Ally and Discover Bank are online banks with high-yield savings accounts.
Ally; Discover; Insider
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The bottom line: Ally offers more appealing savings, CD, and money market accounts than Discover Bank. However, Discover offers a strong checking account that’s on par with Ally’s checking account.
Ally and Discover Bank are two popular online banks that are great options if you don’t want to deal with common bank fees.
While the banks offer similar products, you might find that one is a better fit for your specific needs.
To help you analyze the differences between each bank, we’re comparing savings, checking, CD, and money market accounts and determining which ones are the most appealing. We’re also comparing financial institutions in trustworthiness.
Pros and cons of Ally
ProsCons24/7 customer service over the phone or through live chatInterest-earning checking accountNo minimum opening deposit on all accountsSavings toolsHigh interest rates on savings, money market accounts, and CDsNo physical locationsC- rating from the Better Business Bureau
Pros and cons of Discover
ProsCons24/7 customer service over the phone or through live chatChecking accounts that lets you earn cash back on your debit card Variety of CDsA+ rating from the Better Business BureauHigh interest rates on savings, money market accounts and CDsOnly 1 branch, which is in DelawareHigh minimum opening deposit required for CD and money market accounts
Checking account comparisons
Ally Interest Checking AccountDiscover Cashback Debit AccountAPYAlly Interest Checking AccountDiscover Cashback Debit AccountMinimum opening depositNoneNoneMonthly service feesNoneNonePerksEarn interest on accountReimburses up to $10 in out-of-network ATM feesEarn up to 1% cash back on up to $3,000 in purchases per monthEarly direct depositCaveatsNo physical locationsOnly 1 location, which is in MarylandDebit cards only work in the US, Canada, Mexico, and the CaribbeanNext stepsAlly Interest Checking AccountDiscover Cashback Debit Account
Winner: Tie
It’s pretty even between both Ally Interest Checking Account and Discover Cashback Debit Account checking accounts. Your choice between the two may ultimately depend on whether you’d prefer to earn interest or cashback on purchases as an additional perk.
Savings account comparisons
Ally High Yield Savings AccountDiscover Online Savings AccountAPYAlly High Yield Savings AccountDiscover Online Savings AccountMinimum opening depositNoneNoneMonthly service feesNoneNonePerksSavings buckets feature allows you to create specific goalsSurprise savings tools automatically transfer extra money from your checking account to help you saveNo excess withdrawal feeCaveatsNo physical branches to deposit cashOnly 1 branch location, which makes it difficult to deposit cash if you don’t live in DENext stepsAlly High Yield Savings AccountDiscover CD
Winner: Ally
Ally and Discover savings accounts pay similar interest rates right now. However, the Ally High Yield Savings Account offers more robust savings tools to help you stick to your goals. This makes it just a bit more enticing than Discover Bank’s savings account.
CD comparisons
Ally High Yield Certificate of DepositDiscover CDTerm lengths3 months to 5 years3 months to 10 yearsMinimum opening depositNone$2,500APYAlly High Yield Certificate of DepositDiscover CDEarly withdrawal penalties60 to 150 days of interest3 months to 2 years of interestTypes of CDsHigh-yield CD, No Penalty CD, Raise Your Rate CD, IRA CDHigh-yield CD, IRA CDNext stepsAlly High Yield Certificate of DepositDiscover CD
Winner: Ally
It’s a pretty tight race, but Ally High Yield Certificate of Deposit wins because it doesn’t require a minimum opening deposit. Discover’s minimum deposit is pretty steep, but its CDs might be worth exploring if you’re committed to keeping your money in one place for more than a five years, because you may earn a higher rate than with Ally.
Money market account comparisons
Ally Money Market AccountDiscover Money Market AccountAPYAlly Money Market AccountDiscover Money Market AccountMinimum opening depositNone$2,500Monthly service feesNoneNonePerksPaper checks and debit cardReimbursements on out-of-network ATM feesPaper checks and debit cardNo excess transactions feesCaveats$10 excess transaction fee if you exceed the limit (6 transactions per month)Must have at least $100,000 in your account to earn the highest interest rateNo reimbursements on out-of-network ATM feesDebit cards can’t be used outside of the US, Canada, Mexico, and the CaribbeanNext stepsAlly Money Market AccountDiscover Money Market Account
Winner: Ally
The Ally Money Market Account stands out because it doesn’t require a minimum opening deposit — something that’s rarely offered by money market accounts. The Discover money market account might be ideal if you think you’ll surpass Ally’s monthly transaction limit.
Which bank is more trustworthy?
The Better Business Bureau rates businesses according to how they deal with customers’ issues and complaints.
Discover Bank has received an A+ rating from the Better Business Bureau. Meanwhile, Ally has a C- rating because it has a high volume of customer complaints and two unresolved complaints.
However, keep in mind that a good BBB rating doesn’t necessarily mean your relationship with the bank will be smooth. Talk to current customers or read online customer reviews to see if one of these banks might be a good option for you.
Neither financial institution has been involved in any recent public scandals.
Winner: Discover
Discover Bank beats Ally in this category since its A+ BBB rating indicates that it effectively responds to customer complaints. Ally is still a trustworthy option overall, though.