Terrible experience with Ally bank- buyer beware

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savemorelivebetter
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Terrible experience with Ally bank- buyer beware

Post by savemorelivebetter »

Like many on this forum, I have been a longtime customer of Ally bank and have used their services for several years. I had recommended them to many. But I can no longer recommend them after my terrible experience last week. We set up a closing date for our new home on Friday the 7th of August. The closing costs needed to be wired from my bank, which was Ally. The closing was set at 10 am. The wire request that was sent the previous day was not received. We kept calling and they said we have a huge backlog in the wire department and that they would 'expedite it'. Throughout the day, we were under siege from the realtors, closing agent and the buyer. Despite calling numerous times and "escalating" it, the money did not arrive. Ultimately at 3 pm, the closing agent said that closing would have to be delayed and we would not get the key till the transaction can vie completed. Our wells Fargo montage loan rate expired on Friday and we had to pay a penalty to extend it. The movers were scheduled to come in on Saturday. We lost our deposit with them.
The limit of $500 withdraws through ATM daily meant I could not withdraw cash from Ally to Wells Fargo to complete the transaction. :( :annoyed
When asked, they said that they cannot 'guarantee' that wires will be processed in one business day.
My Wells Fargo bank said they can wire funds in 30 minutes. Unfortunately, I did not have enough money for the down payment because I was trying to get a higher interest with Ally.
I cannot in good conscience recommend them any more.
For a $100,000 money market account, I earn $1000 in interest a year. Penny wise and pound foolish. :oops:
The agony, frustration and their downright poor services and difficulty in accessing cash for an emergency means that I will not longer use their services. :( :(
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KingRiggs
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Re: Terrible experience with Ally bank- buyer beware

Post by KingRiggs »

Sorry for your experience.

For such a life-significant transaction, I might suggest giving yourself a few more days of padding for the money to move where it needs to go. Giving up a few days' of interest is well worth it to avoid situations such as this.

Consider the penalties paid and the inconvenience a tuition payment to the School of Life and enjoy your new home!
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Jain82
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Re: Terrible experience with Ally bank- buyer beware

Post by Jain82 »

Many online only banks can afford to pay interest because they cut costs on staffing in many cases. You could have bad experience with any bank but I prefer to keep one month expenses or any major purchase in my local bank with easy ATM access instead of online saving account. It has cost me $50-$100 annually in lost interest but I prefer easy access to funds.

I hope you are able to close on Monday.
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9-5 Suited
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Re: Terrible experience with Ally bank- buyer beware

Post by 9-5 Suited »

That really sucks. You weren’t penny wise and pound foolish though. This is a very rare and unpredictable experience. You did everything right and had a terrible outcome.

It’s an example also of why I feel OK doing business with Bank of America for my non-investing banking needs. They’ve got their own issues to be sure, but I like that extra confidence that the basics will get done in timely fashion via MegaCorp traditional bank.
retired@55
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Re: Terrible experience with Ally bank- buyer beware

Post by retired@55 »

I also closed two of my Ally HYSAs recently for the same reason. In my experience (two separate times), wire requests initiated in the morning were not executed until late the following day or, in one case, the second day after the request. This is despite the language on the wire request screen that indicates same day processing if the request is received by a certain time.
NewMoneyMustBeSmart
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Re: Terrible experience with Ally bank- buyer beware

Post by NewMoneyMustBeSmart »

savemorelivebetter wrote: Sat Aug 15, 2020 8:31 am My Wells Fargo bank said they can wire funds in 30 minutes.
My experience is that WF cannot wire funds in 30 minutes. They can fill out the paperwork and submit it to the wire department in 30 min but the wire department generally does things 30-90 min after that. Still, 120 minutes is not bad.
-- | Few are those who see with their own eyes and feel with their own hearts - Einstein
smitcat
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Re: Terrible experience with Ally bank- buyer beware

Post by smitcat »

KingRiggs wrote: Sat Aug 15, 2020 8:35 am Sorry for your experience.

For such a life-significant transaction, I might suggest giving yourself a few more days of padding for the money to move where it needs to go. Giving up a few days' of interest is well worth it to avoid situations such as this.

