ALLY Bank and the new tier announcement

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
Jake-R
Posts: 29
Joined: Wed Sep 16, 2015 5:12 pm
Location: Reno, Nevada USA

ALLY Bank and the new tier announcement

Post by Jake-R » Sat Oct 03, 2015 12:44 am

Did anyone else receive the email today announcing this? Are there any other good online savings banks in case ALLY lowers the lower rates of the bottom two tiers too much? I really want an online savings bank with a good reputation, high rate and good iOS App.

A few changes. Same great bank.

At Ally Bank, we're committed to banking in your best interest and offering consistently competitive rates. As part of that commitment, we're introducing the following balance tiers on November 7, 2015:

Less than $5,000
$5,000-$24,999.99
$25,000 or more

How we determine your rate will depend on your account type.

Account Type Change
Online Savings, Money Market and IRA Online Savings Your interest rate is variable and determined by your account's end-of-day balance.
High Yield CD, IRA High Yield CD and No Penalty CD
• If you currently have one of these CDs, your rate won't change
• For CDs opened on or after 11/7/15, the interest rate is determined by your opening deposit and the rate for that term and tier
• For CDs renewing on or after 11/7/15, your rate will be determined by your term and tier at renewal
Raise Your Rate CD and IRA Raise Your Rate CD
• If you currently have one of these CDs, your rate won't change and you'll still have the opportunity to increase your rate if the rate we offer for your term and tier goes up. You can also raise your rate if your current balance is eligible for the next tier, and the rate we offer for that tier is higher than the current rate on your CD.
• For CDs opened on or after 11/7/15, the interest rate is determined by your opening deposit and the rate for that term and tier
• For CDs renewing on or after 11/7/15, your rate will be determined by your term and tier at renewal

Visit allybank.com/view-rates to see current rates.

As always, we'll continue to offer:
The Ally Ten Day Best Rate Guarantee
Interest compounded daily
No monthly maintenance fees
FDIC insured deposits up to the maximum allowed by law
For complete details, please review the addendum in the updated Ally Bank Deposit Agreement. If you have any questions, give us a call at 1-877-247-2559 . We're here 24/7.

Questions? Call us 24/7 at 877-247-2559

User avatar
Kevin M
Posts: 9426
Joined: Mon Jun 29, 2009 3:24 pm
Contact:

Re: ALLY Bank and the new tier announcement

Post by Kevin M » Sat Oct 03, 2015 4:00 am

For some reason I didn't get it, but my mom did, and she forwarded it to me.

Synchrony Bank has a good savings rate (1.05%), but they don't offer a checking account. Ally Bank has been a really nice hub bank, since they offer everything (savings, checking, CDs, IRAs). I may start keeping more savings at Synchrony Bank, but it's really convenient to be able to transfer from savings to checking instantly, vs. the 2 days it takes between banks. More fun and games for us savers.

Kevin
Wiki ||.......|| Suggested format for Asking Portfolio Questions (edit original post)

User avatar
cheese_breath
Posts: 7439
Joined: Wed Sep 14, 2011 7:08 pm

Re: ALLY Bank and the new tier announcement

Post by cheese_breath » Sat Oct 03, 2015 4:17 am

I'll just wait until Nov 7 before I think about making any changes. I would expect those with 25K or more would still see rates competitive with the other financial institutions. But what do I know. :?:
The surest way to know the future is when it becomes the past.

Dandy
Posts: 5062
Joined: Sun Apr 25, 2010 7:42 pm

Re: ALLY Bank and the new tier announcement

Post by Dandy » Sat Oct 03, 2015 6:36 am

Ally seems to be gradually getting more and more like a regular bank :( -- not as special as before. I have found Discover Bank to be good and steady -- near the top but keeping their approach the same. They offer a strange checking account that doesn't pay interest but a dime for every check or bill pay.

User avatar
Hodor
Posts: 224
Joined: Wed Jun 24, 2015 8:27 pm

Re: ALLY Bank and the new tier announcement

Post by Hodor » Sat Oct 03, 2015 7:05 am

The really annoying thing is that the announcement provided a link to their rates page, which has not mention of the tiers and their rates.

fkampere
Posts: 55
Joined: Thu Dec 06, 2012 10:08 am

Re: ALLY Bank and the new tier announcement

Post by fkampere » Sat Oct 03, 2015 7:11 am

I have 25k plus in there right now but next year when I fund my Roth Ira it will be down 5k or so might be time to look for a new bank.

