Ally Bank - Is this a safe/best place to stash some cash?

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fishandgolf
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Ally Bank - Is this a safe/best place to stash some cash?

Post by fishandgolf » Thu Jan 05, 2017 6:09 pm

I'm relatively new to this site and have much to learn about investing via the Boglehead method.

I have been reading a number of posts recently and have seen numerous comments about Ally Bank. My wife and I have ~$50K in available cash that we've been considering putting into CD's....perhaps in $10K increments. I have looked at local banks and their rates are pathetic i.e.,1 year @ 0.20%., 18 -24 months are not much better and their penalties are aggressive.

I've checked Ally's website and their CD's are much more appealing. However, my wife is super, Xtra super ultra conservative and if I suggested that we consider Ally Bank....her first reaction will be ABSOLUTELY NOT! She might even threaten to divorce me. :confused

I have all of my retirement investments with Vanguard....technically it's my $ so she really doesn't have a whole lot to say about it (of course...legally it's both of our $). The cash on the other hand is her little stash and she is very protective...but would go along with CD's....so long as it's safe....really safe. Would consider 1 year or 18 months. This $, by the way, is not from emergency fund.....we've got that covered.

Here is my question...perhaps a dumb one: :?:

What has your experience been with Ally Bank? I presume it's a safe and reliable place otherwise you guys would not be talking about it...right? Would that be a safe place to put the $50K? Perhaps you have other suggestions?

I thank you in advance for your comments.

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Toons
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Re: Ally Bank - Is this a safe/best place to stash some cash?

Post by Toons » Thu Jan 05, 2017 6:11 pm

Here ya go
Prior Thread :happy
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FelixTheCat
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Re: Ally Bank - Is this a safe/best place to stash some cash?

Post by FelixTheCat » Thu Jan 05, 2017 6:13 pm

Straight from Ally's website
Your deposits are insured by the FDIC up to the maximum allowed by law.
I have Ally. Great bank. Highly recommend them.
Felix is a wonderful, wonderful cat.

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Re: Ally Bank - Is this a safe/best place to stash some cash?

Post by jeff1949 » Thu Jan 05, 2017 6:26 pm

FelixTheCat wrote:Straight from Ally's website
Your deposits are insured by the FDIC up to the maximum allowed by law.
I have Ally. Great bank. Highly recommend them.
+1 :sharebeer

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Re: Ally Bank - Is this a safe/best place to stash some cash?

Post by GerryL » Thu Jan 05, 2017 6:34 pm

When I got my severance package 2+ years ago, I put $50k in Ally in 3 CDs. Very happy with them. Round the clock live-people service. When I made a mistake trying to transfer some money from my credit union to Ally, I called and they helped me fix it right away. Before going to Europe last year I opened a money market at Ally so I could use their debit card to get cash from a local ATM.

My first experience using an online-only bank and I am very satisfied. And I was dubious before I took the plunge.

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Re: Ally Bank - Is this a safe/best place to stash some cash?

Post by MindTheGAAP » Thu Jan 05, 2017 6:55 pm

jeff1949 wrote:
FelixTheCat wrote:Straight from Ally's website
Your deposits are insured by the FDIC up to the maximum allowed by law.
I have Ally. Great bank. Highly recommend them.
+1 :sharebeer
+2 :sharebeer
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Re: Ally Bank - Is this a safe/best place to stash some cash?

Post by fishandgolf » Thu Jan 05, 2017 7:32 pm

Thank you everyone for your positive comments of Ally. Anyone out there have issues with Ally? I appreciate the five responders....but has any one out there have had anything less than positive experiences with Ally?

Who uses Ally as their primary bank? My wife does all the bill paying and prefers online. Also, uses mobile deposit frequently...... I might consider suggesting to her that Ally could be our primary bank....... :confused . This may take a bit of convincing though......

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Re: Ally Bank - Is this a safe/best place to stash some cash?

Post by runner9 » Thu Jan 05, 2017 7:38 pm

We use Ally as our ONLY bank. Only issue is depositing cash, can only do it via getting a money order and mailing it in. I use the e-deposit on my phone about once a week, no issues at all. Really like the convenience of e-check and of using any ATM. Much better rates, convenience and service than our last brick and mortar bank.

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Re: Ally Bank - Is this a safe/best place to stash some cash?