Consider the penalties paid and the inconvenience a tuition payment to the School of Life and enjoy your new home!
Great answer - we have had this happen with a number of banks and credit unions, always leave extra time with transactions such as these.
neilpilot
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Re: Terrible experience with Ally bank- buyer beware

Post by neilpilot »

KingRiggs wrote: Sat Aug 15, 2020 8:35 am Sorry for your experience.

For such a life-significant transaction, I might suggest giving yourself a few more days of padding for the money to move where it needs to go. Giving up a few days' of interest is well worth it to avoid situations such as this.

Consider the penalties paid and the inconvenience a tuition payment to the School of Life and enjoy your new home!
+1

When I know I will need funds, I submit an ACH request to complete the transfer into my local bank 2-3 business days prior to my deadline. That way I can avoid a wire transfer and have 2+ days to go into emergency mode if the transfer doesn't occur. All of my scheduled ACH transfers have occurred without a hitch.
kimura king
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Re: Terrible experience with Ally bank- buyer beware

Post by kimura king »

sounds like a fun day
New Providence
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Re: Terrible experience with Ally bank- buyer beware

Post by New Providence »

savemorelivebetter wrote: Sat Aug 15, 2020 8:31 am For a $100,000 money market account, I earn $1000 in interest a year. Penny wise and pound foolish. :oops:

I'd assume that one of the reasons why they manage to pay a higher interest rate is by not hiring enough people and by not carrying sufficient cash.
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StevieG72
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Re: Terrible experience with Ally bank- buyer beware

Post by StevieG72 »

Wow! That is terrible service! I gave up on high yield savings many years ago.

I prefer Vanguard's Prime Money Market Fund (VMMXX) return beats Ally and one less account to manage.
Fools think their own way is right, but the wise listen to others.
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dodecahedron
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Re: Terrible experience with Ally bank- buyer beware

Post by dodecahedron »

Thanks for sharing this cautionary tale. I am truly sorry for what sounds like a very stressful and costly situation.

The lesson I would draw from this is not so much ¨Do not do business with Ally¨ but rather IF you have a large time-critical transaction like a real estate closing that calls for a significant sum of money it is best not to leave things until the last minute.

According to this site discussing speed generically (not specifically at Ally), most domestic wire transfers happen within three days but ¨Occasionally, there are delays.¨

Especially in these unprecedented COVID times with many critical staff who may be ill or in quarantine and unable to maintain and operate IT systems for secure financial operations, I could imagine issues like the OP´s cropping up at pretty much any bank, and it may be better to secure the needed funds by moving them to a reliable local brick & mortar bank well ahead of time and then getting a cashier´s check or certified check.
Last edited by dodecahedron on Sat Aug 15, 2020 8:54 am, edited 1 time in total.
CardioMD
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Re: Terrible experience with Ally bank- buyer beware

Post by CardioMD »

This really makes me appreciate USAA.
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anon_investor
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Re: Terrible experience with Ally bank- buyer beware

Post by anon_investor »

That is too bad. I have wired money from Ally multiple times (including large amounts for down payments). I have never had an issue getting to wire complete by at least the next business day (it does not always happen the same business day). That being said, a few times to avoid potential issues, I have transfered funds ahead of time from Ally to my local brick and mortar bank and physically gone in to get a certified check issue (I did this when I bought my car in cash from the dealer).
tibbitts
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Re: Terrible experience with Ally bank- buyer beware

Post by tibbitts »

StevieG72 wrote: Sat Aug 15, 2020 8:51 am Wow! That is terrible service! I gave up on high yield savings many years ago.

I prefer Vanguard's Prime Money Market Fund (VMMXX) return beats Ally and one less account to manage.
I don't see how you can possibly say that Prime's return comes anywhere close to an Ally savings account.
nix4me
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Re: Terrible experience with Ally bank- buyer beware

Post by nix4me »

StevieG72 wrote: Sat Aug 15, 2020 8:51 am Wow! That is terrible service! I gave up on high yield savings many years ago.

