like Forbes, Business Insider, CNBC Select, CNET, Bankrate, Fox Business, The Street, and more. Aside from being a finance expert, his background includes working as a business and financial analyst. Above all, he is passionate about teaching people how to manage their money and helping millions on their journey to a better financial future.

Review & Fact Check: Baruch Mann (Silvermann)

Baruch Mann (Silvermann)

Financial Expert, The Smart Investor CEO

Experience

Baruch Mann (Silvermann) is a financial expert and founder of The Smart Investor. Above all, he is passionate about teaching people how to manage their money and helping millions on their journey to a better financial future.
Author: Baruch Mann (Silvermann)
Baruch Mann (Silvermann)

Writer, Contributor

Experience

Baruch Silvermann is a financial expert, experienced analyst, and founder of The Smart Investor, which helps consumers make better financial decisions.  Silvermann’s areas of expertise include investing, banking, and credit cards. Silvermann has contributed to Yahoo Finance and cited as an authoritative source in financial outlets like Forbes, Business Insider, CNBC Select, CNET, Bankrate, Fox Business, The Street, and more. Aside from being a finance expert, his background includes working as a business and financial analyst. Above all, he is passionate about teaching people how to manage their money and helping millions on their journey to a better financial future.

Review & Fact Check: Baruch Mann (Silvermann)

Baruch Mann (Silvermann)

Financial Expert, The Smart Investor CEO

Experience

Baruch Mann (Silvermann) is a financial expert and founder of The Smart Investor. Above all, he is passionate about teaching people how to manage their money and helping millions on their journey to a better financial future.

We earn a commission from our partner links on this page. It doesn't affect the integrity of our unbiased, independent editorial staff. Transparency is a core value for us, read our advertiser disclosure and how we make money.

Table Of Content

Ally Bank is an online bank that grew out of General Motors Acceptance Corporation's banking division. GMAC used to be an auto financing company, but it was acquired by Ally Bank. This bank now provides a diverse range of products. 

Credit cards, home loans, investing products, savings accounts including certificates of deposit and checking accounts options.  are among the products available. Ally Bank serves millions of customers and offers excellent banking services.

Ally Bank is a good choice for people looking for simple accounts that they can manage entirely on their own, with a small but competitive set of deposit accounts. Ally, like many online-only banks, offers higher interest rates and charges fewer and lower account fees than many traditional banks.

 This is a high-quality banking service that provides dependable service and modern banking needs that are flexible and adaptable to your needs.

Banking Options

Axos Bank
Ally Bank
Savings Accounts
Checking Accounts
CDs
Money Market Account
Debit Card
Credit Cards
Personal Loans
Mortgage
Government Mortgage
Business Loans
Investing Capabilities

Axos is one of the most established online-only banking services. It has been in operation since 2000 and continues to expand its services for both individuals and businesses. The bank is headquartered in San Diego, California, and is a subsidiary of Axos Financial. While the bank has three locations, the majority of its customers are served online.

In 2018, the bank acquired Nationwide Bank, which increased Axos Bank's deposits by $3 billion and added 40,000 customers. WiseBanyan, a no-fee robo advisor, was also acquired by the bank, which will benefit Axos bank customers.

While Axos Bank is an online bank, it also provides full-service banking and a variety of accounts to suit the needs of most private customers and small businesses.

Savings Account

Ally offers an impressive 3.75% rate for its savings account, while with Axos and  you can earn Up to 0.61% APY . However, this rate does only apply to balances up to $24,999, after this point the rate drops down.

Just bear in mind that there is a minimum $250 deposit required to open up an Axos savings account. Once your account is opened, there are no minimum monthly balance requirements.

Axos Bank
Ally Bank
APY
Up to 0.61%
3.75%
Fees
$0
$0
Minimum Deposit
$250
$0
Checking Needed?
No
No
Main Benefits
  • Tiered interest, with the 0.61% rate available up to $24,999
  • Free ATM card available on request.
  • Biometric security authentication
  • Buckets to organize your savings, so you can allocate funds and work towards your savings goals
  • 24/7 support via chat, email or phone

Checking Account

Ally is unusual in that it has an interest paying checking account. You can earn 0.25% on your account balance while enjoying no maintenance fees.

