Ally Bank vs Capital One 360 Comparison 2020 (Checking and Savings)

In this article, I’ll be reviewing a 2020 comparison of Capital One 360 and Ally Bank checking and savings accounts.

In addition to a side-by-side comparison of their checking and savings offerings like annual percentage yield (APY) rates and account fees, I’ll also be going over details like notary service availability and customer service accessibility.

The goal of this article is to give you an up-to-date side-by-side comparison of their checking and savings accounts, as well as each respective bank’s offerings you may want to consider. This way you can choose which bank fits your personal finance needs best.

Checking Account Rates

Ally Bank calls their (only) checking account Interest Checking Account. The Capital One checking account reviewed in this comparison is called the 360 Checking. The table below displays a side-by-side comparison of each bank’s checking account offerings.

RatesAlly BankCapital One 360
Minimum opening deposit$0$0
Annual Percentage Yield (AP)0.10% for balances less than $15K, 0.50% for balances greater than $15K0.20% for all account balances

Checking Account Fees

Fee ReasonAlly BankCapital One 360
Returned deposit item (i.e.returned checks due to insufficient funds)$7.50$9.00
Cashier’s checksFree$20.00
Overdraft Fee$25 (maximum of 1 per day), or $0 if you link Online Savings or Money Market Account to cover overdrafts. Discussed further below this table.Four options to choose from: Auto-Decline, Next Day Grace ($35 per transaction if not balanced), Overdraft Line of Credit, and Free Savings Transfer. Discussed further below this table.
Outgoing domestic wire transfers (an electronic transfer from one U.S. bank to another via Federal Reserve Wire Network)$20$30
Copies on online statementsFree$5 per statements for statements generated within the last two years
CheckbooksFree for standard Ally Bank checksFirst 50 page checkbook is free, $7 -$11 after depending on how much you order
Stop payments$15 per request$25 per request
Rush/expedited delivery on debit card$25$25
ATM servicesFree at U.S. Allpoint AMTs, plus $10 reimbursement per statement cycle for any other ATMs nationwide. NOTE: Ally does not accept cash deposits. Read my fee-free workarounds below.Free for specific locations, click here to find a location near you to get cash or make a cash deposit.

You can find more information on Ally Bank’s checking account on their Straight Talk Product Guide for their Interest Checking account page. You can find more information on Capital One’s checking account on Capital One’s Checking Account Disclosure page.

Ally Bank’s Checking Account Overdraft Fee Options Explained

Ally gives you the option to link your Interest Checking account to an Online Savings or Money Market account to cover overdrafts.

They will automatically transfer available funds from the account you choose in $100 increments each time you don’t have enough money in your checking account to cover a transaction.

There is no fee when they transfer funds and the increment amount cannot be adjusted. Additionally, each overdraft transfer counts as 1 of the 6 limited transactions allowed from your account each statement period for Money Market and Online Savings accounts.

Capital One’s 360 Checking Account Overdraft Fee Options Explained

Capital One has four different options to choose from to set as a default option should you overdraft.

  • Auto-Decline: Capital One will generally decline all transactions that would take your account into overdraft.
  • Next Day Grace: Capital One will pay for the overdraft transaction and you’ll get one business day to add more funds to your account to cover the balance. If you fail to cover the balance, the overdraft fee is $35.
  • Overdraft Line of Credit: you’ll pay 11.25% interest on the amount you overspend.
  • Free Savings Transfer: Capital One will automatically transfer funds from your 360 Savings account (if you have one) to take care of what you owe.

Ally Bank Cash Deposit Workarounds (Free)

Ally Bank not having the ability to do cash deposits is one of their biggest, if not the biggest pain point of having a checking account with them. This alone can steer customers away from Ally and toward some other online bank like Capital One. 

This may not be a total deal breaker though since there are some workarounds to getting cash into your Ally checking account.

Here are 3 cash deposit workarounds for getting any cash you have on hand into your Ally Bank checking account.

  1. Give cash to your trusted parents or friends and ask them to Zelle/Venmo you the money back.
  2. Give cash to your trusted parents or friends and ask them to write you a check for it. You can then deposit that check through Ally Bank’s mobile banking app.
  3. If you have a checking account with another bank, simply deposit cash into that checking account, then transfer it into your Ally Bank checking account.

With options 1 and 2, you’ll have to rely on people you have trustworthy relationships with such as your friends and family. With option 3, you won’t have to bug your friends or family.

Instead, you’ll have to maintain another checking account with another bank. Just make sure that you’re maintaining it so that you’re not paying fees (i.e. account minimums).

Savings Account Rates

Ally Bank calls their (only) savings account Online Savings Account. The Capital One savings account reviewed in this comparison is called the 360 Performance Savings. The table below displays a side-by-side comparison of each bank’s savings account fee breakdown.