I prefer Vanguard's Prime Money Market Fund (VMMXX) return beats Ally and one less account to manage.
Well except for the fact that VMMXX is paying 10% of what Ally is right now...

But I agree, I keep my money consolidated best I can.
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HueyLD
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Re: Terrible experience with Ally bank- buyer beware

Post by HueyLD »

dodecahedron wrote: Sat Aug 15, 2020 8:52 am Thanks for sharing this cautionary tale. I am truly sorry for what sounds like a very stressful and costly situation.

The lesson I would draw from this is not so much ¨Do not do business with Ally¨ but rather IF you have a large time-critical transaction like a real estate closing that calls for a significant sum of money it is best not to leave things until the last minute.

According to this site discussing speed generically (not specifically at Ally), most domestic wire transfers happen within three days but ¨Occasionally, there are delays.¨

Especially in these unprecedented COVID times with many critical staff who may be ill or in quarantine and unable to maintain and operate IT systems for secure financial operations, I could imagine issues like the OP´s cropping up at pretty much any bank, and it may be better to secure the needed funds by moving them to a reliable local brick & mortar bank well ahead of time and then getting a cashier´s check or certified check.
+1. Very well said.
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StevieG72
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Re: Terrible experience with Ally bank- buyer beware

Post by StevieG72 »

tibbitts wrote: Sat Aug 15, 2020 9:02 am
StevieG72 wrote: Sat Aug 15, 2020 8:51 am Wow! That is terrible service! I gave up on high yield savings many years ago.

I prefer Vanguard's Prime Money Market Fund (VMMXX) return beats Ally and one less account to manage.
I don't see how you can possibly say that Prime's return comes anywhere close to an Ally savings account.
I am open to correction, but Ally is at .80% annually?

https://investor.vanguard.com/mutual-fu ... ance/vmmxx
Fools think their own way is right, but the wise listen to others.
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Re: Terrible experience with Ally bank- buyer beware

Post by dbr »

HueyLD wrote: Sat Aug 15, 2020 9:11 am
dodecahedron wrote: Sat Aug 15, 2020 8:52 am Thanks for sharing this cautionary tale. I am truly sorry for what sounds like a very stressful and costly situation.

The lesson I would draw from this is not so much ¨Do not do business with Ally¨ but rather IF you have a large time-critical transaction like a real estate closing that calls for a significant sum of money it is best not to leave things until the last minute.

According to this site discussing speed generically (not specifically at Ally), most domestic wire transfers happen within three days but ¨Occasionally, there are delays.¨

Especially in these unprecedented COVID times with many critical staff who may be ill or in quarantine and unable to maintain and operate IT systems for secure financial operations, I could imagine issues like the OP´s cropping up at pretty much any bank, and it may be better to secure the needed funds by moving them to a reliable local brick & mortar bank well ahead of time and then getting a cashier´s check or certified check.
+1. Very well said.
+2 I can't imagine depending on a wire transfer initiated the day before being counted on for a transaction like this.
Mako
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Re: Terrible experience with Ally bank- buyer beware

Post by Mako »

I wouldn’t be comfortable relying on a one day wire from any bank, even if it would probably work most of the time. Any time I’ve needed a wire for a closing I’ve been able to set it up several days in advance and had it hit the title company bank the day prior, it shouldn’t take until the day before to get your numbers.
DosCommas
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Re: Terrible experience with Ally bank- buyer beware

Post by DosCommas »

If you have accounts you have used Zelle with already you can move larger sums between banks within minutes. I have moved $10,000 multiple times using Zelle from Ally with less than a 5 minute total transfer time (this was from Ally to B of A). Something to know in an emergency. I’m not sure at what point they might freeze such activity but worth having Zelle set up and tested between accounts.
dbr
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Re: Terrible experience with Ally bank- buyer beware

Post by dbr »

DosCommas wrote: Sat Aug 15, 2020 9:18 am If you have accounts you have used Zelle with already you can move larger sums between banks within minutes. I have moved $10,000 multiple times using Zelle from Ally with less than a 5 minute total transfer time (this was from Ally to B of A). Something to know in an emergency. I’m not sure at what point they might freeze such activity but worth having Zelle set up and tested between accounts.
That might work. My bank account does not permit more than $2500/day moved, but perhaps that can be negotiated ahead of time.
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dodecahedron
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Re: Terrible experience with Ally bank- buyer beware

Post by dodecahedron »

StevieG72 wrote: Sat Aug 15, 2020 9:11 am
tibbitts wrote: Sat Aug 15, 2020 9:02 am
StevieG72 wrote: Sat Aug 15, 2020 8:51 am Wow! That is terrible service! I gave up on high yield savings many years ago.

