Hey everyone, I’m a student trying to start saving for college. I’ve noticed that Ally has a high APY for savings, but Capital One’s APY is just 0.05% higher. I’m cautious though because Capital One is a bank and not a credit union. I feel like credit unions may have fewer fees and be more member-friendly, while banks seem more focused on making profits. What are your thoughts or experiences?
Honestly, both of them are focused on profit, no doubt about that.
That said, I’d still lean towards a credit union if you can. Having a physical branch to go to can be helpful, especially for certain services. But if this isn’t going to be your main account, maybe look into Citi too, since their online banking features are really strong.
I’ve been with Ally for about 5 years now. The rates go up and down, but they’re always pretty competitive. I use it for my emergency fund, and it’s been a good experience. I make a little bit of money off the interest each month.
Just remember, interest rates could drop in the next year or two.
A bank offering a higher rate today might not be on top tomorrow.
I’ve used Ally since I could open my own account. Over the years, it’s only gotten better. No complaints!
Capital One’s rate is 4.25% APY right now, which is a bit higher than Ally’s 4.20%. Neither has a minimum deposit or monthly fees. Ally has awesome customer service and helpful savings tools. But Capital One has more ATMs and physical locations if you need in-person help. They also have cafes in some cities, which is pretty cool. As for CDs, Ally’s 1-year CD offers 4.50%, while Capital One’s is at 4.25%. Just make sure to check sites like Bankrate regularly because rates can change quickly.
Wait, do you mean Ally Bank or Alliant CU?
Ally’s savings APY is 4.20%, while Alliant Credit Union offers 3.1%. Capital One’s is currently 4.25%. In my experience, Ally adjusts its rates pretty quickly to stay competitive. They also have big transfer limits and support things like recurring Zelle transfers. Alliant is more niche but offers solid credit card rewards. As for Capital One, their savings rate is great, but their money market account is still only about 1% APY.