Ally vs. Barclays Bank

Online-only bank accounts are increasingly popular, and it’s not hard to see why. They tend to offer better interest rates than typical banks because banks no longer have to pay the costs of brick-and-mortar locations. Two of the most popular online banks in the U.S. include Ally Bank and Barclays Bank. If you are weighing your options between Ally vs. Barclays Bank, this is what to consider.

If you need help creating a financial plan to reach your goals or prepare for retirement, consider speaking with a financial advisor.

What to Know About Ally Bank

Ally Bank is an online financial institution with very customer-friendly offerings. It offers interest rates that are among the highest available with 24/7 customer service and free use of all Allpoint ATMs.

Ally offers checking accounts, savings accounts and money market accounts, along with CDs and IRAs. It also has its own credit card. Ally also offers separate brokerage accounts with trading and a managed portfolio service through Ally Invest.

Banking accounts at Ally are FDIC-insured.

What to Know About Barclays Bank

Barclays Bank is a major banking institution based in the United Kingdom. In the US, however, they only offer online banking.

Barclays offers great interest rates on their online savings accounts and CDs. Their customer service is available 7 days a week, from 8 a.m. to 8 p.m. Eastern time. Your account is also always available online. However, Barclays does not offer any ATM access; to withdraw funds, you must transfer to a linked bank account.

Barclays accounts also carry FDIC insurance.

Ally vs. Barclays Bank: Accounts

In terms of accounts, Ally offers spending accounts, savings accounts, money market accounts and CDs; Barclays offers only savings accounts and CDs. Both Ally and Barclays offer access to your money via a linked bank account on their website.

However, Ally goes a step further by also allowing you to withdraw money from any of the more than 75,000 Allpoint ATMs in the U.S. Additionally, Ally reimburses up to $10 per billing cycle for fees charged by other ATMs. Barclays does not offer ATM access.

In addition, Ally participates with Zelle, so you can transfer money from your spending account with the Zelle app to friends and family in the US with a bank account. You cannot use Zelle to send money from your Barclays account.

	Ally Bank	Barclays Bank
Checking	Yes	No
Savings	Yes	Yes
Money Market	Yes	No
CDs	Yes	Yes

Ally Bank vs. Barclays Bank: Rates

Because they serve as online banks, both Ally and Barclays are able to offer some of the best rates available. Ally’s savings accounts come with 3.60% APY, regardless of your account balance. Barclays carries a slightly higher rate at up to 4.20% APY and also has no minimum balance requirement.

Ally offers interest on its checking account but at a much lower rate. For accounts with less than $15,000 daily balance, you earn 0.10% APY. If you maintain over $15,000 daily, you earn 0.25% APY.

Both banks offer CDs. To earn the high rates that come with CDs, you have to leave your money in place for months or even years at a time. For those worried about possibly needing access to their money, Ally offers no-penalty CDs that don’t charge a penalty for withdrawals before the maturity date.

To compare, this grid shows both banks’ CD offerings and rates. Ally tends to have higher rates for shorter-term CDs, while that gap closes for terms longer than a year. In a few cases, Ally’s rate is variable, depending on how much is in your account.

Ally vs. Barclays: CD Rates

CD Term	Ally	Barclays
3 Month	2.90%	N/A
6 Month	3.90%	3.80%
12 Month	3.85%	4.00%
18 Month	3.70%	3.25%
2 Year	3.50%	3.00%
3 Year	3.50%	3.00%
5 Year	3.50%	3.25%

Ally vs. Barclays Bank: Fees

Ally does not charge fees for most common services and transactions. There is no monthly maintenance fee, as well as no charge for ACH transfers, statement copies and standard checks. They also do not charge for issues like overdrafts, and you can make more than six deposits or withdrawals to a money market account in a statement cycle.

Barclays also does not charge a monthly maintenance fee or have minimum balance requirements. There’s also no charge for online transfers. Overdraft fees are among the more affordable at just $5.

Which Bank Is Better for Specific Needs?

If you prioritize cash access and a broader selection of account types, Ally Bank is likely a better fit. It offers spending accounts and money market accounts with Zelle integration, plus fee-free access to over 75,000 Allpoint ATMs and up to $10 reimbursed in ATM fees. These features make Ally more suitable for everyday banking, including ATM withdrawals and digital money transfers.

On the other hand, if you are mainly interested in high-yield savings or CDs and do not need ATM access, Barclays may suit you. It offers a slightly higher savings account APY and competitive CD rates, particularly on 12-month terms. However, the absence of checking accounts and ATM access means it’s better suited for savers who plan to hold funds long-term without frequent transactions.

For short-term CD rates, Ally tends to be stronger, especially with its No Penalty CD option. For longer-term savings with minimal access needs, Barclays provides slightly better rates in select cases. Choose Ally if you want more features and access or Barclays if maximizing yield is your primary goal.

Bottom Line

Which bank should you choose? It depends on your banking needs. If you want a bank that offers cash access, Ally is the clear choice. If you don’t care about being able to access your money, it comes down to which bank offers the best rate for the account you need. Barclays offers slightly higher rates on savings accounts, Ally wins on short-term CDs, and they’re about neck-and-neck on longer-term CDs. Figure out what account you’ll need and whether you value easy access to your money, and the decision should be clear.

Work with a financial advisor who can help you select the right banking solutions based on your needs.

Tips to Make Your Savings Go Further

Building a comprehensive financial plan can be a daunting task, but you don’t have to go it alone. A financial advisor can help you with all of your financial needs. 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 have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Ally and Barclays are both well ahead of traditional banks on interest rates. But even their high rates pace well below what you can earn in the stock market over the long term. Use our retirement calculator to see how much money you’ll need to retire, then consider which brokerage account can help you earn the rate of return to get there.