Ally vs. Synchrony Review: Which Online Bank Is Right for You?

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Ally and Synchrony are two online-only banks with strong high-yield savings accounts, money market accounts, and CDs. So how do you decide which is the right choice for you?

We've compared individual Ally and Synchrony accounts so you can determine which accounts are better fits. We'll also assess each bank's trustworthiness for you to learn more about how the institutions respond to customer issues.

Pros and Cons of Ally

Pros and Cons of Synchrony

Ally vs. Synchrony Savings Account Comparisons

At their core, the Ally High Yield Savings Account and Synchrony High-Yield Savings Account are pretty much the same. Both high-yield savings accounts have a $0 minimum opening deposit, charge no monthly service fees, and pay similar interest rates. 

If you would like to easily withdraw money from your account, you might like Synchrony more than Ally. The Synchrony High-Yield Savings Account comes with an ATM card, so you'll be able to directly withdraw money from your account. At Ally, you'll have to take extra steps. You'll need to transfer money to another Ally account or an external bank account first, then withdraw money from that account.

You may prefer Ally over Synchrony if you prioritize savings tools, though. Ally has a savings tool called savings buckets. Savings buckets allow you to save for specific savings goals. You can assign labels for a goal — for example, "emergency savings" or "vacation" — and track your progress by setting a goal amount. 

Ally vs. Synchrony CD Comparisons

When it comes to CDs, Synchrony and Ally stand out for the same reasons.

The two online banks offer traditional CDs with high interest rates and $0 minimum opening deposits.

You'll also have a variety of CD types to choose from at either bank. Synchrony and Ally both have a no-penalty CD, which is a type of CD that let's you take out money from your account without facing an early withdrawal penalty. Both banks also offer CDs that can raise rates before a term ends (the Ally Raise Your Raise CDs and Synchrony Bump Up CD).

Choosing between these two banks may ultimately depend on which institution offers the higher interest rate for the type of CD that you want.

You'll also want to consider whether you have a preference on how you'll withdraw money from a CD. At Synchrony, you must call customer service to cash out your CD. Meanwhile, Ally lets you cash out your CD through online banking. You may log into your account and submit a transfer request under the tab "Manage CDs" up to one year before your CD matures.

Ally vs. Synchrony Money Market Account Comparisons

Ally and Synchrony have very similar money market accounts. Both money market accounts have $0 minimum opening deposits, zero monthly service fees, and paper checks/ATM card accessibility.

The only significant distinctions between the two accounts right now are the differences in interest rates and reimbursements of out-of-network ATM fees. The Ally Money Market Account currently pays Ally Money Market Account APY. In comparison, the Synchrony Money Market Account pays Synchrony Money Market Account APY.  Ally will also reimburse more in out-of-network ATM fees.

Ally vs. Synchrony Checking Account Comparisons

If you'd like to open a checking account, then you'll prefer Ally over Synchrony. Synchrony doesn't offer a checking account. 

The Ally Interest Checking Account is still a strong checking account, though. It doesn't charge monthly service fees or overdraft fees. The online bank also reimburses up to $10 in out-of-network ATM fees each month.

Ally vs. Synchrony: Which Bank is More Trustworthy?

Synchrony has been involved in a few public controversies. In 2023, Synchrony was required to pay $2.6 million in a settlement when accused of calling customers about bank accounts they didn't have. In 2021, the bank also was required to pay $3.5 million in a settlement when accused of making unreasonable phone calls to debtors living in California.

We also use ratings from the Better Business Bureau so you can see how a bank deals with customer issues. 

Ally received an A rating from the BBB because it has three unresolved complaints. Meanwhile, The Better Business Bureau has given Synchrony an A+ rating.

A good BBB rating isn't necessarily the be-all and end-all. Talk to current customers or read online customer reviews to see if a financial institution might be a good fit.

Ally vs. Synchrony: Frequently Asked Questions

Is Synchrony or Ally better? 

The best option for you will depend on which accounts you'd like to open. If you're planning to open a checking account, Ally will easily be the clear choice since Synchrony only has types of savings accounts.

Which bank, Synchrony or Ally, has the highest interest rate?

Right now, the Synchrony High-Yield Savings Account pays Synchrony High-Yield Savings Account APY, while the Ally Savings Account - Product Name Only pays Ally High Yield Savings Account APY. Synchrony has more competitive CD rates for more terms, but Ally's money market account pays more than Synchrony's money market account.