User avatar
Toons
Posts: 12684
Joined: Fri Nov 21, 2008 10:20 am
Location: Hills of Tennessee

Re: ALLY Bank and the new tier announcement

Post by Toons » Sat Oct 03, 2015 7:22 am

I quite rate chasing quite a long time a go and have been using CapOne 360 for checking and savings.Not the best not the worst.Works for me. :happy
"One does not accumulate but eliminate. It is not daily increase but daily decrease. The height of cultivation always runs to simplicity" –Bruce Lee

User avatar
Blues
Posts: 1627
Joined: Wed Dec 10, 2008 11:58 am
Location: Blue Ridge Mtns

Re: ALLY Bank and the new tier announcement

Post by Blues » Sat Oct 03, 2015 7:23 am

Rec'd the email yesterday. Will make the appropriate decision before the date(s) their new changes would impact our accounts and bottom line. (Like Toons, we quit rate chasing a good while back.)

It does make me think twice about engendering future business with them and will give thought to finding another bank more in sync with our expectations.
“Tactics without strategy is the noise before defeat.” - Sun Tzu | "Everybody has a plan until they get punched in the mouth." - Mike Tyson

User avatar
midareff
Posts: 5502
Joined: Mon Nov 29, 2010 10:43 am
Location: Biscayne Bay, South Florida

Re: ALLY Bank and the new tier announcement

Post by midareff » Sat Oct 03, 2015 8:14 am

Long time Ally customer here with checking, money market and savings. I have not received the email and will just have to see what it means rate wise when they announce.
Last edited by midareff on Sun Oct 04, 2015 8:10 am, edited 1 time in total.

FedGuy
Posts: 1218
Joined: Sun Jul 25, 2010 3:36 pm

Re: ALLY Bank and the new tier announcement

Post by FedGuy » Sat Oct 03, 2015 8:20 am

It's my fault. I just opened an account with Ally; my initial deposit went in literally about 4 days ago. I had dragged my feet on this for a while because banks always seem to drop their rates or something similar shortly after I open my account with them, so this was kind of inevitable. Sorry, everyone.

My initial deposit was $5,000, so hopefully my October interest payment will carry me into the second tier. But I've been planning on moving over $50,000 into it after I make sure the account is working properly, that the security features are all set up the way I went, etc. Maybe I'll need to accelerate the timeframe to get all that money in by November 7. That does seem like a lot of money to move around in just over a month, though.

tbradnc
Posts: 1511
Joined: Wed Apr 02, 2008 8:30 am

Re: ALLY Bank and the new tier announcement

Post by tbradnc » Sat Oct 03, 2015 10:12 am

At least they didn't say the changes were "in response to customer demand...." :)

One good thing about having multiple online HYSAs is that you can move money around quickly. This weekend I've received $150 in bonuses for opening $10k accounts at Discover and Synchrony. It has been raining for days and I was bored.....

kaneohe
Posts: 4707
Joined: Mon Sep 22, 2008 12:38 pm

Re: ALLY Bank and the new tier announcement

Post by kaneohe » Sat Oct 03, 2015 10:16 am

Maybe if we're lucky the tiers will look like tiaa-direct"s (w/ higher APY)

If your balance is: Interest rate: APY*
$0-$99.99 0.69% 0.70%
$100-$9,999.99 0.69% 0.70%
$10,000-$24,999.99 0.69% 0.70%
$25,000 and above 0.69% 0.70%

stlutz
Posts: 4378
Joined: Fri Jan 02, 2009 1:08 am

Re: ALLY Bank and the new tier announcement

Post by stlutz » Sat Oct 03, 2015 11:54 am

Ally need a better marketing department. They would have gotten a much better reaction with the following labeling:

"Investor Accounts": Less than $5,000
"Voyager Accounts: $5,000-$24,999.99
"Flagship Accounts" $25,000 or more

Then we would all be mad at Vanguard because Ally gives you Flagship status at $25K while VG requires $1M.

User avatar
Phineas J. Whoopee
Posts: 7080
Joined: Sun Dec 18, 2011 6:18 pm

Re: ALLY Bank and the new tier announcement

Post by Phineas J. Whoopee » Sat Oct 03, 2015 3:27 pm

I'm an Ally depositor for many years too, and I didn't receive anything.

It's pretty weird, I think, that the URL they referred to in the email, as reported, is allybank.com, when they went to great lengths, and presumably expense, to acquire ally.com when they changed their name.

