Moving to online banking (Ally)

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lunean
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Joined: Sat Jun 06, 2015 9:49 pm

Moving to online banking (Ally)

Post by lunean » Tue Jan 01, 2019 10:07 pm

Currently, we bank at Chase. I'd like to move to Ally. I'm thinking I'll keep a checking account at Chase and keep the direct deposit there. I can pay monthly bills from there. I'd move our savings to Ally and open a checking account there as well to have the ability to get write bigger checks as needed (once a year property tax, for example). I don't feel ready to give up the local branch of Chase completely.

Am I over complicating things? Do most people just go with Ally or another online bank completely?

Thanks.

k3vb0t
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Re: Moving to online banking (Ally)

Post by k3vb0t » Tue Jan 01, 2019 10:11 pm

We have a local credit union with a rewards checking account that pays the same rate as Ally as long as we swipe our debit cards 10 times and have DD. We fill up those accounts to the max allowed to earn the interest rate, and the rest goes to online -- once CapitalOne360, now Ally.

It's nice to have a place to drop off and/or retrieve cash for random things and doesn't cost us anything from an interest or fees standpoint, so works for now.

28fe6
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Re: Moving to online banking (Ally)

Post by 28fe6 » Tue Jan 01, 2019 10:14 pm

I switched from Chase to Ally 2 years ago. Good riddance to Chase.

I started out the same. Thought I would keep the Chase checking, since I had bill pay set up and all. After opening Ally I realized it's just better for everything and closed out my Chase completely. Now I just have Chase credit cards.

I have some accounts at a local credit union where I also have a car loan and a HELOC, but the terms are terrible even there and I don't use them for actual banking.
Last edited by 28fe6 on Tue Jan 01, 2019 10:17 pm, edited 1 time in total.

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Alexa9
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Re: Moving to online banking (Ally)

Post by Alexa9 » Tue Jan 01, 2019 10:16 pm

Ally is great. Try it out for a while before you switch completely. It's still nice to have somewhere to deposit cash occasionally, but many credit unions have this for free.

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Mlm
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Re: Moving to online banking (Ally)

Post by Mlm » Tue Jan 01, 2019 10:18 pm

I moved my savings to Ally from Chase several years ago. I still maintain my checking/bill pay account and direct deposits with Chase.
Transferring funds between the two is fast and easy.

Wabbit
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Re: Moving to online banking (Ally)

Post by Wabbit » Tue Jan 01, 2019 10:20 pm

I don't think 2 accounts is that complicated. There are some reasons to keep a brick & mortar bank. I have had rare times that I needed a medallion signature guarantee, and that is typically only done with those. You can search the forum and find some other threads with some other reasons that I'm forgetting right now. Keeping Chase is easiest, although you might think about switching to a local credit union as the brick & mortar bank.

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g$$
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Re: Moving to online banking (Ally)

Post by g$$ » Tue Jan 01, 2019 10:22 pm

I use Ally and I've been very happy with them. I like receiving a higher interest rate and the reimbursement on ATM withdrawals.

Some of my coworkers have switched over the years. They tell me the process of switching banks is a pain in the butt, but they're happy they did it.

So, I would say go for it. Just be ready for some minor headaches during that first month.

Elena
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Re: Moving to online banking (Ally)

Post by Elena » Tue Jan 01, 2019 10:27 pm

Mlm wrote:
Tue Jan 01, 2019 10:18 pm
I moved my savings to Ally from Chase several years ago. I still maintain my checking/bill pay account and direct deposits with Chase.
Transferring funds between the two is fast and easy.
That is my exact setup too. I keep Chase for the Medallion signature, in case I decide to sell my I bonds.

JGoneRiding
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Re: Moving to online banking (Ally)

Post by JGoneRiding » Tue Jan 01, 2019 10:30 pm

I use the combo. It works for us. I use a more "local" bank

michaeljc70
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Re: Moving to online banking (Ally)

Post by michaeljc70 » Tue Jan 01, 2019 10:31 pm

The problem with only an online bank is depositing. If you have a problem doing a mobile check deposit, what do you do? Mail it in? Also, how do you deposit cash?

