[Ally online savings now at 1.80%]

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sycotik
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[Ally online savings now at 1.80%]

Post by sycotik » Fri Feb 09, 2018 7:37 am

[Updated for 1.75%, see: this post, page 4. --admin LadyGeek]

Since Ally raised their online savings, does that have any trickle effect on CD rates? Meaning is there any correlation or are they totally separate? I was about to get another CD today, then I noticed the savings rate hike.
Last edited by sycotik on Sat Aug 04, 2018 4:11 am, edited 3 times in total.

MikeG62
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Re: Ally online savings now at 1.45%

Post by MikeG62 » Fri Feb 09, 2018 7:52 am

I believe there is a correlation, but the two are not linked. However, over time higher rates on their online savings account should translate to higher rates on their CD's.

I suspect the recent move by Ally on their online savings account is more to be competitive against other banks, such as Barclays or Marcus (which are both at 1.50%)
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SlowMovingInvestor
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Re: Ally online savings now at 1.45%

Post by SlowMovingInvestor » Fri Feb 09, 2018 8:02 am

Purepoint is at 1.60% now, too.

Da5id
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Re: Ally online savings now at 1.45%

Post by Da5id » Fri Feb 09, 2018 8:06 am

They may also be getting pushed by mutual fund money markets finally. Vanguard Prime is 1.45% as well, perhaps not a coincidence?

As to CD rates, have to guess that they are being pushed up as bond yields are rising as they are somewhat competitive. If you can get a better rate on a treasury note than a CD seems like you'd just get one of those. See some yields here: https://www.treasury.gov/resource-cente ... data=yield

hlfo718
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Re: Ally online savings now at 1.45%

Post by hlfo718 » Fri Feb 09, 2018 8:17 am

3 Month TBills are over 1.5% and state/local tax free. That's a great substitute for money funds and high yield savings.

Crisium
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Re: Ally online savings now at 1.45%

Post by Crisium » Fri Feb 09, 2018 8:22 am

Nice. 45% more yield than 18 months ago.

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Re: Ally online savings now at 1.45%

Post by jeffyscott » Fri Feb 09, 2018 10:12 am

MikeG62 wrote:
Fri Feb 09, 2018 7:52 am
Barclays or Marcus (which are both at 1.50%)
While offering 1.5% on savings accounts, those same banks have things like 3 mo. CD at 0.35% and 6 month CD at 0.6% :confused .
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Crisium
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Re: Ally online savings now at 1.45%

Post by Crisium » Fri Feb 09, 2018 11:28 am

That's one of the reasons I like Ally. They don't lead the market in rates in either category, but are close in both savings and CDs - and recently they have been pretty close to the CD leaders. You can always be sure you're getting a competitive rate. Purepoint's 12 month CD is lower than their savings rate, bizarrely, though I assume temporarily as rates fluctuate.

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Re: Ally online savings now at 1.45%

Post by radiowave » Fri Feb 09, 2018 11:33 am

Ally's 12 mo 2.0% CD is back ($25k min, 1.85% with 5K min).
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boglewill34
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Re: Ally online savings now at 1.45%

Post by boglewill34 » Fri Feb 09, 2018 11:37 am

Da5id wrote:
Fri Feb 09, 2018 8:06 am
They may also be getting pushed by mutual fund money markets finally. Vanguard Prime is 1.45% as well, perhaps not a coincidence?
I've been looking at Schwab Prime Money currently at 1.29%. Question with money funds is, is there a tax reporting difference between them and traditional savings? I ask because even though the principle should be fixed, it gets transacted via a "trade."

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Re: Ally online savings now at 1.45%

Post by chw » Fri Feb 09, 2018 11:52 am

Wonder why my rate is still showing 1.35%. Is there an effective date?

