Table Of Content
Because Discover is a strictly online bank, there are no local branches where customers can visit for banking needs. Customers can reach Discover through customer service, which is available 24 hours a day, seven days a week. You can access your account in a variety of ways. All accounts can be accessed online.
Discover makes use of a mobile app that is available for both iOS and Android devices. You can use this app to access all of your Discover accounts and use their mobile check deposit by taking a photo with your phone or tablet.
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, money market accounts, investment products, certificates of deposit, checking accounts, and savings accounts are among the products available. Ally Bank serves millions of customers and offers excellent banking services.
Ally Bank is ideal for customers who prefer to conduct their banking entirely online. Ally Bank provides customers with unrestricted access to loans, high-yield deposit products, and credit cards. 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
Discover | Ally Bank | |
|---|---|---|
Savings Accounts | ||
Checking Accounts | ||
CDs | ||
Money Market Account | ||
Debit Card | ||
Credit Cards | ||
Personal Loans | ||
Mortgage | ||
Government Mortgage | ||
Business Loans | ||
Investing Capabilities |
Savings Account
As of September 2023, both the Discover and Ally savings accounts are quite similar. Both have no fees, no minimum deposit and access to 24/7 customer support.
Both banks offers highly competitive rates when it comes to savings accounts, and the rates suppose to go even higher as the FED continues to increase prime rates.
Discover | Ally Bank | |
|---|---|---|
APY | 4.30% | 4.25% |
Fees | $0 | $0 |
Minimum Deposit | $0 | $0 |
Checking Needed? | No | No |
Main Benefits |
|
|
Checking Account
Where Ally really stands apart is with its checking account. Not only can you access a massive ATM network and enjoy a fee free account, but you can earn 0.25% on your account balance.
While Discover offers 1% on your debit card purchases, unless you tend to use your debit card a lot, you are likely to find Ally pays more on your funds. Ally also offers a round up feature, which rounds up your purchases and deposits the difference into your linked savings account.
For example, if you make a purchase with your debit card of $6.79, $7 will be taken from your account and the remaining $0.21 will go into savings. These amounts are so small that you are unlikely to notice them as you make your purchases, but over a month or two, it can add extra funds to your savings plan.
Discover | Ally Bank | |
|---|---|---|
APY | 0% (1% cash back on up to $3,000 in debit card purchases each month) | 0.25% |
Fees | $0 | $0 |
Minimum Deposit | $0 | $0 |
Main Benefits |
|
|
CDs
Another area where Ally has the edge is with its CDs. While the ratea are quite similar and depends on your CD term (the longer – the higher rates you'll earn), Ally offers a few CD options, and it also offers a no penalty CD, with no minimum deposit and no early withdrawal penalties.
Discover | Ally | |
|---|---|---|
Minimum Deposit | $2,500 | $0 |
APY Range | 2.00% – 5.00% |
2.50% – 5.00% |
APY 6 months | 3.40% | 3.50% |
APY 12 months | 4.85% | 4.85% |
APY 24 months | 4.30% | / |
APY 36 months | 4.30% | 4.25% |
No Penalty CD | / | 11 months, 4.55%
APY |
Credit Cards
Discover began operating as a credit card company and has over time expanded its banking services. So, it stands to reason that Discover would offer a good selection of credit card options. All Discover cards offer rewards with a maximum of 5% (with the Discover Cash Back card), but there are also tiered reward cards, like the Gas & Restaurant card and a Travel card offering miles.
Discover also offers a secured card that allows you to build your credit and earn rewards. Even students can earn rewards with the Student Cash Back and Student Chrome card. What’s really attractive is that all of these cards offer Unlimited Cashback Match, where Discover will match your first year’s cash back dollar for dollar with no minimum spend or maximum rewards.
Until recently Ally did have a credit card associated with its name, but the card issuer TD Bank has converted all existing accounts to TD Cash credit cards. This means that Ally no longer offers a credit card at this time, but this may change in the future.
Personal Loans
Unlike the other lenders on this list, Discover is one of the few that lend to people in all 50 states. They also do not charge an origination fee and have a loan calculator on their website to assist you in getting started. They offer flexible repayment terms, fixed rates, and a staff of 100% US-based loan specialists to assist you.
Discover only conducts a soft pull inquiry when you apply for a personal loan, but you must have a minimum yearly income of $25,000. In order to be accepted, your credit score cannot be lower than 660. Discover is a good option because their rates are competitive, and borrowing from them means you're making payments directly to the creditor.