Post by radiowave » Thu Jan 05, 2017 8:14 pm

I cannot speak specifically about Ally but can provide some feedback regarding online vs. brick and mortar banks. First, most online banks have no minimum balances, provide competitive savings rates around 1.0%, easy check deposits from your smart phone, and excellent phone/online chat services - Ally is 24/7. Some have competitive rewards credit cards like Discover and Capital One and easy access to rewards dollars. My brick and mortar bank requires a $1,500 balance minimum or they charge $25, savings rate of about 0.1% (and not much better for their CDs). A good rate rewards card at my B&M bank requires substantial assets to be at the bank or investment center ($100K or more). I had a local B&M bank that was charging me $12/mo for NOT using their bill pay. Needless to say I'm not banking with them any more (I do miss their free donuts). . On the plus side as mentioned above, I can take my $50+ bag of coins to the local branch and they deposit it for me in my remaining B&M bank.

You can link accounts via ACH from any online bank as well as most B&M banks. I've never had any problems with moving money or electronically depositing money online and feel as safe as B&M banks.

I can understand your wife's concerns but if you keep good records, online banks are just as safe and are FDIC insured as B&M banks. You'll get better return for your money and the online access is good - caveat about being careful with passwords, documents, not using public wifi, etc.

The only reason I keep my old B&M bank is because I have a long credit history there and it's convenient.
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Re: Ally Bank - Is this a safe/best place to stash some cash?

Post by Leif » Thu Jan 05, 2017 8:16 pm

I have issues. I experienced bad customer service. I wanted to make a change to an account I was setting up. They refused. I asked them to cancel the account. They refused. So, I said great, you can keep the account open forever, but I'm not going to put a penny into the account. I never did. Probably the account is still open.

I set up an account with Synchrony Bank.

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Re: Ally Bank - Is this a safe/best place to stash some cash?

Post by Crimsontide » Thu Jan 05, 2017 8:27 pm

Ally is our primary bank. We do all our checking (which is really only one or two transactions a month to pay off the Quicksilver card and an occasional non recurring expense), have some CDs, savings and MM accounts as well. They have excellent customer service and are especially nuts about your account security.

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Re: Ally Bank - Is this a safe/best place to stash some cash?

Post by Crimsontide » Thu Jan 05, 2017 8:30 pm

runner9 wrote:We use Ally as our ONLY bank. Only issue is depositing cash, can only do it via getting a money order and mailing it in. I use the e-deposit on my phone about once a week, no issues at all. Really like the convenience of e-check and of using any ATM. Much better rates, convenience and service than our last brick and mortar bank.
+1, I forgot to mention the e-deposit feature in my reply, love the convenience of being able to deposit a check from my iPad or phone...

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Re: Ally Bank - Is this a safe/best place to stash some cash?

Post by Jack FFR1846 » Thu Jan 05, 2017 8:36 pm

Here's what you do. Go to the Redneck Bank homepage (no, I'm not making that up), here:
https://redneck.bank/

Upper right, hit the little speaker icon, turn up the volume on your computer and then hover the pointer over the horse. Make sure your wife hears it. Tell her that this is your alternative. Hover over the other things (outhouse, sign, neon).

Full disclosure, I have accounts at both Ally (1% savings) and Redneck (1.25% Megamoney account up to $35k).
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Re: Ally Bank - Is this a safe/best place to stash some cash?

Post by BogleMelon » Thu Jan 05, 2017 8:48 pm

What makes the local and big banks safe is that they are insured by FDIC. The same FDIC will be insuring your money in Ally too, so there is no reason to think that Ally is less safer.
Also they have one physical location (forgot the state), but that is their office. Again it is a legitimate U.S. business.
Does your wife trust paypal? If yes, has she ever see any paypal branches nearby?
Does your wife trust airline tickets and she feels ok to buy one when needed? knowing that these tickets are now in a digital form only and no hard copies exist anymore?
Does your wife is Ok with owning mutual funds or stocks? knowing that they exist in a digital form only and again no hard copies or certificate of ownership she can obtain?

I have a saving account with Ally, they are good, no issues at all with money in or out.

As there is a smart phone and a smart car, there is also a smart bank, and I consider online only banks the smart version of banks.
"One of the funny things about stock market, every time one is buying another is selling, and both think they are astute" - William Feather

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Re: Ally Bank - Is this a safe/best place to stash some cash?

