Discover Bank vs. Ally Bank | Which Account is Best?

Discover Bank vs. Ally Bank:

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For starters, both of them are going to offer you typical savings account options and they currently both pay an identical 0.5% APY at the time of recording this video. Now both of these savings accounts also come with no monthly maintenance fees no minimum balance requirements and none of that good stuff but we've kind of come to expect that nowadays. Now one important point about both of these accounts that actually puts both of them ahead of much of the competition when it comes to savings accounts is that both of them compound their interest daily rather than monthly which is usually the norm.

As far as the savings accounts go, Ally bank does offer some really cool features like their buckets savings feature and their booster savings feature that allows you to create what's basically mini accounts to save towards a particular financial goal and round up your spending and automatically have that money moved into your savings account and these are features that we've seen from some competitors but this is something that Discover does not currently offer. Ally Bank also offers 24/7 call and email-based customer service and while in my experience their customer service is really good, they are definitely no match for the incredible customer service that is offered by Discover bank.

Both of these companies also offer Checking account options and this is where things start to get a little bit different in the way they're going to approach their banking model. Ally bank offers a pretty normal checking account that is actually going to pay you some interest which is pretty cool. Now, these rates are pretty low at just 0.1% for balances below $15,000 and 0.25% for balances of $15,000 or more which may not sound that good but remember this is a checking account and typically checking accounts don't pay any interest rate at all so it's pretty cool that they are paying you something. Now discover on the other hand is going to take a bit of a different approach to their checking account and is actually going to offer you 1% cash back on up to $3000 in purchases each month on your discover debit card.

As far as ATMs go, ally bank currently is on the Allpoint network meaning you have access to 43,000 free to use ATMs while discover offers a slightly larger network with 60,000 free to use ATM's. Now outside of those standard checking and savings account features, both companies also offer money market accounts which is awesome because this is an area where very few fintech companies are able to compete. Both companies also offer CD's or certificates of deposit and both start as low as three months and go all the way up to five to 10 years if you wanted to.

So at the end of the day, either of these companies would be a fantastic banking option with a proven track record and options to expand into other financial tools if you need those as well. They're pretty similar across the board but here's what I would say to help you make your decision. If you feel that you do most of your banking from your desktop or laptop then ally bank is probably going to be the better option and they do offer higher rates on their CDs and money market accounts. However, if you're the type like me to do most of your banking from your mobile device then the discover app is incredibly well designed and is miles ahead of the ally mobile app in my opinion.

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I am not a Certified Financial Planner®. The topics presented in this video are for entertainment purposes only. You, and you alone, are responsible for the financial decisions that you make.

Видео Discover Bank vs. Ally Bank | Which Account is Best? канала Magnified Money