Which online bank is the best?

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  • Ally and Marcus of Goldman Sachs are online banks that pay high interest rates.
  • Ally offers a more attractive savings account, but Marcus pays higher rates on CDs.
  • If you want to open a checking account or a money market account, Ally is your only option between the two.
  • Read Insider’s full reviews of Marcus and Ally.

If you are looking for high interest rates,


online banks

offer some of the best options.

Marcus of Goldman Sachs and Ally are two leading online banks.

To help you decide which is best for you, we analyzed the details of each of their bank accounts and then selected a winner for each category. We’ve also compared the reliability of financial institutions so you can see how a bank handles customer issues and complaints.

Advantages and disadvantages of Ally

Advantages and disadvantages of Marcus

Savings account comparisons

Below we compared


high yield savings accounts

offered by each bank. With these high-yield savings accounts, you’ll earn almost ten times the national average on savings accounts.

Annual Percentage Yield (APY)

0.50% APY

Minimum deposit amount

Nothing

Annual Percentage Yield (APY)

0.50% APY

Minimum deposit amount

Nothing

Advantages
  • High APY
  • No minimum opening deposit
  • No monthly service fees
  • Savings buckets help you save for different goals
  • Surprise savings transfers help you save extra money in your checking account
The inconvenients
  • No physical branch
  • No way to deposit money

Read our review
Read our review A long arrow pointing to the right

More information
  • Create separate savings compartments in a savings account
  • Log in to your Ally checking account and sign up for Surprise Savings Transfers to move extra money into savings three times a week
  • Interest compounded daily, paid monthly
  • FDIC insured

CD comparisons

Below, we’ve compared Ally’s and Marcus’ regular CDs.

Both institutions, however, offer more CD options. Ally has an 11-month penalty-free CD and Raise Your Rates CDs that can increase your rate if Ally’s rates increase during your term. Meanwhile, Marcus has a 7-month, 11-month, and 13-month penalty-free CD.

Annual Percentage Yield (APY)

0.15% to 2.00% APY

Minimum deposit amount

$500

Annual Percentage Yield (APY)

0.15% to 2.00% APY

Minimum deposit amount

$500

More information
  • Terms ranging from 6 months to 6 years
  • Early withdrawal penalty of 90 days interest for a CD term of less than 12 months, Interest penalty of 270 days for a CD term of 12 months to 5 years, Interest penalty of 365 days for a term CDs over 5 years old
  • Compound interest to maximize your earnings
  • No monthly maintenance fees
  • FDIC insured

Current account and money market account

Marcus only offers a high yield savings account and CDs. If you want to open a checking account or a money market account, you will need to turn to Ally.

Ally has a fee-based chequing account that doesn’t charge monthly service fees, overdraft fees, or out-of-network ATM fees. You’ll have access to 43,000 ATMs across the United States, and Ally also reimburses up to $10 in out-of-network ATM fees.

Ally’s Money Market Account is quite similar to the bank’s High Yield Savings Account. The main difference between the two accounts is that the money market account includes a debit card and paper checks.

Annual Percentage Yield (APY)

0.10% to 0.25% APY

Minimum deposit amount

Nothing

Annual Percentage Yield (APY)

0.10% to 0.25% APY

Minimum deposit amount

Nothing

Advantages
  • Competitive APY
  • No initial deposit
  • No minimum account balance
  • No monthly service fees
  • Connect your account with Zelle
  • Easy to use mobile app
  • Reimburses up to $10/month in out-of-network ATM fees
  • Online bill payment
  • 24/7 customer service
  • No overdraft fees
  • Overdraft Protection
The inconvenients
  • No physical branch
  • No way to deposit money

Read our review
Read our review A long arrow pointing to the right

More information
  • You can deposit checks directly from your smartphone
  • Ally reimburses up to $10 per statement cycle for fees charged at other ATMs nationwide
  • Transfer money with your voice via Ally Skill™ for Amazon Alexa
  • Interest compounded daily, paid monthly
  • FDIC insured

Annual Percentage Yield (APY)

0.50% APY

Minimum deposit amount

Nothing

Annual Percentage Yield (APY)

0.50% APY

Minimum deposit amount

Nothing

Advantages
  • No opening deposit or minimum account balance
  • No monthly service fees
  • Access to a debit card
  • Access to paper checks
  • Refunds at out-of-network ATMs up to $10 per month
  • 24/7 customer service
  • Easy to use mobile app
  • Link to other Ally bank accounts
The inconvenients
  • Not the highest APY money market account
  • No physical branch
  • $10 excess transaction fee (paused during COVID-19)

Read our review
Read our review A long arrow pointing to the right

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

Which bank is the most reliable?

We use Better Business Bureau ratings so you can see how a bank is handling customer issues.

Ally received a C-ranking from the BBB as it has 315 complaints and two unresolved complaints. Marcus received a A+ rating.

A good BBB rating is not necessarily the be-all and end-all. Talk to current customers or read customer reviews online to see if a financial institution might be a good fit.

Neither Ally nor Marcus have been involved in any recent public scandals.


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David A. Albanese