Post by rattlenap » Thu Jan 05, 2017 9:19 pm

My question would be is Ally Bank as stable as say Wells Fargo? Can it withstand a market crisis along the lines of what happened in 2008-2009? What do you think?

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Re: Ally Bank - Is this a safe/best place to stash some cash?

Post by Phineas J. Whoopee » Thu Jan 05, 2017 9:24 pm

rattlenap wrote:My question would be is Ally Bank as stable as say Wells Fargo? Can it withstand a market crisis along the lines of what happened in 2008-2009? What do you think?
With respect to FDIC-insured deposits? Yes, absolutely.

Or were you asking about something else?

PJW

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Re: Ally Bank - Is this a safe/best place to stash some cash?

Post by Glamdring56 » Thu Jan 05, 2017 9:33 pm

Wasn't Ally originally owned by GM? Didn't' it eventually no up largely owned by the UAW and/or trusts admistered ny the UAW?


I would like to open an account at Ally but am not enthused to do anything that may help the UAW.

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Re: Ally Bank - Is this a safe/best place to stash some cash?

Post by rattlenap » Thu Jan 05, 2017 9:33 pm

Phineas J. Whoopee wrote:
rattlenap wrote:My question would be is Ally Bank as stable as say Wells Fargo? Can it withstand a market crisis along the lines of what happened in 2008-2009? What do you think?
With respect to FDIC-insured deposits? Yes, absolutely.

Or were you asking about something else?

PJW
Yes, I was asking something else. Regardless of whether your deposits are insured by the FDIC. If a repeat of 08-09 occurred, will Ally Bank become insolvent is what I am wondering? Can it whether out a storm like that along the lines of Wells Fargo?

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Re: Ally Bank - Is this a safe/best place to stash some cash?

Post by oldcomputerguy » Thu Jan 05, 2017 9:37 pm

To the OP, two things: (1) I have my emergency fund there and have no qualms. (2) Happy Wife, Happy Life.
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Re: Ally Bank - Is this a safe/best place to stash some cash?

Post by Phineas J. Whoopee » Thu Jan 05, 2017 9:40 pm

rattlenap wrote:
Phineas J. Whoopee wrote:
rattlenap wrote:My question would be is Ally Bank as stable as say Wells Fargo? Can it withstand a market crisis along the lines of what happened in 2008-2009? What do you think?
With respect to FDIC-insured deposits? Yes, absolutely.

Or were you asking about something else?

PJW
Yes, I was asking something else. Regardless of whether your deposits are insured by the FDIC. If a repeat of 08-09 occurred, will Ally Bank become insolvent is what I am wondering? Can it whether out a storm like that along the lines of Wells Fargo?
Ally Bank, then called GMAC Bank, sailed through without problems. Its parent company Ally Financial, then somewhat different and called General Motors Acceptance Corporation, did encounter financial difficulty, but the FDIC and other regulators look very badly on a parent raiding its owned bank for the purpose of making the FDIC cover its other business losses.

If you're asking whether General Motors Acceptance Corporation was good and moral and pure, only you can answer to your own satisfaction.

Insured deposits at GMAC Bank were never at risk, any more than insurance contracts from A(merican)I(nternational)G(roup)'s insurance subsidiaries were. That doesn't mean you have to like AIG or Ally Financial.

PJW

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Re: Ally Bank - Is this a safe/best place to stash some cash?

Post by Phineas J. Whoopee » Thu Jan 05, 2017 9:43 pm

Glamdring56 wrote:Wasn't Ally originally owned by GM? Didn't' it eventually no up largely owned by the UAW and/or trusts admistered ny the UAW?


I would like to open an account at Ally but am not enthused to do anything that may help the UAW.
The United Auto Workers may well own some shares in Ally Financial, like they may in any other corporation.

Part of the rescue of General Motors was the separation from it of General Motors Acceptance Corporation, GMAC.

Only you can decide whether Ally Bank, Ally Financial, GMAC, the UAW, or any other labor union is good and moral and pure. If you object to Ally Bank on those grounds you certainly have the right, and perhaps the obligation, to discourage others from doing business with them. Nobody disputes that.

PJW
Last edited by Phineas J. Whoopee on Thu Jan 05, 2017 9:49 pm, edited 1 time in total.

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Re: Ally Bank - Is this a safe/best place to stash some cash?

