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Ally vs. Axos review: Which online bank is right for you?

  • Ally and Axos are two online-only banks with savings, checking, CD, and money market accounts.
  • Ally may be a better choice for savings accounts, CDs, and money market accounts.
  • For checking accounts, Axos stands out from Ally due to its unique rewards checking option.
  • Read Insider's bank reviews of Ally and Axos.

Personal Finance Insider writes about products, strategies, and tips to help you make smart decisions with your money. We may receive a small commission from our partners, like American Express, but our reporting and recommendations are always independent and objective. Terms apply to offers listed on this page. Read our editorial standards.

If you'd like to earn a high interest rate on a bank account, Ally and Axos Bank are two popular online banks with great high-yield banking options.

To see which online bank may be better for you, we've compared each bank's savings, checking, CD, and money market accounts. We're also reviewing the banks' trustworthiness so you can know more about the institutions' history.

Pros and cons: Ally

ProsCons
  • 24/7 live customer service over the phone or through live chat

  • Fee-free bank accounts

  • Competitive interest rates

  • Savings account comes with tools to help you save

  • Unique CDs, including no-penalty CDs, IRA CDs, and Raise Your Rate CDs

  • No physical locations
  • No joint bank accounts for minors
  • C rating from the Better Business Bureau for unresolved complaints

Pros and cons: Axos

ProsCons
  • 24/7 customer support through live chat

  • Fee-free bank accounts

  • High interest rates on savings and money market account

  • Welcome bonus on checking account

  • Eligible to open a joint bank account with a minor

  • Low CD rates compared to other online banks
  • Relatively high minimum opening deposits for savings, CDs, and money market accounts

Checking account comparisons

Ally and Axos both offer a fee-free, interest-earning checking account. Axos Bank also has specialized bank accounts for specific age groups. For instance, the Axos Bank Golden Checking Account is tailored for customers over the age of 55, and it landed in our best checking accounts for seniors guide.

 Ally Interest Checking AccountAxos Bank Rewards Checking
APYAlly Interest Checking AccountAxos Bank Rewards Checking
How to earn APY
  • Earn 0.10% APY on account balances under $15,000
  • Earn 0.25% APY on account balances over $15,000
  • Earn at least 0.40% APY if you receive a minimum of $1,500 in direct deposits monthly
  • Earn up to an extra 0.55% APY through stages if you add Axos Invest accounts and a loan
Minimum opening depositNone$50
Monthly service feeNoneNone
Perks
  • Earn interest on account
  • No overdraft fees
  • Free overdraft protection available
  • Refunds up to $10/month in out-of-network ATM fees
  • Access to 43,000 free ATMs
  • Axos Bank Rewards Checking through stages 
  • No overdraft fees
  • Free overdraft protection available
  • Unlimited refunds on domestic out-of-network ATM fees
  • $150 welcome bonus until May 31 (Make a total direct deposit of $1,500 within the first 3 months of opening a new account)
Caveats
  • No physical locations
  • No physical locations
  • No interest earned if you don't meet any of the requirements. 
Next stepsAlly Interest Checking AccountAxos Bank Rewards Checking

Savings account comparisons

Ally and Axos pay competitive interest rates on savings accounts

 Ally High Yield Savings AccountAxos High Yield Savings Account
APYAlly High Yield Savings AccountAxos High Yield Savings Account
How to earn APY
  • No requirements to earn interest
  • Earn 0.61% APY on account balances under $25,000
  • Earn 0.25% APY on account balances between $25,000 and $100,000
  • Earn 0.15% APY on balances over $100,000
Minimum opening depositNone$250
Monthly service feeNoneNone
Perks
  • Savings buckets feature lets you separate savings to create specific goals
  • Surprise savings tool automatically transfers extra change from your checking account to help you save
  • Free ATM card
  • Free incoming domestic and international wire transfers
Caveats
  • No physical branches to deposit cash
  • No physical branches to deposit cash
Next stepsAlly High Yield Savings AccountAxos High Yield Savings Account

 

CD comparisons 

 Ally High Yield Certificate of DepositAxos Certificate of Deposit
Term lengths3 months to 5 years3 months to 5 years
Minimum opening depositNone$1,000
APYAlly High Yield Certificate of DepositAxos Certificate of Deposit
Early withdrawal penalties60 to 150 days of interest1.5 months to 14 months of interest
Types of CDsHigh-yield CD, No Penalty CD, Raise Your Rate CDIRA CDStandard CDs
Next stepsAlly High Yield Certificate of DepositAxos Certificate of Deposit

Money market account comparisons

 Ally Money Market AccountAxos High Yield Money Market Account
APYAlly Money Market AccountAxos High Yield Money Market Account
Minimum opening depositNone$1,000
Monthly service feeNoneNone
Perks
  • Earn interest regardless of account balance
  • Debit card
  • Paper checks
  • Refunds up to $10/month in out-of-network ATM fees
  • Access to 43,000 free ATMs
  • Earn interest regardless of account balance
  • Debit card
  • Paper checks
  • No fees if you use an out-of-network ATM
Caveats
  • No physical locations
  • No physical locations
  • High minimum opening deposit
  • Won't reimburse any fees charged by out-of-network ATM providers
Next stepsAlly Money Market AccountAxos High Yield Money Market Account

Ally vs. Axos trustworthiness and BBB rating

The Better Business Bureau assesses businesses to see if they effectively respond to customer issues.

Axos has an A+ rating. Meanwhile, Ally received a C rating because it has a high volume of customer complaints and two unresolved customer issues. 

A high BBB rating doesn't necessarily guarantee your relationship with a bank will be perfect. Reach out to current customers or read online customer reviews to see if a bank might be a good fit for you.

Neither Ally nor Axos has been involved in public scandals. 

Frequently asked questions

Which is better, Axos or Ally?

Your decision between the two online banks will likely depend on the accounts you'd like to open. 

Ally is a better choice for savings accounts and CDs, especially if you don't have much money. You may open either account with $0, while Axos Bank requires at least $250 to open a savings account and $1,000 to open a CD.

Axos Bank may be a great option for opening a checking account, though. It has a rewards checking account that pays a competitive interest rate if you meet certain requirements.

Does Ally or Axos charge fees?

Ally and Axos do not charge monthly service fees, overdraft fees, or out-of-network ATM fees. 

Read the original article on Business Insider
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