Ally Banking 1% extra back up to $1,000 on new money deposited

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
donaldfair71
Posts: 343
Joined: Wed Mar 06, 2013 4:15 pm

Re: Ally Banking 1% extra back up to $1,000 on new money deposited

Post by donaldfair71 » Tue Oct 16, 2018 7:03 am

mggray17 wrote:
Mon Oct 15, 2018 6:06 pm
mggray17 wrote:
Mon Oct 15, 2018 5:46 pm
Hmmmmm. Transferred 150K to my Ally Online Savings on 10/12.
Didn't know about the offer, before the transfer, so didn't sign up.
Hmmmm. What to do? Would think about keeping 100K there until January for the extra $1000.
UPDATE: Chatted with Ally. Said I'm eligible If I sign up even though the money was already deposited.
Was in the same boat, and thank you for following up with the resolution. It is why I love this site so much.

Tarkus
Posts: 60
Joined: Sun Aug 25, 2013 9:43 pm

Re: Ally Banking 1% extra back up to $1,000 on new money deposited

Post by Tarkus » Tue Oct 16, 2018 7:04 am

I'm worried about the withdrawals clause: "Withdrawals made during the Retention Period may reduce the Cash Bonus amount. Cash Bonus payout will occur within 30 calendar days following fulfillment of these requirements."

Does this mean that any withdrawals made prior to 1/15 will reduce the cash bonus amount? I have a $50K balance at Ally today, and intend to withdraw this money by the end of the year.

If I transfer an additional $100K today, and then I withdraw $50K, won't Ally reduce my bonus? Isn't this a tricky bonus to get if you actually use your account as your primary bank account?

User avatar
simplesimon
Posts: 3195
Joined: Mon Feb 25, 2008 8:53 pm
Location: Boston, MA

Re: Ally Banking 1% extra back up to $1,000 on new money deposited

Post by simplesimon » Tue Oct 16, 2018 7:17 am

Tarkus wrote:
Tue Oct 16, 2018 7:04 am
I'm worried about the withdrawals clause: "Withdrawals made during the Retention Period may reduce the Cash Bonus amount. Cash Bonus payout will occur within 30 calendar days following fulfillment of these requirements."

Does this mean that any withdrawals made prior to 1/15 will reduce the cash bonus amount? I have a $50K balance at Ally today, and intend to withdraw this money by the end of the year.

If I transfer an additional $100K today, and then I withdraw $50K, won't Ally reduce my bonus? Isn't this a tricky bonus to get if you actually use your account as your primary bank account?
I plan on putting the money into a no-penalty CD to avoid any ambiguity about fund flow.

RickBoglehead
Posts: 983
Joined: Wed Feb 14, 2018 9:10 am

Re: Ally Banking 1% extra back up to $1,000 on new money deposited

Post by RickBoglehead » Tue Oct 16, 2018 7:42 am

Tarkus wrote:
Tue Oct 16, 2018 7:04 am
I'm worried about the withdrawals clause: "Withdrawals made during the Retention Period may reduce the Cash Bonus amount. Cash Bonus payout will occur within 30 calendar days following fulfillment of these requirements."

Does this mean that any withdrawals made prior to 1/15 will reduce the cash bonus amount? I have a $50K balance at Ally today, and intend to withdraw this money by the end of the year.

If I transfer an additional $100K today, and then I withdraw $50K, won't Ally reduce my bonus? Isn't this a tricky bonus to get if you actually use your account as your primary bank account?
No.

Ally is going to see $150 came in during the qualifying period, and as of 1/15/19 $100k remains. Max bonus is on $100k, so you'll get the max bonus.

You can't launch a promo like this that covers checking accounts as well as savings, CDs, etc. and not take this into account. Lawsuits would abound.

Add your $100k and make sure your balances remain $100k through 1/15/19.

User avatar
DaftInvestor
Posts: 4064
Joined: Wed Feb 19, 2014 10:11 am

Re: Ally Banking 1% extra back up to $1,000 on new money deposited

Post by DaftInvestor » Tue Oct 16, 2018 9:02 am

Quick Question for Ally CD Holders.
Do they allow you to pre-setup how the CD funds will be dispersed upon maturity?

(Syncrhony bank does - allows you to provide instruction ahead of time on where you want the money to go when a CD matures - years before ahead. Other institutions make you call in during a tight time-frame when the CD Matures - if you miss the window they automatically renew the CD. Wondering which camp Ally is in? If in the latter - the extra 1% may not be worth the hassle to me).

BlackcatCA
Posts: 93
Joined: Sat Jan 20, 2018 2:55 pm

Re: Ally Banking 1% extra back up to $1,000 on new money deposited

Post by BlackcatCA » Tue Oct 16, 2018 9:05 am

Like Tarkus, I also use Ally as my hub bank and am very confused about the 10/8 date versus the sign up period.

As it happens I transferred out ~75k last week on 10/9 before this promo is announced. Does it mean I now need to bring back 175k to get the max bonus? Or does the ‘new’ money counter starts only after one signs up this week?

BlackcatCA
Posts: 93
Joined: Sat Jan 20, 2018 2:55 pm

Re: Ally Banking 1% extra back up to $1,000 on new money deposited

Post by BlackcatCA » Tue Oct 16, 2018 9:08 am

DaftInvestor wrote:
Tue Oct 16, 2018 9:02 am
Quick Question for Ally CD Holders.
Do they allow you to pre-setup how the CD funds will be dispersed upon maturity?

(Syncrhony bank does - allows you to provide instruction ahead of time on where you want the money to go when a CD matures - years before ahead. Other institutions make you call in during a tight time-frame when the CD Matures - if you miss the window they automatically renew the CD. Wondering which camp Ally is in? If in the latter - the extra 1% may not be worth the hassle to me).
Yes, you can preset where thing go for regular CD. For no penalty ones, you can withdrawal anytime after 7 days. It literally takes 1 minute to do and it reflects immediately in your online dash board. It’s one of the best features I’ve seen and used.