Post by Rainmaker41 » Thu Jan 05, 2017 9:44 pm

Back in 2015 I opened an Ally Online Savings account as a place to stash some cash at 1% APY. I kept most 'normal' banking functions through a credit union... that is admittedly in another state, so I do everything online already. I've been pretty happy with them. There have been very occasional login issues, site maintenance, etc. but no more than what I've encountered at my credit union or any other comparable account/service I can think of. Bonus: free anti-virus software for a Windows or Mac computer.

I recently opened an Ally Checking account, which will take over most typical duties during the course of 2017. Fiancee and I plan to merge all* banking into the Ally accounts (which will become joint) after the wedding later this year.

*We will each maintain token his/hers brick-and-mortar accounts for surprises and emergency use.
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Re: Ally Bank - Is this a safe/best place to stash some cash?

Post by whodidntante » Thu Jan 05, 2017 9:56 pm

Why does your wife believe that Ally Bank is risky? Worst case is that you lose some interest unless you keep the family jewels there.

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Re: Ally Bank - Is this a safe/best place to stash some cash?

Post by Kevin M » Thu Jan 05, 2017 10:03 pm

Have used Ally Bank as my "hub" bank for some years now. Great for that purpose. Easy transfers, easy to set up accounts, no minimums, high transfer limits, etc. Just used them to wire funds to close on a house purchase, and very smooth. All Vanguard dividends and sales proceeds generally go to one of my Ally accounts (I have a bunch for different purposes). All bills get paid from an Ally account.

Used them in the past for CDs, but their rates have not been highly competitive the last few years, so I've been going elsewhere for CDs. I had a bunch of 5-year CDs there that have matured, and proceeds have been transferred to other banks or credit unions for better rates.

I personally don't mess around with 1-year or 2-year CDs, but go for 5-year or 7-year CDs with low early withdrawal penalties (EWPs). Generally you earn more after one or two years even after the EWP this way, and even more if you don't do an early withdrawal. Recent CDs were 7-year at 3% and 5-year at 2.7%.

Big CD fan. Have over a thousand Bogleheads posts on CDs per this Google search: kevin m cd site:bogleheads.org/. Also lots of blog posts on CDs over the years (click Contact -> website on the right if interested).

I simply don't worry about failure as in 2008. FDIC insurance covers it, but if you're concerned, look for strong health rating, and/or just move somewhere else if things start going down the toilet again. In the meantime, Ally is great as a hub bank, but not the best for CDs. Typically best CDs not available from the best candidates for a "main" bank--at least not per my criteria. I have accounts at many banks and credit unions, so have good comparisons by which to judge.

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Re: Ally Bank - Is this a safe/best place to stash some cash?

Post by Phineas J. Whoopee » Thu Jan 05, 2017 10:34 pm

whodidntante wrote:Why does your wife believe that Ally Bank is risky? Worst case is that you lose some interest unless you keep the family jewels there.
The FDIC guarantees interest earned through the date of bank failure, as long as the total deposit including accrued interest does not exceed the insured limit.
PJW

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Re: Ally Bank - Is this a safe/best place to stash some cash?

Post by hightower » Thu Jan 05, 2017 10:38 pm

I've been using Ally for years. I have several savings accounts and a checking account with them. I like being able to have different categories of savings accounts (home improvement, vacations, emergency fund, etc). The vast majority of my banking is done online through Ally. It's super easy to deposit checks online now too. Just take a pic with your phone and upload it. They reimburse you for all ATM fees. I see no need for a brick and mortar bank anymore. I haven't actually been to a bank in years.

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Re: Ally Bank - Is this a safe/best place to stash some cash?

Post by runner9 » Thu Jan 05, 2017 10:42 pm

I see from another post that you holdings At Vanguard. What does your wife think of then? Neither has physical locations, only one is FDIC insured.

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Re: Ally Bank - Is this a safe/best place to stash some cash?

Post by Miriam2 » Thu Jan 05, 2017 11:05 pm

Jack FFR1846 wrote:Here's what you do. Go to the Redneck Bank homepage (no, I'm not making that up), here:
https://redneck.bank/

Upper right, hit the little speaker icon, turn up the volume on your computer and then hover the pointer over the horse. Make sure your wife hears it. Tell her that this is your alternative. Hover over the other things (outhouse, sign, neon).

