Axos Bank vs. Ally

These days, more and more people manage their entire financial lives online. As a result, online banks compete to offer the best products. Two that stand out today are Axos Bank and Ally Bank. Both are known for their low or non-existent fees as well as rates that stack up well against the competition. But which one is right for you? Below, you can compare their bank account offerings, fees, rates and more.

You can also consider working with a financial advisor for help with your financial decisions.

What to Know About Axos Bank

Axos Bank was born on the internet. In fact, it is the oldest online bank in the U.S. Axos emerged at the dawn of the new millennium, back in 2000. Back then, online banking was a new concept and people were just beginning to manage their finances on the web.

First known as the Bank of Internet USA, now called Axos Bank, this financial institution is still on top of digital banking.It also stands out for its low fees, generous rates, mobile support, and inexpensive yet reliable products.

What to Know About Ally Bank

Ally Bank is one of the leaders in online-only banking. It’s actually been around since the 1920s. Back then, it was an auto financer known as GMAC. But as the digital revolution began to reshape the banking industry, Ally saw an opportunity. Today, it offers everything from checking accounts to individual retirement accounts (IRA) and mutual funds.

Ally is also known for offering some of the best savings accounts. Its low and no-fee accounts offer rates that stand above its brick-and-mortar competitors.

Bank Accounts Comparison

In terms of product versatility, Axos Bank comes out winning. It offers five types of checking accounts, including one designed for teenagers and another made for senior citizens, as well as a hybrid checking and savings account called Axos ONE. Their basic Rewards Checking offers an APY of 3.30%. That rate is robust compared to the FDIC’s reported national average of 0.07% for checking accounts.In addition, you won’t face any monthly service fees or minimum balance requirements. And of course, you’d also have access to certificates of deposit (CDs) and IRAs.

But that’s not to say Ally Bank lacks standout products. You can open its popular Online Savings Account, which currently generates an APY of 3.60% on all balances. The interest rate alone puts it among the best savings accounts on the market today. Furthermore, Ally doesn’t charge monthly maintenance fees. But Ally really stands out for its longer-term investments.

It currently offers a wide range of CD options. Its popular 12-month CD generates an APY of 3.85%. That’s one of the best CD rates available. Or you can take your chances and open a Raise Your Rate CD. With this option, Ally Bank will adjust the interest rate once every two years if the new rate is higher than your current offer.

Axos Bank vs. Ally Bank: Fees

A consumer comparing Axos Bank vs. Ally.

Ally Bank keeps no secrets when it comes to fees. And that’s not surprising. The online banking giant has done away with “hidden fees,” like ones for ACH transfers and incoming wires. The bank also waives its monthly service fees for many of its popular accounts, including the Online Savings Account and the Ally Money Market account.

However, Axos is also light on fees. The bank doesn’t charge monthly service fees for its Essential Checking account. Plus, Axos reimburses you for domestic ATM fees. At other banks, that’s a perk usually reserved for premium checking accounts that require large minimum balances and even larger minimum opening deposits. But you don’t even need to maintain a minimum balance on this account to keep it open.

Axos Bank vs. Ally Bank: Rates

Ally Bank prides itself on its rates. And it’s a reputation the bank has earned. In fact, its online savings account generates an APY of 3.60%. That rate is far better than the national average of 0.42%.Axos beats them both, with a 4.0% APY on its Summit Savings account

Ally also offers great CD options. Its 12-month CD currently pays an APY of 3.85%. A similar option at Axos generates an APY of 0.20%. Overall, Ally wins the rates comparison. That said, Axos bank offers generous rates as well along with low fees or none at all.

Axos Bank vs. Ally Bank: Which Should You Choose?

When deciding between Axos Bank and Ally Bank, your choice should depend on your financial goals. If you’re looking to grow your money through savings accounts or CDs, Ally offers stronger interest rates. Its online savings account has one of the highest APYs available, and its 12-month CD also pays more than what most banks offer. For long-term savers, this can lead to better returns.

Axos Bank may be a better option if you want easy everyday banking with fewer fees. It offers several checking account options, including accounts for teens and seniors. Axos also reimburses domestic ATM fees and doesn’t require a minimum balance, which can be helpful if you’re trying to avoid extra costs while keeping your banking simple and accessible.

Bottom Line

Both Axos and Ally offer a full suite of reliable, inexpensive and effective products. Ally offers better rates overall. However, Axos offers extra perks like ATM fee reimbursements. Overall, both banks are solid choices. If your priority is earning interest, Ally is likely the stronger choice. But if your goal is keeping your money liquid and avoiding fees, Axos might work better. Think about whether you’re focused more on saving, spending, or a combination of both. Matching your bank to your goals can help you manage your money more effectively.

Tips on Financial Wellness

Anytime you’re making important financial moves, it can be beneficial to seek the help of a financial advisor. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
You don’t have to manage all your finances with one bank. You can open a checking account that suits you at Axos and a high-yield savings account with Ally. And you can also explore products at the best banks in the country.