Ally Bank 1.25% savings .50 Moneymarket

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Rob5TCP
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Ally Bank 1.25% savings .50 Moneymarket

Post by Rob5TCP » Mon May 11, 2020 2:21 pm

As of this morning -- the Ally Savings account is down to 1.25% and the moneymarket is now .50%
If you can; check out the no penalty CD's as opposed to the savings accounts.
No penalty is still 1.4-1.5% depending on the deposit level.

Here is the notice from Ally

The Federal Reserve’s actions to calm this turbulence have impacted rates industrywide on products ranging from loans to savings accounts.

Because of this, the Annual Percentage Yield (APY) for your Online Savings Account is changing from 1.50% APY to 1.25% APY on all balance tiers, and the APY for your Money Market Account is changing from 0.75% APY to 0.50% APY on all balance tiers. Your new APYs are effective 5/12/2020 and will show online in your account details on 5/13/2020.

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anon_investor
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Re: Ally Bank 1.25% savings .50 Moneymarket

Post by anon_investor » Mon May 11, 2020 2:23 pm

Rob5TCP wrote:
Mon May 11, 2020 2:21 pm
As of this morning -- the Ally Savings account is down to 1.25% and the moneymarket is now .50%
If you can; check out the no penalty CD's as opposed to the savings accounts.
No penalty is still 1.4-1.5% depending on the deposit level.

Here is the notice from Ally

The Federal Reserve’s actions to calm this turbulence have impacted rates industrywide on products ranging from loans to savings accounts.

Because of this, the Annual Percentage Yield (APY) for your Online Savings Account is changing from 1.50% APY to 1.25% APY on all balance tiers, and the APY for your Money Market Account is changing from 0.75% APY to 0.50% APY on all balance tiers. Your new APYs are effective 5/12/2020 and will show online in your account details on 5/13/2020.
As expected. If it was like the last rate drop the no penalty CDs will also fall a little later.

Jack FFR1846
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Re: Ally Bank 1.25% savings .50 Moneymarket

Post by Jack FFR1846 » Mon May 11, 2020 3:03 pm

Interesting.

The rates page still shows 1.5%. Logging in, my rate is shown as 1.5%.
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terran
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Re: Ally Bank 1.25% savings .50 Moneymarket

Post by terran » Mon May 11, 2020 3:14 pm

Jack FFR1846 wrote:
Mon May 11, 2020 3:03 pm
The rates page still shows 1.5%. Logging in, my rate is shown as 1.5%.
I noticed the same. Can't say I'll be surprised if it drops.

stoptothink
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Re: Ally Bank 1.25% savings .50 Moneymarket

Post by stoptothink » Mon May 11, 2020 3:24 pm

terran wrote:
Mon May 11, 2020 3:14 pm
Jack FFR1846 wrote:
Mon May 11, 2020 3:03 pm
The rates page still shows 1.5%. Logging in, my rate is shown as 1.5%.
I noticed the same. Can't say I'll be surprised if it drops.
As does mine. As soon as I get notification it has dropped, I'm calling flagstar to get rid of my mortgage.

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anon_investor
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Re: Ally Bank 1.25% savings .50 Moneymarket

Post by anon_investor » Mon May 11, 2020 3:25 pm

stoptothink wrote:
Mon May 11, 2020 3:24 pm
terran wrote:
Mon May 11, 2020 3:14 pm
Jack FFR1846 wrote:
Mon May 11, 2020 3:03 pm
The rates page still shows 1.5%. Logging in, my rate is shown as 1.5%.
I noticed the same. Can't say I'll be surprised if it drops.
As does mine. As soon as I get notification it has dropped, I'm calling flagstar to get rid of my mortgage.
How low was your mortgage that 1.5% was better than paying extra for your mortgage :shock: .

stoptothink
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Re: Ally Bank 1.25% savings .50 Moneymarket

Post by stoptothink » Mon May 11, 2020 3:35 pm

anon_investor wrote:
Mon May 11, 2020 3:25 pm
stoptothink wrote:
Mon May 11, 2020 3:24 pm
terran wrote:
Mon May 11, 2020 3:14 pm
Jack FFR1846 wrote:
Mon May 11, 2020 3:03 pm
The rates page still shows 1.5%. Logging in, my rate is shown as 1.5%.
I noticed the same. Can't say I'll be surprised if it drops.
As does mine. As soon as I get notification it has dropped, I'm calling flagstar to get rid of my mortgage.
How low was your mortgage that 1.5% was better than paying extra for your mortgage :shock: .
I also am part of their recent promotion. I can't pay the whole thing off right now and still qualify for the promotion, but if the rate drops, the savings from the mortgage is going to about equal the cash from the promotion. When it is mathematically a wash, I'll just nix the mortgage and simplify things.

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GerryL
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Re: Ally Bank 1.25% savings .50 Moneymarket

Post by GerryL » Mon May 11, 2020 3:39 pm

Jack FFR1846 wrote:
Mon May 11, 2020 3:03 pm
Interesting.

