Ally Vs CIT- Seeking advice

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
Post Reply
BogleMelon
Posts: 1190
Joined: Mon Feb 01, 2016 11:49 am

Ally Vs CIT- Seeking advice

Post by BogleMelon » Fri Jan 12, 2018 9:37 am

Hello!
CIT saving rate is currently higher than that of Ally by 0.3% (1.55% Vs 1.25%). I have a good experience with Ally so far, but was wondering how is CIT doing in terms of web interference, customer service...etc
Anyone had an experience here with CIT?
"One of the funny things about stock market, every time one is buying another is selling, and both think they are astute" - William Feather

User avatar
TheGreyingDuke
Posts: 1433
Joined: Fri Sep 02, 2011 10:34 am

Re: Ally Vs CIT- Seeking advice

Post by TheGreyingDuke » Fri Jan 12, 2018 10:27 am

CIT does not automatically adjust your rate as their rate increases. If you open an account and receive 1.05% they keep you at that even as they raise the rates for others.
"Every time I see an adult on a bicycle, I no longer despair for the future of the human race." H.G. Wells

farnsy
Posts: 73
Joined: Tue Dec 15, 2015 8:49 pm

Re: Ally Vs CIT- Seeking advice

Post by farnsy » Fri Jan 12, 2018 10:29 am

Haven't used Ally nor Cit, but your post begs the question: if you are looking for a high interest rate online bank, why not use dollar savings direct, which offers 1.6%? This is the next iteration of Emigrant Direct, by the same bank. I use them and the only downside I've seen so far is that their security model is not compatible with mint.com.

Or if you want an institution that does more than just your high-interest account, how about capital one 360, which earns 1.4% on its money market and will give you a checking account and credit card to boot?

jfchenger
Posts: 1
Joined: Fri Jan 12, 2018 12:45 pm

Re: Ally Vs CIT- Seeking advice

Post by jfchenger » Fri Jan 12, 2018 12:49 pm

TheGreyingDuke wrote:
Fri Jan 12, 2018 10:27 am
CIT does not automatically adjust your rate as their rate increases. If you open an account and receive 1.05% they keep you at that even as they raise the rates for others.
Not sure if that's true. I opened my account when it was 1.35% late last year, clicked on my account info just now, it says it's 1.55% now.
BogleMelon wrote:
Fri Jan 12, 2018 9:37 am
Hello!
CIT saving rate is currently higher than that of Ally by 0.3% (1.55% Vs 1.25%). I have a good experience with Ally so far, but was wondering how is CIT doing in terms of web interference, customer service...etc
Anyone had an experience here with CIT?
CIT's UI sucks, ACH push is pretty speedy however, I have not used their customer service yet. I'm same as you, use Ally as my primary where I hold quite a few CDs.

User avatar
TheGreyingDuke
Posts: 1433
Joined: Fri Sep 02, 2011 10:34 am

Re: Ally Vs CIT- Seeking advice

Post by TheGreyingDuke » Fri Jan 12, 2018 3:15 pm

jfchenger wrote:
Fri Jan 12, 2018 12:49 pm
TheGreyingDuke wrote:
Fri Jan 12, 2018 10:27 am
CIT does not automatically adjust your rate as their rate increases. If you open an account and receive 1.05% they keep you at that even as they raise the rates for others.
Not sure if that's true. I opened my account when it was 1.35% late last year, clicked on my account info just now, it says it's 1.55% now.

CIT's UI sucks, ACH push is pretty speedy however, I have not used their customer service yet. I'm same as you, use Ally as my primary where I hold quite a few CDs.
It was true for me, they wrote me back and stated that I needed to open a High Yield account, which actually was quite easy to do online, funded it with the now closed account. The only difficulty is that it is the recipient of my dividends from Vanguard and had to go through the entire vetting process (micro-deposits) to put it into effect.
"Every time I see an adult on a bicycle, I no longer despair for the future of the human race." H.G. Wells

thangngo
Posts: 883
Joined: Sun Feb 26, 2017 2:08 pm

Re: Ally Vs CIT- Seeking advice

Post by thangngo » Fri Jan 12, 2018 3:31 pm

BogleMelon wrote:
Fri Jan 12, 2018 9:37 am
Hello!
CIT saving rate is currently higher than that of Ally by 0.3% (1.55% Vs 1.25%). I have a good experience with Ally so far, but was wondering how is CIT doing in terms of web interference, customer service...etc
Anyone had an experience here with CIT?
I don't like chasing online banks that provide the highest saving rate. I don't want to deal with constantly open new account, close old account, moving money around. After all, this provide very little margin. I picked Marcus (f/k/a GS Bank) by Goldman Sachs and the company continues to keep very competitive rate. I'm happy to keep my business with them.

