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    Which Bank Should You Choose?

    Press RoomBy No Comments11 Mins Read

    Our experts answer readers’ banking questions and write unbiased product reviews (here’s how we assess banking products). In some cases, we receive a commission from our partners; however, our opinions are our own. Terms apply to offers listed on this page.

    Ally and Discover Bank are two popular online banks that are great options if you don’t want to deal with common bank fees. 

    Compare Discover and Ally Bank

    • Discover Online Savings Account

    • Ally Savings Account

    Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.
    Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.

    Editor’s Rating

    4.75/5

    A five pointed star

    A five pointed star

    A five pointed star

    A five pointed star

    A five pointed star

    Editor’s Rating

    4.75/5

    A five pointed star

    A five pointed star

    A five pointed star

    A five pointed star

    A five pointed star

    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.

    Ally Pros and Cons 

    Discover Pros and Cons

    Ally vs. Discover Checking Account Comparisons

    Ally Spending Account

    Ally Ally Spending Account

    Insider’s Rating

    A five pointed star

    A five pointed star

    A five pointed star

    A five pointed star

    A five pointed star

    4.75/5

    Icon of check mark inside a promo stamp It indicates a confirmed selection.

    Perks

    Earn a $200 bonus after using code “GET200” and making a direct deposit of $1,500 or more within 90 days (offer ends 11/30/2023)


    Fees

    no monthly service fee


    Annual Percentage Yield (APY)

    0.10% to 0.25%


    Minimum Deposit Amount

    $0

    Pros

    • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Spending buckets to manage expenses
    • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Competitive APY
    • Check mark icon A check mark. It indicates a confirmation of your intended interaction. No initial deposit
    • Check mark icon A check mark. It indicates a confirmation of your intended interaction. No minimum account balance
    • Check mark icon A check mark. It indicates a confirmation of your intended interaction. No monthly service charge
    • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Connect your account with Zelle
    • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Easy-to-use mobile app
    • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Early direct deposit
    • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Reimburses up to $10/month in out-of-network ATM fees
    • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Online bill pay
    • Check mark icon A check mark. It indicates a confirmation of your intended interaction. 24/7 customer service
    • Check mark icon A check mark. It indicates a confirmation of your intended interaction. No overdraft fees
    • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Overdraft protection
    Cons

    • con icon Two crossed lines that form an ‘X’. No physical branch locations
    • con icon Two crossed lines that form an ‘X’. No way to deposit cash


    Product Details

    • You can deposit checks right from your smartphone
    • Manage expenses by creating spending buckets
    • Ally reimburse’s up to $10 per statement cycle for fees charged at other ATMs nationwide
    • Transfer money with your voice through Ally Skill™ for Amazon Alexa
    • Interest compounded daily, paid monthly
    • FDIC insured

    Discover Cashback Debit Account

    Discover Discover Cashback Debit Account

    Insider’s Rating

    A five pointed star

    A five pointed star

    A five pointed star

    A five pointed star

    A five pointed star

    4.25/5

    Icon of check mark inside a promo stamp It indicates a confirmed selection.

    Perks

    Earn cash back rewards with no fees. Start earning 1% cash back today.


    Fees

    no monthly service fee


    Annual Percentage Yield (APY)

    None


    Minimum Deposit Amount

    $0

    Pros

    • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Earn up to 1% cash back on up to $3,000 in purchases per month
    • Check mark icon A check mark. It indicates a confirmation of your intended interaction. No monthly service fee
    • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Over 60,000 in-network ATMs
    • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Early direct deposit
    • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Enroll in free overdraft protection
    Cons

    • con icon Two crossed lines that form an ‘X’. Debit card can only be used in the US, Canada, Mexico, and the Caribbean
    • con icon Two crossed lines that form an ‘X’. Only 1 branch location


    Insider’s Take

    Discover is a strong online bank. However, if you’d prefer to open a CD or money market account with a low minimum opening deposit, you might consider other options.


    Product Details

    • Earn 1% cash back on up on up to $3,000 per month in eligible debit card purchases
    • 100% US-based customer service available 24/7
    • No opening deposit or minimum account balance
    • No monthly maintenance fees
    • Over 60,000 in-network ATMs
    • FDIC insured

    Ally vs. Discover Savings Account Comparisons

    Discover Online Savings Account

    Discover Discover Online Savings Account

    Insider’s Rating

    A five pointed star

    A five pointed star

    A five pointed star

    A five pointed star

    A five pointed star

    4.75/5

    Icon of check mark inside a promo stamp It indicates a confirmed selection.

    Perks

    Earn 4.35% Annual Percentage Yield (APY). $0 minimum deposit. FDIC Insured.