LiterallyIronic
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Re: Ally online savings now at 1.45%

Post by LiterallyIronic » Fri Feb 09, 2018 11:58 am

Meanwhile, Wells Fargo is still at 0.01%.

https://www.wellsfargo.com/savings-cds/ ... unt-rates/

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Re: Ally online savings now at 1.45%

Post by Agggm » Fri Feb 09, 2018 12:01 pm

LiterallyIronic wrote:
Fri Feb 09, 2018 11:58 am
Meanwhile, Wells Fargo is still at 0.01%.

https://www.wellsfargo.com/savings-cds/ ... unt-rates/
:sharebeer

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Taco Knight
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Re: Ally online savings now at 1.45%

Post by Taco Knight » Fri Feb 09, 2018 12:11 pm

chw wrote:
Fri Feb 09, 2018 11:52 am
Wonder why my rate is still showing 1.35%. Is there an effective date?
I'm also getting 1.35% on my dashboard but their public-facing website seems to clearly state it's 1.45% and proudly say it matches AmEx (and skips all the other banks withing range like those mentioned upthread).

Just checked on "open new account" and while logged-in it also says 1.45% across all account balances. Opened chat but was 5th in queue so quit to continue this post here and stew silently.

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DaftInvestor
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Re: Ally online savings now at 1.45%

Post by DaftInvestor » Fri Feb 09, 2018 12:52 pm

They continue (as always) to be a small step behind all the other high yield accounts. Both Synchtony and gsbank (and Barclays) are already at 1.5%.

sycotik
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Re: Ally online savings now at 1.45%

Post by sycotik » Fri Feb 09, 2018 12:57 pm

chw wrote:
Fri Feb 09, 2018 11:52 am
Wonder why my rate is still showing 1.35%. Is there an effective date?
I saw this once before. I am not sure what their turn around time is, but usually 24 hours after it goes live for you to see it in your current account. I am currently overseas so I may have logged in at just the right time. I remember they went from 1.25% to 1.35% and the next day, that is what showed in my account.

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Re: Ally online savings now at 1.45%

Post by WanderingDoc » Fri Feb 09, 2018 1:08 pm

hlfo718 wrote:
Fri Feb 09, 2018 8:17 am
3 Month TBills are over 1.5% and state/local tax free. That's a great substitute for money funds and high yield savings.
Can you recommend an easy and secure way to purchase one for the computer semi-illiterate? :)
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Re: Ally online savings now at 1.45%

Post by jeff1949 » Fri Feb 09, 2018 1:22 pm

WanderingDoc wrote:
Fri Feb 09, 2018 1:08 pm
hlfo718 wrote:
Fri Feb 09, 2018 8:17 am
3 Month TBills are over 1.5% and state/local tax free. That's a great substitute for money funds and high yield savings.
Can you recommend an easy and secure way to purchase one for the computer semi-illiterate? :)
Here you go: https://www.treasurydirect.gov/indiv/re ... ll_buy.htm

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pennstater2005
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Re: Ally online savings now at 1.45%

Post by pennstater2005 » Fri Feb 09, 2018 1:30 pm

DaftInvestor wrote:
Fri Feb 09, 2018 12:52 pm
They continue (as always) to be a small step behind all the other high yield accounts. Both Synchtony and gsbank (and Barclays) are already at 1.5%.
Good point but it’s never enough at other financial institutions to make me even thinking about switching. To change all that info for paying bills and such it would have to be substantial. Laziness is a stronger motivator presently than .05% in interest :D
“If you think nobody cares if you're alive, try missing a couple of car payments.” – Earl Wilson

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Meaty
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Re: Ally online savings now at 1.45%

Post by Meaty » Fri Feb 09, 2018 1:32 pm

1.5% at Barclays
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Re: Ally online savings now at 1.45%

Post by xenial » Fri Feb 09, 2018 1:33 pm

jeff1949 wrote:
Fri Feb 09, 2018 1:22 pm
WanderingDoc wrote:
Fri Feb 09, 2018 1:08 pm
hlfo718 wrote:
Fri Feb 09, 2018 8:17 am
3 Month TBills are over 1.5% and state/local tax free. That's a great substitute for money funds and high yield savings.
Can you recommend an easy and secure way to purchase one for the computer semi-illiterate? :)
Here you go: https://www.treasurydirect.gov/indiv/re ... ll_buy.htm
Another way is to buy the Treasury bill through a brokerage account at Vanguard, Fidelity, Schwab, etc. It's more flexible, allowing you to sell early without any hassles if needed.

barberakb
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Re: Ally online savings now at 1.45%

Post by barberakb » Fri Feb 09, 2018 1:34 pm

Usually if you call them they will transfer your current account to the new higher rate.