Full disclosure, I have accounts at both Ally (1% savings) and Redneck (1.25% Megamoney account up to $35k).
Jack! Is Redneck Bank :D for real?? Looks like it 8-) How long have you had your accounts there?

Actually, your suggestion to show this to OP's wife just might work. My daughter keeps raiding her Ally account (for retail therapy :shock: :annoyed ) and says "Ally is so nice on the phone," so I'm thinking I could just "disappear" her account to a bank she would be embarrassed to call or access :P

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Re: Ally Bank - Is this a safe/best place to stash some cash?

Post by djheini » Fri Jan 06, 2017 1:06 am

fishandgolf wrote:Thank you everyone for your positive comments of Ally. Anyone out there have issues with Ally? I appreciate the five responders....but has any one out there have had anything less than positive experiences with Ally?
My bad experience with Ally was when I was trying to close (on a Friday morning) on my condo purchase, and needed to wire the money from my Ally account to my lawyer's account. Since we didn't know the exact amount until the day before closing, I faxed the wire request on Thursday morning to Ally, and got no response. Faxed it again after talking to them, and they still had no record, finally they gave me an email address to send it to. They acknowledged getting it before the day's cutoff, but it still didn't end up getting processed that day. After a couple more calls pestering them through the day, it finally went through at about 3pm on Friday. It was frustrating, but also isn't something I do with any regularity.

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Re: Ally Bank - Is this a safe/best place to stash some cash?

Post by blissed » Fri Jan 06, 2017 2:01 am

Ally is my primary account. I have my own savings/checking account. My wife also has her own savings/checking account. We then also hold joint accounts for FDIC insurance and those odd situations where we receive payments made out to both of us.

Never had a problem, although it was a bit annoying to need to wire money via a fax request. I submitted feedback, and 6 months later (probably due to feedback from others as well) they introduced a feature to initiate wire transfers online. This gives all the benefits of email confirmations, fast turnarounds, etc. Now I can wire money within a few business hours.

Ally has a lot of great perks -- $10/mo. reimbursement for non-Ally ATMs, check cashing via mobile app, great interest rates, automatic bill payments, and automatic overdraft protection. I recommend it to everyone looking for a bank, and many folks I've referred have switched to Ally as their primary as well.

The only risk I see is if you have more than the FDIC limit in your primary bank ($250,000 for a single-owner account, $500,000 for a joint-owner account). However, if you each hold an individual account, that's $250,000 each for a total of $500,000, and then if you hold 1 joint account, that's another $500,000 for a total of $1M insured assets.

:sharebeer

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Re: Ally Bank - Is this a safe/best place to stash some cash?

Post by fishandgolf » Fri Jan 06, 2017 8:18 am

whodidntante wrote:Why does your wife believe that Ally Bank is risky? Worst case is that you lose some interest unless you keep the family jewels there.
As mentioned in OP, my wife is extremely conservative. I had to talk like a Philadelphia lawyer to get her to go along with opening CD's.....just her nature I guess.


Thank you all very much for the replies and the positive comments about Ally......might be enough to convince her to make the move! :moneybag :dollar

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Re: Ally Bank - Is this a safe/best place to stash some cash?

Post by Jack FFR1846 » Fri Jan 06, 2017 8:33 am

Miriam2 wrote:
Jack FFR1846 wrote:Here's what you do. Go to the Redneck Bank homepage (no, I'm not making that up), here:
https://redneck.bank/

Upper right, hit the little speaker icon, turn up the volume on your computer and then hover the pointer over the horse. Make sure your wife hears it. Tell her that this is your alternative. Hover over the other things (outhouse, sign, neon).

Full disclosure, I have accounts at both Ally (1% savings) and Redneck (1.25% Megamoney account up to $35k).
Jack! Is Redneck Bank :D for real?? Looks like it 8-) How long have you had your accounts there?

Actually, your suggestion to show this to OP's wife just might work. My daughter keeps raiding her Ally account (for retail therapy :shock: :annoyed ) and says "Ally is so nice on the phone," so I'm thinking I could just "disappear" her account to a bank she would be embarrassed to call or access :P
Redneck is indeed for real, and it makes bankin' funner! I've been there maybe 8 months (someone on Bogleheads posted about their 1.25% megamoney account and I couldn't resist). The only snag I've found is that I can't transfer when they aren't actually open (they're sort of like Vanguard, keeping bank hours only) and for some reason, I can only transfer (either way) a max of $1k. I plan way ahead so that it doesn't become an issue for me.
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Re: Ally Bank - Is this a safe/best place to stash some cash?