The Axos checking account is also fee free and while the Essential checking does not pay interest, you can upgrade to the Axos Rewards checking that pays 1% interest, you simply need a $50 minimum deposit to open the account. There is also the option to upgrade to Cash Back checking that pays up to 1% cash back on your purchases, again with a $50+ minimum deposit.

Both checking accounts have some nice features. For example, Axos has Direct Deposit Express that allows you to get your hands on your paycheck funds up to two days early, while Ally has round up. This feature rounds up your purchases to top up your savings.

So, if you swipe your card for $5,65, your account will be debited $6 and the remaining $0.35 will go into your savings account. These amounts are so small, you are unlikely to notice them as you’re spending, but over the course of a month or two, you can give your savings a little boost.

Axos Bank
Ally Bank
APY
Up to 3.30% APY to get the maximum rate (up to $50,000) you'll need monthly direct deposits of $1,500 (0.40% APY), 10 transaction on your debit card (+0.30% APY), average daily balance of $2,500 on Axos Invest Managed Portfolio (+1.00% APY), average daily balance of $2,500 on Axos Invest Self Directed Trading Account(+1.00% APY) and make full monthly payment on loans (mortgage, personal and auto) with Axos account (+0.60% APY).
0.25%
Fees
$0
$0
Minimum Deposit
$50
$0
Main Benefits
  • Get paid up to 2 days early with Direct Deposit Express.
  • No overdraft or non-sufficient funds fees.
  • Make Peer to Peer payments directly from your account.
  • Account alerts via text, email or push notifications..
  • Remote check deposit using your smartphone
  • Rounds up your checking account purchases into your linked savings account
  • Easy transfers with Zelle and Ally Skill, an Amazon Alexa compatible voice transfer system.
  • ATM network of over 43,000 fee free machines

CDs

This is one area where there is no real comparison. While Axos has a $1,000 minimum deposit requirement, there is no such requirement with Ally. 

Additionally, Axos offers a flat 0.20% rate, while Ally offers better range of 2.00% – 5.00% APY on its certificate of deposit products.

Axos Bank
Ally Bank
Minimum Deposit
$1,000
$0
APY Range
0.20%
2.00% – 5.00%

Personal Loans

Axos Bank offers personal loans directly via their website.  Axos Bank unsecured personal loans can be used for consolidating credit card debt, making home improvements without tapping into a home equity loan, or covering large expenses such as medical bills, weddings or vacations. Borrowers are required to pay a monthly fee.

It may be difficult to qualify with Axos Bank if you have a low credit score, a high debt-to-income ratio, and no income or credit history. Your credit should not be affected during the pre-qualifying process, regardless of how you apply.  Axos personal loans do not have an early payoff fee, so you can pay off your loan early and save a lot of money in interest.

Once your loan has been approved and you have agreed to the terms, you should receive funds within two days. 

Axos Bank
APR
7.15% – 17.99%
Loan Amount
$5,000 – $50,000
Terms
36-72 months

Customer Service

Axos has a 24/7 helpline, but you can also chat with the Evo virtual assistant or browse the extensive support page on the website. Ally also has 24/7 support, claiming a typical wait time of just one minute for customer calls.

Online/Digital Experience

Both Axos and Ally have easy to use websites to explore products and access support and help with various finance topics. This ensures a great user experience, particularly if you’re not sure exactly what banking services and products are the best option for you.

Both the banks also have highly rated apps. The Axos app is rated 4.7/5 and 4.5/5 for Apple and Google respectively, while Ally’s app is rated 4.7/5 on Apple and and 4.2 out of 5 on Google.

These apps allow you to not only transfer funds and manage your transactions, but you can access support and manage your card. You can even locate the nearest fee free ATM through the app, making it highly convenient if you’re in an unfamiliar neighborhood.

Which Bank is The Winner?

Obviously, Ally is a bigger brand compared to Axos, but does this mean it is a better bank? We’ll need to look a little closer to make that determination.

Both Axos and Ally offer fee free accounts to make managing your money easy. However, Axos offers a far better savings rate and you can upgrade your checking account to enjoy up to 1% on your balance or 1% cash back on your debit card purchases, a feature that more than compensates for the 0.25% offered by Ally.

