SoFi vs. Ally: Which is best for your banking needs?

In this comparison of SoFi vs. Ally Bank, we’ll discuss the pros and cons of each bank so you can decide which might be the better choice for your financial needs.

SoFi vs. Ally: Basic checking accounts

Both the SoFi High-Yield Checking and Ally Spending Account are completely free checking accounts, meaning you won’t pay any monthly fees or overdraft fees. They also don’t have minimum opening deposits. One area where SoFi excels, however, is the APY—it’s currently double Ally’s APY. You can also get up to a $300 checking account bonus if you receive $5,000 in direct deposits during the bonus period.

SoFi High-Yield Checking account

The SoFi High-Yield Checking account is a great option for someone who also wants to open a savings account, as SoFi will automatically open a savings account for you when you open a checking account. Its lack of fees and decent APY are great whether you pay dozens of bills each month or want to have a backup checking account you use sparingly.

Ally Spending Account

One useful feature of the Ally Spending Account is its spending buckets. These are a way to set aside money for specific expenses, such as rent or groceries. This makes the Ally Spending Account a better option for someone who needs help following a strict budget and improving their spending habits.

SoFi vs. Ally: Basic savings accounts

At first glance, the SoFi High Yield Savings does have a higher APY, but it comes with a catch. You’ll need to receive at least one direct deposit of any amount each month—otherwise, your APY will be just 1.20%. The Ally Savings Account is more straightforward and doesn’t have any requirements.

Another selling point of the SoFi account is the $300 welcome bonus if you meet direct deposit requirements, as well as up to $2 million in extended Federal Deposit Insurance Corp. (FDIC) insurance. However, Ally has superior autosaving features, including a tool that analyzes your expenses to find the extra money you can save.

SoFi High Yield Savings Account

With SoFi’s high-value FDIC insurance, the High Yield Savings Account is great for those with over $250,000 they want to store in one location. Because you need to receive a direct deposit each month to score the highest APY, it’s also best for someone who has a regular paycheck coming in.

Ally Savings Account

With its various automated savings tools, the Ally Savings Account is best for someone who wants extra help building their emergency fund. Because it also has transaction limitations, it’s a good account for those who don’t foresee making multiple withdrawals each month.

SoFi vs. Ally: Certificates of deposit

Unfortunately, SoFi doesn’t offer CDs, so Ally is the winner by default. That said, Ally’s offerings are robust, with seven terms to choose from and up to 4.90% APY on certain terms. You can also score a 0.05% Loyalty Reward when you renew any CD. If the rate for your CD term goes up within 10 days of opening your account, Ally will boost your rate automatically.

We’ve summarized Ally’s offerings below but it offers even more CD terms and rates for you to choose from.

SoFi vs. Ally: Investment services

Both Ally and SoFi offer investment platforms geared toward making investing more accessible for their customers. SoFi Invest lets you conduct online stock trading and invest in initial public offerings (IPOs). You can also get up to $1,000 in free stock when you fund your investment account within 30 days of opening. Ally Invest doesn’t have a welcome bonus but does have additional account options, such as margin trading.

Neither service offers crypto trading, which could be a drawback if you’re looking to diversify your investments.

SoFi investment accounts & financial advising services

• Active investing: This is SoFi’s self-directed investing option.
• Automated investing: If you don’t know where to start, this option creates a portfolio for you.
• Financial planners: For even more help, a financial planner can guide your investments.
• IPO investing: Get access to IPOs before they trade on an official exchange.
• Fractional shares: You can buy a part of a company’s share starting at $5.
• Exchange-traded funds (ETFs): Choose from SoFi’s custom mix of stocks and options.
• Retirement accounts: These include traditional, Roth, and Simplified Employee Pension individual retirement accounts (SEP IRAs).
• Option trading: Invest in a stock going up or down.

Ally investment accounts & financial advising services

• Self-directed trading: It’s $0 to start and there are no commission fees on most United States-listed securities.
• Automated investing: You’ll need a $100 minimum to create your robo portfolio.
• Personal advising: If you have $100,000 to invest, you can get a hands-on touch from a financial advisor.
• ETFs: Buy and sell thousands of ETFs.
• Margin accounts: Borrow cash from your portfolio to take advantage of other opportunities.
• Retirement accounts: Choose from traditional, Roth, or rollover IRAs.
• Options trading: Pay only $0.50 per contract.