Of course they're free to modify their rates any time they choose, but how sure are we, or you, or us, the email is legit?

PJW

Jake-R
Posts: 29
Joined: Wed Sep 16, 2015 5:12 pm
Location: Reno, Nevada USA

Re: ALLY Bank and the new tier announcement

Post by Jake-R » Sat Oct 03, 2015 3:33 pm

I hope the email isn't legit. But I went on Ally.com and found a PDF with much of the same verbiage regarding the upcoming tiers.

User avatar
Phineas J. Whoopee
Posts: 7080
Joined: Sun Dec 18, 2011 6:18 pm

Re: ALLY Bank and the new tier announcement

Post by Phineas J. Whoopee » Sat Oct 03, 2015 3:35 pm

Jake-R wrote:I hope the email isn't legit. But I went on Ally.com and found a PDF with much of the same verbiage regarding the upcoming tiers.
OK, I found it at ally.com but can't find a way to successfully link it.
PJW
Last edited by Phineas J. Whoopee on Sat Oct 03, 2015 3:40 pm, edited 1 time in total.

tbradnc
Posts: 1511
Joined: Wed Apr 02, 2008 8:30 am

Re: ALLY Bank and the new tier announcement

Post by tbradnc » Sat Oct 03, 2015 3:38 pm

Phineas J. Whoopee wrote:
Jake-R wrote:I hope the email isn't legit. But I went on Ally.com and found a PDF with much of the same verbiage regarding the upcoming tiers.
Link, even though you don't have ten posts yet? I'm looking and haven't found the PDF. There's no press release there about it.
PJW
Not the OP but here you go: http://community.ally.com/straight-talk ... reat-bank/

User avatar
Phineas J. Whoopee
Posts: 7080
Joined: Sun Dec 18, 2011 6:18 pm

Re: ALLY Bank and the new tier announcement

Post by Phineas J. Whoopee » Sat Oct 03, 2015 3:51 pm

From their live chat service:

Me: Are the internet rumors about tierd rate introduction in November true?

Them: Ally Bank will launch a tiered interest rate structure for its savings and CD products. By offering three balance tiers for CDs and savings, Ally will have the flexibility to provide a way for customers to potentially earn a different rate based on the balance of their account.

It's legit.

PJW

User avatar
Kevin M
Posts: 9426
Joined: Mon Jun 29, 2009 3:24 pm
Contact:

Re: ALLY Bank and the new tier announcement

Post by Kevin M » Sat Oct 03, 2015 4:51 pm

tbradnc wrote:This weekend I've received $150 in bonuses for opening $10k accounts at Discover and Synchrony.
I received mail offering the $50 bonus for the Synchrony Bank savings account. Must keep $10K there for 60 days. With a base APY of 1.05%, this comes to an effective APY of 4.16% if you were to keep the $10K there for just 60 days.

After a little searching, I found the Discover Bank deal here: Discover Bank Online Savings Review: $100 Bonus & 0.95% APY. This requires a deposit of $10K by 11/15/2015, but I didn't see anything about how long you must leave it there. Here is what it says on the Discover Bank site (Savings Account | Discover Bank):
Offer valid through 10/31/15. Limited to new savings customers . Only 1 per customer per account. To receive $50 or $100 bonus: 1) Must apply through HustlerMoneyBlog.com by 10/31/15; and 2) Minimum deposit of $5,000 for $50 Bonus or $10,000 for $100 bonus must be received by 11/15/15. Bonus will be issued by 12/31/15 as credit to the account, which must be open at issue. Bonus is considered interest and will be reported on IRS Form 1099-INT. Offer may be modified/withdrawn without notice.
So I could deposit $10K on 11/15 and withdraw most of it on 11/16, and receive the $100 bonus as long as I leave the account open until 12/31?

Assuming you have to leave it there for 60 days, with a base APY of 0.95%, this comes to an effective APY of 7.24% for the 60-day period. That's basically like earning 7.24% APY on a 60-day CD.

I was planning on using cash becoming available over next few weeks to max out the Northwest FCU 3-year 3.04% Add-On CD, but either one of these deals makes it more attractive to hold $10K in the savings account for 60 days instead, and then add to the CD later.

I also notice a $50 bonus for opening a Discover checking account if you have a Discover credit card.

But wait ... there's more deals at Best Bank Bonuses, Promotions, Deals, Offers & Referrals - October, 2015.