Tamales
Posts: 1296
Joined: Sat Jul 05, 2014 10:47 am

Re: Ally Banking 1% extra back up to $1,000 on new money deposited

Post by Tamales » Tue Oct 16, 2018 9:16 am

mggray17 wrote:
Mon Oct 15, 2018 6:06 pm
mggray17 wrote:
Mon Oct 15, 2018 5:46 pm
Hmmmmm. Transferred 150K to my Ally Online Savings on 10/12.
Didn't know about the offer, before the transfer, so didn't sign up.
Hmmmm. What to do? Would think about keeping 100K there until January for the extra $1000.
UPDATE: Chatted with Ally. Said I'm eligible If I sign up even though the money was already deposited.
What do you mean by "signing up?"
I opened a brand new account yesterday and there was no part of the process where I entered some code, or any other indication that this 1% offer applied. How did you "sign up?"

ivk5
Posts: 460
Joined: Thu Sep 22, 2016 9:05 am

Re: Ally Banking 1% extra back up to $1,000 on new money deposited

Post by ivk5 » Tue Oct 16, 2018 9:17 am

Tamales wrote:
Tue Oct 16, 2018 9:16 am
mggray17 wrote:
Mon Oct 15, 2018 6:06 pm
mggray17 wrote:
Mon Oct 15, 2018 5:46 pm
Hmmmmm. Transferred 150K to my Ally Online Savings on 10/12.
Didn't know about the offer, before the transfer, so didn't sign up.
Hmmmm. What to do? Would think about keeping 100K there until January for the extra $1000.
UPDATE: Chatted with Ally. Said I'm eligible If I sign up even though the money was already deposited.
What do you mean by "signing up?"
I opened a brand new account yesterday and there was no part of the process where I entered some code, or any other indication that this 1% offer applied. How did you "sign up?"
Try the link in the original post.

User avatar
UncleLeo
Posts: 42
Joined: Wed Jul 12, 2017 12:43 am

Re: Ally Banking 1% extra back up to $1,000 on new money deposited

Post by UncleLeo » Tue Oct 16, 2018 9:41 am

How risky would it be to deposit an amount that would bring my balance over the FDIC limit for those 3 months?
In what scenarios would the difference between the balance and the FDIC limit be lost?

And just to make sure, during the 3 months period, would I be able to move the money between Ally accounts (From Ally checking/savings to Ally CD and vice versa) and get the bonus? In other words, is the definition of "balance" include Ally CDs as well?

Ren
Posts: 44
Joined: Tue Sep 11, 2012 11:16 am

Re: Ally Banking 1% extra back up to $1,000 on new money deposited

Post by Ren » Tue Oct 16, 2018 9:43 am

Thanks for the heads up on this. I've been steadily transferring chunks out of Ally into my Prime MM. I guess I'll plop it all back into a No Penalty CD now.

grkmec
Posts: 97
Joined: Wed Jun 22, 2016 8:46 am

Re: Ally Banking 1% extra back up to $1,000 on new money deposited

Post by grkmec » Tue Oct 16, 2018 9:45 am

The actual calculation for measurement data / balance is still unclear to me. Here is my exact situation:

10/5 balance = $273k
10/9 credit = -250k (mortgage paydown)
10/9 debit = +5.3k (online check deposit)
10/10 debit = +1k (ACH in)
10/15 debit = +85k (ACH in)
10/16 debit = +0.5k (ACH in)

So current balance is approx. $114.8k

I signed up for the promo last night. According to the promo rules have I deposited any money? Meaning has the 250k mortgage paydown negated the money $91.8k of deposits between 10/9-10/16 ?

User avatar
HomerJ
Posts: 11843
Joined: Fri Jun 06, 2008 12:50 pm

Re: Ally Banking 1% extra back up to $1,000 on new money deposited

Post by HomerJ » Tue Oct 16, 2018 10:00 am

What's the risk here?

I can't figure out why Ally is just throwing away money. 1/15/19 seems like an awfully short amount of time.

If Ally goes bankrupt, we're covered by FDIC, correct?
The J stands for Jay

User avatar
simplesimon
Posts: 3195
Joined: Mon Feb 25, 2008 8:53 pm
Location: Boston, MA

Re: Ally Banking 1% extra back up to $1,000 on new money deposited

Post by simplesimon » Tue Oct 16, 2018 10:06 am

HomerJ wrote:
Tue Oct 16, 2018 10:00 am
What's the risk here?

I can't figure out why Ally is just throwing away money. 1/15/19 seems like an awfully short amount of time.

If Ally goes bankrupt, we're covered by FDIC, correct?
My best guess is they want to show favorable ratios at 12/31/2018 for financial reporting purposes and hope that a meaningful amount of deposits stay after the 1/15/19 timeline because of inertia. When rates went up they were not as quick to respond to increases and the spread between their savings account and VMMXX got up to ~0.50% at some point...it certainly caused me to move my deposits elsewhere (which are now coming back).

And yes, I believe all insured deposits have been covered in the history of the FDIC. The more likely scenario than losing money on uninsured deposits is another larger bank would acquire Ally and cover all deposits.

