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SoFi vs. Ally: Which online bank is best for you?
Online banks are more popular than ever thanks to low fees, competitive interest rates, and robust digital tools. Plus, there’s no need to visit a branch in person to perform basic banking tasks like depositing a check or transferring money.
SoFi and Ally Bank are two major players in this space. In fact, they are both considered among the best online banks today. But is one better than the other? Here’s a closer look at how these two financial institutions stack up against each other.
SoFi vs. Ally Bank: General overview
About SoFi
Social Finance Inc. — better known as SoFi — is an online financial company founded in 2011 by a group of Stanford business school students. In 2012, SoFi launched its student loan refinancing program for federal and private student loans. Today, SoFi serves more than 6.9 million customers and has expanded its product offerings to include lending, investing, personal banking, insurance, and more.
Read our full review of SoFi here
About Ally Bank
Ally Bank is a Utah-based online bank known for offering competitive interest rates on its financial products with minimal fees. It was founded in 1919 by General Motors as GMAC to make car loans to its customers. It changed its name to Ally in 2010 and now offers personal banking products, retirement and investment accounts, and lending services.
Read our full review of Ally Bank here
SoFi vs. Ally: Deposit account options
Checking accounts
Both SoFi and Ally Bank offer interest-bearing checking accounts. However, SoFi’s online checking account rate is double the maximum rate offered by Ally. Ally offers 0.10% APY on balances less than $15,000 and 0.25% APY on balances of $15,000 and up, while SoFi offers 0.50% APY on all balances.
Neither account requires a minimum opening deposit or minimum balance. There are also no monthly maintenance fees or overdraft fees associated with either account.
The catch: SoFi does not currently offer a standalone checking account option. Rather, it has an online bank account that works like a combination checking and savings account. SoFi also has a smaller ATM network than Ally. SoFi does, however, currently offer a welcome bonus of up to $300 while Ally does not.
Both Ally and SoFi made our list of the 10 best free checking accounts available today.
Savings accounts
SoFi and Ally’s high-yield savings accounts are both free to open, have no monthly maintenance fee, and do not require a minimum balance to earn interest or avoid fees. SoFi’s account has an earning potential of up to 4.00% APY, while Ally offers a flat 4.00% APY.
Both Ally and SoFi made our list of the 10 best high-yield savings accounts available today.
Certificates of deposit (CDs)
SoFi does not currently offer any CDs.
Ally, however, offers three different types of CDs (high-yield, “raise your rate,” and no-penalty) in a wide range of terms. The highest CD rate offered by Ally is for its 6-month CD at 4.50% APY.
Ally Bank also made our list of the best CD rates on the market today.
Money market accounts
SoFi does not currently offer a money market account.
Ally’s money market account offers 4.00% APY with no minimum opening deposit or minimum balance requirement to earn interest. There are also no monthly maintenance fees. Ally’s money market account comes with a debit card and checks for easier access to your money.
Ally Bank also made our list of the 10 best high-yield money market accounts available today.
SoFi vs. Ally: Additional products and services
SoFi’s products and services aren’t limited to its online bank account. SoFi also offers student loan refinancing, private student loans, personal loans, mortgage loans, auto loan refinancing, credit cards, insurance products, and more.
The same goes for Ally Bank — its products and services include credit cards, investment and retirement products, mortgage refinancing, vehicle loans and refinancing, and more.
Does SoFi or Ally have better APYs?
SoFi and Ally offer comparable APYs for savings accounts, while SoFi has the higher checking account rate. However, SoFi’s product offerings are more limited. Ally offers high-yield CDs and money market accounts, while SoFi does not.
SoFi also does not offer standalone checking and savings accounts. Those who prefer to keep their checking and savings accounts separate may prefer Ally over SoFi. On the other hand, those who simply want to earn the highest possible rate on their checking and savings balances may be more inclined to bank with SoFi.
Does SoFi or Ally have lower fees?
SoFi and Ally are both comparable when it comes to banking fees. Neither bank charges monthly maintenance fees or overdraft fees. That said, Ally may offer a slight advantage over SoFi because it offers ATM fee reimbursements (up to $10 each statement cycle). Meanwhile, SoFi customers are responsible for any out-of-network ATM fees they may incur.
Who should bank with SoFi?
SoFi is a good option for savers who want a simplified banking experience, the opportunity to earn a welcome bonus, and a range of member benefits such as help with financial planning and estate planning, insurance coverage, and more extensive lending options.
Who should bank with Ally?
Ally offers a wider range of deposit accounts than SoFi. Those who prefer to handle all of their banking needs with one financial institution might find Ally to be the more attractive option. Ally also offers investment products and home and auto lending services.
SoFi checking and savings disclosures
SoFi members with Direct Deposit or $5,000 or more in Qualifying Deposits during the 30-Day Evaluation Period can earn 4.00% 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 Direct Deposit or Qualifying Deposits, during the 30-Day Evaluation Period will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Only SoFi members with direct deposit are eligible for other SoFi Plus benefits. Interest rates are variable and subject to change at any time. These rates are current as of 12/3/24. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.
SoFi does not charge any account, service or maintenance fees for SoFi Checking and Savings. It does 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. Fee policy is subject to change at any time. See the SoFi Checking & Savings Fee Sheet for details at sofi.com/legal/banking-fees/.