At least they did that for me at CIT bank.

It was super easy. No paperwork, just a phone call.

https://www.bankoncit.com/

Which has a 1.55 savings account

WanderingDoc
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Re: Ally online savings now at 1.45%

Post by WanderingDoc » Fri Feb 09, 2018 2:04 pm

barberakb wrote:
Fri Feb 09, 2018 1:34 pm
Usually if you call them they will transfer your current account to the new higher rate.

At least they did that for me at CIT bank.

It was super easy. No paperwork, just a phone call.

https://www.bankoncit.com/

Which has a 1.55 savings account
I am always reluctant to trust these "up and coming" online banks with large amounts of money. I have only opened an Ally account this year and they have been doing business for what, 10-15 years?
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pennstater2005
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Re: Ally online savings now at 1.45%

Post by pennstater2005 » Fri Feb 09, 2018 2:11 pm

WanderingDoc wrote:
Fri Feb 09, 2018 2:04 pm
barberakb wrote:
Fri Feb 09, 2018 1:34 pm
Usually if you call them they will transfer your current account to the new higher rate.

At least they did that for me at CIT bank.

It was super easy. No paperwork, just a phone call.

https://www.bankoncit.com/

Which has a 1.55 savings account
I am always reluctant to trust these "up and coming" online banks with large amounts of money. I have only opened an Ally account this year and they have been doing business for what, 10-15 years?
Since 1919 as GMAC.

https://en.m.wikipedia.org/wiki/Ally_Financial
“If you think nobody cares if you're alive, try missing a couple of car payments.” – Earl Wilson

MindTheGAAP
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Re: Ally online savings now at 1.45%

Post by MindTheGAAP » Fri Feb 09, 2018 2:20 pm

pennstater2005 wrote:
Fri Feb 09, 2018 2:11 pm
WanderingDoc wrote:
Fri Feb 09, 2018 2:04 pm
barberakb wrote:
Fri Feb 09, 2018 1:34 pm
Usually if you call them they will transfer your current account to the new higher rate.

At least they did that for me at CIT bank.

It was super easy. No paperwork, just a phone call.

https://www.bankoncit.com/

Which has a 1.55 savings account
I am always reluctant to trust these "up and coming" online banks with large amounts of money. I have only opened an Ally account this year and they have been doing business for what, 10-15 years?
Since 1919 as GMAC.

https://en.m.wikipedia.org/wiki/Ally_Financial
I've been with them since they opened doors in 2009 as Ally and I've been thrilled. Occasional nuisance for not being able to deposit cash but easy workarounds to that.
"One of the funny things about the stock market is that every time one person buys, another sells, and both think they are astute" - William Feather

ThriftyPhD
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Re: Ally online savings now at 1.45%

Post by ThriftyPhD » Fri Feb 09, 2018 2:22 pm

MindTheGAAP wrote:
Fri Feb 09, 2018 2:20 pm
pennstater2005 wrote:
Fri Feb 09, 2018 2:11 pm
WanderingDoc wrote:
Fri Feb 09, 2018 2:04 pm
barberakb wrote:
Fri Feb 09, 2018 1:34 pm
Usually if you call them they will transfer your current account to the new higher rate.

At least they did that for me at CIT bank.

It was super easy. No paperwork, just a phone call.

https://www.bankoncit.com/

Which has a 1.55 savings account
I am always reluctant to trust these "up and coming" online banks with large amounts of money. I have only opened an Ally account this year and they have been doing business for what, 10-15 years?
Since 1919 as GMAC.

https://en.m.wikipedia.org/wiki/Ally_Financial
I've been with them since they opened doors in 2009 as Ally and I've been thrilled. Occasional nuisance for not being able to deposit cash but easy workarounds to that.
And CIT bank is 110 years old (with many acquisitions, reorgs, spin offs along the way).