In terms of CDs, Ally certainly has the edge, as you don’t need a minimum deposit and can get far better rates even with just a one year CD. However, the five year CD offers a rate that is four times more than Axos.

ally bank
The Smart Investor Logo
APY Savings The annual percentage yield (APY) is a percentage that represents the amount of money or interest earned on your savings account over the course of a year. The APY factored in compound interest. A savings calculator can help you quickly determine how much you'll earn with a given APY.
3.75%
Up to 0.61%
Up to 5.02%
Checking Fee The monthly fee on checking account
$0
$0
Compare Banking
Mobile App Rating
4.7/5 on iOS
4.1/5 on Android
4.7/5 on iOS
4.4/5 on Android
Various Banks
Open Account
on Ally's website
Open Account
on Axos website
Compare
on our website

FAQs

$100 as of March 2023. Also, you can always compare the best banking promotions and how Axos promotions are compared to other banking promotions.

Yes, Axos Bank is a legitimate financial institution with FDIC insurance.  It is a wholly owned subsidiary of Axos Financial and has been in operation since 2000. 

You can enjoy full-service banking while also having the security of a secure online platform where you can manage all aspects of your accounts. You can also use the Axos app, which is available for both Android and iOS.

Besides being online only bank, the minimum deposit may be a challenge for some people. Also, its CD rates are lower than most of the banks around.

Ally Bank is a market leader in online banking. This bank provides a wide range of accounts at competitive rates, making it one of the best options for most customers. You can use full-service online banking, but you should be aware that you will not be able to use in-person banking services at a local branch. While the checking accounts don't have the best rates, Ally Bank as a whole provides an excellent financial package.

Both Capital One 360 and Ally Bank are primarily providers of online banking services. They both offer higher rates than many traditional banks, as well as a variety of accounts. However, there are some distinctions that will influence which option is best for you.


Ally is a good choice if you want access to live support 24 hours a day, seven days a week, and fee reimbursement for any out-of-network machine usage. Capital One, on the other hand, has a massive ATM network and highly competitive products.

Review Alternative Banks

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Axos Bank offers home improvement loans as well as checking and savings accounts online. Because Axos is a low-cost online lender, it is able to pass on significant savings to its customers. Axos waives many fees and reimburses ATM and rewards checking fees.

Chime is an online-only company that works with two banks to provide checking and savings accounts. Online banking with Chime is not the same as using a traditional banking system. Chime secures and protects your online financial accounts. It is a safe place to keep your money and access it without any technical difficulties.

Read Full Comparison: Axos VS Chime: Which Online Bank Is Better?

Axos Bank is still committed to providing a “100% digital” experience, as evidenced by the absence of branches. When there are no branches, customers benefit from higher rates of return on financial products. Axos Bank is also a full-service bank, providing individuals and businesses with deposit accounts and loans.

Discover Bank, while not a full-service bank, is part of the Discover Group, which provides a wide range of loan products. If you have a Discover Bank account, you will be in their system if you ever need a loan or a credit card. With the exception of Delaware, Discover Bank does not have bank branches.

Read Full Comparison: Axos vs Discover: Which Bank Account Is Better?

Marcus, on the other hand, made Goldman Sachs banking more accessible to the general public when it debuted in 2016. Our in-depth Marcus review can help you decide if this online bank is right for you. Goldman Sachs is one of the world's largest investment banks, with offices in every major financial center and a client list that includes other banks as well as the state of New Jersey. With Marcus, however, you could be next on the list.

Axos online bank, which provides checking, savings, CDs, investing, and other services, has a lot to offer. A variety of checking account options allow customers to earn interest or cash back. The APY on Axos Bank's Rewards Checking account isn't the highest among online banks, but it's sufficient to justify opening an account as part of a larger online banking strategy, and there are almost no fees.

Read Full Comparison: Axos vs Marcus: Which Online Bank is Better?

Axos is a large online bank that offers checking, savings, CDs, investing, and other services. Customers can earn interest or cash back on a variety of checking account options. The APY on Axos Bank's Rewards Checking account isn't the highest among online banks, but it's high enough to justify opening an account as part of a larger online banking strategy, and there aren't many fees.

Varo Bank is a web-based bank that offers a variety of deposit and loan products. It was founded in 2015 and is based in San Francisco. Varo offers high-yield savings accounts and cash-back checking accounts, as well as a fee-free ATM network (see below for more information from Varo) and automatic savings tools.

Read Full Comparison: Axos vs Varo: Compare Banking Products

Discover is a completely online bank, so there are no local branches where customers can go for banking services. Customers can get in touch with Discovery via customer service, which is available 24 hours a day, seven days a week. You can log in to your account in a number of ways. All accounts are accessible online.