SoFi vs. Ally: Banking experience and customer service

Customer reviews overwhelmingly favor SoFi, which has 4.5 stars on Trustpilot compared to Ally’s 1.2 stars. SoFi even ranks higher with the Better Business Bureau (BBB), with an A+ rating, though it has 1.49 stars out of 5 from customers. Meanwhile, Ally has an A rating with 1.13 stars from customers.

Most customers praise how quick and easy it is to use SoFi, though admittedly, most of the reviews center around SoFi’s loan products. Ally reviews focus on poor customer service and a lack of resolution for their problems. 

*We’ve partnered with Allpoint to provide you with ATM access at any of the 55,000+ ATMs within the Allpoint network. You will not be charged a fee when using an in-network ATM, however, third-party fees incurred when using out-of-network ATMs are not subject to reimbursement. SoFi’s ATM policies are subject to change at our discretion at any time.

Other services offered

Ally and SoFi both offer other services, including credit cards, loans, and investment accounts. SoFi provides more types of home loans if you’re interested in purchasing property, but Ally excels at auto loan offerings. Additionally, SoFi offers small business banking, while Ally offers commercial banking services. 

Pros and cons of SoFi

Pros and cons of Ally

So, should you choose SoFi or Ally?

At the end of the day, both SoFi and Ally are extremely comparable banks. However, SoFi seems to have a slight edge when it comes to APYs, customer service, and welcome bonuses. That said, it doesn’t offer CDs or an MMA, but Ally does.

• Choose SoFi if: You value customer service, want the highest rates, have more than $250,000 to save, or want a welcome bonus.
• Choose Ally if: You want to open a CD or want extra help planning and managing your budget.
• Go with an alternative if: You want the option to visit a branch in person or deposit cash without paying a fee.

The takeaway

Whether you choose Ally or SoFi, both can be your all-in-one banking option thanks to their comprehensive offerings. That said, they are both online-only banks, so there are no brick-and-mortar branches for you to visit if you need help. Also, while these are two of the most well-known online banks, that doesn’t make them the best when it comes to rates and perks. Consider our list of the best online banks to learn about some of their competitors.

SoFi Checking & Savings

Member FDIC

APY	Up to 4.50%*
Minimum Balance Required to Earn APY	$0
Minimum Opening Deposit	$0
Monthly Maintenance Fee	None

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at SoFi

About

SoFi (which stands for Social Finance, Inc.) began as a student loan refinancing company and has since expanded into a broad financial services company that offers a range of products, including bank accounts, loans, investments, insurance, and more. SoFi operates primarily online and does not have physical branches.

Additional Details

*SoFi members with Direct Deposit or $5,000 or more in Qualifying Deposits during the 30-Day Evaluation Period can earn 4.50% 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 8/27/2024. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.

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Ally Bank

Checking accounts	No minimum requirements or maintenance fees
Savings accounts:	4.20% APY
Money market accounts (MMAs):	4.40% APY
Certificate of deposit (CD) rates:	4.50%

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Pros and Cons

Pros

• APY is higher than the national average
• Transparent pricing with no account balance minimums
• Offers credit cards, investment accounts, and loans
• Easy-to-use online portal

Cons

• Does not offer the highest rates available
• Online-only without any physical branches
• Outgoing domestic wires are charged a fee
• Cannot send outgoing international wires

Who is Ally Bank good for?

Ally is a leading online bank offering a range of deposit accounts with low fees and no account balance minimums. It offers higher APYs on its savings accounts when compared to national averages, making it a good choice for those needing a high-yield savings account without any minimums or maintenance fees. It also offers free checking accounts with access to a network of over 43,000 free ATMs. Ally Bank offers additional products, such as credit cards, brokerage accounts, and various loan types. Because of this, it’s also good for those who want their deposit accounts, investment accounts, and loans at the same bank.

Who shouldn’t use Ally Bank?

Ally is an online-only bank without any physical locations or the ability to make cash deposits. If you need branches with the ability to make cash deposits, then Ally Bank isn’t right for you. Furthermore, while it does offer some of the highest rates on its savings products, there may be other alternatives available with higher rates.

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