I prefer Vanguard's Prime Money Market Fund (VMMXX) return beats Ally and one less account to manage.
I don't see how you can possibly say that Prime's return comes anywhere close to an Ally savings account.
I am open to correction, but Ally is at .80% annually?

https://investor.vanguard.com/mutual-fu ... ance/vmmxx
Ally is indeed at 0.80% annually right at the moment, but I think the Vanguard page you linked above (with YTD, 1 year, 3 year, etc. figures) does not have figures relevant to compare with that figure.

Instead you should be linking to this page, which shows a current 7-day SEC yield of 0.06% for Vanguard.

https://investor.vanguard.com/mutual-fu ... view/vmmxx
Silverado
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Re: Terrible experience with Ally bank- buyer beware

Post by Silverado »

CardioMD wrote: Sat Aug 15, 2020 8:53 am This really makes me appreciate USAA.
Yeah, no kidding. Did two six figure wires this year, both received at other institution within a couple hours. Took ten minutes on the phone with USAA.
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dodecahedron
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Re: Terrible experience with Ally bank- buyer beware

Post by dodecahedron »

Silverado wrote: Sat Aug 15, 2020 9:32 am
CardioMD wrote: Sat Aug 15, 2020 8:53 am This really makes me appreciate USAA.
Yeah, no kidding. Did two six figure wires this year, both received at other institution within a couple hours. Took ten minutes on the phone with USAA.
Bear in mind that Ally headquarters is in Detroit, which was one of the hardest hit places for COVID early on and has continued to struggle.

https://www.forbes.com/sites/alankohll/ ... fb9018488d

USAA headquarters is in San Antonio, which has only much more recently just begun to feel the COVID impact locally. Your experiences earlier this year might or might not be typical of what you can expect later this year if things blow up in San Antonio.

Clusters can hit unpredictably.
gronkman
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Re: Terrible experience with Ally bank- buyer beware

Post by gronkman »

Silverado wrote: Sat Aug 15, 2020 9:32 am
CardioMD wrote: Sat Aug 15, 2020 8:53 am This really makes me appreciate USAA.
Yeah, no kidding. Did two six figure wires this year, both received at other institution within a couple hours. Took ten minutes on the phone with USAA.
It’s not a question of whether it goes through quickly or not, but for something so time-sensitive you should set it up a few days before (the title company will hold the funds for you). Nowadays, there is enough wire fraud that there is a decent chance they may delay payment until you provide answers to security questions to a specialist over the phone.
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savemorelivebetter
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Re: Terrible experience with Ally bank- buyer beware

Post by savemorelivebetter »

KingRiggs wrote: Sat Aug 15, 2020 8:35 am Sorry for your experience.

For such a life-significant transaction, I might suggest giving yourself a few more days of padding for the money to move where it needs to go. Giving up a few days' of interest is well worth it to avoid situations such as this.

Consider the penalties paid and the inconvenience a tuition payment to the School of Life and enjoy your new home!
Three days before closing, the rates fell and Wells Fargo was about to give me a new rate. Therefore, the closing costs changed. So could not do far ahead of time. But everyone involved was shocked why a wire should not be processed within a day.
tibbitts
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Re: Terrible experience with Ally bank- buyer beware

Post by tibbitts »

StevieG72 wrote: Sat Aug 15, 2020 9:11 am
tibbitts wrote: Sat Aug 15, 2020 9:02 am
StevieG72 wrote: Sat Aug 15, 2020 8:51 am Wow! That is terrible service! I gave up on high yield savings many years ago.