Capital One 360 Savings Bonus Review: Earn Up To $500 Bonus. Deposit $50K and keep it there for 90 days and you earn a $500 bonus (or $50 on $5K, $100 on $10K, etc.). With a base rate of 0.75%, this comes to an effective APY of 4.89% for the 90-day period.

Dang, this rate/bonus chasing sure is complicated. I don't care that much whether the rate is 0.95% or 1.05%, but I was thinking of opening another savings account anyway due to the upcoming changes at Ally, preferably at a bank that also offers a decent checking account. The bonuses add some complexity, but also make opening another account more attractive.

Looks like the Discover Bank deal is the best if just optimizing the effective APY, and they offer a checking account (also with an opening bonus), and the savings account rate is OK at 0.95%. I already have a Synchrony Bank account, so opening a new savings account there would be a snap. But the Capital One 360 account has the highest "balance cap" to earn the higher rate. Maybe I'll do all three, and then roll the proceeds into the NWFCU CD after the minimum holding periods.

Kevin
Wiki ||.......|| Suggested format for Asking Portfolio Questions (edit original post)

Chesterfield
Posts: 22
Joined: Mon Sep 14, 2015 2:39 pm

Re: ALLY Bank and the new tier announcement

Post by Chesterfield » Sat Oct 03, 2015 5:19 pm

Kevin M wrote:
tbradnc wrote:This weekend I've received $150 in bonuses for opening $10k accounts at Discover and Synchrony.
I received mail offering the $50 bonus for the Synchrony Bank savings account. Must keep $10K there for 60 days. With a base APY of 1.05%, this comes to an effective APY of 4.16% if you were to keep the $10K there for just 60 days.

After a little searching, I found the Discover Bank deal here: Discover Bank Online Savings Review: $100 Bonus & 0.95% APY. This requires a deposit of $10K by 11/15/2015, but I didn't see anything about how long you must leave it there. Here is what it says on the Discover Bank site (Savings Account | Discover Bank):
Offer valid through 10/31/15. Limited to new savings customers . Only 1 per customer per account. To receive $50 or $100 bonus: 1) Must apply through HustlerMoneyBlog.com by 10/31/15; and 2) Minimum deposit of $5,000 for $50 Bonus or $10,000 for $100 bonus must be received by 11/15/15. Bonus will be issued by 12/31/15 as credit to the account, which must be open at issue. Bonus is considered interest and will be reported on IRS Form 1099-INT. Offer may be modified/withdrawn without notice.
So I could deposit $10K on 11/15 and withdraw most of it on 11/16, and receive the $100 bonus as long as I leave the account open until 12/31?

Assuming you have to leave it there for 60 days, with a base APY of 0.95%, this comes to an effective APY of 7.24% for the 60-day period. That's basically like earning 7.24% APY on a 60-day CD.

I was planning on using cash becoming available over next few weeks to max out the Northwest FCU 3-year 3.04% Add-On CD, but either one of these deals makes it more attractive to hold $10K in the savings account for 60 days instead, and then add to the CD later.

I also notice a $50 bonus for opening a Discover checking account if you have a Discover credit card.

But wait ... there's more deals at Best Bank Bonuses, Promotions, Deals, Offers & Referrals - October, 2015.

Capital One 360 Savings Bonus Review: Earn Up To $500 Bonus. Deposit $50K and keep it there for 90 days and you earn a $500 bonus (or $50 on $5K, $100 on $10K, etc.). With a base rate of 0.75%, this comes to an effective APY of 4.89% for the 90-day period.

Dang, this rate/bonus chasing sure is complicated. I don't care that much whether the rate is 0.95% or 1.05%, but I was thinking of opening another savings account anyway due to the upcoming changes at Ally, preferably at a bank that also offers a decent checking account. The bonuses add some complexity, but also make opening another account more attractive.

Looks like the Discover Bank deal is the best if just optimizing the effective APY, and they offer a checking account (also with an opening bonus), and the savings account rate is OK at 0.95%. I already have a Synchrony Bank account, so opening a new savings account there would be a snap. But the Capital One 360 account has the highest "balance cap" to earn the higher rate. Maybe I'll do all three, and then roll the proceeds into the NWFCU CD after the minimum holding periods.