The rates page still shows 1.5%. Logging in, my rate is shown as 1.5%.
From the email:
Your new APYs are effective 5/12/2020 and will show online in your account details on 5/13/2020.

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anon_investor
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Re: Ally Bank 1.25% savings .50 Moneymarket

Post by anon_investor » Mon May 11, 2020 3:42 pm

stoptothink wrote:
Mon May 11, 2020 3:35 pm
anon_investor wrote:
Mon May 11, 2020 3:25 pm
stoptothink wrote:
Mon May 11, 2020 3:24 pm
terran wrote:
Mon May 11, 2020 3:14 pm
Jack FFR1846 wrote:
Mon May 11, 2020 3:03 pm
The rates page still shows 1.5%. Logging in, my rate is shown as 1.5%.
I noticed the same. Can't say I'll be surprised if it drops.
As does mine. As soon as I get notification it has dropped, I'm calling flagstar to get rid of my mortgage.
How low was your mortgage that 1.5% was better than paying extra for your mortgage :shock: .
I also am part of their recent promotion. I can't pay the whole thing off right now and still qualify for the promotion, but if the rate drops, the savings from the mortgage is going to about equal the cash from the promotion. When it is mathematically a wash, I'll just nix the mortgage and simplify things.
Ah, I totally forgot about the 1% bonus. I think I got disqualified from the bonus this year because I withdrew money to buy I Bonds last month.

kaneohe
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Re: Ally Bank 1.25% savings .50 Moneymarket

Post by kaneohe » Mon May 11, 2020 3:56 pm

anon_investor wrote:
Mon May 11, 2020 2:23 pm
..................................................

As expected. If it was like the last rate drop the no penalty CDs will also fall a little later.
hope you're right (about the little later) . I have funds fleeing HYS drop from 1.5% to 1.3% to what I thought
was Ally 1.5% (but now 1.25%). Need a couple more days to get into NP CD.

SpaethCo
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Re: Ally Bank 1.25% savings .50 Moneymarket

Post by SpaethCo » Mon May 11, 2020 4:20 pm

kaneohe wrote:
Mon May 11, 2020 3:56 pm
hope you're right (about the little later) . I have funds fleeing HYS drop from 1.5% to 1.3% to what I thought
was Ally 1.5% (but now 1.25%). Need a couple more days to get into NP CD.
You can open the account right now with $0 and as long as the funds post before the 10 day guarantee window closes, you'll still get today's rate even if it drops. The CD "locks" after the first transfer in.

PatrickA5
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Re: Ally Bank 1.25% savings .50 Moneymarket

Post by PatrickA5 » Mon May 11, 2020 4:23 pm

That was quick! Just sent them my money last week (from Fidelity). I put most of it in the no penalty CD, so I'll get that 1.5% for at least 11 months. Still, better than the MM fund at Fidelity that was down to .4%. I wouldn't be surprised if even Ally's CD's end up under 1% eventually.

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anon_investor
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Re: Ally Bank 1.25% savings .50 Moneymarket

Post by anon_investor » Mon May 11, 2020 4:29 pm

SpaethCo wrote:
Mon May 11, 2020 4:20 pm
kaneohe wrote:
Mon May 11, 2020 3:56 pm
hope you're right (about the little later) . I have funds fleeing HYS drop from 1.5% to 1.3% to what I thought
was Ally 1.5% (but now 1.25%). Need a couple more days to get into NP CD.
You can open the account right now with $0 and as long as the funds post before the 10 day guarantee window closes, you'll still get today's rate even if it drops. The CD "locks" after the first transfer in.
+1 definitely do this.

MotoTrojan
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Re: Ally Bank 1.25% savings .50 Moneymarket

Post by MotoTrojan » Mon May 11, 2020 4:30 pm

I plan to use ICSH for ease and similar yields to those being discussed here.

kaneohe
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Re: Ally Bank 1.25% savings .50 Moneymarket

Post by kaneohe » Mon May 11, 2020 6:16 pm

anon_investor wrote:
Mon May 11, 2020 4:29 pm
SpaethCo wrote:
Mon May 11, 2020 4:20 pm
kaneohe wrote:
Mon May 11, 2020 3:56 pm
hope you're right (about the little later) . I have funds fleeing HYS drop from 1.5% to 1.3% to what I thought
was Ally 1.5% (but now 1.25%). Need a couple more days to get into NP CD.
You can open the account right now with $0 and as long as the funds post before the 10 day guarantee window closes, you'll still get today's rate even if it drops. The CD "locks" after the first transfer in.
+1 definitely do this.
brilliant idea, thanks :sharebeer Thanks! done.

Gnirk
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Re: Ally Bank 1.25% savings .50 Moneymarket

Post by Gnirk » Mon May 11, 2020 6:31 pm

Jack FFR1846 wrote:
Mon May 11, 2020 3:03 pm
Interesting.