I don't understand why ATMs only accept deposits for that bank. Given the clearing system and technology, I would think it would be different.

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Mlm
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Re: Moving to online banking (Ally)

Post by Mlm » Tue Jan 01, 2019 10:34 pm

Elena wrote:
Tue Jan 01, 2019 10:27 pm
Mlm wrote:
Tue Jan 01, 2019 10:18 pm
I moved my savings to Ally from Chase several years ago. I still maintain my checking/bill pay account and direct deposits with Chase.
Transferring funds between the two is fast and easy.
That is my exact setup too. I keep Chase for the Medallion signature, in case I decide to sell my I bonds.
I forgot about the time I needed the Medallion signature. I was glad to be a Chase customer because I'm not sure I could have obtained one otherwise in my small town.

mptfan
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Re: Moving to online banking (Ally)

Post by mptfan » Tue Jan 01, 2019 10:37 pm

michaeljc70 wrote:
Tue Jan 01, 2019 10:31 pm
I don't understand why ATMs only accept deposits for that bank. Given the clearing system and technology, I would think it would be different.
Banks do not want to be in the business of verifying cash deposits for people who are not their customers.

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inmymind
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Re: Moving to online banking (Ally)

Post by inmymind » Tue Jan 01, 2019 10:40 pm

As others have mentioned, it's good to keep both options. The online banks have the best rates for savings and CDs while some things just need to be done at a local bank for convenience.

As for Ally, been using them for 3 years now but noticed that they seem to lag behind raising their rates on the savings account compared to others. Just today looked at Synchrony (where I also have an account) and they're at 2.2%. Ally is still at 2.0%.
Esse quam videri

arf30
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Re: Moving to online banking (Ally)

Post by arf30 » Tue Jan 01, 2019 10:43 pm

Ally is very good, but I had a few issues that sent me back to the B&M bank - we couldn't deposit cash at ATMs, they didn't refund international ATM charges, and they don't have small business accounts. I don't use Chase but if you park 75k of assets at their brokerage all their banking fees go away.

martint
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Re: Moving to online banking (Ally)

Post by martint » Tue Jan 01, 2019 10:52 pm

I’ve been a long term customer of both Ally (when they were GM Bank) and Alliant Credit Union. Ally generally has a very slightly higher savings interest rate, but otherwise I prefer Alliant. Customer service has been absolutely fantastic - I’ve had the need to contact them a few times over the years and Alliant’s customer service resolved the issue promptly. ACH transfers are also slightly faster at Alliant, in my opinion. Otherwise, Ally is still great.

runner3081
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Re: Moving to online banking (Ally)

Post by runner3081 » Tue Jan 01, 2019 11:18 pm

Did the same thing about 5 years ago, Chase to Ally.

However, we keep a low minimum account open at Chase for notary, cash deposit, etc.

michaeljc70
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Re: Moving to online banking (Ally)

Post by michaeljc70 » Tue Jan 01, 2019 11:51 pm

mptfan wrote:
Tue Jan 01, 2019 10:37 pm
michaeljc70 wrote:
Tue Jan 01, 2019 10:31 pm
I don't understand why ATMs only accept deposits for that bank. Given the clearing system and technology, I would think it would be different.
Banks do not want to be in the business of verifying cash deposits for people who are not their customers.
The machine verifies the deposit really. If it can accurately give out money, it can accurately take it in. I thought they were in the business of doing anything to make a buck.

Topic Author
lunean
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Joined: Sat Jun 06, 2015 9:49 pm

Re: Moving to online banking (Ally)

Post by lunean » Wed Jan 02, 2019 9:20 am

Thanks, everyone. I'm glad I haven't over complicated things. I do need an easy way to deposit cash, so keeping a local account makes sense.