Kevin
I like the way you think!!! :D I went with Capitalone ($50K) and Everbank (1.61% for 6 months up to $150K in MM and $100K for checking for a total of $250K) due to higher cap. Planning to take the $ out after 90 days and 6 months respectively. Everbank doesn't required the $ to stay in to earn that rate during the first 6 months though. My first foray in chasing rates, but will probably quit after this -- trying to keep it "simpler".
Last edited by Chesterfield on Sat Oct 03, 2015 5:33 pm, edited 1 time in total.

User avatar
Blues
Posts: 1627
Joined: Wed Dec 10, 2008 11:58 am
Location: Blue Ridge Mtns

Re: ALLY Bank and the new tier announcement

Post by Blues » Sat Oct 03, 2015 5:29 pm

Wow, and I thought the expenditure of several hours a week on chess and tactics might be viewed as wasting too much of my time... :oops:

I think that if Warren Buffet read this thread he might amend his recently famous quote to:

“To make money they didn’t have & didn’t need, they spent (too much of) the time they did have & did need.” :twisted:
Last edited by Blues on Sat Oct 03, 2015 5:37 pm, edited 1 time in total.
“Tactics without strategy is the noise before defeat.” - Sun Tzu | "Everybody has a plan until they get punched in the mouth." - Mike Tyson

User avatar
HueyLD
Posts: 5709
Joined: Mon Jan 14, 2008 10:30 am

Re: ALLY Bank and the new tier announcement

Post by HueyLD » Sat Oct 03, 2015 5:36 pm

Phineas J. Whoopee wrote:I'm an Ally depositor for many years too, and I didn't receive anything.

It's pretty weird, I think, that the URL they referred to in the email, as reported, is allybank.com, when they went to great lengths, and presumably expense, to acquire ally.com when they changed their name.

Of course they're free to modify their rates any time they choose, but how sure are we, or you, or us, the email is legit?

PJW
You didn't receive anything because all your accounts will earn the top tier rates due to their balances. :)

User avatar
Kevin M
Posts: 9426
Joined: Mon Jun 29, 2009 3:24 pm
Contact:

Re: ALLY Bank and the new tier announcement

Post by Kevin M » Sat Oct 03, 2015 5:52 pm

Blues wrote:Wow, and I thought the expenditure of several hours a week on chess and tactics might be viewed as wasting too much of my time... :oops:
I wouldn't spend hours a day on Bogleheads if I didn't enjoy it. So in addition to having fun doing the research and calculations, I discovered that I can earn significantly higher rates for 60-90 days on up to $80K by opening one to three savings accounts and a checking account, and the effort is really minimal. If enough of these savings account and CD deals keep popping up, one could end up significantly exceeding bond fund yields by even more than a good CD already does on a risk-adjusted basis (80-200 basis points), and perhaps on a fair amount of money.

Three percent on $1M is $30K/year, while 2% is $20K per year; that's meaningful to me. For those of us with a significant allocation to fixed income, it could be worth the extra effort--especially if we enjoy it! For the majority of Bogleheads, it's probably not worth it, but these discussions aren't necessarily for that audience (except for them to make fun of us :twisted: ).

Having said all of that, I'm really just looking for a better savings account if the new Ally Bank rates end up sucking, so this is really a bit of a tangent to that.

Kevin
Wiki ||.......|| Suggested format for Asking Portfolio Questions (edit original post)

User avatar
Blues
Posts: 1627
Joined: Wed Dec 10, 2008 11:58 am
Location: Blue Ridge Mtns

Re: ALLY Bank and the new tier announcement

Post by Blues » Sat Oct 03, 2015 7:16 pm

I'm all for it, Kevin. I just can't jump in and out of accounts on a weekly, monthly or quarterly basis. It would drive me nuts and when I drop dead my wife will never figure out where the money is. (And I was mostly just having a bit of fun, anyway. Don't take it personally. :beer )
“Tactics without strategy is the noise before defeat.” - Sun Tzu | "Everybody has a plan until they get punched in the mouth." - Mike Tyson

User avatar
pennstater2005
Posts: 2446
Joined: Wed Apr 11, 2012 8:50 pm

Re: ALLY Bank and the new tier announcement

Post by pennstater2005 » Sat Oct 03, 2015 8:01 pm

I didn't receive this email either and I've been banking with them for a few years now. If it is true we're all free to switch banks if we so choose. I've switched banks, insurances, cellphone carriers and other things with mostly ease so it wouldn't be anything new or too hard to do.
“If you think nobody cares if you're alive, try missing a couple of car payments.” – Earl Wilson

kazper
Posts: 618
Joined: Fri Aug 01, 2014 7:45 pm

Re: ALLY Bank and the new tier announcement

Post by kazper » Sat Oct 03, 2015 8:56 pm

Seems silly that they wouldn't include the rates.