User avatar
saltycaper
Posts: 2637
Joined: Thu Apr 24, 2014 8:47 pm
Location: The Tower

Re: Ally Vs CIT- Seeking advice

Post by saltycaper » Fri Jan 12, 2018 3:59 pm

jfchenger wrote:
Fri Jan 12, 2018 12:49 pm
TheGreyingDuke wrote:
Fri Jan 12, 2018 10:27 am
CIT does not automatically adjust your rate as their rate increases. If you open an account and receive 1.05% they keep you at that even as they raise the rates for others.
Not sure if that's true. I opened my account when it was 1.35% late last year, clicked on my account info just now, it says it's 1.55% now.
What I think happened is they previously had something called the "High Yield Savings Account" which paid X.XX%. Then they began offering a "Premier High Yield Savings Account" at a higher rate of Y.YY% If you had the old "High Yield Savings Account", that rate changed over time, but it did not offer the same rate as the new "Premier" account, even though the "Premier" account is the only savings account I see as an option for opening today. So this was a "new" account they came out with, and if you had the "old" account, you had to open the "new" account to get the "new" rates.

Requiring action from existing customer to get the new rate enables them to attract new deposits with higher rates while providing the likelihood that some existing customers will not take the time to "upgrade" to the new account, and some perhaps will not even realize they have to upgrade to take advantage of the new rates. I don't think this practice is unique to CIT, but I don't care for it.

The user interface was not good IMO, but it was improved a couple years ago. Still not great, but better.

Their CD rates compared to other banks do not seems as enticing as they were 5 or so years ago. I think there was a good chunk of time where they had among the highest rates for 3-, 4-, and 5-year CDs.

All of these things combined means I'll likely be leaving CIT once my existing CDs mature.

I have no experience with Ally.
Quod vitae sectabor iter?

User avatar
DaftInvestor
Posts: 3773
Joined: Wed Feb 19, 2014 10:11 am

Re: Ally Vs CIT- Seeking advice

Post by DaftInvestor » Fri Jan 12, 2018 4:31 pm

BogleMelon wrote:
Fri Jan 12, 2018 9:37 am
Hello!
CIT saving rate is currently higher than that of Ally by 0.3% (1.55% Vs 1.25%). I have a good experience with Ally so far, but was wondering how is CIT doing in terms of web interference, customer service...etc
Anyone had an experience here with CIT?
CIT has had a lot of bad ratings.
marcus (gsbank) has a 1.5% rate and synchrony has a 1.45% rate. Both have good interfaces. marcus ACH transfers only take a day - synchrony may take a couple of days (haven't used them in a while).

User avatar
Kevin M
Posts: 9247
Joined: Mon Jun 29, 2009 3:24 pm
Contact:

Re: Ally Vs CIT- Seeking advice

Post by Kevin M » Fri Jan 12, 2018 4:52 pm

One reason I haven't messed around moving money to higher rate savings accounts is that I took advantage of Ally's no-penalty 11-month CDs at 1.75% (now 1.60%). And now the Vanguard municipal money market funds are providing me with taxable-equivalent yields (TEYs) of 1.74% (as of most recent close), but these yields have been dropping daily.

For example, the CA muni MM fund has dropped by 20 basis points, to 1.13% on 1/11/2018 from the high of 1.33% on 1/3/2018 (at the high, my TEY was 2.05%). Over same time period the yield of the (national) muni MM has dropped from 1.42% to 1.23%.

Ally is a great, all-purpose hub bank, with high limits on ACH transfers, high limits on number of external linked accounts, a broad product range, etc., so I'm sticking with Ally as my primary bank. As long as the muni money market yields remain competitive, I'll be holding my excess savings in them, aside from the fairly large amount I still have in the no-penalty 1.75% CDs.

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

ivk5
Posts: 245
Joined: Thu Sep 22, 2016 9:05 am

Re: Ally Vs CIT- Seeking advice

Post by ivk5 » Fri Jan 12, 2018 5:08 pm

Have accounts at both but have moved all funds to Ally (mainly for the 11-month no-penalty 1.75% CDs). As others have noted, tech/UI for CIT is primitive (same netteller platform used by some credit unions etc).

Post Reply