Twood
Posts: 84
Joined: Sun Nov 06, 2016 12:15 am

Re: Ally Banking 1% extra back up to $1,000 on new money deposited

Post by Twood » Tue Oct 16, 2018 10:46 am

I have never chased rewards, so I have a logistical question. All of my money is in my local credit union. How do I get such a significant chunk moved externally? In order to put a down payment on my mortgage I had to do a wire transfer, at something like $50 cost. To get my money to and from Ally, would I need to do the same, e.g. Plan for expenses of $100 to get my money there and back 'home' to the credit union after the CD matured? This is part of why I haven't ever tried to chase rewards, despite really lowsy interest rates locally. Thanks hive mind.

junior
Posts: 761
Joined: Wed Sep 10, 2008 6:14 pm
Contact:

Re: Ally Banking 1% extra back up to $1,000 on new money deposited

Post by junior » Tue Oct 16, 2018 10:54 am

Twood wrote:
Tue Oct 16, 2018 10:46 am
I have never chased rewards, so I have a logistical question. All of my money is in my local credit union. How do I get such a significant chunk moved externally? In order to put a down payment on my mortgage I had to do a wire transfer, at something like $50 cost. To get my money to and from Ally, would I need to do the same, e.g. Plan for expenses of $100 to get my money there and back 'home' to the credit union after the CD matured? This is part of why I haven't ever tried to chase rewards, despite really lowsy interest rates locally. Thanks hive mind.
It doesn't cost anything to do a bank to bank transfer on Ally. You basically can give them the info on your check if you transfering from a checking account. It shouldn't cost anything. It think it's called "ACH transfer" not "wiring" when you do it. More on it here:

https://www.nerdwallet.com/blog/banking/ach-transfers/

james_madison
Posts: 13
Joined: Fri Aug 05, 2016 11:19 am

Re: Ally Banking 1% extra back up to $1,000 on new money deposited

Post by james_madison » Tue Oct 16, 2018 11:03 am

Thanks OP! I just submitted a sell of some of our downpayment stash currently in VCTXX and moving it back into a No Penalty CD. Seems like a no brainer, worth a few clicks.

Tamales
Posts: 1296
Joined: Sat Jul 05, 2014 10:47 am

Re: Ally Banking 1% extra back up to $1,000 on new money deposited

Post by Tamales » Tue Oct 16, 2018 11:09 am

HomerJ wrote:
Tue Oct 16, 2018 10:00 am
What's the risk here?

I can't figure out why Ally is just throwing away money. 1/15/19 seems like an awfully short amount of time.

If Ally goes bankrupt, we're covered by FDIC, correct?
Yep, it's odd, but I suppose it's on par with the brokerage transfer bonuses and the belief that it will lead to them making more than the cost, on balance.

I wonder if other banks would match Ally's offer, if you "threatened" to move your money to Ally. That's the real test of how economical this offer is. And I suspect no bank would match it.

deanmoriarty
Posts: 177
Joined: Tue Jan 28, 2014 1:19 am

Re: Ally Banking 1% extra back up to $1,000 on new money deposited

Post by deanmoriarty » Tue Oct 16, 2018 11:24 am

Can anyone shed some light on the timing required to open an account? Here's what I did:

1) Yesterday I opened an account online: it just told me the application was submitted and I should hear back in 3-5 days.

2) Today I called to inquire about the status, and they told me I should lift my credit. Still unclear why they waited for me to call them, rather than them reaching out to me after the submission, if they detected the problem?

3) I went online and lifted my credit with Chexsystems, Transunion and Experian.

4) Called again, the operator said she left a note for the other department about me lifting the credit, and I should hear back in a few days. Typically, when I open a new credit card, at this step the operator just confirms and approves my application.

Is this the best I can do? I'm usually not in a rush for an account, but since the money needs to be transferred by 10/31 I'm trying to make sure I can meet the deadline, and sometimes bureaucracy can take longer.

Thanks

User avatar
Kevin M
Posts: 10201
Joined: Mon Jun 29, 2009 3:24 pm
Contact:

Re: Ally Banking 1% extra back up to $1,000 on new money deposited

Post by Kevin M » Tue Oct 16, 2018 12:07 pm

RickBoglehead wrote:
Tue Oct 16, 2018 7:42 am
Tarkus wrote:
Tue Oct 16, 2018 7:04 am
I'm worried about the withdrawals clause: "Withdrawals made during the Retention Period may reduce the Cash Bonus amount. Cash Bonus payout will occur within 30 calendar days following fulfillment of these requirements."

Does this mean that any withdrawals made prior to 1/15 will reduce the cash bonus amount?
<snip>
No.

Ally is going to see $150 came in during the qualifying period, and as of 1/15/19 $100k remains. Max bonus is on $100k, so you'll get the max bonus.

You can't launch a promo like this that covers checking accounts as well as savings, CDs, etc. and not take this into account. Lawsuits would abound.

Add your $100k and make sure your balances remain $100k through 1/15/19.
I'm not so sure about this, due to this language in the terms and conditions:
Deposit Retention Period – Qualifying funds must remain in the eligible account(s) from 11/05/18 until 1/15/19. Any withdrawals prior to 1/15/19 may reduce the qualifying funds total, thereby reducing Cash Bonus payout.
Since I use Ally as my main checking account, I definitely will be doing withdrawals from my checking account (which is an eligible account) to cover monthly expenses during the retention period. I also will be doing additional deposits into my checking account or other eligible accounts during the retention period to maintain a sufficient balance to cover the monthly expenses plus a healthy buffer. I could do enough deposits to ensure that the total balance of all accounts at the end of the retention period is at least as much as that at the beginning of the retention period.

Ken at Deposit Accounts said in his blog post about this that he would follow up with his Ally contacts about this issue:
Ken at DA wrote:How Withdrawals Affect on the 1% Cash Bonus

One thing that wasn’t clear to me is how withdrawals will affect the bonus amount. As you can see above, the terms say “any withdrawals prior to 1/15/19 may reduce the qualifying funds total, thereby reducing Cash Bonus payout.” I don’t see any details about how withdrawals may reduce the qualifying funds total. This will be important to any customer who can’t keep things simple by just avoiding withdrawals during this period. This includes customers who have the Ally Interest Checking Account and use it as their primary checking account.