A Discover personal loan can be used for a variety of purposes, including financing large purchases such as home repairs or a wedding, as well as debt consolidation. You can also use your personal loan to cover unexpected expenses, such as home renovations or the purchase of a new vehicle.
Discover | |
|---|---|
APR | 6.99% – 24.99%
|
Loan Amount | $2,500 – $35,000
|
Terms | 36 to 84 months
|
Customer Service
Both Discover and Ally offer 24/7 access to customer support. In fact, Ally claims a typical wait time for banking customers of just 1 minute.
This means that if you have any queries or questions or have a banking emergency, you can quickly access the support team regardless of whether you choose Discover or Ally as your bank.
Online/Digital Experience
Both Discover and Ally have an easy to use website that allows you to explore the products and access a help center for the various financial topics. This provides a great user experience even if you are unfamiliar with exactly what type of banking services would be best for you.
Both banks also have highly rated apps. Discover’s is rated 4.9/5 and 4.6/5 on the Apple Store and Google Play respectively, while the Ally Mobile app is rated 4.7/5 and 4.2 out of 5 on Apple and Google.
Which Bank is The Winner?
To determine which bank is better, we will need to consider your requirements. Both banks offer fee free accounts, so you don’t need to worry about account minimums or other waiver requirements.
Since Ally does not have a credit card at this time, if you want to keep your financial products with the same bank and you need a credit card, you may prefer Discover. However, if you want to access higher rates on savings and checking account balances and more flexible CDs, Ally is certainly a good choice.
 |  |  | |
|---|---|---|---|
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.
| 4.25% | 4.30%
| Up to 5.02%
|
Checking Fee
The monthly fee on checking account
| $0 | $0 | Compare Banking |
Mobile App Rating | 4.7/5 on iOS 3.7/5 on Android | 4.9/5 on iOS 4.7/5 on Android | Various Banks
|
FAQs
What promotion does Ally offer?
Ally’s primary promotion is that the accounts have no hidden fees or account minimums. Currently, there is no cash or cashback bank promotion for new accounts.
What's the biggest benefit of Ally checking account?
The ability to earn interest on your daily balance is one of the benefits of the Ally Bank checking account system. There is no minimum deposit required, and there are no monthly fees. Aside from the lack of monthly fees, there are no additional costs associated with using standard checks or debit cards.
Along with the many advantages of having an Ally Bank checking account, there are also low overdraft fees that are lower than the national average. Because you cannot incur more than one overdraft fee in a single day, you must be aware of your balance.
Does Ally bank offers money market accounts?
The Ally Money Market account has tiered interest rates that vary depending on your minimum daily balance. A money market account, which differs from a savings account, comes with free checks and debit cards. The money market account does not have the same high APY as the savings account.
The money market account allows you to grow and access your money in a variety of ways. You should be aware that the APYs on Ally's money market accounts are less than twice as high as those on other accounts. This means you may be able to find more reasonable and financially advantageous money market accounts than Ally.
Capital One 360 vs Discover Checking: which is better?
While Capital One 360 offers competitive rates on savings accounts, Discover Bank offers some of the market's highest rates. There are some minimum deposit requirements, but there are no service fees.
Discover also provides 24-hour customer service and cashback checking accounts, but no interest checking accounts. Capital One 360, on the other hand, has no account minimums and some overdraft protection options. So, unless you want to open a savings account with a lump sum, Capital One 360 may be a better option.
Is Discover Bank a good bank all around?
Discover Bank offers competitive rates as well as a number of benefits such as ATM access, cash back rewards, and no monthly fees on both savings and checking accounts. You can earn competitive interest rates on your savings, and there is the option of an overdraft facility.
So, unless you really need access to physical branches, Discover is likely to be a good choice. Furthermore, Discover is concerned about the security of your personal information. Discover employs cutting-edge encryption standards to safeguard your data and transactions.
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Compare More
Ally Bank vs Axos
Ally Bank is an online bank that arose from the banking division of General Motors Acceptance Corporation. GMAC used to be an auto financing company before being purchased by Ally Bank. This bank now offers a wide range of products. Among the products available are credit cards, home loans, investing products, savings accounts including certificates of deposit, and checking account options. Ally Bank serves millions of customers and provides high-quality banking services.