RatesAlly BankCapital One 360
Minimum opening deposit$0$0
Minimum balanceNo minimumNo minimum
Maintenance fee$0$0
Annual Percentage Yield (APY)1.5%1.5%

Savings Account Fees

Fee ReasonAlly BankCapital One 360
Outgoing domestic wire transfers$20 per wire$30 per wire
Returned deposited item (i.e.returned checks due to insufficient funds)$7.50 per itemCharges returned deposits back to your account, they may also limit or refuse a deposit. I’d call customer service to inquire further as this is all the information provided in their performance savings PDF.
Excessive Transactions Fee (withdrawals and transfers over 6 per statement cycle)$10 per transactionCapital One does not state a fee. Instead they state that they may close your account or transfer funds to an account that does not have the 6 transaction limitation.
Overdraft Fee$25 maximum per dayCapital One does not state a fee. Instead, they state that you are not allowed to overdraw on your Savings Account (in other words, do not take out more money than what is available).
Copy of online statements$0$5 per statement for statements generated within the last 2 years

You can find more information on Ally Bank’s savings account on their Straight Talk Product Guide for their Savings Account page. You can find more information on Capital One’s savings account on Capital One’s 360 Performance Savings Account Disclosure page.

Notary Services

One of the benefits of holding an account with a traditional bank like Bank of America is that they have free notary services. Notary services are required for things like wills, trusts, deeds, contracts, and affidavits. 

In my online research, I found that Ally Bank does not have notary services, which makes sense as they are an online only bank. The signer has to be present in front of a notary in order for it to be done legally. My research on Capital One, however, still has me wondering.

I have not found any information on notary services on Capital One’s website, but I did find on FirstQuarterFinance.com’s website that they do offer free notary services to all their customers. At the top of the article it states that the information was updated and verified as of 2/18/2020. This was the first piece of information I found that says Capital One does in fact offer free notary services.

In my efforts to go a step further and get an answer from Capital One myself, I called their customer service line. Unfortunately, the representative didn’t have any knowledge of the matter and suggested that I call my local branch or cafe to inquire.

Bottom line in regards to Capital One notary services.

If you are searching for a bank that has notary services, call your local Capital One branch or cafe to inquire. I say this because even though First Quarter Financial says it’s updated and verified, I always like to verify from the source myself and would recommend the same for anyone else.

Notary Services Elsewhere

If you want to bank with Ally but still need notary services, don’t worry, there are other accessible options out there. 

Check out the UPS website to find a location that offers notary services and schedule an appointment.

Additionally, search Google for ‘Notary Public services near me’ to find local notary services in your area.

Customer Service

Customer service is important and it can oftentimes be the sole reason why a person will or won’t do business with a company. 

Below is a comparison of Ally Bank and Capital One offerings from 24/7 live chat support to regular snail mail support.

FeaturesAlly BankCapital One 360
24/7 live chat supportYesNo (not found anywhere on their website)
24/7 phone supportYes (1-877-247-2559)No (phone support is only from 8AM – 11PM, 7 days a week. The number is different for new or existing customers)
In-person supportNoYes, at Capital One branches and cafes
Email supportYes (requires account login)No (not found anywhere on their website)
Mail supportYesYes

You can learn more about Ally Bank’s contact information on their Contact Information page. You can learn more about Capital One’s contact details specifically for their 360 accounts on their Contact Us for 360 Banking page.

Ally Bank vs Capital One 360: Which Bank Is Better?

In my opinion, both banks are great but they each share their own unique pros and cons.

In terms of checking account rates, Capital One offers a 0.20% annual percentage yield (APY) for all balances, whereas Ally Bank offers 0.10% for balances less than $15K. However, Ally Bank increases their checking account APY for balances at $15K or above to 0.50%.

They both currently have the same annual percentage yield (APY) for their savings accounts at 1.50%.

Additionally, both Ally Bank and Capital One are FDIC insured up to $250,000 per depositor (account owner), for each account ownership category. A checking and savings account fall under the same ownership category: the Single Account category.

Read more on FDIC insurance categories at FDIC.gov.

Overall, Ally Bank typically has lower fees associated with both their checking and savings accounts. But, Capital One has a leg up on physical location where you can talk to an actual human person. And they may offer free notary services.

That said, you may want to bank with Ally Bank if you want 24/7 customer support, free checkbooks, and low fees. On the other hand, you may want to bank with Capital One if you want to be able to do cash deposits, speak to a human in person, and/or potentially have free notary services available.

(I feel silly publishing this without verifying whether or not Capital One actually offers notary services. After this Coronavirus pandemic blows over, I’ll call my nearest cafe to inquire. I’ll report back here with the details.)

In the end, the preference given between the two banks is something only you can decide and I hope the information provided in this article has helped you figure that out.

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