As far as I know, i did not receive the notification either. Strange.

tbradnc
Posts: 1511
Joined: Wed Apr 02, 2008 8:30 am

Re: ALLY Bank and the new tier announcement

Post by tbradnc » Sat Oct 03, 2015 9:41 pm

Kevin M wrote:
I was planning on using cash becoming available over next few weeks to max out the Northwest FCU 3-year 3.04% Add-On CD, but either one of these deals makes it more attractive to hold $10K in the savings account for 60 days instead, and then add to the CD later.
My exact plan unless something better comes up.

I also opened up accounts in my spouse's name to double the bonuses. So.. $380 for tying up $40,000 for 60 days. That's quite a bit more than the $80 it would earn sitting in Ally.

User avatar
joe8d
Posts: 4274
Joined: Tue Feb 20, 2007 8:27 pm
Location: Buffalo,NY

Re: ALLY Bank and the new tier announcement

Post by joe8d » Sat Oct 03, 2015 10:07 pm

I have 6 different accounts with Ally. All above 25K :happy
All the Best, | Joe

User avatar
Kevin M
Posts: 9426
Joined: Mon Jun 29, 2009 3:24 pm
Contact:

Re: ALLY Bank and the new tier announcement

Post by Kevin M » Sat Oct 03, 2015 11:49 pm

Blues wrote:I'm all for it, Kevin. I just can't jump in and out of accounts on a weekly, monthly or quarterly basis. It would drive me nuts and when I drop dead my wife will never figure out where the money is. (And I was mostly just having a bit of fun, anyway. Don't take it personally. :beer )
I hear ya, and am just having fun back at ya! :sharebeer

Kevin
Wiki ||.......|| Suggested format for Asking Portfolio Questions (edit original post)

TravelGeek
Posts: 1800
Joined: Sat Oct 25, 2014 3:23 pm

Re: ALLY Bank and the new tier announcement

Post by TravelGeek » Sat Oct 03, 2015 11:55 pm

Received no notification.

I assume those in the highest tier aren't going to receive higher rates than today, I.e., it will just be a cut for the lower tiers?

Jake-R
Posts: 29
Joined: Wed Sep 16, 2015 5:12 pm
Location: Reno, Nevada USA

Re: ALLY Bank and the new tier announcement

Post by Jake-R » Sun Oct 04, 2015 12:10 am

TravelGeek wrote:Received no notification.

I assume those in the highest tier aren't going to receive higher rates than today, I.e., it will just be a cut for the lower tiers?
That's generally how these changes work. I guess we should wait and see how it all shakes out, but maybe have a back-up account ready to go at another bank if the cuts are too bad.

User avatar
Phineas J. Whoopee
Posts: 7080
Joined: Sun Dec 18, 2011 6:18 pm

Re: ALLY Bank and the new tier announcement

Post by Phineas J. Whoopee » Sun Oct 04, 2015 12:43 am

^ I agree. If a bank simply wanted to raise customers' rates, it could do so directly and simply.

Even the reasoning behind the move has nothing to do with helping customers:
Ally Bank wrote:...
Our rates are determined by several factors, including conditions in the marketplace and the competitive environment. If rates eventually rise, balance tiers will provide Ally Bank with the flexibility to potentially offer customers a different rate based on account balance.
...
PJW

small_index
Posts: 631
Joined: Sun Aug 16, 2015 2:47 am

Re: ALLY Bank and the new tier announcement

Post by small_index » Sun Oct 04, 2015 7:49 am

Like others, not in my email - but I also checked my spam folder, and Ally messages to no avail. Even with some asset discrimination, Ally still has "improve my rate CDs" that other banks don't bother to offer. As long as the asset tiers don't involve fees, it doesn't bother me much - and certainly does not outweigh Ally's other positives.

neuro84
Posts: 65
Joined: Thu Jul 24, 2014 11:25 am

Re: ALLY Bank and the new tier announcement

Post by neuro84 » Sun Oct 04, 2015 9:24 am

Well, too bad. As someone who doesn't have a $25k emergency fund (yet) this will most likely affect me. At least I can depend on the good folks at bogleheads to direct me to the next best thing. Sounds like Discover Bank is going to be the way to go.