Post by fishandgolf » Fri Jan 06, 2017 9:49 am

Jack FFR1846 wrote:
Miriam2 wrote:
Jack FFR1846 wrote:Here's what you do. Go to the Redneck Bank homepage (no, I'm not making that up), here:
https://redneck.bank/

Upper right, hit the little speaker icon, turn up the volume on your computer and then hover the pointer over the horse. Make sure your wife hears it. Tell her that this is your alternative. Hover over the other things (outhouse, sign, neon).

Full disclosure, I have accounts at both Ally (1% savings) and Redneck (1.25% Megamoney account up to $35k).
Jack! Is Redneck Bank :D for real?? Looks like it 8-) How long have you had your accounts there?

Actually, your suggestion to show this to OP's wife just might work. My daughter keeps raiding her Ally account (for retail therapy :shock: :annoyed ) and says "Ally is so nice on the phone," so I'm thinking I could just "disappear" her account to a bank she would be embarrassed to call or access :P
Redneck is indeed for real, and it makes bankin' funner! I've been there maybe 8 months (someone on Bogleheads posted about their 1.25% megamoney account and I couldn't resist). The only snag I've found is that I can't transfer when they aren't actually open (they're sort of like Vanguard, keeping bank hours only) and for some reason, I can only transfer (either way) a max of $1k. I plan way ahead so that it doesn't become an issue for me.
I guess redneck bank if for real......it's where bankin's funner!

Thanks for sharing this Jack FFR1846

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Re: Ally Bank - Is this a safe/best place to stash some cash?

Post by jmetsrule » Fri Jan 06, 2017 9:57 am

I use the following formula for these types of decisions:

Rate of Return / Impact on Wife's State of Mind = My Decision.

I have to admit: on a couple of occasions, it has saved me from going overboard in my beginning stages of investing. I have since learned that simplicity in life is a great thing.

In all seriousness, it sounds like your wife is extremely nervous about money, even more so than my own. That can be difficult. Some people are just that way. My wife and I sat down and discussed ways that we could help satisfy both of our goals: preserving capital through extremely low-risk vehicles like savings accounts with interest; and investing for growth through stocks and bonds in our retirement accounts.

Online banks are fine. I use Capital One 360. However, I keep a Brick & Mortar for the occasional cash deposit and transfer over. This has proven to be a winning pair for us. Good luck to you.

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Re: Ally Bank - Is this a safe/best place to stash some cash?

Post by fishandgolf » Fri Jan 06, 2017 10:20 am

:oops: :oops: :oops: :oops: :oops: :oops: :oops: :oops: :oops:

Ok...so get this! After reading all the positive comments about Ally Bank, I'm feel'n pretty confident and ready to talk to my wife.......

So this is how the conversation goes........

Me:....... Honey, guess what, I found this really safe and reliable bank....the folks on Boglehead strongly recommend it....and their CD rates are better than those at our local bank.

Wife:......ok....so what is the name of this bank?

Me:.......It's called Ally Bank...formerly GMAC (she's a big Chevrolet fan so I thought throwing the GM thing in there would get me a few extra points)...many of the Boglehead folks use them....in fact a bunch of them use Ally as their only bank.

Wife:.......Ally Bank!....Oh......I know Ally Bank......Annie and Brad (daughter and her husband) use them.....it's the only bank they use....

:oops: :oops: :oops: :oops:

So... after 40 years of marriage, I still don't know my wife as well as I thought I did :?

....Ally Bank...... :greedy :moneybag here we come!!! :sharebeer :sharebeer

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Nicolas
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Re: Ally Bank - Is this a safe/best place to stash some cash?

Post by Nicolas » Fri Jan 06, 2017 6:26 pm

I would use Synchrony Bank instead of Ally Bank, and I do. It's just as safe and pays higher interest. The only disadvantage I can think of is the three day delay for an ACH transfer to go through. But as some have pointed out, this could be an advantage, in dissuading oneself from impulse buys.

Fortune
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Re: Ally Bank - Is this a safe/best place to stash some cash?

Post by Fortune » Fri Jan 06, 2017 6:34 pm

I use GSBank (Goldmansachs) https://www.gsbank.com/en.html.
Their interest rates are slightly better than Ally. Not faced any issues (touch wood)!