Ally offers a much broader range of traditional banking products. In addition to checking, savings, and CD accounts, there are investment and retirement products, mortgages, auto loans, and personal loans available.

Read Full Comparison: Discover vs Ally: Which Bank Wins?

Aspiration has a streamlined banking product line that includes a hybrid account with a $7.99 per month upgrade option and only one credit card option. Aspiration's premise is to help you live a greener life, so the products are heavily weighted in this category. This means that you can earn cash back and other rewards for making environmentally conscious purchases and taking action.

Ally offers a much broader range of banking products. In addition to checking, savings, and CD accounts, you can also get investment and retirement products, mortgages, auto loans, and personal loans. This brings it more in line with a traditional bank, which may make switching from your high street bank easier.

Read Full Comparison: Aspiration vs Ally Bank: Where to Save Your Money?

Marcus' banking product offering is more specialized. Marcus' product line reflects its investment pedigree as part of the Goldman Sachs Group. CDs, high-yield savings, investment options, and a variety of loans are available.

Ally has a banking product line that competes with traditional, high-street banks. A checking account, savings account, CDs, mortgages, auto loans, personal loans, retirement products, and investments are among the numerous products available.

Read Full Comparison: Ally vs Marcus: Which Online Bank Is Better?

Since the bank's inception, the SoFi product line has come a long way. You can now get access to investment products, mortgages, and loans, in addition to its hybrid checking and savings account. SoFi even offers insurance. The only thing missing from this bank are CDs and traditional savings accounts.

Ally offers a much broader range of traditional banking products. In addition to checking, savings, and CD accounts, there are investment and retirement products, mortgages, auto loans, and personal loans available.

Read Full Comparison: SoFi Money vs Ally Bank: Compare Banking Options

Ally has a decent banking product lineup that would make switching from a traditional high street bank relatively simple. Checking, savings, CDs, auto loans, personal loans, mortgages, investments, and retirement products are among the products available. The only obvious omission from the Ally line is the absence of a credit card.

Capital One began as a credit card company, but it has since expanded into a variety of other banking services. You can access auto finance, loan refinancing, and children's accounts in addition to savings and checking accounts.

Read Full Comparison: Ally vs Capital One: Compare Banking Options

Ally has a robust banking product offering that rivals that of a traditional bank. Savings accounts, checking accounts, CDs, investments, retirement products, personal loans, auto loans, and mortgages are all available.

Chime's product line has been simplified. All Chime products are designed to assist customers in rebuilding or establishing credit. There are only two savings accounts, one checking account, and one credit card available.

Read Full Comparison: Ally vs Chime: Which Banking Account Wins?

Marcus' banking product offering is more specialized. Marcus' product line reflects its investment pedigree as part of the Goldman Sachs Group. CDs, high-yield savings, investment options, and a variety of loans are available.

Ally has a banking product line that competes with traditional, high-street banks. A checking account, savings account, CDs, mortgages, auto loans, personal loans, retirement products, and investments are among the numerous products available.

Read Full Comparison: Ally vs Marcus: Which Online Bank Is Better?

Both Ally and Wells Fargo have a fairly impressive banking product lineup that would make switching from a traditional high street bank simple.

Ally offers CDs, auto loans, mortgages, investments, and retirement products in addition to checking and savings. The only glaring omission in the lineup is the absence of a credit card.

Wells Fargo's product lineup is even more impressive. Checking and savings accounts, mortgages, loans, and a variety of investment options such as IRAs, 401ks, and wealth management services are all available.

Read Full Comparison: Ally vs Wells Fargo: Which Bank Account Is Better For You?

Baruch Mann (Silvermann)

Baruch Mann (Silvermann)

Baruch Silvermann is a financial expert, experienced analyst, and founder of The Smart Investor, which helps consumers make better financial decisions.  Silvermann's areas of expertise include investing, banking, and credit cards. Silvermann has contributed to Yahoo Finance and cited as an authoritative source in financial outlets like Forbes, Business Insider, CNBC Select, CNET, Bankrate, Fox Business, The Street, and more. Aside from being a finance expert, his background includes working as a business and financial analyst. Above all, he is passionate about teaching people how to manage their money and helping millions on their journey to a better financial future.