Ally vs. Discover® Bank: Which Bank Is Right for You?
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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.
Let's take a closer look at the different accounts offered by these two online banks.
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.
| Offer |
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|---|---|---|
| Account |
Discover® Online Savings
On Discover Bank's Secure Website. |
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| Rating |
Rating image, 4.75 out of 5 stars.
4.75/5
Our ratings are based on a 5 star scale.
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= Best
= Excellent
= Good
= Fair = Poor |
Rating image, 5.00 out of 5 stars.
5.00/5
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 | 3.80% | 3.70% |
| Min. to earn APY | $0 | $0 |
| Next Steps |
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To qualify for Bonus: Apply for your first Discover Online Savings Account, enter Offer Code TMF325 at application, deposit into your Account a total of at least $15,000 to earn a $150 Bonus or deposit a total of at least $25,000 to earn a $200 Bonus. Qualifying deposit(s) may consist of multiple deposits and must post to Account within 45 days of account open date. Maximum bonus eligibility is $200.
What to know: Offer not valid for existing or prior Discover savings customers. Eligibility is based on primary account owner. Account must be open when bonus is credited. Bonus will be credited to the account within 60 days of qualifying for the bonus. Bonus is subject to tax reporting. Offer ends 09/11/2025, 11:59 PM ET. Offer may be modified or withdrawn without notice. Due to new customer funding limits, you may wish to initiate fund transfers at your other institution. For information on funding, see FAQs on Discover.com/Bank.
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.
| Offer |
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|---|---|---|
| Account |
Discover® Cashback Debit
On Discover Bank's Secure Website. |
|
| Rating |
Rating image, 4.50 out of 5 stars.
4.50/5
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
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 |
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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. Neither bank requires a minimum opening deposit.
Ally also offers Raise Your Rate and No Penalty CDs, while Discover® Bank offers IRA CDs.
APY = Annual Percentage Yield
| Offer |
|
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|---|---|---|
| Account | Ally High Yield CD | Discover® Bank CD |
| 3 Mo. | 2.90% | 2.00% |
| 6 Mo. | 4.00% | 3.70% |
| 9 Mo. | 4.00% | 3.80% |
| 1 Yr. | 3.90% | 4.00% |
| 1.5 Yr. | 3.80% | 3.80% |
| 2 Yr. | -- | 3.80% |
| 30 Mo. | -- | 3.50% |
| 3 Yr. | 3.50% | 3.50% |
| 4 Yr. | -- | 3.50% |
| 5 Yr. | 3.50% | 3.50% |
| 7 Yr. | -- | 3.50% |
| 10 Yr. | -- | 3.50% |
| Min. Deposit | $0 | $0 |
| Early Withdrawal Penalty | Yes | Yes |
| Next Steps |
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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).
The Discover® Money Market, also requires no minimum opening deposit. Your APY depends on your balance -- you'll earn slightly more if you have at least $100,000 in the account.
| Offer |
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|---|---|---|
| Account |
Discover® Money Market
On Discover Bank's Secure Website. |
|
| Rating |
Rating image, 4.50 out of 5 stars.
4.50/5
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
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 | 3.60%-3.65% Rate info 3.60% applies to balances under $100K, Need $100,000+ to earn 3.65% | 3.80% |
| Min. to earn APY | $0.01-$100,000 for 3.60%; $100,000+ for 3.65% | $1 |
| Next Steps |
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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.
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.
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.
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?
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 |
|---|---|---|---|
Open Account for SoFi Checking and Savings
On SoFi's Secure Website.
Rating image, 4.50 out of 5 stars.
4.50/5
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 |
up to 3.80%²
Rate info
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!¹
|
Open Account for SoFi Checking and Savings
On SoFi's Secure Website. |
Open Account for CIT Platinum Savings
On CIT's Secure Website.
Rating image, 4.50 out of 5 stars.