To answer this question, I reached out to my contacts at Ally. I will be posting their answers here as soon as I receive them.
A related issue is that a few thousand dollars of expenses have been paid from the checking account since 10/8, the beginning of the deposit period of 10/8-11/05, and more will be paid before 11/05. I'm wondering if this would be subtracted from $100K of new money deposited before 11/05; i.e., would I have to deposit $105K to get the full $1K bonus if I had net outflows of $5K between 10/8 and 11/05?

Assuming these are not issues, and that it also would be OK to close a no-penalty CD on 1/15/2019, the end of the retention period (I'd still have other eligible accounts open when the bonus is paid by 2/15/2019), I'd transfer $100K into a new no-penalty CD before 11/05/2018, and pull the money out of the CD on 1/15/2019, probably moving it back into an external account paying higher interest.

There is discussion of issues like this in the comments to the blog post linked above, so that's another source to follow for those interested in this deal.

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

MikeG62
Posts: 1178
Joined: Tue Nov 15, 2016 3:20 pm
Location: New Jersey

Re: Ally Banking 1% extra back up to $1,000 on new money deposited

Post by MikeG62 » Tue Oct 16, 2018 12:08 pm

simplesimon wrote:
Tue Oct 16, 2018 7:00 am
Update: I started a chat online with a rep to be sure. This person said that they need to be in separate accounts.
So ivk5 says $200K in a joint account works and your diligence says you need separate accounts. Anyone else get an answer on this question?
Real Knowledge Comes Only From Experience

RickBoglehead
Posts: 983
Joined: Wed Feb 14, 2018 9:10 am

Re: Ally Banking 1% extra back up to $1,000 on new money deposited

Post by RickBoglehead » Tue Oct 16, 2018 12:25 pm

HomerJ wrote:
Tue Oct 16, 2018 10:00 am
What's the risk here?

I can't figure out why Ally is just throwing away money. 1/15/19 seems like an awfully short amount of time.

If Ally goes bankrupt, we're covered by FDIC, correct?
You have some belief that Ally is near bankruptcy? :oops:

https://media.ally.com/2018-07-26-Ally- ... al-Results

MotoTrojan
Posts: 2469
Joined: Wed Feb 01, 2017 8:39 pm

Re: Ally Banking 1% extra back up to $1,000 on new money deposited

Post by MotoTrojan » Tue Oct 16, 2018 12:27 pm

mattfr wrote:
Mon Oct 15, 2018 9:45 pm
MotoTrojan wrote:
Mon Oct 15, 2018 9:38 pm
No cash around? Also how can one not need to TLH? It helps anyone unless they have a lifetime of losses already.
Actually there are a few situations where TLH can be an unwise move. We happen to be in one of those situations this year.
Curious to hear more.

RickBoglehead
Posts: 983
Joined: Wed Feb 14, 2018 9:10 am

Re: Ally Banking 1% extra back up to $1,000 on new money deposited

Post by RickBoglehead » Tue Oct 16, 2018 12:28 pm

Twood wrote:
Tue Oct 16, 2018 10:46 am
I have never chased rewards, so I have a logistical question. All of my money is in my local credit union. How do I get such a significant chunk moved externally? In order to put a down payment on my mortgage I had to do a wire transfer, at something like $50 cost. To get my money to and from Ally, would I need to do the same, e.g. Plan for expenses of $100 to get my money there and back 'home' to the credit union after the CD matured? This is part of why I haven't ever tried to chase rewards, despite really lowsy interest rates locally. Thanks hive mind.
When you open your Ally account, you choose how to fund it, and one option is from an external account. You put in your credit union's routing number and account number, and Ally does the rest. No cost involved.

coupleofcents
Posts: 186
Joined: Wed May 24, 2017 7:55 am

Re: Ally Banking 1% extra back up to $1,000 on new money deposited

Post by coupleofcents » Tue Oct 16, 2018 12:28 pm

LSLover wrote:
Mon Oct 15, 2018 2:39 pm
The most popular bank on Bogleheads (Ally Bank) is offering 1% extra cash back on any "new" money added before 10/31. You are able to receive up to $1,000 back ($100k deposit). This is also combined with their 1.9% APY. Funds must remain in account until 1/15/19. Cash back bonus deposited by 2/15.

https://allypaybacktime.com/
Thanks for the tip. Should have an extra $200.00 in interest come January that I wasn't expecting. I've done about $500 already in 2018 for various savings promos and this is nice since Ally is already my mainstay online savings account.

RickBoglehead
Posts: 983
Joined: Wed Feb 14, 2018 9:10 am

Re: Ally Banking 1% extra back up to $1,000 on new money deposited

Post by RickBoglehead » Tue Oct 16, 2018 12:29 pm

Tamales wrote:
Tue Oct 16, 2018 11:09 am
HomerJ wrote:
Tue Oct 16, 2018 10:00 am
What's the risk here?

I can't figure out why Ally is just throwing away money. 1/15/19 seems like an awfully short amount of time.

If Ally goes bankrupt, we're covered by FDIC, correct?
Yep, it's odd, but I suppose it's on par with the brokerage transfer bonuses and the belief that it will lead to them making more than the cost, on balance.

I wonder if other banks would match Ally's offer, if you "threatened" to move your money to Ally. That's the real test of how economical this offer is. And I suspect no bank would match it.
Banks don't "match offers". They have to offer the same rates to everyone, based on criteria that anyone can meet. They can set deposit limits to get a rate, then can say you have to have a mortgage with them to get a rate, but every Tom, Dick and Harry can't call and say "pay me more interest or I will leave".