AlwaysaQ
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Re: Moving to online banking (Ally)

Post by AlwaysaQ » Wed Jan 02, 2019 11:13 am

Mim said
I moved my savings to Ally from Chase several years ago. I still maintain my checking/bill pay account and direct deposits with Chase.
Transferring funds between the two is fast and easy.
I did the same and I also have my safe deposit box at Chase.

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Munir
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Re: Moving to online banking (Ally)

Post by Munir » Wed Jan 02, 2019 11:24 am

I have a regional commercial bank account for business that only commercial banks do and Barclay's Online Savings (APY 2.2%). Never used Ally. I wonder what attracts so many BHs to Ally since their Online Savings interest rate is often lower than others.

student
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Re: Moving to online banking (Ally)

Post by student » Wed Jan 02, 2019 11:31 am

Munir wrote:
Wed Jan 02, 2019 11:24 am
I have a regional commercial bank account for business that only commercial banks do and Barclay's Online Savings (APY 2.2%). Never used Ally. I wonder what attracts so many BHs to Ally since their Online Savings interest rate is often lower than others.
One thing that Ally has and Barclay's does not is 24/7 CS hours. Personally I do not have an account with Ally due to its policy of credit check when opening an account.

Horsefly
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Re: Moving to online banking (Ally)

Post by Horsefly » Wed Jan 02, 2019 11:33 am

Alexa9 wrote:
Tue Jan 01, 2019 10:16 pm
Ally is great. Try it out for a while before you switch completely. It's still nice to have somewhere to deposit cash occasionally, but many credit unions have this for free.
+1

I moved from the Wells Fargo (organized crime in banking) to Ally. I kept my Credit Union account open in case I wanted to do bill pay or walk-in stuff there. After several months, I realized how good Ally's bill pay system was, and never looked back. I don't miss WF in the least.

jay22
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Re: Moving to online banking (Ally)

Post by jay22 » Wed Jan 02, 2019 11:39 am

Go for it. Ally is awesome - I have been banking with them for 5 years and never had an issue.

When it comes to banking, I truly believe in the "less is more" philosophy. We used to have 5 different account for various reasons - now I just use Ally for savings and CDs and a local CU for monthly bills and cash flow.

mx711yam
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Re: Moving to online banking (Ally)

Post by mx711yam » Wed Jan 02, 2019 11:40 am

Used ally for years, they recently lost my business. They have gotten too big to care about the customer and it shows. If you're chasing interest rates they are competitive, but dont expect any form of customer service from them.

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Munir
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Re: Moving to online banking (Ally)

Post by Munir » Wed Jan 02, 2019 11:46 am

student wrote:
Wed Jan 02, 2019 11:31 am
Munir wrote:
Wed Jan 02, 2019 11:24 am
I have a regional commercial bank account for business that only commercial banks do and Barclay's Online Savings (APY 2.2%). Never used Ally. I wonder what attracts so many BHs to Ally since their Online Savings interest rate is often lower than others.
One thing that Ally has and Barclay's does not is 24/7 CS hours. Personally I do not have an account with Ally due to its policy of credit check when opening an account.
Barclay's has this statement on their web site which meets my needs: Access your account online 24/7 or call us seven days a week, 8 AM to 8 PM ET.

Nummerkins
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Re: Moving to online banking (Ally)

Post by Nummerkins » Wed Jan 02, 2019 11:49 am

I use Ally as my bank and don't have any local accounts. No issues. Free checks, ATM reimbursements, no fees, high ACH limits, functional website. I call them maybe once every year or two.

I've used an online bank as my primary for about 15-20 years.

student
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Re: Moving to online banking (Ally)

Post by student » Wed Jan 02, 2019 11:53 am

Munir wrote:
Wed Jan 02, 2019 11:46 am
student wrote:
Wed Jan 02, 2019 11:31 am
Munir wrote:
Wed Jan 02, 2019 11:24 am
I have a regional commercial bank account for business that only commercial banks do and Barclay's Online Savings (APY 2.2%). Never used Ally. I wonder what attracts so many BHs to Ally since their Online Savings interest rate is often lower than others.
One thing that Ally has and Barclay's does not is 24/7 CS hours. Personally I do not have an account with Ally due to its policy of credit check when opening an account.
Barclay's has this statement on their web site which meets my needs: Access your account online 24/7 or call us seven days a week, 8 AM to 8 PM ET.
I am only speculating a reason why BHs like Ally since you were wondering.