4.50/5
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 |
4.10% APY for balances of $5,000 or more
Rate info
4.10% APY for balances of $5,000 or more; otherwise, 0.25% APY
Min. to earn: $100 to open account, $5,000+ for max APY
|
Earn a bonus of at least $225 after a one-time deposit of $25,000+.
Transfer a one-time deposit of $25,000-$49,999.99 for a bonus of $225. Transfer a one-time deposit of $50,000+ for a bonus of $300. Account must be opened with code PS2025 while this promotion lasts, and funded within 30 days. Bonus will be fulfilled within 60 days from the funding date. There is no period of time where the customer will be required to maintain the funds. Account must be open when bonus is credited. One bonus per account and primary customer. Bonus will be credited into the Platinum Savings Account that fulfills the funding requirement. Funding can be deposited all at once or incrementally.
|
Open Account for CIT Platinum Savings
On CIT's Secure Website. |
Open Account for American Express® High Yield Savings
On American Express's Secure Website.
Rating image, 4.00 out of 5 stars.
4.00/5
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 |
3.70%
Rate info
3.70% annual percentage yield as of April 4, 2025. Terms apply.
Min. to earn: $0
|
N/A
|
Open Account for American Express® High Yield Savings
On American Express's Secure Website. |
SoFi disclosure:
¹ New and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus of either $50 (with at least $1,000 total Direct Deposits received during the Direct Deposit Bonus Period) OR $300 (with at least $5,000 total Direct Deposits received during the Direct Deposit Bonus Period). Cash bonus will be based on the total amount of Direct Deposit. Direct Deposit Promotion begins on 12/7/2023 and will be available through 1/31/26. See full bonus and annual percentage yield (APY) terms at sofi.com/banking#1.
² SoFi members who enroll in SoFi Plus with Direct Deposit or by paying the SoFi Plus Subscription Fee every 30 days or with $5,000 or more in Qualifying Deposits during the 30-Day Evaluation Period can earn 3.80% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. Members without either SoFi Plus or Qualifying Deposits, during the 30-Day Evaluation Period will earn 1.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Only SoFi Plus members are eligible for other SoFi Plus benefits. Interest rates are variable and subject to change at any time. These rates are current as of 1/24/25. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet. See the SoFi Plus Terms and Conditions at https://www.sofi.com/terms-of-use/#plus.
³ We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Checking & Savings Fee Sheet for details at sofi.com/legal/banking-fees/.
⁴ SoFi Bank is a member FDIC and does not provide more than $250,000 of FDIC insurance per depositor per legal category of account ownership, as described in the FDIC’s regulations.
Any additional FDIC insurance is provided by the SoFi Insured Deposit Program. Deposits may be insured up to $3M through participation in the program. See full terms at SoFi.com/banking/fdic/sidpterms. See list of participating banks at SoFi.com/banking/fdic/participatingbanks.
⁵ We’ve partnered with Allpoint to provide you with ATM access at any of the 55,000+ ATMs within the Allpoint network. You will not be charged a fee when using an in-network ATM, however, third-party fees incurred when using out-of-network ATMs are not subject to reimbursement. SoFi’s ATM policies are subject to change at our discretion at any time.
⁶ Early access to direct deposit funds is based on the timing in which we receive notice of impending payment from the Federal Reserve, which is typically up to two days before the scheduled payment date, but may vary.
⁷ Overdraft Coverage is limited to $50 on debit card purchases only and is an account benefit available to customers with direct deposits of $1,000 or more during the current 30-day Evaluation Period as determined by SoFi Bank, N.A. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the“30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Members with a prior history of non-repayment of negative balances are ineligible for Overdraft Coverage.
At Motley Fool Money, 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:
Learn more about how Motley Fool Money rates bank accounts.
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.
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Motley Fool Money is 100% owned and operated by The Motley Fool. Our knowledgeable team of personal finance editors and analysts are employed by The Motley Fool and held to the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands. Terms may apply to offers listed on this page. APYs are subject to change at any time without notice.
