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Ally vs. Discover® Bank: Which Bank Is Right for You?

Review Updated
Ashley Maready
By: Ashley Maready
Ashley Maready
Ashley Maready
Writer and Editor

Ashley Maready is a former history museum professional who made the leap to digital content writing and editing in 2021. She has a BA in History and Philosophy from Hood College and an MA in Applied History from Shippensburg University. Ashley loves creating content for the public and learning new things so she can teach others, whether it's information about salt mining, canal mules, or personal finance.

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Our Banking Expert

Eric McWhinnie
Check IconFact Checked Eric McWhinnie
Eric McWhinnie
Eric McWhinnie

Eric McWhinnie has been writing and editing digital content since 2010. He specializes in personal finance and investing. He also holds a bachelor’s degree in Finance.

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Many or all of the products here are from our partners that compensate us. It’s how we make money. But our editorial integrity ensures our experts’ opinions aren’t influenced by compensation. Terms may apply to offers listed on this page. APY = Annual Percentage Yield. APYs are subject to change at any time without notice.

Bottom line: Ally and Discover® Bank are quite similar in terms of annual percentage yields (APYs) offered on savings products. Ally is a better choice if you want a checking account with interest, but opt for Discover® Bank if a cash back debit card sounds good to you.

Ally vs. Discover: Account options

Let's take a closer look at the different accounts offered by these two online banks.

Savings accounts

Discover® Online Savings and Ally Savings are both stellar savings accounts. Both earn the same APY as of this writing, and the interest earnings on both is paid out monthly. Discover® Online Savings and Ally Savings don't charge any monthly fees, and you don't need to meet a minimum balance requirement to earn interest on your money in either bank. Ally offers you the chance to save for multiple goals with its "buckets" feature.

Rates as of Jul 16, 2024
Offer
 
 
Account
Read Review
Read Review
Rating
Rating image, 4.75 out of 5 stars.
4.75/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
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Rating image, 4.00 out of 5 stars.
4.00/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
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APY 4.25% 4.25%
Min. to earn APY $0 $0
Next Steps
Read Review
Read Review

Checking accounts

Here's the first major point of difference between Ally and Discover Bank's offerings: The Ally Spending Account (which is a pretty good name for a checking account, if you think about it) earns an APY of up to 0.25%. The interest you earn varies based on your balance, however. For less than $15,000, you'll earn just 0.10%; $15,000 and up earns 0.25%. But honestly, there's no reason for most people to keep so much money in their checking account when a high-yield savings account pays so much more.

Discover® Bank offers the chance to earn cash back on your debit card purchases with its Discover® Cashback Debit. You'll earn 1% cash back on up to $3,000 in purchases per month (which could be as much as $360 a year). If you're a debit card fan, there's a lot to like here.

Neither bank charges maintenance fees on checking accounts, and both work with Zelle. You can take cash out of either account using one of more than 43,000 (Ally) or more than 60,000 (Discover) in-network ATMs. Ally reimburses $10 a month in ATM fees; Discover® Bank doesn't.

Rates as of Jul 16, 2024
Offer
 
 
Account
Read Review
Discover® Cashback Debit for Discover® Cashback Debit
Rating
Rating image, 4.50 out of 5 stars.
4.50/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Rating image, 5.00 out of 5 stars.
5.00/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
APY up to 0.25% 0%
Min. to earn APY $1 N/A
Next Steps
Read Review
Open Account for Discover® Cashback Debit

CDs

Ally CDs come in terms from three months to five years, which is pretty standard. Discover® Bank CDs range from three months all the way to 10 years. Rates for both are quite comparable, too. For Ally, you'll find the best rates on terms ranging from six months to 18 months. For Discover® Bank, the best rates are available for the same terms.

A major point of difference between these two banks is the opening deposit requirement -- you can open an Ally CD with any amount of money, but will need $2,500 to open one with Discover® Bank. Ally is the better option if you're dipping your toes into the world of certificates of deposit. Ally also offers Raise Your Rate and No Penalty CDs, while Discover® Bank offers IRA CDs.

Rates as of June 7, 2024

APY = Annual Percentage Yield

Offer
Logo for Ally High Yield CD
Member FDIC.
Logo for Discover® Bank CD
Member FDIC.
Account Ally High Yield CD Discover® Bank CD
3 Mo. 3.00% 2.00%
6 Mo. 4.40% 4.25%
9 Mo. 4.25% 4.25%
1 Yr. 4.50% 4.70%
1.5 Yr. 4.25% 4.40%
2 Yr. -- 4.00%
30 Mo. -- 3.75%
3 Yr. 4.00% 3.75%
4 Yr. -- 3.75%
5 Yr. 3.90% 3.75%
7 Yr. -- 3.75%
10 Yr. -- 3.75%
Min. Deposit $0 $2,500
Early Withdrawal Penalty Yes Yes
Next Steps
Read Review
Open Account for Discover® Bank CD

On Discover Bank's Secure Website.