MindTheGAAP
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Re: Ally online savings now at 1.45%

Post by MindTheGAAP » Fri Feb 09, 2018 2:24 pm

ThriftyPhD wrote:
Fri Feb 09, 2018 2:22 pm
MindTheGAAP wrote:
Fri Feb 09, 2018 2:20 pm
pennstater2005 wrote:
Fri Feb 09, 2018 2:11 pm
WanderingDoc wrote:
Fri Feb 09, 2018 2:04 pm
barberakb wrote:
Fri Feb 09, 2018 1:34 pm
Usually if you call them they will transfer your current account to the new higher rate.

At least they did that for me at CIT bank.

It was super easy. No paperwork, just a phone call.

https://www.bankoncit.com/

Which has a 1.55 savings account
I am always reluctant to trust these "up and coming" online banks with large amounts of money. I have only opened an Ally account this year and they have been doing business for what, 10-15 years?
Since 1919 as GMAC.

https://en.m.wikipedia.org/wiki/Ally_Financial
I've been with them since they opened doors in 2009 as Ally and I've been thrilled. Occasional nuisance for not being able to deposit cash but easy workarounds to that.
And CIT bank is 110 years old (with many acquisitions, reorgs, spin offs along the way).
I'm not questioning CIT Bank?
"One of the funny things about the stock market is that every time one person buys, another sells, and both think they are astute" - William Feather

tunerunner
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Re: Ally online savings now at 1.45%

Post by tunerunner » Fri Feb 09, 2018 2:37 pm

I need to open a high yield savings - leaning more toward CIT at this point I guess since they beat Ally. Any reasons I shouldn't? Everyone happy that uses them?

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pennstater2005
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Re: Ally online savings now at 1.45%

Post by pennstater2005 » Fri Feb 09, 2018 2:38 pm

MindTheGAAP wrote:
Fri Feb 09, 2018 2:20 pm
pennstater2005 wrote:
Fri Feb 09, 2018 2:11 pm
WanderingDoc wrote:
Fri Feb 09, 2018 2:04 pm
barberakb wrote:
Fri Feb 09, 2018 1:34 pm
Usually if you call them they will transfer your current account to the new higher rate.

At least they did that for me at CIT bank.

It was super easy. No paperwork, just a phone call.

https://www.bankoncit.com/

Which has a 1.55 savings account
I am always reluctant to trust these "up and coming" online banks with large amounts of money. I have only opened an Ally account this year and they have been doing business for what, 10-15 years?
Since 1919 as GMAC.

https://en.m.wikipedia.org/wiki/Ally_Financial
I've been with them since they opened doors in 2009 as Ally and I've been thrilled. Occasional nuisance for not being able to deposit cash but easy workarounds to that.
I’ve found the easiest workaround for smaller amounts of cash, say a few hundred, is to just spend it. Meaning, we’ll use it for groceries and other monthly expenditures. Downside is I lose the 6% back on groceries. I rarely have cash.
“If you think nobody cares if you're alive, try missing a couple of car payments.” – Earl Wilson

ThriftyPhD
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Re: Ally online savings now at 1.45%

Post by ThriftyPhD » Fri Feb 09, 2018 2:41 pm

MindTheGAAP wrote:
Fri Feb 09, 2018 2:24 pm
ThriftyPhD wrote:
Fri Feb 09, 2018 2:22 pm
MindTheGAAP wrote:
Fri Feb 09, 2018 2:20 pm
pennstater2005 wrote:
Fri Feb 09, 2018 2:11 pm
WanderingDoc wrote:
Fri Feb 09, 2018 2:04 pm


I am always reluctant to trust these "up and coming" online banks with large amounts of money. I have only opened an Ally account this year and they have been doing business for what, 10-15 years?
Since 1919 as GMAC.

https://en.m.wikipedia.org/wiki/Ally_Financial
I've been with them since they opened doors in 2009 as Ally and I've been thrilled. Occasional nuisance for not being able to deposit cash but easy workarounds to that.
And CIT bank is 110 years old (with many acquisitions, reorgs, spin offs along the way).
I'm not questioning CIT Bank?
The quote chain started by WanderingDoc questioning CIT as being "up and coming", and comparing to Ally. As pennstater2015 pointed out, Ally is actually quite old when you look at it's corporate history. I was simply replying to point out that CIT is also quite old when you look at it's corporate history.