I prefer Vanguard's Prime Money Market Fund (VMMXX) return beats Ally and one less account to manage.
I don't see how you can possibly say that Prime's return comes anywhere close to an Ally savings account.
I am open to correction, but Ally is at .80% annually?

https://investor.vanguard.com/mutual-fu ... ance/vmmxx
Ally is .8%; Vanguard is .06%, so you are sacrificing over ten times the interest by using Vanguard.
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savemorelivebetter
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Re: Terrible experience with Ally bank- buyer beware

Post by savemorelivebetter »

DosCommas wrote: Sat Aug 15, 2020 9:18 am If you have accounts you have used Zelle with already you can move larger sums between banks within minutes. I have moved $10,000 multiple times using Zelle from Ally with less than a 5 minute total transfer time (this was from Ally to B of A). Something to know in an emergency. I’m not sure at what point they might freeze such activity but worth having Zelle set up and tested between accounts.
The closing cost was $191,000. I am sure Zelle would not allowed that. But I was short $30K in my Wells Fargo account and could've moved a much smaller number from Ally to Wells Fargo and completed the wire. Good point. Wish I had thought of that.
Ricola
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Re: Terrible experience with Ally bank- buyer beware

Post by Ricola »

CardioMD wrote: Sat Aug 15, 2020 8:53 am This really makes me appreciate USAA.
USAA High Performance Savings rate $0.05
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savemorelivebetter
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Re: Terrible experience with Ally bank- buyer beware

Post by savemorelivebetter »

tibbitts wrote: Sat Aug 15, 2020 10:03 am
StevieG72 wrote: Sat Aug 15, 2020 9:11 am
tibbitts wrote: Sat Aug 15, 2020 9:02 am
StevieG72 wrote: Sat Aug 15, 2020 8:51 am Wow! That is terrible service! I gave up on high yield savings many years ago.

I prefer Vanguard's Prime Money Market Fund (VMMXX) return beats Ally and one less account to manage.
I don't see how you can possibly say that Prime's return comes anywhere close to an Ally savings account.
I am open to correction, but Ally is at .80% annually?

https://investor.vanguard.com/mutual-fu ... ance/vmmxx
Ally is .8%; Vanguard is .06%, so you are sacrificing over ten times the interest by using Vanguard.
Yes, its 10 times. But for $100,000 it is $800 versus $60. $740 difference. Minus federal and state taxes. Is $500 (at least for me) worth tolerating poor customer service? Based on my experience, it would be a no for me but obviously would be different for someone else.
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Re: Terrible experience with Ally bank- buyer beware

Post by goodenyou »

dodecahedron wrote: Sat Aug 15, 2020 9:42 am
Silverado wrote: Sat Aug 15, 2020 9:32 am
CardioMD wrote: Sat Aug 15, 2020 8:53 am This really makes me appreciate USAA.
Yeah, no kidding. Did two six figure wires this year, both received at other institution within a couple hours. Took ten minutes on the phone with USAA.
Bear in mind that Ally headquarters is in Detroit, which was one of the hardest hit places for COVID early on and has continued to struggle.

https://www.forbes.com/sites/alankohll/ ... fb9018488d

USAA headquarters is in San Antonio, which has only much more recently just begun to feel the COVID impact locally. Your experiences earlier this year might or might not be typical of what you can expect later this year if things blow up in San Antonio.

Clusters can hit unpredictably.

Things already blew up in San Antonio a while ago.
"Ignorance more frequently begets confidence than does knowledge" | Do you know how to make a rain dance work? Dance until it rains.
TravelGeek
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Re: Terrible experience with Ally bank- buyer beware

Post by TravelGeek »

What does the “wire department” actually do? Seems like a symptom of a banking system from the 20th century hanging on trying to be relevant in the 21st century.

Reminds me of me depositing a paper check ($18 Covid refund from my car insurance) into my Ally bank account the other day with the Ally app. Once I had submitted the pics of both sides of the check, the app told me that because it was past X PM ET, it would be processed the next day. Why do banks and bank computers not work 24/7/365 these days?