User avatar
rob
Posts: 2922
Joined: Mon Feb 19, 2007 6:49 pm
Location: Here

Re: ALLY Bank and the new tier announcement

Post by rob » Sun Oct 04, 2015 9:30 am

I actually like the idea..... The rate is no doubt somewhat affected by a lot of smaller accounts. Vanguard does the same thing in nautical terms :D I do wish they would have changed the rates at the same time to prove they want to drive the highest rates to the higher dollars.....
| Rob | Its a dangerous business going out your front door. - J.R.R.Tolkien

logicteach
Posts: 69
Joined: Mon Aug 18, 2014 9:00 pm

Re: ALLY Bank and the new tier announcement

Post by logicteach » Sun Oct 04, 2015 9:39 am

It must be true; I received a notification letter via snail mail yesterday. I'm glad I already had a heads up from this forum. After a little consideration, I decided it's not really going to make a difference for me. I only have a single CD with them that falls into their middle tier. I'm into the second year of a "Raise your rate CD" of about $13,000. According to the letter, CD rates won't be changed so, when it matures in July, I'll just shop around (as I would do anyway) and go with the highest bidder. That's been Ally for some time now due to their "loyalty bonus," but if that changes, I just move my money. I do hate getting this letter, however, since it seems to signify coming changes in their business model.

Twins Fan
Posts: 2775
Joined: Fri Mar 08, 2013 1:02 pm

Re: ALLY Bank and the new tier announcement

Post by Twins Fan » Sun Oct 04, 2015 11:03 am

I got the email about the tiers also. I found it about useless with out them saying what the rates would be. Although, it doesn't start for a bit yet so they probably don't want to post an exact rate. But, they could have at least shown what the spread would be between account balance levels or some predicted model.

They just raised the online savings account rate from .99% to 1.00% APY. No, definitely not a game changer of a move. But, maybe things will be more positive with the rate tiers than many are thinking.

Who knows though... we will find out soon enough.

User avatar
Kevin M
Posts: 9426
Joined: Mon Jun 29, 2009 3:24 pm
Contact:

Re: ALLY Bank and the new tier announcement

Post by Kevin M » Sun Oct 04, 2015 4:31 pm

My mom received the email and forwarded it to me--I did not receive it directly.

Note that there already is a tiered rate schedule for checking accounts, with two tiers breaking at $15K. Currently rate for $15K and above is 0.60%, and below that it's 0.10%. The top tier rate used to much closer to the savings rate, then they dropped it, so the direction has been for changes for the worse.

Kevin
Wiki ||.......|| Suggested format for Asking Portfolio Questions (edit original post)

Jake-R
Posts: 29
Joined: Wed Sep 16, 2015 5:12 pm
Location: Reno, Nevada USA

Re: ALLY Bank and the new tier announcement

Post by Jake-R » Mon Oct 05, 2015 10:30 am

One thing I cannot determine is if the balances might be an aggregate of all accounts we hold with them, or if the tiers apply to each account individually. What f we have a 5 year CD ladder and it totals $25,000, will that put everything we have with Ally in the top tier?

kaneohe
Posts: 4707
Joined: Mon Sep 22, 2008 12:38 pm

Re: ALLY Bank and the new tier announcement

Post by kaneohe » Mon Oct 05, 2015 10:42 am

Jake-R wrote:One thing I cannot determine is if the balances might be an aggregate of all accounts we hold with them, or if the tiers apply to each account individually. What f we have a 5 year CD ladder and it totals $25,000, will that put everything we have with Ally in the top tier?
one rep I talked to said no.......it would be determined individually for each account. .......but who knows....if you call you might get another answer. I suggested that they might want to consider that idea since some other places do that for their purposes. If enough people suggested it perhaps they might reconsider.

User avatar
Igglesman
Posts: 435
Joined: Fri May 01, 2009 2:20 pm

Re: ALLY Bank and the new tier announcement

Post by Igglesman » Mon Oct 05, 2015 10:50 am

Jake-R wrote:One thing I cannot determine is if the balances might be an aggregate of all accounts we hold with them, or if the tiers apply to each account individually. What f we have a 5 year CD ladder and it totals $25,000, will that put everything we have with Ally in the top tier?
Each CD is a separate account. I called.

User avatar
telemark
Posts: 2232
Joined: Sat Aug 11, 2012 6:35 am

Re: ALLY Bank and the new tier announcement

Post by telemark » Mon Oct 05, 2015 11:48 am

Igglesman wrote:Each CD is a separate account. I called.
That's what I would expect. The rate on a CD is determined when you buy the CD and doesn't change. Likewise, any CDs you already own shouldn't be affected by the new policy.