RickBoglehead
Posts: 983
Joined: Wed Feb 14, 2018 9:10 am

Re: Ally Banking 1% extra back up to $1,000 on new money deposited

Post by RickBoglehead » Tue Oct 16, 2018 12:32 pm

grkmec wrote:
Tue Oct 16, 2018 9:45 am
The actual calculation for measurement data / balance is still unclear to me. Here is my exact situation:

10/5 balance = $273k
10/9 credit = -250k (mortgage paydown)
10/9 debit = +5.3k (online check deposit)
10/10 debit = +1k (ACH in)
10/15 debit = +85k (ACH in)
10/16 debit = +0.5k (ACH in)

So current balance is approx. $114.8k

I signed up for the promo last night. According to the promo rules have I deposited any money? Meaning has the 250k mortgage paydown negated the money $91.8k of deposits between 10/9-10/16 ?
Pretty clear to me. You withdrew $250k and deposited $114.8k. You are $135.2k in the hole. No bonus for you at this point. You have until 10/31 to remedy that.

Beach
Posts: 144
Joined: Tue Jan 10, 2017 5:48 pm

Re: Ally Banking 1% extra back up to $1,000 on new money deposited

Post by Beach » Tue Oct 16, 2018 12:38 pm

I withdrew 99% of my funds into my brick and mortar bank yesterday by online transfer. I signed up for the promo this morning and then redeposited the funds back from the brick and mortar.

It might work, it might not. I'm not going to sweat it if it does not.

RickBoglehead
Posts: 983
Joined: Wed Feb 14, 2018 9:10 am

Re: Ally Banking 1% extra back up to $1,000 on new money deposited

Post by RickBoglehead » Tue Oct 16, 2018 12:39 pm

UncleLeo wrote:
Tue Oct 16, 2018 9:41 am
How risky would it be to deposit an amount that would bring my balance over the FDIC limit for those 3 months?
In what scenarios would the difference between the balance and the FDIC limit be lost?

And just to make sure, during the 3 months period, would I be able to move the money between Ally accounts (From Ally checking/savings to Ally CD and vice versa) and get the bonus? In other words, is the definition of "balance" include Ally CDs as well?
If you read the terms, which are posted in this thread, it clearly states that CDs are included. Move among Ally accounts all you want, except for the account types it states are excluded.

How risky would it be that one of the top 20 banks in the US goes under between now and payout of the bonus in February? I'd say zero.

As to whether you would get over the FDIC limit of coverage, that would depend on well the FDIC does in selling the assets. From the FDIC website:

Q: What happens when a bank fails?

A: Though unlikely, bank failures do occur and the FDIC responds in two capacities. First, as the insurer of the bank's deposits, the FDIC pays insurance to depositors up to the insurance limit. Historically, the FDIC pays insurance within a few days after a bank closing, usually the next business day, by either (1) providing each depositor with a new account at another insured bank in an amount equal to the insured balance of their account at the failed bank, or (2) by issuing a check to each depositor for the insured balance of their account at the failed bank.

Some deposits that exceed $250,000 and are linked to trust documents or deposits established by a third party broker may have a short wait so that their accounts can be reviewed to determine the amount of deposit insurance coverage available to them. The amount of time involved depends on how long it takes for the depositor to provide supplemental information to the FDIC so that we can complete the insurance determination.

Second, as the receiver of the failed bank, the FDIC assumes the task of selling/collecting the assets of the failed bank and settling its debts, including claims for deposits in excess of the insured limit. If a depositor has uninsured funds they receive the insured portion of their funds quickly, as described above. They may also, however, recover some portion of their uninsured funds (their remaining claim on the failed bank) from the proceeds from the sale of failed bank assets. It can take several years to sell off the assets of a failed bank. As assets are sold, however, depositors who had uninsured funds usually receive periodic payments (on a pro-rata "cents on the dollar" basis) on their remaining claim.

edudumb
Posts: 39
Joined: Thu Jun 21, 2018 1:48 pm

Re: Ally Banking 1% extra back up to $1,000 on new money deposited

Post by edudumb » Tue Oct 16, 2018 12:41 pm

Beach wrote:
Tue Oct 16, 2018 12:38 pm
I withdrew 99% of my funds into my brick and mortar bank yesterday by online transfer. I signed up for the promo this morning and then redeposited the funds back from the brick and mortar.

It might work, it might not. I'm not going to sweat it if it does not.
I am doing the same (moving funds out of Ally and moving back in), except it seems to be taking a few days for the funds to clear.

User avatar
DaftInvestor
Posts: 4064
Joined: Wed Feb 19, 2014 10:11 am

Re: Ally Banking 1% extra back up to $1,000 on new money deposited

Post by DaftInvestor » Tue Oct 16, 2018 12:51 pm

BlackcatCA wrote:
Tue Oct 16, 2018 9:08 am
DaftInvestor wrote:
Tue Oct 16, 2018 9:02 am
Quick Question for Ally CD Holders.
Do they allow you to pre-setup how the CD funds will be dispersed upon maturity?

(Syncrhony bank does - allows you to provide instruction ahead of time on where you want the money to go when a CD matures - years before ahead. Other institutions make you call in during a tight time-frame when the CD Matures - if you miss the window they automatically renew the CD. Wondering which camp Ally is in? If in the latter - the extra 1% may not be worth the hassle to me).
Yes, you can preset where thing go for regular CD. For no penalty ones, you can withdrawal anytime after 7 days. It literally takes 1 minute to do and it reflects immediately in your online dash board. It’s one of the best features I’ve seen and used.
Thanks - just opened an account and see this - very nice!
I've never used Ally because I have always gone with the best rates but now their rates are close to top-tiers (example their Online HY Savings is 1.9% while gsbank is 1.95% - smallest gap in years) and the 1% puts them over for now.
Last edited by DaftInvestor on Tue Oct 16, 2018 4:24 pm, edited 1 time in total.

Traveller
Posts: 701
Joined: Sat Jun 25, 2011 10:47 am

Re: Ally Banking 1% extra back up to $1,000 on new money deposited

Post by Traveller » Tue Oct 16, 2018 12:51 pm

Beach wrote:
Tue Oct 16, 2018 12:38 pm
I withdrew 99% of my funds into my brick and mortar bank yesterday by online transfer. I signed up for the promo this morning and then redeposited the funds back from the brick and mortar.

