Insider’s experts choose the best products and services to help make smart decisions with your money (here’s how). In some cases, we receive a commission from our our partners, however, our opinions are our own. Terms apply to offers listed on this page.
Ally and Synchrony are two online-only banks.
Ally Bank; Synchrony; Vicky Leta/Insider
The bottom line: Ally and Synchrony have similar savings accounts, money market accounts, and CDs. Choosing between these two banks may depend on which one offers a higher interest rate on the account you want to open or slight preferences in banking features. If you’re looking to get a checking account, note that Ally will be your only option because Synchrony doesn’t have one.
Ally and Synchrony are two online-only banks with strong high-yield savings accounts, money market accounts, and CDs. So how do you decide which is the right choice for you?
We’ve compared individual Ally and Synchrony accounts so you can determine which accounts are better fits. We’ll also assess each bank’s trustworthiness for you to learn more about how the institutions respond to customer issues.
Pros and cons of Ally
ProsCons
24/7 live customer support over the phone and through live chat
Pays high interest rates
Variety of additional banking services, like mortgages, loans, and investment accounts
Savings account helps you save for individual goals
Unable to deposit cashC- rating from the Better Business Bureau for unresolved complaintsNo physical locations
Pros and cons of Synchrony
ProsCons
24/7 customer support through live chat
Pays high interest rates
Savings account comes with an ATM card
A+ rating from the Better Business Bureau
Unable to deposit cashNo checking accountNo physical locations
Ally vs. Synchrony savings account comparisons
Below, we’ve compared high-yield savings accounts offered by each bank.
Ally High Yield Savings AccountSynchrony High-Yield Savings AccountAPYAlly High Yield Savings AccountSynchrony High-Yield Savings AccountMinimum opening depositAlly High Yield Savings AccountSynchrony High-Yield Savings AccountMonthly service feeNoneNonePerksSavings buckets allow you to separate money and create individual goalsSurprise savings tools automatically transfer extra money from your checking account to help you saveATM card includedCaveatsTo deposit cash, you’ll need to transfer money from another Ally account or an external bank accountTo deposit cash, you’ll need to transfer money from an external bank accountNext stepsAlly High Yield Savings AccountSynchrony High-Yield Savings Account
At their core, the Ally High Yield Savings Account and Synchrony High-Yield Savings Account are pretty much the same. Both high-yield savings accounts have a $0 minimum opening deposit, charge no monthly service fees, and pay similar interest rates.
If you would like to easily withdraw money from your account, you might like Synchrony more than Ally. The Synchrony High-Yield Savings Account comes with an ATM card, so you’ll be able to directly withdraw money from your account. At Ally, you’ll have to take extra steps. You’ll need to transfer money to another Ally account or an external bank account first, then withdraw money from that account.
You may prefer Ally over Synchrony if you prioritize savings tools, though. Ally has a savings tool called savings buckets. Savings buckets allow you to save for specific savings goals. You can assign labels for a goal — for example, “emergency savings” or “vacation” — and track your progress by setting a goal amount.
Winner: Tie
It’s pretty even between the Ally High Yield Savings Account and Synchrony High-Yield Savings Account. Deciding between these two accounts will likely come down to minor preferences, like whether you’d like to have robust savings tools or an ATM card.
Ally vs. Synchrony CD comparisons
Below we’ve compared Ally and Synchrony CDs.
Ally High Yield Certificate of DepositSynchrony CDTerms lengths3 months to 5 years3 months to 5 yearsMinimum opening depositAlly High Yield Certificate of DepositSynchrony CDAPYAlly High Yield Certificate of DepositSynchrony CDEarly withdrawal penalties60 to 150 days of interest90 days to 365 days of interestTypes of CDsHigh-yield CDs, No Penalty CD, Raise Your Rate CD, IRA CDTraditional CDs, No Penalty CD, Bump Up CDs, IRA CDNext stepsAlly High Yield Certificate of DepositSynchrony CD
When it comes to CDs, Synchrony and Ally stand out for the same reasons.
The two online banks offer traditional CDs with high interest rates and $0 minimum opening deposits.
