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Synchrony Bank vs. Ally: Which Bank Is Right for You

Review Updated
Matt Frankel, CFP®
By: Matt Frankel, CFP®
Matt Frankel, CFP®
Matt Frankel, CFP®
Writer, Analyst

Matt is a Certified Financial Planner™ and investment advisor based in Columbia, South Carolina. He writes personal finance and investment advice for The Ascent and its parent company The Motley Fool, with more than 4,500 published articles and a 2017 SABEW Best in Business award. Matt writes a weekly investment column ("Ask a Fool") that is syndicated in USA Today, and his work has been regularly featured on CNBC, Fox Business, MSN Money, and many other major outlets. He’s a graduate of the University of South Carolina and Nova Southeastern University, and holds a graduate certificate in financial planning from Florida State University.

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Our Banking Expert

Ashley Maready
Check IconFact Checked 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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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: Synchrony Bank offers an excellent high-yield savings platform, while Ally Bank has an all-in-one financial ecosystem that can satisfy most consumers' banking needs.

Synchrony Bank vs. Ally: Account options

Savings accounts

The Synchrony Bank High Yield Savings account has one of the highest APYs on our radar and has a lot of other advantages. In addition to having no minimum balance requirement, it offers ATM access at a large network and will also reimburse some out-of-network ATM fees, a rarity for a savings account. The Ally Savings account also offers no minimum balance or monthly fee requirements, and a highly competitive APY.

Rates as of Jul 04, 2024
Offer
 
 
Account
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, 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
= Good
= Fair
= Poor
APY 4.75% Rate info Circle with letter I in it. Our Disclosure: Annual Percentage Yields (APY) is subject to change at any time without notice. Offer applies to personal accounts only. Fees may reduce earnings. For High Yield Savings accounts, the rate may change after the account is opened. Visit synchronybank.com for current rates, terms and account requirements. Member FDIC 4.25%
Min. to earn APY $0 $0
Next Steps
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Checking accounts

One of the biggest drawbacks to Synchrony Bank is that it doesn't offer an online checking account, so you'll need to look elsewhere to open an account for your everyday spending needs. However, Synchrony Bank does offer a money market account that has ATM and check-writing abilities.

On the other hand, the Ally Spending Account is a true online checking account. It pays a modest APY, has no minimum deposit or balance requirements, and has no monthly maintenance see at all. It offers ATM access at more than 43,000 fee-free locations and will reimburse as much as $10 in out-of-network ATM fees per month.

Ratings Methodology
Rates as of Jul 04, 2024

Ally Spending Account

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Member FDIC.
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, 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
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APY
up to 0.25%
Min. To Earn APY
$1
  • Strong online and mobile tools
  • No monthly maintenance or overdraft fees
  • Monthly ATM fee reimbursements
  • Competitive APY
  • Early direct deposit
  • Higher APY available at other financial institutions
  • No physical locations
  • No cash deposits

The Ally Spending Account is an appealing option for those who are comfortable managing their money online. Its monthly ATM fee reimbursements give you the freedom to access your cash wherever you need to. That, plus its APY, means you should only make money with this account.

CDs

Synchrony Bank offers certificate of deposit, or CD, accounts in a wide variety of terms from three months to five years. Synchrony Online CDs have highly competitive interest rates, and don't have any minimum deposit requirements. The bank also offers 24-month Bump-Up CDs that allow the account holder to ask for a one-time rate increase if the bank's advertised interest rates increase. There's also an 11-month No-Penalty CD product that allows for the withdrawal of the balance at any time, while still locking in a high APY for the entire term.

Ally offers the same three types of CDs -- High Yield CDs, Bump-Up CDs, and No-Penalty CDs. Its CD terms also range from three months to five years, although there are slightly fewer options in between those extremes. Ally CDs offer highly competitive APYs and no minimum deposits, making them attractive choices for long-term savings.

Rates as of June 7, 2024

APY = Annual Percentage Yield

Offer
Logo for Synchrony Online CD
Member FDIC.
Logo for Ally High Yield CD
Member FDIC.
Account Synchrony Online CD Ally High Yield CD
3 Mo. -- 3.00%
6 Mo. 4.80% 4.40%
9 Mo. 5.10% 4.25%
1 Yr. 4.80% 4.50%
1.5 Yr. 4.50% 4.25%
2 Yr. 4.20% --
3 Yr. 4.15% 4.00%
4 Yr. 4.00% --
5 Yr. 4.00% 3.90%
Min. Deposit $0 $0
Early Withdrawal Penalty Yes Yes
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Synchrony Bank vs. Ally: APYs

Both Ally and Synchrony Bank offer competitive annual percentage yields (APYs) for their deposit accounts, although Ally is the only one that offers a checking account, as we saw in the previous section.