I wouldn't consider either new nor "up and coming".

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Re: Ally online savings now at 1.45%

Post by ThriftyPhD » Fri Feb 09, 2018 2:43 pm

tunerunner wrote:
Fri Feb 09, 2018 2:37 pm
I need to open a high yield savings - leaning more toward CIT at this point I guess since they beat Ally. Any reasons I shouldn't? Everyone happy that uses them?
The difference of 0.1% interest, before taxes, might not be very meaningful depending on the size of account you plan. Given that, consider things like the quality of the site, ease of use, customer service, etc. I can't really speak to either company, but I wouldn't let the interest rate difference be a strong driver.

SlowMovingInvestor
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Re: Ally online savings now at 1.45%

Post by SlowMovingInvestor » Fri Feb 09, 2018 2:59 pm

About differences between various onlines, let me throw in a gripe about Synchrony. It offers good rates and reasonable customer service.

However, it takes 3 days to do an ACH transfer. It seems to take an extra day either way when money is transferred out or in. The extra day of intesrest isn't going to make much difference, but it can be inconvienient when you want to move money quickly to a checking account.

By contrast, Purepoint credits its accounts the day you do a 'from'. I don't have an Ally savings (only a CD), so not sure about them,

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Re: Ally online savings now at 1.45%

Post by barberakb » Fri Feb 09, 2018 3:55 pm

CIT has been great so far.

Only had them for a year.

I initially just put some extra cash in there because they gave me a $100 bonus.

But I have stayed because their rates are competitive and so far customer service has been good. No problems yet.

itworks
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Re: Ally online savings now at 1.45%

Post by itworks » Fri Feb 09, 2018 4:08 pm

Alliant Credit Union savings: 1.45%, upped a few days ago.

Candor
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Re: Ally online savings now at 1.45%

Post by Candor » Fri Feb 09, 2018 10:40 pm

So I'll be expecting an e-mail from them by the end of next week notifying me of the increase. Thanks for the heads up. It's kind of interesting that I always hear about increases here before Ally gets around to letting me know.

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pennstater2005
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Re: Ally online savings now at 1.45%

Post by pennstater2005 » Fri Feb 09, 2018 11:22 pm

Candor wrote:
Fri Feb 09, 2018 10:40 pm
It's kind of interesting that I always hear about increases here before Ally gets around to letting me know.
I usually see it here first as well. Go figure.
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fortfun
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Re: Ally online savings now at 1.45%

Post by fortfun » Fri Feb 09, 2018 11:32 pm

MikeG62 wrote:
Fri Feb 09, 2018 7:52 am
I believe there is a correlation, but the two are not linked. However, over time higher rates on their online savings account should translate to higher rates on their CD's.

I suspect the recent move by Ally on their online savings account is more to be competitive against other banks, such as Barclays or Marcus (which are both at 1.50%)
Or, they lost a bunch of people to Capital One's 500 bonus. Got that today and put it right back in Ally :)

Saelina
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Re: Ally online savings now at 1.45%

Post by Saelina » Sat Feb 10, 2018 9:06 am

Hi,

I've had Ally recommended a few times for their high yield savings. I have Sallie Mae money market, which pays more, at least currently and is also FDIC insured. I'm not understanding why Ally would be better?
https://www.salliemae.com/save-for-coll ... t-account/

Calygos
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Re: Ally online savings now at 1.45%

Post by Calygos » Sat Feb 10, 2018 9:20 am

LiterallyIronic wrote:
Fri Feb 09, 2018 11:58 am
Meanwhile, Wells Fargo is still at 0.01%.

https://www.wellsfargo.com/savings-cds/ ... unt-rates/
This is something that's always bugged me too, but this thread over at r/personalfinance seems to shed light on the subject. Can anyone here confirm or deny the general claim that the interest rates are mainly due to whether a bank needs to attract money vs. their overall expenses for B&M branches, etc.?