Jake-R
Posts: 29
Joined: Wed Sep 16, 2015 5:12 pm
Location: Reno, Nevada USA

Re: ALLY Bank and the new tier announcement

Post by Jake-R » Mon Oct 05, 2015 11:58 am

I called them as well and it is all separate for each account. That will put a solid 5 year CD ladder out of reach for me as they renew over the next few years. I am going to transfer them to Barclays when they are up for renewal. I have one coming up in November, right after the rate tier change, but it is no where near $25,000. Barclays is offering 2.25% for a 5 year CD with no minimum deposit. Unfortunately, they don't have an iOS app, but their mobile site is good.

:sharebeer

User avatar
N1CKV
Posts: 716
Joined: Wed Mar 21, 2012 8:18 am

Re: ALLY Bank and the new tier announcement

Post by N1CKV » Mon Oct 05, 2015 12:19 pm

I just received this email seconds ago.
I have met a lot of people that claim to love money, but they also seem to be the same people that are in the biggest hurry to get rid of it.

Mike Scott
Posts: 810
Joined: Fri Jul 19, 2013 2:45 pm

Re: ALLY Bank and the new tier announcement

Post by Mike Scott » Mon Oct 05, 2015 1:12 pm

I received the email the same day I received a self congratulatory letter from ALLY on them breaking the 1 million member mark. I'm guessing they think they have grown large enough to dump their smaller accounts. I wonder if they will send a similar letter when they break the million mark going the other direction?

ji.isaacs
Posts: 100
Joined: Sat May 24, 2014 3:19 pm

Re: ALLY Bank and the new tier announcement

Post by ji.isaacs » Mon Oct 05, 2015 2:09 pm

We received our letter today. I followed their instructions: "For complete details, please review the addendum in the updated Ally Bank Deposit Agreement," and found NOTHING that provided any details, let alone complete, of the action indicated in the letter.

I telephoned, and the rep informed me they do not have rates yet, but they will be posted on the website 11/7/2015, consistent with the date in the letter. She said the letter was to satisfy a federal requirement that mandated a minimum 30 day notice. As others were told, I was also that tiers apply to each account, not an aggregate of a member's accounts.

I suspect there will be significant outflows on 11/7.

User avatar
mickeyd
Posts: 4541
Joined: Fri Feb 23, 2007 3:19 pm
Location: Deep in the Heart of South Texas

Re: ALLY Bank and the new tier announcement

Post by mickeyd » Mon Oct 05, 2015 3:54 pm

Mike Scott wrote:I received the email the same day I received a self congratulatory letter from ALLY on them breaking the 1 million member mark. I'm guessing they think they have grown large enough to dump their smaller accounts. I wonder if they will send a similar letter when they break the million mark going the other direction?
Same here. But I'm hoping that the $25K+ rate tops the current .99% APY. If not, I'm ready to shop. 8-)
Part-Owner of Texas | | “The CMH-the Cost Matters Hypothesis -is all that is needed to explain why indexing must and will work… Yes, it is that simple.” John C. Bogle

crg11
Posts: 404
Joined: Sat Jan 04, 2014 8:16 am

Re: ALLY Bank and the new tier announcement

Post by crg11 » Mon Oct 05, 2015 5:10 pm

If they lower my rate, I'll probably just move everything into my local credit union.

Coles
Posts: 119
Joined: Sat Sep 20, 2014 9:11 pm

Re: ALLY Bank and the new tier announcement

Post by Coles » Mon Oct 05, 2015 5:24 pm

It'll be interesting to see how much variation there will be between the tiers.

Currently at Synchrony Bank, the savings account APY is the same for all levels:
https://synchronybank.com/banking/produ ... /index.htm
Scroll to bottom of page

User avatar
mickeyd
Posts: 4541
Joined: Fri Feb 23, 2007 3:19 pm
Location: Deep in the Heart of South Texas

Re: ALLY Bank and the new tier announcement

Post by mickeyd » Tue Oct 06, 2015 4:07 pm

The current online rate @ Ally just bumped up to 1.00%.
Part-Owner of Texas | | “The CMH-the Cost Matters Hypothesis -is all that is needed to explain why indexing must and will work… Yes, it is that simple.” John C. Bogle

Post Reply