Axos is a well-established online-only banking service. It has been in business since 2000 and is constantly expanding its services for both individuals and businesses. The bank is a subsidiary of Axos Financial and is headquartered in San Diego, California. Despite the fact that the bank has three locations, the vast majority of its customers are served online.
Read Full Comparison: Axos Vs Ally Bank Comparison – Which Is Better?
Ally Bank vs Aspiration
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?
Ally Bank vs Wells Fargo
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?
Ally Bank vs Marcus
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?
Ally Bank vs Chime
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?
Ally Bank vs Capital One
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
Discover vs Bank of America
Since its inception as a credit card provider, Discover has come a long way.Of course, credit cards are available, but you can also get home loans, personal loans, and a variety of checking and savings products such as retirement accounts, CDs, and money market accounts.
Bank of America offers a far more comprehensive range of banking services. There are numerous credit card options, as well as various savings and checking accounts.
Bank of America also provides mortgages, auto loans, and investments. This makes switching from a traditional bank much easier because you won't have to compromise on your banking products.
Read Full Comparison: Discover vs Bank of America: Compare Bank
Discover Bank vs Capital One
Discover Bank is a full-service online bank as well as a provider of payment services. Discover can be used for banking and retirement planning by individuals. Discover is best known for its credit cards with rewards, but it also provides personal, student, and home equity loans.
Capital One began as a credit card company, but it has grown to offer a diverse range of traditional banking services over the years. In addition to credit cards, it offers checking and savings accounts, loan refinancing, auto finance, and children's accounts. As a result, Capital One is more appealing to those seeking a traditional banking experience.
Read Full Comparison: Discover vs Capital One: Which Bank Account Wins?
Discover vs American Express
Discover Bank is a full-service online bank as well as a provider of payment services. Discover can be used for banking and retirement planning by individuals. Discover is best known for its credit cards with rewards, but it also provides personal, student, and home equity loans.
American Express is one of the world's most well-known credit card brand names. Customers can get a personal banking solution from American Express National Bank, which offers online savings and CD options. Personal savings accounts have a high potential yield. They do not, however, provide as many products as Discover Bank does.
Read Full Comparison: Discover vs American Express: Which Bank Account Is Better?
Discover Bank vs Chase Bank
The Discover checking account is more traditional. While the account does not pay interest, you can earn 1% cash back on debit card purchases. There are also no fees if you require a replacement debit card, have a deposit item returned, or have insufficient funds in your account.
Chase offers a wide range of banking products, including savings accounts, checking accounts, home loans, home equity options, auto loans, and a wide range of credit cards. In addition, Chase's customer service system is quite extensive.
Read Full Comparison: Discover vs Chase: Which Bank Account Suits You Best?
Discover vs Citi
Discover began as a credit card company and has since expanded into banking services. As a result, it stands to reason that Discover would offer a diverse range of credit cards. Discover offers a simpler checking account. There are no account fees or minimum deposits, and you can earn 0.40 percent.
Citi offers home loans, personal loans, lines of credit, wealth management options, and investments, as well as everyday and premium banking services. This exemplifies Citi's viability as a viable alternative to the traditional high-street bank.
Read Full Comparison: Discover vs Citi: Compare Banking Options
Discover vs CIT Bank
The CIT Bank eChecking account pays 0.10 percent to 0.25 percent interest. The account also has almost no fees. Only if you have a stopped payment, a returned item, or want to make a wire transfer will you be charged a fee. There is also free ATM access, with up to $30 in ATM fee reimbursements per month if you incur fees when using another bank's machine.
While Discover's checking account does not pay interest, you can earn 1% cash back on debit card purchases. There are no fees, as with eChecking. If you need a replacement debit card, have insufficient funds, or have a deposit returned, you will not be charged a fee.
Read Full Comparison: CIT Bank vs Discover: Which Bank Account Wins?
Discover Bank vs SoFi
SoFi has developed a respectable banking product line. Aside from its hybrid savings and checking account, it also offers mortgages, loans, and investment products. The only thing missing from the offering is a traditional savings account and CDs.
Since its inception as a credit card provider, Discover has come a long way. Of course, credit cards are available, but you can also get home loans, personal loans, and a variety of checking and savings products such as retirement accounts, CDs, and money market accounts.
Read Full Comparison: SoFi Money vs Discover: Which Online Banking Suits You Best?