It might work, it might not. I'm not going to sweat it if it does not.
I'm doing the same - just transferred $100k to my credit union, will wait a few days to register for the promo and open a no penalty CD at Ally, then fund it next week with the money I moved to the credit union.

I won't need that money for over 5 months, so I should get about $1,900 on my idle cash. I hope it works and they don't exclude outgoing transfers before one registers.

User avatar
DaftInvestor
Posts: 4064
Joined: Wed Feb 19, 2014 10:11 am

Re: Ally Banking 1% extra back up to $1,000 on new money deposited

Post by DaftInvestor » Tue Oct 16, 2018 12:53 pm

Tamales wrote:
Tue Oct 16, 2018 11:09 am
HomerJ wrote:
Tue Oct 16, 2018 10:00 am
What's the risk here?

I can't figure out why Ally is just throwing away money. 1/15/19 seems like an awfully short amount of time.

If Ally goes bankrupt, we're covered by FDIC, correct?
Yep, it's odd, but I suppose it's on par with the brokerage transfer bonuses and the belief that it will lead to them making more than the cost, on balance.

I wonder if other banks would match Ally's offer, if you "threatened" to move your money to Ally. That's the real test of how economical this offer is. And I suspect no bank would match it.
I have accounts at Synchrony and gsbank (now called Marcus) which I've had for some time - never had a reason to shift since Ally's rates were always slightly lower than these two. Originally they had some enticements that got me as a customer. Now that Ally has a nice enticement I just shifted some money to them. My guess is that its all about grabbing some customers with the hopes of keeping them for a long time.

BlackcatCA
Posts: 93
Joined: Sat Jan 20, 2018 2:55 pm

Re: Ally Banking 1% extra back up to $1,000 on new money deposited

Post by BlackcatCA » Tue Oct 16, 2018 12:57 pm

RickBoglehead wrote:
Tue Oct 16, 2018 12:32 pm
grkmec wrote:
Tue Oct 16, 2018 9:45 am
The actual calculation for measurement data / balance is still unclear to me. Here is my exact situation:

10/5 balance = $273k
10/9 credit = -250k (mortgage paydown)
10/9 debit = +5.3k (online check deposit)
10/10 debit = +1k (ACH in)
10/15 debit = +85k (ACH in)
10/16 debit = +0.5k (ACH in)

So current balance is approx. $114.8k

I signed up for the promo last night. According to the promo rules have I deposited any money? Meaning has the 250k mortgage paydown negated the money $91.8k of deposits between 10/9-10/16 ?
Pretty clear to me. You withdrew $250k and deposited $114.8k. You are $135.2k in the hole. No bonus for you at this point. You have until 10/31 to remedy that.
I am not sure about this. How can one be “penalized” for actions before the promo is announced? If so that’s very unfair to those of us who use Ally as a hub bank with many transactions across checking, saving and cd accounts. The 10/8 to 10/15 period is very unclear. Does anyone get clear DPs from CSRs?

ivk5
Posts: 460
Joined: Thu Sep 22, 2016 9:05 am

Re: Ally Banking 1% extra back up to $1,000 on new money deposited

Post by ivk5 » Tue Oct 16, 2018 12:59 pm

MikeG62 wrote:
Tue Oct 16, 2018 12:08 pm
simplesimon wrote:
Tue Oct 16, 2018 7:00 am
Update: I started a chat online with a rep to be sure. This person said that they need to be in separate accounts.
So ivk5 says $200K in a joint account works and your diligence says you need separate accounts. Anyone else get an answer on this question?
No, I did not.

MikeG62
Posts: 1178
Joined: Tue Nov 15, 2016 3:20 pm
Location: New Jersey

Re: Ally Banking 1% extra back up to $1,000 on new money deposited

Post by MikeG62 » Tue Oct 16, 2018 1:09 pm

ivk5 wrote:
Tue Oct 16, 2018 12:59 pm
MikeG62 wrote:
Tue Oct 16, 2018 12:08 pm
simplesimon wrote:
Tue Oct 16, 2018 7:00 am
Update: I started a chat online with a rep to be sure. This person said that they need to be in separate accounts.
So ivk5 says $200K in a joint account works and your diligence says you need separate accounts. Anyone else get an answer on this question?
No, I did not.
Ok, I called. CRS had to speak to two different people to get an answer. Second person was a supervisor. They "said" the bonus is based upon the account holder. So if you had a joint account, each holder would be entitled to their own $1,000 bonus. However, they could not send me anything in writing.

In my case, DW and I have a joint account and I also have an individual account (set up when we had more cash than the FDIC limit for the joint account). He said I could just put $100K in the joint account and $100K in my individual account and we would get the full $2,000.

I asked if it were safer if we just set up two no penalty CD's - one in my name and one in my wife's name and he said, sure that would be clearer (but stopped short of saying this was necessary). So we may just do that.

I did set up an online log in for my DW a few minutes ago as the bonus seems to be tied to the e-mail address associated with the account holder ("The email address used to enroll must match the email address on the Ally Bank account you deposit funds into").
Real Knowledge Comes Only From Experience

DrivingFun
Posts: 207
Joined: Wed Sep 19, 2007 6:12 pm

Re: Ally Banking 1% extra back up to $1,000 on new money deposited

Post by DrivingFun » Tue Oct 16, 2018 1:50 pm

Ren wrote:
Tue Oct 16, 2018 9:43 am
Thanks for the heads up on this. I've been steadily transferring chunks out of Ally into my Prime MM. I guess I'll plop it all back into a No Penalty CD now.
I've been doing the same. I plan on moving back all of my Prime MM and putting it in that 2.1% No Penalty CD. Speaking of which, when transferring all of my Prime MM holding, does Vanguard include the dividend accrued in that?

jay22
Posts: 705
Joined: Thu Aug 23, 2012 8:56 am
Location: Sacramento, CA

Re: Ally Banking 1% extra back up to $1,000 on new money deposited

Post by jay22 » Tue Oct 16, 2018 1:55 pm

mggray17 wrote:
Mon Oct 15, 2018 6:06 pm
mggray17 wrote:
Mon Oct 15, 2018 5:46 pm
Hmmmmm. Transferred 150K to my Ally Online Savings on 10/12.
Didn't know about the offer, before the transfer, so didn't sign up.
Hmmmm. What to do? Would think about keeping 100K there until January for the extra $1000.
UPDATE: Chatted with Ally. Said I'm eligible If I sign up even though the money was already deposited.
How do you "sign up" for this offer?

