With hundreds of banks running worldwide, we are often in a dilemma when it comes to deciding which one to choose. Money is earned often by hard work and years of toil, and choosing a trustworthy bank for it becomes a difficult decision to make. In this time of rapid development of online services, online banking is also on the rise.
Chime is one such bank. It is a purely online bank headquartered in San Francisco, California, in the United States. It offers online financial services without any fee. It provides you an alternative to traditional banks. This company was started on the 15th of April, 2014. It was reported that it reached a total of 8 million accounts in 2020 in February.
Ally is also an online bank that is headquartered in Detroit, Michigan. This company was previously known by the name GMAC. It is listed in the largest banks of the US. It is also one of America’s largest companies in car financing.
In the presence of such close competition, it is clear you would get confused about which one to choose for the future. Here we dive into a Chime vs. Ally, comparison 2021 to assist you in choosing what is right for you.
Mobile App Effectiveness While Conducting Chime Vs. Ally Comparison 2021
As both of these companies run on their respective mobile apps, this medium becomes an important factor in judging them.
Chime mobile app is found to be more effective as they run completely on the app. The Chime App has Pay friends feature in it, through which you can send money to your friends. They do not have any maintenance fee that is to be paid.
Ally, on the other hand, has a good mobile app but does not match up to Chime’s. Using Ally’s mobile app, you are allowed to handle money, cards, deposit your checks, use Zelle to send money. With Ally, you will need to connect to accounts that are external to it.
Accounts And Interest Rates In The Chime Vs. Ally Comparison 2021
Chime only allows the user to open limited accounts and also with low-interest rates. You do not earn a great interest rate with Chime.
Ally does not take any account opening fee. They have a wide variety of available accounts. These are the money market and Savings account, the interest check account, High yield CD, Raise your rate CD, no-penalty CD, and IRA CD. They have competitive interest rates on their accounts. They offer 2.20 % on all the balances.
The Next Comparison Factor Is The Time Period Of Fund Transfer
Chime allows the user to connect specific banks with their accounts. All banks are not compatible. Transfers can take five working days.
Money transfer between two Ally accounts is instant. A fund transfer between and another bank will take three working days.
Which Kind Of Accounts Are Offered- Personal Or Business Or Both?
While conducting the Chime vs. ally comparison 2021, it can be said that both the companies offer only personal accounts. If Chime finds out you are using their account for business purposes, they can close down your account.
Do The Checking Accounts Earn Interest?
A chime check account will not be earning you interest.
Ally checking account offers tiered rates for interest. To earn the best interest amount, you need to have 15,000 dollars in your check account. If your balance is lesser than this, it will mostly earn lower rates of interest.
How Can One Access Their Money From These Accounts?
Going deeper into the Chime vs. ally comparison 2021, let’s look into how you can access your money.
For a Chime account, you may use the electronic online transfer method or the checkbook provided by Chime. The traditional method of checks is not offered. The checks you wish to send can be sent from the Chime mobile application. For withdrawal of money from a retail area, they may charge you the fee of 2.50 dollars for every withdrawal.
For an Ally account, you can reach your money through debit cards that can be used at ATMs, checks, and the electronic method of transfers. You can reach your money through cashless bill pay or even Zelle.
Are All The Accounts Of Both The companies Insured?
Yes, both Chime and ally are FDIC insured.
Can One Deposit Money As Cash?
An important factor in the Chime vs. ally comparison 2021 is whether the company lets you deposit cash.
Chime allows you to deposit cash. This can be done in over 60,000 locations. 7-Elevens, CVS, and Walgreens are just a few of the locations where you can deposit cash.
Ally, unfortunately, refuses to accept a deposit in the form of cash.
Is There An ATM Fee?
Most people use ATMs to withdraw money, and it is a very convenient method. Let’s clear your confusion regarding the aspect of the ATM fee in the Chime vs. ally comparison 2021.
Chime provides its customers with 38,000 ATMs, which are free of any fee. However, when you use an ATM not within the network of Chime, you are charged 2.50 dollars per transaction. Also, if you make an OTC cash withdrawal, you will be charged 2.50 dollars. The mentioned fee will not be reimbursed.
Ally offers ATMs for all its customers across the US. The transactions made at these ATMS are totally free of cost. However, in case you make a transaction at another ATM, Ally will reimburse 10 dollars for a statement in the ATM fee. International ATMs charge an amount as a fee.
As we have seen, while performing the Chime vs. ally comparison 2021, both the companies have pros and cons. Both companies offer online banking services and are both well-known. Here in the Chime vs. ally comparison 2021, we have spoken about the major points of comparison that will help you choose which bank is best for you in 2021.