Anyway, given the current state of the banking system, I would probably include some buffer days in every significant financial transaction. I schedule my credit card payments three days ahead of the due date to reduce the risk of having to deal with delays. And with today’s interest rates I should probably just switch to pay immediately and forgo the 20-25 days of interest.
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savemorelivebetter
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Re: Terrible experience with Ally bank- buyer beware

Post by savemorelivebetter »

Silverado wrote: Sat Aug 15, 2020 9:32 am
CardioMD wrote: Sat Aug 15, 2020 8:53 am This really makes me appreciate USAA.
Yeah, no kidding. Did two six figure wires this year, both received at other institution within a couple hours. Took ten minutes on the phone with USAA.
So jealous. Unfortunately, most folks on this forum are likely ineligible.
BogleMelon
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Re: Terrible experience with Ally bank- buyer beware

Post by BogleMelon »

NOP CD's at Ally
Saving account at Marcus
Checking account (Paycheck- Wire- Billpay...etc) at Fidelity "CMA" (Excellent service and always in time)
I decided not to put all eggs in one basket for issues like these.
"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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anon_investor
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Re: Terrible experience with Ally bank- buyer beware

Post by anon_investor »

BogleMelon wrote: Sat Aug 15, 2020 10:19 am NOP CD's at Ally
Saving account at Marcus
Checking account (Paycheck- Wire- Billpay...etc) at Fidelity "CMA" (Excellent service and always in time)
I decided not to put all eggs in one basket for issues like these.
How do you like Marcus? Have you ever sent wires from them?
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savemorelivebetter
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Re: Terrible experience with Ally bank- buyer beware

Post by savemorelivebetter »

TravelGeek wrote: Sat Aug 15, 2020 10:12 am What does the “wire department” actually do? Seems like a symptom of a banking system from the 20th century hanging on trying to be relevant in the 21st century.

Reminds me of me depositing a paper check ($18 Covid refund from my car insurance) into my Ally bank account the other day with the Ally app. Once I had submitted the pics of both sides of the check, the app told me that because it was past X PM ET, it would be processed the next day. Why do banks and bank computers not work 24/7/365 these days?

Anyway, given the current state of the banking system, I would probably include some buffer days in every significant financial transaction. I schedule my credit card payments three days ahead of the due date to reduce the risk of having to deal with delays. And with today’s interest rates I should probably just switch to pay immediately and forgo the 20-25 days of interest.
The other issue I had with them was that I have deposited checks but they were never deposited in the account. No error message was obtained during the deposit. I retrospect, I realized that I had not received an email from them that the check was not deposited. So, I had been watching for those emails and would re-deposit the checks if the email never came through. Sometimes, I have wondered if I would get penalized if the check gets deposited twice, m but fortunately, that has not happened.
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savemorelivebetter
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Re: Terrible experience with Ally bank- buyer beware

Post by savemorelivebetter »

kimura king wrote: Sat Aug 15, 2020 8:50 am sounds like a fun day
God awful. I had a furious buyer, angry realtors and a very upset family after me! The fact that it was a Friday made it so much worse.
Interestingly, Ally called to check on my "customer experience". I chewed out that poor lady!
BogleMelon
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Re: Terrible experience with Ally bank- buyer beware

Post by BogleMelon »

anon_investor wrote: Sat Aug 15, 2020 10:24 am
BogleMelon wrote: Sat Aug 15, 2020 10:19 am NOP CD's at Ally
Saving account at Marcus
Checking account (Paycheck- Wire- Billpay...etc) at Fidelity "CMA" (Excellent service and always in time)
I decided not to put all eggs in one basket for issues like these.
How do you like Marcus? Have you ever sent wires from them?
I tried their CS couple of times, felt they are well trained, so no issue with that, though I didn't have any real problem to test them.
I can't find how to send wire from Marcus! Only EFT is available on their platform.
I have tried receiving a wire from Fido to Marcus though, and it was a same day experience, free on both sides.
"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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8foot7
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Re: Terrible experience with Ally bank- buyer beware

Post by 8foot7 »

It actually seems fairly well-known from several posts on this forum that wiring from Ally is, to put it charitably, a sub-par experience. Best not to rely on it and make alternate arrangements.
chrisam314
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Re: Terrible experience with Ally bank- buyer beware

Post by chrisam314 »

savemorelivebetter wrote: Sat Aug 15, 2020 10:01 am
KingRiggs wrote: Sat Aug 15, 2020 8:35 am Sorry for your experience.