MikeG62
Posts: 1178
Joined: Tue Nov 15, 2016 3:20 pm
Location: New Jersey

Re: Ally Banking 1% extra back up to $1,000 on new money deposited

Post by MikeG62 » Tue Oct 16, 2018 1:59 pm

jay22 wrote:
Tue Oct 16, 2018 1:55 pm

How do you "sign up" for this offer?
https://www.allypaybacktime.com/
Real Knowledge Comes Only From Experience

jay22
Posts: 705
Joined: Thu Aug 23, 2012 8:56 am
Location: Sacramento, CA

Re: Ally Banking 1% extra back up to $1,000 on new money deposited

Post by jay22 » Tue Oct 16, 2018 2:01 pm

MikeG62 wrote:
Tue Oct 16, 2018 1:59 pm
jay22 wrote:
Tue Oct 16, 2018 1:55 pm

How do you "sign up" for this offer?
https://www.allypaybacktime.com/
Thanks. Is this only for new money that goes in after signing up?

What if I move some money out of Ally and then move it back in after a few days. Would that count too?

tj
Posts: 2206
Joined: Thu Dec 24, 2009 12:10 am

Re: Ally Banking 1% extra back up to $1,000 on new money deposited

Post by tj » Tue Oct 16, 2018 2:14 pm

jay22 wrote:
Tue Oct 16, 2018 2:01 pm
MikeG62 wrote:
Tue Oct 16, 2018 1:59 pm
jay22 wrote:
Tue Oct 16, 2018 1:55 pm

How do you "sign up" for this offer?
https://www.allypaybacktime.com/
Thanks. Is this only for new money that goes in after signing up?

What if I move some money out of Ally and then move it back in after a few days. Would that count too?

I doubt it. That's kind of abusing the system.

User avatar
GoldStar
Posts: 601
Joined: Wed May 23, 2018 10:59 am

Re: Ally Banking 1% extra back up to $1,000 on new money deposited

Post by GoldStar » Tue Oct 16, 2018 2:16 pm

deanmoriarty wrote:
Tue Oct 16, 2018 11:24 am
Can anyone shed some light on the timing required to open an account? Here's what I did:

1) Yesterday I opened an account online: it just told me the application was submitted and I should hear back in 3-5 days.

2) Today I called to inquire about the status, and they told me I should lift my credit. Still unclear why they waited for me to call them, rather than them reaching out to me after the submission, if they detected the problem?

3) I went online and lifted my credit with Chexsystems, Transunion and Experian.

4) Called again, the operator said she left a note for the other department about me lifting the credit, and I should hear back in a few days. Typically, when I open a new credit card, at this step the operator just confirms and approves my application.

Is this the best I can do? I'm usually not in a rush for an account, but since the money needs to be transferred by 10/31 I'm trying to make sure I can meet the deadline, and sometimes bureaucracy can take longer.

Thanks
Strangely I filled out the online application and my account was immediately approved and opened. (Beforehand I opened a chat window with someone that told me that Transunion is where I "might" need to unfreeze (someone above stated this in response to my question as well) but not to do so unless requested). It seems they verified me without doing a credit-pull. Now I am just waiting for the trial deposits into my account to verify before they pull the funds. I've never had an account with them before (always found other banks with higher rates) so it wasn't like they already knew me. Unless they are going to do the credit pull before pulling the funds but I would think that would have happened before I got a "Your application is approved and your account is open" message.

Tamales
Posts: 1296
Joined: Sat Jul 05, 2014 10:47 am

Re: Ally Banking 1% extra back up to $1,000 on new money deposited

Post by Tamales » Tue Oct 16, 2018 2:16 pm

jay22 wrote:
Tue Oct 16, 2018 2:01 pm

What if I move some money out of Ally and then move it back in after a few days. Would that count too?
Pretty sure their lawyers thought about ways people might game the system and that would be one of them. Unless the money that was moved out was swallowed up as a payment to something where you can't recover it, I suspect any outbound money to another bank account is subtracted off (counts as negative) toward your eligible balance of new money. But they don't get into specifics in their written T&C (all it says is "Withdrawals made during the Retention Period may reduce the Cash Bonus amount.")

Plus their blanket disclaimer to resolve any disputes: Ally Bank reserves the right to refuse to open an account or pay out the Cash Bonus, at any time, for any reason.

Anything that appears to be trying to game the system will probably be rejected, so if you have a specific scenario I'd suggest calling them and asking.

Tamales
Posts: 1296
Joined: Sat Jul 05, 2014 10:47 am

Re: Ally Banking 1% extra back up to $1,000 on new money deposited

Post by Tamales » Tue Oct 16, 2018 2:21 pm

GoldStar wrote:
Tue Oct 16, 2018 2:16 pm
It seems they verified me without doing a credit-pull.
I was asked several multiple choice identity verification questions with info they could have only gotten from a credit report. Did you not have that as part of your online application process?

But I think that's a soft pull. For a hard pull I think they need to get your permission?
Last edited by Tamales on Tue Oct 16, 2018 2:23 pm, edited 1 time in total.

