PerkStreet vs. Ally: the fight is on! Let’s review both of these online financial institutions and compare them apples to apples. You might be surprised by the results.
PerkStreet and Ally Benefits Compared
In order to compare PerkStreet and Ally Bank side by side, we’re going to look at the standard criteria:
- Cash back debit cards and how much you can earn.
- Cost to open an account.
- Minimum balance requirements.
- Interest rates.
- ATMs.
Let’s take it step by step looking at these standard banking features. Then, we’ll compare the two companies as if you’re a customer . . . and see who wins the match!
First, let’s look at the cash back debit card!
Cash Back Debit Cards
Ally and PerkStreet both have cash back debit cards, but they aren’t created equal. Each has their own payment structure and requirements.
PerkStreet offers the following:
- Earn 1% cash back on non-PIN debit card purchases if your checking balance is below $5,000.
- Earn 2% cash back on non-PIN debit card purchases if your checking balance is at $5,000 or above.
- Earn 5% cash back on non-PIN debit card purchases when you shop at recommended vendors (new vendors every month are announced).
As you shop, you will accumulate perks in a special section of the website where you can also redeem your perks. As you can see, there are several options for you to choose from.
But you will also be able to get music or coffee perks from iTunes or Starbucks. Simply choose if you prefer those perks and you can redeem your cash for those.
Ally offers the following:
PerkStreet isn’t the only one to offer cash back, however. Ally decided that they needed to compete and have specific offers that will entice customers to buy certain items or services.
Obviously, this isn’t as all-encompassing as PerkStreet’s offer (PerkStreet gives you cash back on every non-PIN purchase), but there is one benefit that stands out . . . .
Ally will put your cash back from offers directly into your account. No waiting to receive prepaid cards in the mail like you have to do with PerkStreet. Zero wait time!
Cost to Open an Account
PerkStreet requires at least $25 to open an account. Not very much.
Ally doesn’t require a minimum amount to open an account.
Simple as that!
Minimum Balance Requirements
As noted above, PerkStreet has a minimum balance requirement to get 2% cash back: $5,000. But they do not have a minimum balance requirement to maintain an open account.
PerkStreet does have an inactivity fee of $4.50 if you don’t use your account at least once a month. You won’t be assessed this fee if you: make a transaction with your debit card, write a check that clears the account, use online bill pay, initiate a withdrawal, or make a deposit to the account.
Ally does not advertise that they have a minimum balance requirement . . . at least I couldn’t find it! They say that there is no monthly maintenance fee.
Interest Rates
PerkStreet does not offer an interest rate for their checking account. However, for someone who spends $2,500 per month while maintaining $5,000 in their checking account, they will earn $600 per year in cash back. This simply blows away the competition . . . even those who offer interest on their checking accounts.
Let’s compare that with Ally. Ally does indeed offer an interest rate. Currently, on $5,000, they offer 0.40%. That’s $20 a year. PerkStreet wins this battle.
ATMs
After looking over Ally’s ATM policy, I have to say it rocks. Ally allows you to use any ATM you want. If the ATM is not in their network of free ATMs, then they will reimburse you the ATM fee at the end of your monthly statement period.
PerkStreet is still a good deal, but they don’t reimburse you ATM fees. That being said, they do offer 42,000 STARsf ATMs. That’s a lot. There’s a good chance you’ll be able to find an ATM near you.
Our Experience
Personally, we’ve never been with Ally before. But if we were to sign up, we’d do so because of the waved ATM fees and zero maintenance/inactivity fees. We’d also do so because Ally offers a variety of other financial products: CDs, Savings Accounts, and more. PerkStreet only currently offers a checking account, but they say that a PerkStreet Savings Account is on the way.
We have much more experience with PerkStreet, and although they do have an inactivity fee, we’ve never run into it. Even if we did, it would be worth keeping the PerkStreet checking account. Why? We estimate that we make over $550 per year from PerkStreet. That’s a lot of pizza . . . or a car insurance payment for those of you who are more financially responsible!
Remember, you have to do what’s in your best interest. Compare PerkStreet and Ally for yourself. Visit their websites at PerkStreet.com and Ally.com.
Have you been with either bank? Let us know in the comments what you think and help our readers make a decision for themselves!
! John wrote two articles for the book: "Budgeting for Groceries" and "How Grocery Stores Work."
{ 2 comments… read them below or add one }
We have been using Perkstreet for about 15 months and we have earned just over $900 in perks during that time! One thing I wanted to mention was that we saved our perks and cashed them out when we had $400 and I got an email from Perkstreet asking if they could deposit that money directly into my account instead of sending me 4 $100 Mastercards! I was shocked and so happy that it worked out this way. I don’t think this is something they advertise but it worked out even better than expected for us! I absolutely LOVE perkstreet and once they have savings accounts, I will have nothing bad to say about them!
Thanks for your comment Haley! Wow, you’re earning tons of perks. As you can see in our PerkStreet Review, we’re earning much less. I guess some people earn more! $900 is sweet!