Money market accounts

Ally and Discover® Bank also have money market accounts, which offer the features of both checking and savings accounts. There's no required opening deposit for an Ally Money Market Account, and the APY you'll earn is the same as on its savings account -- but you'll automatically receive checks and a debit card (these don't come with the Ally Savings account).

For the Discover® Money Market, you'll need $2,500 to open the account. Your APY depends on your balance -- you'll earn slightly more if you have at least $100,000 in the account.

Rates as of Jul 16, 2024
Offer
 
 
Account
Read Review
Discover® Money Market for Discover® Money Market
Rating
Rating image, 5.00 out of 5 stars.
5.00/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Rating image, 4.50 out of 5 stars.
4.50/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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= Excellent
= Good
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APY 4.20% 4.00%-4.05% Rate info Circle with letter I in it. 4.00% applies to balances under $100K, Need $100,000+ to earn 4.05%
Min. to earn APY $1 $0.01-$100,000 for 4.00%; $100,000+ for 4.05%
Next Steps
Read Review
Open Account for Discover® Money Market

Ally vs. Discover: APYs

Annual percentage yields for both Ally and Discover® Bank are comparable across CDs, savings accounts, and money market accounts -- at a base level, you won't be giving up a tremendously higher rate by opting for one bank over another. Note that for Discover® Bank, you'll need to meet a fairly high minimum deposit to take advantage of CDs and money market accounts. For this reason, Ally is a better fit if you're new to the world of interest-earning bank accounts and don't have a ton of money to start off with.

Ally vs. Discover: Customer service

We can't use customer service ratings as a major point of difference between Ally and Discover® Bank because both rank highly in this category. The 2023 J.D. Power U.S. Direct Banking Satisfaction Study ranked them right next to each other for checking account providers -- Discover® Bank took second place and Ally took third. For savings account providers, Ally also takes third, while Discover® Bank claimed the top spot.

In terms of accessibility of customer service help, remember that both banks are fully online. You won't be able to visit a branch to get in-person help. But you can reach both by phone 24/7, and Ally's website even shows the current wait time to speak to someone.

Ally vs. Discover: Mobile apps

Online banks tend to offer robust mobile banking apps with a wealth of features, and these two banks are no exception. Ally's mobile app is very easy to use, and offers tools like "buckets" to help you organize your accounts and charts to show you where your money is going. It also works with Zelle and lets you deposit checks. iOS users rate it 4.7 out of 5, but Android users only give it an average of 2.5 out of 5 -- the app might work better on iPhone.

Discover Bank's mobile app also comes with features like letting users configure a "Quick View" that they can see without logging in, making it even easier to check up on their balances. You can transfer money around between your accounts, deposit checks, and use Zelle to send money elsewhere. iOS users give it a whopping 4.9 out of 5, and Android users rank it highly, too -- 4.5 out of 5.

Ally vs. Discover: Which is right for you?

Honestly, either Ally or Discover® Bank could be a great choice for nearly anyone. The minimum balance requirements for some of Discover Bank's accounts might give you pause -- if you don't have a sizable chunk of money to open a CD or money market account, it could take Discover® Bank off the table for you. But both banks offer comparable APYs and great mobile apps, so why not give both a look if you're seeking a new online bank?

Compare savings rates

Make sure you're getting the best account for you by comparing savings rates and promotions. Here are some of our favorite high-yield savings accounts to consider.

Account APY Promotion Next Steps
up to 4.60%
Rate info Circle with letter I in it. You can earn the maximum APY by having Direct Deposit (no minimum amount required) or by making $5,000 or more in Qualifying Deposits every 30 days. See SoFi Checking and Savings rate sheet at: https://www.sofi.com/legal/banking-rate-sheet.
Min. to earn: $0
New customers can earn up to a $300 bonus with qualifying direct deposits!
4.25%
Rate info Circle with letter I in it. 4.25% annual percentage yield as of July 16, 2024
Min. to earn: $1
N/A
Open Account for American Express® High Yield Savings

On American Express's Secure Website.

4.50%
Min. to earn: $0.01
N/A
Open Account for E*TRADE Premium Savings

On E*TRADE's Secure Website.

Our savings account methodology

At The Motley Fool Ascent, we rate savings accounts on a five-star scale (1 = poor, 5 = best). We evaluate all savings accounts across four main criteria: annual percentage yield (APY), brand and reputation, fees and minimum requirements, and perks that really make a difference -- think ATM access, linked checking accounts, or even branch access.

Our scores are weighted as:

  • APY: 50%
  • Brand and reputation: 20%
  • Fees and minimums: 15%
  • Other perks: 15%

Learn more about how The Motley Fool Ascent rates bank accounts.

FAQs

  • Ally is a fantastic choice for those getting started with online banking. Its high APYs on savings products and lack of a minimum deposit requirement for any of them make it a standout option.

  • If you have more money on hand to help you earn a high APY, Discover might be right for you. And if you're a heavy debit card user, its checking account's cash back feature is a sweet perk.