You’ll also have a variety of CD types to choose from at either bank. Synchrony and Ally both have a no-penalty CD, which is a type of CD that let’s you take out money from your account without facing an early withdrawal penalty. Both banks also offer CDs that can raise rates before a term ends (the Ally Raise Your Raise CDs and Synchrony Bump Up CD).
Choosing between these two banks may ultimately depend on which institution offer the higher interest rate for the type of CD that you want.
Winner: Synchrony
Ally and Synchrony both have CDs with perks that you won’t find at many banks — most notably, $0 opening deposits and unique types of CDs. But if you’re strictly searching for high CD rates, Synchrony CD will be a better option than Ally for most terms.
Ally vs. Synchrony money market account comparisons
See how the Ally Money Market Account stacks up to the Synchrony Money Market Account.
Ally Money Market AccountSynchrony Money Market AccountAPYAlly Money Market AccountSynchrony Money Market AccountMinimum opening depositAlly Money Market AccountSynchrony Money Market AccountMonthly service feesNoneNonePerksPaper checks and debit cardReimbursements $10/month in out-of-network ATM feesPaper checks and a debit cardReimburses $5/month in out-of-network ATM feesCaveats$10 excess transaction fee if you exceed the limit (6 transactions per month)$10 excess transaction fee if you exceed the limit (6 transactions per month)Next stepsAlly Money Market AccountSynchrony Money Market Account
Ally and Synchrony have very similar money market accounts. Both money market accounts have $0 minimum opening deposits, zero monthly service fees, and paper checks/ATM card accessibility.
The only significant distinctions between the two accounts right now are the differences in interest rates and reimbursements of out-of-network ATM fees. The Ally Money Market Account currently pays Ally Money Market Account. In comparison, the Synchrony Money Market Account pays Synchrony Money Market Account. Ally will also reimburse more in out-of-network ATM fees.
Winner: Ally
The Ally Money Market Account narrowly edges out the Synchrony Money Market Account because it pays a higher interest rate right now and reimburses more in out-of-network ATM fees. Keep in mind that interest rates can fluctuate, so our top pick could change in the future.
Ally vs. Synchrony checking account comparisons
If you’d like to open a checking account, then you’ll prefer Ally over Synchrony. Synchrony doesn’t offer a checking account.
The Ally Interest Checking Account is still a strong checking account, though. It doesn’t charge monthly service fees or overdraft fees. The online bank also reimburses up to $10 in out-of-network ATM fees each month.
Winner: Ally
Ally is our default winner for this category because Synchrony doesn’t have a checking account. The Ally Interest Checking Account is a solid free checking account, and it may catch your eye if you’re looking to avoid overdraft fees.
Which bank is more trustworthy?
Neither Ally nor Synchrony has any public scandals.
We also use ratings from the Better Business Bureau so you can see how a bank deals with customer issues.
Ally received a C- rating from the BBB because it has a high volume of customer complaints and three unresolved complaints. Meanwhile, The Better Business Bureau has given Synchrony an A+ rating.
A good BBB rating isn’t necessarily the be-all and end-all. Talk to current customers or read online customer reviews to see if a financial institution might be a good fit.
Winner: Synchrony
Synchrony wins in this category because it efficiently responds to customer complaints. However, this doesn’t mean that Ally is an untrustworthy option.
Frequently asked questions
Is Synchrony or Ally better?
The best option for you will depend on which accounts you’d like to open. If you’re planning to open a checking account, Ally will easily be the clear choice since Synchrony only has savings accounts.
If you’re planning on looking at different types of savings accounts, though, it could be a bit of a toss-up. Ally and Synchrony share many similar features across accounts — $0 minimum opening deposits, no monthly service fees, and minimal bank fees.
Deciding between Synchrony and Ally savings accounts, money market accounts, and CDs may ultimately hinge on which one pays the higher interest rate for the account you want. However, also take into consideration that rates can always change.
Which bank, Synchrony or Ally, has the highest interest rate?
Right now, the Synchrony High-Yield Savings Account pays Synchrony High-Yield Savings Account, while the Ally High-Yield Savings Account pays Ally High Yield Savings Account.
Most Synchrony CDs have a higher interest rate than Ally CDs, but Ally’s money market account pays more than Synchrony’s money market account.