Here's a comparison of certain APYs offered by each of these banks on various products (Note: N/A means the product isn't offered by the bank.). As you can see, Synchrony Bank generally offers the highest APYs of the two, although these rates can and almost certainly will fluctuate over time.

Product Synchrony Bank Ally Bank
Savings account 4.75% 4.25%
Checking account N/A up to 0.25%
1-year CD 4.80% 4.50%
18-month CD 4.50% 4.25%
3-year CD 4.15% 4.00%
5-year CD 4.00% 3.90%
Data source: Synchrony Bank and Ally

Synchrony Bank vs. Ally: Customer service

It's important to realize that neither of these banks offer in-person branches, so if you like getting in-person help, they might not be a great fit. But with that in mind, both of these have solid customer service options.

Both have an A or A+ rating from the Better Business Bureau. However, in the J.D. Power 2023 U.S. Direct Banking Satisfaction Study, Ally Bank finished in third place, while Synchrony Bank posted a below average score. One difference between these two online banks is Ally's 24/7 availability of phone, live chat, and email support. Synchrony Bank has automated phone support around the clock, but live representatives are only available during certain times of the day.

Synchrony Bank vs. Ally: Mobile apps

Synchrony Bank offers the Synchrony Bank Mobile App, which is highly rated in both the App Store and Google Play Store. Many reviews specifically mention the app's ease of use, but it's important to mention that Synchrony Bank has two apps. There's the Synchrony Bank mobile app, and then there's the MySynchrony Mobile App (which is for the company's credit card products). While Synchrony Bank's app is highly rated, the fact that you need two apps if you also have a Synchrony credit card could be inconvenient.

On the other hand, Ally's app is designed to be an all-in-one financial portal, integrating deposit accounts, investment accounts, and loans all in one place. The Apple version of the app has excellent ratings, but the Android version has a relatively low score based on tens of thousands of Google Play reviews, so keep that in mind if you're an Android user.

Banking App Rating in App Store Rating in Google Play Store
Synchrony Bank 4.8 4.6
Ally Bank 4.7 2.4
Data source: App Store and Google Play. Ratings are out of five stars.

Synchrony Bank vs. Ally: Which is right for you?

If you're looking for an all-in-one banking replacement, Ally is the clear winner. It is the only one of the two that offers true online checking accounts, and it also has an investment platform, several types of loan products, and more. While Synchrony Bank isn't likely to be a good fit as your only bank, it can certainly be an excellent choice for consumers looking to maximize the yield from their savings.

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. See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of April 11, 2024. Rates are subject to change at any time before or after account opening.
Min. to earn: $0
N/A
4.25%
Rate info Circle with letter I in it. 4.25% annual percentage yield as of July 4, 2024
Min. to earn: $1
N/A

Our bank and credit union methodology

Our methodology for scoring banks and credit unions revolves around evaluating key aspects such as annual percentage yield (APY), brand reputation, fees and minimum requirements, and additional perks.

These criteria are weighted differently across various account types, ensuring a comprehensive assessment that reflects the competitive landscape and economic conditions.

We strictly feature products that offer federal insurance and high customer satisfaction, keeping our recommendations unbiased by advertiser influence. This robust evaluation process helps us generate balanced, reliable best-of lists that guide consumers to top financial products.

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

FAQs

  • Synchrony Bank could be an excellent choice for consumers who want to maximize the yield from their savings accounts and CDs, but it doesn't offer loans (other than credit cards) or an investment platform. In short, it might not work if you're looking for an all-in-one bank replacement, but it can be an excellent way to earn more interest on your savings.

  • Ally Bank could be a great fit for customers who want to replace their current financial institution with a low-fee, high-paying online bank. Ally offers a savings account, a checking account, CDs, loans, investments, and more, all in the same place. It offers enough product variety that it is likely to meet the needs of most U.S. customers and can be a true replacement for a brick-and-mortar financial institution.