The rates page still shows 1.5%. Logging in, my rate is shown as 1.5%.
As does mine. However, I received the same email notification about the rate change to 1.25% effective 5/12/2020 about an hour ago. :annoyed

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whodidntante
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Re: Ally Bank 1.25% savings .50 Moneymarket

Post by whodidntante » Mon May 11, 2020 6:35 pm

Just think of the tax savings!

tenkuky
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Re: Ally Bank 1.25% savings .50 Moneymarket

Post by tenkuky » Mon May 11, 2020 7:05 pm

whodidntante wrote:
Mon May 11, 2020 6:35 pm
Just think of the tax savings!
Having just done my taxes this weekend, I can confidently state you are right, with the lousy rates and the lower bond yields and the likely reduced dividends, I will have much less 1099 numbers in 2020 and so, yay, less tax (both overall and NIIT). OTOH, :annoyed

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anon_investor
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Re: Ally Bank 1.25% savings .50 Moneymarket

Post by anon_investor » Mon May 11, 2020 7:37 pm

tenkuky wrote:
Mon May 11, 2020 7:05 pm
whodidntante wrote:
Mon May 11, 2020 6:35 pm
Just think of the tax savings!
Having just done my taxes this weekend, I can confidently state you are right, with the lousy rates and the lower bond yields and the likely reduced dividends, I will have much less 1099 numbers in 2020 and so, yay, less tax (both overall and NIIT). OTOH, :annoyed
Still better than T bills... remember when those paid more than HYS...

NewMoneyMustBeSmart
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Re: Ally Bank 1.25% savings .50 Moneymarket

Post by NewMoneyMustBeSmart » Mon May 11, 2020 10:42 pm

Rob5TCP wrote:
Mon May 11, 2020 2:21 pm
As of this morning -- the Ally Savings account is down to 1.25% and the moneymarket is now .50%
If you can; check out the no penalty CD's as opposed to the savings accounts.
No penalty is still 1.4-1.5% depending on the deposit level.
I want to share something with folks that may be interesting.

You don't need the money in Ally to lock the rate. You simply have to start the process to open the CD.

If you want to put money into the No Penalty ("NP") Certificate of Deposit; you can open it now - before rates (may) go down. You then have a grace period to actually fund the NP CD which in my experience is much longer than it takes to get money moved around to go in the NP CD.
-- | Few are those who see with their own eyes and feel with their own hearts - Einstein

Tamales
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Re: Ally Bank 1.25% savings .50 Moneymarket

Post by Tamales » Tue May 12, 2020 8:07 am

NP CD now shows as 1.30%

radiowave
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Re: Ally Bank 1.25% savings .50 Moneymarket

Post by radiowave » Tue May 12, 2020 8:09 am

Tamales wrote:
Tue May 12, 2020 8:07 am
NP CD now shows as 1.30%
I was able to get 1.45% NP CD last night after I got the email. I give Ally credit for letting customers know ahead of time about the rate decrease.
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ImmigrantSaver
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Re: Ally Bank 1.25% savings .50 Moneymarket

Post by ImmigrantSaver » Tue May 12, 2020 9:23 am

I don't have an Ally account, but both of my Barclays savings and Capital one 360 showed drops in the CD rates over the past few days, while savings rates are the same. Now 5Y CD is actually 10 basis point lower than savings account. Are they trying to discourage us to buy CDS because they expect the rate to go even lower? In that case does it make more sense to actually lock the current 5Y CD rate even if it's lower? In case the rates go even lower and stay there for a long time.. :confused :confused :confused

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Rob5TCP
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Re: Ally Bank 1.25% savings .50 Moneymarket

Post by Rob5TCP » Tue May 12, 2020 3:09 pm

Marcus NP is still 7 month 1.55% - though that will probably change soon.
Their CD's of 1-4 years are still 1.6% but with a 270 day EWP.
Their 5/6 year are still 1.65% with 365 day EWP.

Plus you can make additions to your CD for up to 30 days after it is opened.

You have 30 days following the day you open your CD account to fully fund your CD. You cannot deposit additional funds into your CD account after it has been open for more than 30 days

RIMDBogle
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Re: Ally Bank 1.25% savings .50 Moneymarket

Post by RIMDBogle » Tue May 12, 2020 8:30 pm

Are positions in ICASH, BILL better than Ally rates ?

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anon_investor
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Re: Ally Bank 1.25% savings .50 Moneymarket

Post by anon_investor » Tue May 12, 2020 9:36 pm

RIMDBogle wrote:
Tue May 12, 2020 8:30 pm
Are positions in ICASH, BILL better than Ally rates ?
Since BIL holds 1-3 month T-Bills, its yield has dropped off drastically, with a current 30 day SEC yield of 0.09%...

ICSH has a current 30 day SEC yield of 1.67%, so it does pay more, but it is not without risk to principal.

tomd37
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Re: Ally Bank 1.25% savings .50 Moneymarket

Post by tomd37 » Tue May 12, 2020 10:09 pm

I have noticed two drops in certificate and high-yield savings accounts rates at the banks/credit union I deal with lately. I have a one-year ladder of certificates expiring each month. Had an opportunity in March to open a 17-month add-on certificate with an APY of 2.25% up to $75K so I opened one for myself and spouse. Did not open them for $75K but now they give me more opportunities! :dollar
Tom D.

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