User avatar
GoldStar
Posts: 601
Joined: Wed May 23, 2018 10:59 am

Re: Ally Banking 1% extra back up to $1,000 on new money deposited

Post by GoldStar » Tue Oct 16, 2018 2:23 pm

Tamales wrote:
Tue Oct 16, 2018 2:21 pm
GoldStar wrote:
Tue Oct 16, 2018 2:16 pm
It seems they verified me without doing a credit-pull.
I was asked several multiple choice identity verification questions with info they could have only gotten from a credit report. Did you not have that as part of your online application process?
Nope. Never happened. I was surprising how quick it was.
However, I opened a 12-month CD - maybe they only do the pull for Online-savings. (?).

LSLover
Posts: 96
Joined: Thu May 19, 2016 1:39 pm

Re: Ally Banking 1% extra back up to $1,000 on new money deposited

Post by LSLover » Tue Oct 16, 2018 2:26 pm

OP here.

Has anyone tried to fund the new account during the opening process (via ACH) with the funds from the account owned by a spouse (your name is not on the funding source)?

Longdog
Posts: 1115
Joined: Sun Feb 09, 2014 6:56 pm
Location: Philadelphia

Re: Ally Banking 1% extra back up to $1,000 on new money deposited

Post by Longdog » Tue Oct 16, 2018 2:30 pm

tj wrote:
Tue Oct 16, 2018 2:14 pm
jay22 wrote:
Tue Oct 16, 2018 2:01 pm
MikeG62 wrote:
Tue Oct 16, 2018 1:59 pm
jay22 wrote:
Tue Oct 16, 2018 1:55 pm

How do you "sign up" for this offer?
https://www.allypaybacktime.com/
Thanks. Is this only for new money that goes in after signing up?

What if I move some money out of Ally and then move it back in after a few days. Would that count too?

I doubt it. That's kind of abusing the system.
My guess is that they look at the total of your account balances on October 8 and anything above that on October 31 (or maybe November 5 - I seem to recall seeing that date somewhere in the documentation) will be considered new money. They then look at the lowest balance between then and January 15, and calculate the bonus based on that amount. I think that fairly simple calculation eliminates most opportunities to game the system. They still need to be able to track monies transferred from differently registered Ally accounts.
Steve

jay22
Posts: 705
Joined: Thu Aug 23, 2012 8:56 am
Location: Sacramento, CA

Re: Ally Banking 1% extra back up to $1,000 on new money deposited

Post by jay22 » Tue Oct 16, 2018 2:33 pm

Longdog wrote:
Tue Oct 16, 2018 2:30 pm
tj wrote:
Tue Oct 16, 2018 2:14 pm
jay22 wrote:
Tue Oct 16, 2018 2:01 pm
MikeG62 wrote:
Tue Oct 16, 2018 1:59 pm
jay22 wrote:
Tue Oct 16, 2018 1:55 pm

How do you "sign up" for this offer?
https://www.allypaybacktime.com/
Thanks. Is this only for new money that goes in after signing up?

What if I move some money out of Ally and then move it back in after a few days. Would that count too?

I doubt it. That's kind of abusing the system.
My guess is that they look at the total of your account balances on October 8 and anything above that on October 31 (or maybe November 5 - I seem to recall seeing that date somewhere in the documentation) will be considered new money. They then look at the lowest balance between then and January 15, and calculate the bonus based on that amount. I think that fairly simple calculation eliminates most opportunities to game the system. They still need to be able to track monies transferred from differently registered Ally accounts.
That would make sense to eliminate any gaming.

whodatheads
Posts: 42
Joined: Thu Apr 18, 2013 10:09 am

Re: Ally Banking 1% extra back up to $1,000 on new money deposited

Post by whodatheads » Tue Oct 16, 2018 3:31 pm

Tamales wrote:
Tue Oct 16, 2018 11:09 am
HomerJ wrote:
Tue Oct 16, 2018 10:00 am
What's the risk here?

I can't figure out why Ally is just throwing away money. 1/15/19 seems like an awfully short amount of time.

If Ally goes bankrupt, we're covered by FDIC, correct?
Yep, it's odd, but I suppose it's on par with the brokerage transfer bonuses and the belief that it will lead to them making more than the cost, on balance.

I wonder if other banks would match Ally's offer, if you "threatened" to move your money to Ally. That's the real test of how economical this offer is. And I suspect no bank would match it.
Capital One is having a similar offer: up to $500 and 1.85APY. And their 1yr CD is 2.5%.
Last edited by whodatheads on Tue Oct 16, 2018 3:38 pm, edited 1 time in total.

User avatar
Kevin M
Posts: 10201
Joined: Mon Jun 29, 2009 3:24 pm
Contact:

Re: Ally Banking 1% extra back up to $1,000 on new money deposited

Post by Kevin M » Tue Oct 16, 2018 3:35 pm

LSLover wrote:
Tue Oct 16, 2018 2:26 pm
OP here.

Has anyone tried to fund the new account during the opening process (via ACH) with the funds from the account owned by a spouse (your name is not on the funding source)?
Interesting you ask. Not a new account, but my mom used her login (Ally calls it a profile) to do an ACH transfer into her husband and her joint trust account from a PenFed account in husband's name only. She got a call from Ally today telling her that the transfer had been rejected, even though the trial deposit process worked, and the external PenFed account was listed as active, and the transfer was allowed to be initiated. It was not rejected until today, which is three business days after the transfer was initiated, and when the money was supposed to arrive at Ally.

Further investigation determined that an external account must include the name of the person whose profile is used to establish the external account link. The external PenFed account now is listed as "suspended", and the money has re-appeared in the PenFed account.

So in your case, your wife would have to use her own Ally login (profile) to set up the link to an external account with only her name on it, and then would be able to transfer into any Ally account with her name on it. At least that's my understanding based on my mom's experience and what Ally told her.

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

Post Reply