EDIT: Linked wrong Reddit thread.

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Re: Ally online savings now at 1.45%

Post by RRAAYY3 » Sat Feb 10, 2018 9:32 am

Is Cash becoming cool again? I keep having a hard time not buying this robo-driven sell off

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F150HD
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Re: Ally online savings now at 1.45%

Post by F150HD » Sat Feb 10, 2018 9:44 am

I see this:

Image

Dominic
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Re: Ally online savings now at 1.45%

Post by Dominic » Sat Feb 10, 2018 12:25 pm

boglewill34 wrote:
Fri Feb 09, 2018 11:37 am
Da5id wrote:
Fri Feb 09, 2018 8:06 am
They may also be getting pushed by mutual fund money markets finally. Vanguard Prime is 1.45% as well, perhaps not a coincidence?
I've been looking at Schwab Prime Money currently at 1.29%. Question with money funds is, is there a tax reporting difference between them and traditional savings? I ask because even though the principle should be fixed, it gets transacted via a "trade."
Money market mutual funds generally trade at $1 per share, and pay dividends to avoid going above that rate. You shouldn't face any capital gains. Dividend income is treated the same as interest income in terms of tax rates. Unless I'm forgetting something, I think there's no difference between money market funds and savings accounts in terms of tax implications.

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Re: Ally online savings now at 1.45%

Post by White Coat Investor » Sat Feb 10, 2018 4:40 pm

TSP G fund up to 2.75% now. That's higher than the yield on Total Bond Market/F fund.
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Re: Ally online savings now at 1.45%

Post by WanderingDoc » Sat Feb 10, 2018 5:06 pm

White Coat Investor wrote:
Sat Feb 10, 2018 4:40 pm
TSP G fund up to 2.75% now. That's higher than the yield on Total Bond Market/F fund.
Any reason not to convert all bonds in the TSP to G fund? I believe I am 50/50 between G and F fund.
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Re: Ally online savings now at 1.45%

Post by triceratop » Sat Feb 10, 2018 6:12 pm

WanderingDoc wrote:
Sat Feb 10, 2018 5:06 pm
White Coat Investor wrote:
Sat Feb 10, 2018 4:40 pm
TSP G fund up to 2.75% now. That's higher than the yield on Total Bond Market/F fund.
Any reason not to convert all bonds in the TSP to G fund? I believe I am 50/50 between G and F fund.
If you use bonds to rebalance with an equity-heavy portfolio and believe intermediate term rates are correlated with stocks then you should prefer bonds. Of course in this situation the corporate bonds in the F fund are unlikely to be helpful.
"To play the stock market is to play musical chairs under the chord progression of a bid-ask spread."

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Re: Ally online savings now at 1.45%

Post by denovo » Sat Feb 10, 2018 6:20 pm

LiterallyIronic wrote:
Fri Feb 09, 2018 11:58 am
Meanwhile, Wells Fargo is still at 0.01%.

https://www.wellsfargo.com/savings-cds/ ... unt-rates/
So is Chase. I guess the big banks don't need money? :confused
"Don't trust everything you read on the Internet"- Abraham Lincoln

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Re: Ally online savings now at 1.45%

Post by WanderingDoc » Sat Feb 10, 2018 6:29 pm

triceratop wrote:
Sat Feb 10, 2018 6:12 pm
WanderingDoc wrote:
Sat Feb 10, 2018 5:06 pm
White Coat Investor wrote:
Sat Feb 10, 2018 4:40 pm
TSP G fund up to 2.75% now. That's higher than the yield on Total Bond Market/F fund.
Any reason not to convert all bonds in the TSP to G fund? I believe I am 50/50 between G and F fund.
If you use bonds to rebalance with an equity-heavy portfolio and believe intermediate term rates are correlated with stocks then you should prefer bonds. Of course in this situation the corporate bonds in the F fund are unlikely to be helpful.
Thank you. Both the G fund and F fund in the TSP are "BONDS". I think the G-fund is guaranteed to have a positive return, whereas the F fund is a general bond fund which follows the Barclay's bond index, and can have negative returns. F fund typically returned a little higher than G, but if it currently returns LOWER, and still has principle risk, seems like all G fund is the wise choice. Wanted to get some thoughts on it.
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Calygos
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Re: Ally online savings now at 1.45%