    Fees

    no monthly service fee


    Annual Percentage Yield (APY)

    4.35% (as of 10/27/23)


    Minimum Deposit Amount

    $0

    Pros

    • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Competitive APY
    • Check mark icon A check mark. It indicates a confirmation of your intended interaction. No monthly service fee
    • Check mark icon A check mark. It indicates a confirmation of your intended interaction. No opening deposit
    • Check mark icon A check mark. It indicates a confirmation of your intended interaction. No insufficient funds fee
    • Check mark icon A check mark. It indicates a confirmation of your intended interaction. No excess withdrawal fee
    Cons

    • con icon Two crossed lines that form an ‘X’. Only 1 branch location
    • con icon Two crossed lines that form an ‘X’. No debit card unless you open a checking account


    Product Details

    • No monthly balance requirements
    • 100% US-based customer service available 24/7
    • No hidden fees
    • Interest compounded daily, paid monthly
    • FDIC insured

    Ally vs. Discover CD Comparisons 

    Ally High Yield CD

    Ally Ally High Yield CD

    Insider’s Rating

    A five pointed star

    A five pointed star

    A five pointed star

    A five pointed star

    A five pointed star

    4.5/5


    Annual Percentage Yield (APY)

    3.00% to 5.15%


    Minimum Deposit Amount

    $0

    Pros

    • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Competitive APY
    • Check mark icon A check mark. It indicates a confirmation of your intended interaction. No required opening deposit
    • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Low early withdrawal penalties
    Cons

    • con icon Two crossed lines that form an ‘X’. No terms over 5 years
    • con icon Two crossed lines that form an ‘X’. No physical branch locations


    Product Details

    • Terms ranging from 3 months to 5 years
    • Early withdrawal penalty of 60 days interest penalty term of 24 months or less; 90 days interest for term of 25 to 36 months; 120 days interest for terms of 37 to 48 months; 150 days interest for terms of 49 months or more
    • Interest compounded daily, paid monthly
    • FDIC insured

    Ally vs. Discover Money Market Account Comparisons

    Ally Money Market Account

    Ally Ally Money Market Account

    Insider’s Rating

    A five pointed star

    A five pointed star

    A five pointed star

    A five pointed star

    A five pointed star

    4.25/5


    Fees

    no monthly service fee


    Annual Percentage Yield (APY)

    4.40%


    Minimum Deposit Amount

    $0

    Pros

    • Check mark icon A check mark. It indicates a confirmation of your intended interaction. No opening deposit or minimum account balance
    • Check mark icon A check mark. It indicates a confirmation of your intended interaction. No monthly service fee
    • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Access to a debit card
    • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Access to paper checks
    • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Out-of-network ATM reimbursements of up to $10 per month
    • Check mark icon A check mark. It indicates a confirmation of your intended interaction. 24/7 customer service
    • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Easy-to-use mobile app
    • Check mark icon A check mark. It indicates a confirmation of your intended interaction. Link to other Ally bank accounts
    Cons

    • con icon Two crossed lines that form an ‘X’. Not the highest money market account APY
    • con icon Two crossed lines that form an ‘X’. No physical branch locations
    • con icon Two crossed lines that form an ‘X’. $10 excess transaction fee (paused during COVID-19)


    Product Details

    • Access to checks and a debit card
    • Interest compounded daily, paid monthly
    • FDIC insured

    Ally vs. Discover Bank Trustworthiness and BBB Rating

    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 because its profile is being reviewed. Ally has an A rating.

    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. 

    Sophia Acevedo, CEPF

    Banking Reporter

    Evelyn He

    Compliance Associate

    Evelyn He is a compliance associate at Insider who supports the Personal Finance Insider team. Personal Finance Insider is Insider’s personal finance section that incorporates affiliate and commerce partnerships into the news, insights, and advice about money that Insider readers already know and love.
    The compliance team’s mission is to provide readers with stories that are fact-checked and current, so they can make informed financial decisions. The team also works to minimize risk for partners by making sure language is clear, precise, and fully compliant with regulatory and partner marketing guidelines that align with the editorial team.
    Before joining Insider, she served in various legal and compliance roles in different industries, including the legal and pharmaceutical industries.   
    Evelyn obtained her M.S. degree in Marketing at Boston University in 2022. Prior to combining and consolidating her knowledge of law and business, she spent one year finishing 1L courses at Suffolk University Law School to further her legal knowledge. She has also completed MBA business law courses while working on her Bachelor of Business Administration in Management at the University of Massachusetts, Amherst. 
    Outside of work, she enjoys spending time with her 14-year-old Shih Tzu named Money, and her 5-year-old Bichon named Tibber.


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