For such a life-significant transaction, I might suggest giving yourself a few more days of padding for the money to move where it needs to go. Giving up a few days' of interest is well worth it to avoid situations such as this.

Consider the penalties paid and the inconvenience a tuition payment to the School of Life and enjoy your new home!
Three days before closing, the rates fell and Wells Fargo was about to give me a new rate. Therefore, the closing costs changed. So could not do far ahead of time. But everyone involved was shocked why a wire should not be processed within a day.
Sorry you had to go through this. I used to work at a brokerage and would help with wire forms. Typically it took 3-4 hours total from when someone would hit submit. I would start following up proactively with the wire dept right at hour 2 to make sure it was cleared on our end. Like you said, sometimes as much as you plan ahead it isn't possible to do things 3 or 4 days in advance and I understood that on the other end of the wire I was helping to process was likely a closing transaction. Obviously other banks aren't as thoughtful. Something you think of as mundane and not value added may be way more important than a slight increase on a savings rate.

I appreciate you posting this because I am closing on a new construction house in a couple months so I am going to put this on my radar. I use Capital One (I'm hoping they don't have the same horror stories but I will look it up). My wife has USAA and based on the responses above may transfer the money there a week ahead of closing to be safe.
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8foot7
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Re: Terrible experience with Ally bank- buyer beware

Post by 8foot7 »

gronkman wrote: Sat Aug 15, 2020 9:52 am
Silverado wrote: Sat Aug 15, 2020 9:32 am
CardioMD wrote: Sat Aug 15, 2020 8:53 am This really makes me appreciate USAA.
Yeah, no kidding. Did two six figure wires this year, both received at other institution within a couple hours. Took ten minutes on the phone with USAA.
It’s not a question of whether it goes through quickly or not, but for something so time-sensitive you should set it up a few days before (the title company will hold the funds for you). Nowadays, there is enough wire fraud that there is a decent chance they may delay payment until you provide answers to security questions to a specialist over the phone.
To be fair, in my last two transactions I only had the exact figure required for cash to close at the end of the previous business day. I suppose one could either wire what they expect to be more than enough to actually close, or withdraw to a local bank with a local wire department more than enough funds so that you can go in and sit down with a human being the morning of closing to wire the exact amount. There are many opportunities for all parties in this process to improve their efficiency.
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dodecahedron
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Re: Terrible experience with Ally bank- buyer beware

Post by dodecahedron »

goodenyou wrote: Sat Aug 15, 2020 10:10 am
dodecahedron wrote: Sat Aug 15, 2020 9:42 am
Silverado wrote: Sat Aug 15, 2020 9:32 am
CardioMD wrote: Sat Aug 15, 2020 8:53 am This really makes me appreciate USAA.
Yeah, no kidding. Did two six figure wires this year, both received at other institution within a couple hours. Took ten minutes on the phone with USAA.
Bear in mind that Ally headquarters is in Detroit, which was one of the hardest hit places for COVID early on and has continued to struggle.

https://www.forbes.com/sites/alankohll/ ... fb9018488d

USAA headquarters is in San Antonio, which has only much more recently just begun to feel the COVID impact locally. Your experiences earlier this year might or might not be typical of what you can expect later this year if things blow up in San Antonio.

Clusters can hit unpredictably.

Things already blew up in San Antonio a while ago.
Not nearly to the same extent as Detroit. Bexar County (home of San Antonio, pop 2.0 million) has had 834 COVID deaths to date. Wayne County Michigan (home of Detroit, pop 1.7 million) has had 2,837 COVID deaths.

Detroit is denser, poorer, more bus transit dependent, and with demographics and climate circumstances which made it far more prone to adverse effects from early COVID.

USAA HQ employees have not had to deal with what Ally HQ employee have had to deal with (so far.)