Post by Calygos » Sat Feb 10, 2018 6:29 pm

denovo wrote:
Sat Feb 10, 2018 6:20 pm
LiterallyIronic wrote:
Fri Feb 09, 2018 11:58 am
Meanwhile, Wells Fargo is still at 0.01%.

https://www.wellsfargo.com/savings-cds/ ... unt-rates/
So is Chase. I guess the big banks don't need money? :confused
Apparently not.

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triceratop
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Re: Ally online savings now at 1.45%

Post by triceratop » Sat Feb 10, 2018 6:48 pm

WanderingDoc wrote:
Sat Feb 10, 2018 6:29 pm
triceratop wrote:
Sat Feb 10, 2018 6:12 pm
WanderingDoc wrote:
Sat Feb 10, 2018 5:06 pm
White Coat Investor wrote:
Sat Feb 10, 2018 4:40 pm
TSP G fund up to 2.75% now. That's higher than the yield on Total Bond Market/F fund.
Any reason not to convert all bonds in the TSP to G fund? I believe I am 50/50 between G and F fund.
If you use bonds to rebalance with an equity-heavy portfolio and believe intermediate term rates are correlated with stocks then you should prefer bonds. Of course in this situation the corporate bonds in the F fund are unlikely to be helpful.
Thank you. Both the G fund and F fund in the TSP are "BONDS". I think the G-fund is guaranteed to have a positive return, whereas the F fund is a general bond fund which follows the Barclay's bond index, and can have negative returns. F fund typically returned a little higher than G, but if it currently returns LOWER, and still has principle risk, seems like all G fund is the wise choice. Wanted to get some thoughts on it.
No the G fund are not "Bonds". Investopedia defines a bond as: "A bond is a fixed income investment in which an investor loans money to an entity (typically corporate or governmental) which borrows the funds for a defined period of time at a variable or fixed interest rate".

The G fund is not fixed income! It is a stable value fund. The difference is important in the context of portfolio composition.
"To play the stock market is to play musical chairs under the chord progression of a bid-ask spread."

WanderingDoc
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Re: Ally online savings now at 1.45%

Post by WanderingDoc » Sat Feb 10, 2018 7:36 pm

triceratop wrote:
Sat Feb 10, 2018 6:48 pm
WanderingDoc wrote:
Sat Feb 10, 2018 6:29 pm
triceratop wrote:
Sat Feb 10, 2018 6:12 pm
WanderingDoc wrote:
Sat Feb 10, 2018 5:06 pm
White Coat Investor wrote:
Sat Feb 10, 2018 4:40 pm
TSP G fund up to 2.75% now. That's higher than the yield on Total Bond Market/F fund.
Any reason not to convert all bonds in the TSP to G fund? I believe I am 50/50 between G and F fund.
If you use bonds to rebalance with an equity-heavy portfolio and believe intermediate term rates are correlated with stocks then you should prefer bonds. Of course in this situation the corporate bonds in the F fund are unlikely to be helpful.
Thank you. Both the G fund and F fund in the TSP are "BONDS". I think the G-fund is guaranteed to have a positive return, whereas the F fund is a general bond fund which follows the Barclay's bond index, and can have negative returns. F fund typically returned a little higher than G, but if it currently returns LOWER, and still has principle risk, seems like all G fund is the wise choice. Wanted to get some thoughts on it.
No the G fund are not "Bonds". Investopedia defines a bond as: "A bond is a fixed income investment in which an investor loans money to an entity (typically corporate or governmental) which borrows the funds for a defined period of time at a variable or fixed interest rate".

The G fund is not fixed income! It is a stable value fund. The difference is important in the context of portfolio composition.
Copy that. When I see that the G-fund returns higher than the F-fund, without the principle risk, my eyes tend to perk up.
Don't wait to buy real estate. Buy real estate, and wait. | Rent where you live, buy where others pay your mortgage for you.

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