Synchrony Bank vs. Ally: Which Bank Is Right for You
Review
Updated
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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.
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.
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| Account | ||
| 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, 4.75 out of 5 stars.
4.75/5
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 | 4.00% | 3.80% |
| Min. to earn APY | $0 | $0 |
| Next Steps |
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Annual Percentage Yield (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 synchrony.com/banking for current rates, terms and account requirements. Member FDIC.
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.
Ally Spending Account
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.
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.
APY = Annual Percentage Yield
| Offer |
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| Account | Synchrony Online CD | Ally High Yield CD |
| 3 Mo. | -- | 2.90% |
| 6 Mo. | 3.70% | 4.00% |
| 9 Mo. | 4.00% | 4.00% |
| 1 Yr. | 4.00% | 3.90% |
| 13 Mo. | 4.35% | -- |
| 1.5 Yr. | 3.80% | 3.80% |
| 2 Yr. | 3.50% | -- |
| 3 Yr. | 4.00% | 3.50% |
| 4 Yr. | 3.50% | -- |
| 5 Yr. | 4.15% | 3.50% |
| Min. Deposit | $0 | $0 |
| Early Withdrawal Penalty | Yes | Yes |
| Next Steps |
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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 | 4.00% | 3.80% |
| Checking account | N/A | up to 0.25% |
| 1-year CD | 4.00% | 3.90% |
| 18-month CD | 3.80% | 3.80% |
| 3-year CD | 4.00% | 3.50% |
| 5-year CD | 4.15% | 3.50% |
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 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 |
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.
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
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New customers can earn up to a $300 bonus with qualifying direct deposits!¹
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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
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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.
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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 11, 2025. Terms apply.
Min. to earn: $0
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N/A
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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.
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 Motley Fool Money rates bank accounts.
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.
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.