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Kevin M
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Re: Ally Bank - Is this a safe/best place to stash some cash?

Post by Kevin M » Fri Jan 06, 2017 9:52 pm

Nicolas wrote:I would use Synchrony Bank instead of Ally Bank, and I do. It's just as safe and pays higher interest. The only disadvantage I can think of is the three day delay for an ACH transfer to go through. But as some have pointed out, this could be an advantage, in dissuading oneself from impulse buys.
I have CDs at Synchrony Bank, although like Ally, their CD rates are currently not competitive with the best CD rates. And although Synchrony Bank (SB) does have a slightly higher interest rate on savings accounts, SB is not a full service bank like Ally. For example, SB does not have checking accounts.

This why I continue to use Ally Bank in preference to SB as my hub bank, but currently use neither for new CDs.

Kevin
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forkhorn
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Re: Ally Bank - Is this a safe/best place to stash some cash?

Post by forkhorn » Fri Jan 06, 2017 10:15 pm

fishandgolf wrote:Thank you everyone for your positive comments of Ally. Anyone out there have issues with Ally? ......
I use Ally as our emergency fund bank, and like them. However, I have had nothing but issues with setting up two-factor authentication with them. It has been a while, and I don't recall the details, but basically after several phone calls and messing with the website and different browsers I just gave up on two factor authentication with Ally. Maybe they've fixed it now, but when it first came out it was crazy buggy and the customer service reps had no idea how to do anything with it- everyone had a different answer, and every one was wrong. Maybe I'll look at it again....

But like I said, I like Ally overall and have used them for quite a few years now.

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Re: Ally Bank - Is this a safe/best place to stash some cash?

Post by quantumFlamethrower » Fri Jan 06, 2017 10:22 pm

Ally Bank has been wonderful to me. I also keep CDs at Synchrony Bank as they sometimes beat Ally's rate but the customer service and web/mobile experience is WAY better at Ally

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Re: Ally Bank - Is this a safe/best place to stash some cash?

Post by gmc4h232 » Fri Jan 06, 2017 10:43 pm

My wife wouldnt let me open a savings acct at Ally for the longest time. Very irrational. Fear of the unknown I guess.

I did it anyways.

She quieted down when I showed her we were making $50/month in interest vs $0.50/year at BB&T on our cash. Funny how that works.

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Re: Ally Bank - Is this a safe/best place to stash some cash?

Post by FreddieG » Sat Jan 07, 2017 10:52 am

I'm dumbfounded as to why she's concerned about a deposit insured by the FDIC, and well under the insured limit. Just because there is a physical Wells Fargo nearby, it doesn't mean that your money is physically there, either. All they do is push paper and give you free coffee there.

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Re: Ally Bank - Is this a safe/best place to stash some cash?

Post by dougp29 » Sat Jan 07, 2017 1:00 pm

I use a Money Market account with Ally and have had CDs and a checking account with each. No problems although one really needs to call during business hours. I've gotten call centers which really can't do anything at other hours.

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Re: Ally Bank - Is this a safe/best place to stash some cash?

Post by fishandgolf » Sat Jan 07, 2017 4:41 pm

Thanks again for all the replies. The biggest hurdle was getting my wife to agree.....that is no longer an issue.

I did check Ally and they have an 11 month CD at 0.87% with basically no penalty.

I will also check to see what Synchrony Bank CD rates are.

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Re: Ally Bank - Is this a safe/best place to stash some cash?

Post by gmc4h232 » Sat Jan 07, 2017 4:44 pm

fishandgolf wrote:I did check Ally and they have an 11 month CD at 0.87% with basically no penalty.
Their savings accounts pay 1%. Why would you opt for a CD that pays less? Am I missing something?

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fishandgolf
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Re: Ally Bank - Is this a safe/best place to stash some cash?

Post by fishandgolf » Sat Jan 07, 2017 5:30 pm

gmc4h232 wrote:
fishandgolf wrote:I did check Ally and they have an 11 month CD at 0.87% with basically no penalty.
Their savings accounts pay 1%. Why would you opt for a CD that pays less? Am I missing something?
Thanks for pointing that out gmc4h232.....I have not spent much time researching this but will do b/4 making any moves.

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Re: Ally Bank - Is this a safe/best place to stash some cash?