On the other hand, if the future issue becomes widespread power or phone service getting knocked out to their call centers due to a big cluster of tornadoes rather than COVID, USAA might need to be cut a little understandable slack if they are slower to respond to phone requests to set up big transactions.

Bottom line lessons for me: diversification of where my assets are parked is a good thing and allowing extra lead time for critical time-sensitive funding needs is very valuable.
phxjcc
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Re: Terrible experience with Ally bank- buyer beware

Post by phxjcc »

NewMoneyMustBeSmart wrote: Sat Aug 15, 2020 8:42 am
savemorelivebetter wrote: Sat Aug 15, 2020 8:31 am My Wells Fargo bank said they can wire funds in 30 minutes.
My experience is that WF cannot wire funds in 30 minutes. They can fill out the paperwork and submit it to the wire department in 30 min but the wire department generally does things 30-90 min after that. Still, 120 minutes is not bad.
^^^^-----Everybody needs to read and understand this.
Every FI enters the wire, then a timed daemon batches all the wires for FI 1 to FI 2 and sends them when the timer goes off.

No clerks/tellers/help desk/CSRs know this.
It can cause heartburn not knowing where your money "is".

Caveat: info a/o 2007.
phxjcc
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Re: Terrible experience with Ally bank- buyer beware

Post by phxjcc »

NewMoneyMustBeSmart wrote: Sat Aug 15, 2020 8:42 am
savemorelivebetter wrote: Sat Aug 15, 2020 8:31 am My Wells Fargo bank said they can wire funds in 30 minutes.
My experience is that WF cannot wire funds in 30 minutes. They can fill out the paperwork and submit it to the wire department in 30 min but the wire department generally does things 30-90 min after that. Still, 120 minutes is not bad.
^^^^-----Everybody needs to read and understand this.
Every FI enters the wire, then a timed daemon batches all the wires for FI 1 to FI 2 and sends them when the timer goes off.

No clerks/tellers/help desk/CSRs know this.
It can cause heartburn not knowing where your money "is".

Caveat: info a/o 2007.
000
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Re: Terrible experience with Ally bank- buyer beware

Post by 000 »

Frankly, I think you should have set this up at least a week in advance.
arf30
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Re: Terrible experience with Ally bank- buyer beware

Post by arf30 »

The world runs on batch jobs (but pretends not to), and they often run slow or get delayed - I send my transactions a day or two early for this reason. I used to manage a team responsible for batch processing at a large company and have seen the chaos firsthand.
netll
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Re: Terrible experience with Ally bank- buyer beware

Post by netll »

Six years ago (even longer), I would transfer my all money of Ally account to my local bank, so I wrote an Ally check with the amount of more than 30k to myself, and deposited this check to my local bank.

Surprisingly, Ally declined my check and my local bank charged me a penalty for this return check.

I called Ally, the staff blatantly said that this is for my safety (I guess her implied that so I should appreciate Ally)
palanzo
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Re: Terrible experience with Ally bank- buyer beware

Post by palanzo »

retired@55 wrote: Sat Aug 15, 2020 8:41 am I also closed two of my Ally HYSAs recently for the same reason. In my experience (two separate times), wire requests initiated in the morning were not executed until late the following day or, in one case, the second day after the request. This is despite the language on the wire request screen that indicates same day processing if the request is received by a certain time.
I had exactly the same experience. I will never do a wire with Ally again. You're correct about the same day processing language.
palanzo
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Re: Terrible experience with Ally bank- buyer beware

Post by palanzo »

smitcat wrote: Sat Aug 15, 2020 8:46 am
KingRiggs wrote: Sat Aug 15, 2020 8:35 am Sorry for your experience.

For such a life-significant transaction, I might suggest giving yourself a few more days of padding for the money to move where it needs to go. Giving up a few days' of interest is well worth it to avoid situations such as this.

Consider the penalties paid and the inconvenience a tuition payment to the School of Life and enjoy your new home!
Great answer - we have had this happen with a number of banks and credit unions, always leave extra time with transactions such as these.
I disagree. Other banks are perfectly capable of doing a wire transaction in an hour and certainly the same day. Ally is utterly incompetent in this regard. We have a number of examples of this on the thread. It's not an isolated instance.
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