Post by Phineas J. Whoopee » Sat Jan 07, 2017 5:41 pm

gmc4h232 wrote:...
Their savings accounts pay 1%. Why would you opt for a CD that pays less? Am I missing something?
You may or may not find it convincing, but the savings account rate can change at any time. The CD rate is locked in for most of a year. Those facts are true even if somebody replies but interest rates, like housing prices, can only go up.
PJW

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Nicolas
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Re: Ally Bank - Is this a safe/best place to stash some cash?

Post by Nicolas » Sat Jan 07, 2017 6:00 pm

Kevin M wrote:
Nicolas wrote:I would use Synchrony Bank instead of Ally Bank, and I do. It's just as safe and pays higher interest. The only disadvantage I can think of is the three day delay for an ACH transfer to go through. But as some have pointed out, this could be an advantage, in dissuading oneself from impulse buys.
I have CDs at Synchrony Bank, although like Ally, their CD rates are currently not competitive with the best CD rates. And although Synchrony Bank (SB) does have a slightly higher interest rate on savings accounts, SB is not a full service bank like Ally. For example, SB does not have checking accounts.

This why I continue to use Ally Bank in preference to SB as my hub bank, but currently use neither for new CDs.

Kevin
I didn't want a checking account, only savings, and since Synchrony pays out more money than Ally does on savings accounts, and since it's FDIC insured, same as Ally, I went with Synchrony. All things being equal, I want the maximum money.

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Re: Ally Bank - Is this a safe/best place to stash some cash?

Post by Kevin M » Sat Jan 07, 2017 6:32 pm

Nicolas wrote: I didn't want a checking account, only savings, and since Synchrony pays out more money than Ally does on savings accounts, and since it's FDIC insured, same as Ally, I went with Synchrony. All things being equal, I want the maximum money.
Sure, why not. There are even higher rates out there: Savings Account Rates | DepositAccounts.com. The highest I see is 1.15%, so 10 basis points higher than SB, while SB is only 5 bps higher than Ally. But then maybe there's something else you wouldn't like about the banks with higher rates.

Also, everyone should at least be aware that you can earn 3% on up to $15K in a reward checking account (RCA). Yeah, there are a few monthly requirements to earn this rate, but some of us find it trivially easy to meet them. So $15K at 3% is the same as $45K at 1%. To put it another way, you could put $15K in the RCA and put $20K under your mattress and earn the same as putting $45K in a 1% savings account. Or you could put $15K in the RCA and $20K in a 1% savings account and earn about $650/year vs. earning about $450/year with the $45K in a 1% savings account.

Kevin
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rgs92
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Re: Ally Bank - Is this a safe/best place to stash some cash?

Post by rgs92 » Sat Jan 07, 2017 6:38 pm

PenFed is another fine alternative. They have attractive rates, in some cases better than Ally.
All of the online banks are 100% safe (Ally, Penfed, Synchrony, CapitalOne, GSBank). Just research who has the best rates for the way you want to handle your money (or loans). There are different money market/savings/checking/CD alternatives with each, so it pays to research these online.
There is nothing safer for money.

You may also consider Fidelity which has lots of CDs from various places that is also good as a 1-stop shop for your cash. Fidelity has checking also.
The Fidelity rates on a 5-year (2.3) beat CapOne (2.0) and Synchrony (1.8) and Ally (1.75).

Fidelity right now:
New issue FDIC insured CDs by top rates:
3mo 0.75
6mo 0.80
9mo 0.90
1yr 1.00
2yr 1.55
3yr 1.80
5yr 2.30
10yr 3.00
20yr 3.15
(There are also secondary CDs there with maybe even higher rates and just as safe.)
If you think Fidelity is unsafe you might as well keep cash in your mattress (and worry about burglars and fires and inflation).

Is your wife somehow nervous about technology or looking some strange media things with scary paranoid stories or talking to people with similar ideas?
I did have a friend once who would never use anything but paper checks to pay his bills, credit cards/utilities/etc. and I do know of others who won't use direct deposit for social security or other income payments because of this. I have seen many depositing/cashing social security checks at the bank.

If she is worried about someone hacking into the account, most (if not all) brick and mortar banks have online access too now, so they are just as vulnerable, and maybe more so since they may not be as sophisticated as the big online names. And I have never heard of this happening ever to my knowledge.

My older neighbor has no internet because of fears.

(I have used Ally and PenFed for years with no problems.)

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