BogleMelon
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Re: Moving to online banking (Ally)

Post by BogleMelon » Wed Jan 02, 2019 12:00 pm

I have BoA and keep it because from time to time I could need cash deposit or notary service, but I moved long time ago to Ally saving + Schwab checking. Only a week ago I moved my main checking to Ally and couldn't be happier!
Nothing wrong with Schwab, but the inconvenience is worth it. Ally Saving to Checking or vise versa is instant, which is very convenient. Also having overdraft protection on my checking, allows me to confidently keep a small amount ($500) in it while everything else is in savings till my next paycheck and bills. Had something went wrong, overdraft protection will use my savings to cover up the over drafting in my checking.

I only keep $10K in my Ally savings though, the rest goes to Vanguard Prime MM fund in a joint brokerage account for higher rate.
"One of the funny things about stock market, every time one is buying another is selling, and both think they are astute" - William Feather

fastpace_re
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Re: Moving to online banking (Ally)

Post by fastpace_re » Wed Jan 02, 2019 12:03 pm

I use Simple and love it.

simple.com

2.02% APY for their Savings accounts (balances over $2k)

KT785
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Re: Moving to online banking (Ally)

Post by KT785 » Wed Jan 02, 2019 2:03 pm

student wrote:
Wed Jan 02, 2019 11:31 am
One thing that Ally has and Barclay's does not is 24/7 CS hours. Personally I do not have an account with Ally due to its policy of credit check when opening an account.
Is the credit check a new requirement? My wife and I opened our Ally (checking and savings) accounts in/around 2014 and don't recall a hard-pull inquiry at the time.

Horsefly
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Re: Moving to online banking (Ally)

Post by Horsefly » Wed Jan 02, 2019 2:11 pm

We just opened our Ally account in March of 2018. I don't recall any credit check requirement, and none show up on my Credit Karma or Credit Sesame. I have my credit frozen, so if they needed to do a credit pull I would have known. None was requested.

3-20Characters
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Re: Moving to online banking (Ally)

Post by 3-20Characters » Wed Jan 02, 2019 2:19 pm

Nummerkins wrote:
Wed Jan 02, 2019 11:49 am
I use Ally as my bank and don't have any local accounts. No issues. Free checks, ATM reimbursements, no fees, high ACH limits, functional website. I call them maybe once every year or two.
+1
I went full online (Ally) and don’t have any regrets. People have many reasons to keep their B&M bank but it didn’t work for me because I don’t like keeping small accounts open just in case a local branch might in come handy someday.

Different stokes...

28fe6
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Re: Moving to online banking (Ally)

Post by 28fe6 » Wed Jan 02, 2019 2:24 pm

Ally routinely has no-penalty CDs with rates higher than their normal savings account. Sometimes minimum balances apply, but other than that it works just like a savings account. People who point out Ally rates aren't the very best available anywhere usually don't point out the CD products, which are just as good as a savings account for parking cash.

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GoldStar
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Re: Moving to online banking (Ally)

Post by GoldStar » Wed Jan 02, 2019 2:27 pm

Horsefly wrote:
Wed Jan 02, 2019 2:11 pm
We just opened our Ally account in March of 2018. I don't recall any credit check requirement, and none show up on my Credit Karma or Credit Sesame. I have my credit frozen, so if they needed to do a credit pull I would have known. None was requested.
I opened a account a couple of months ago (to take advantage of their bonus) and they did a credit-check - I think it was TransUnion they used (I unfroze all for a day just to be sure - only takes 5 minutes). Several others also mentioned credit-check requirements in the Ally 1% Bonus thread (viewtopic.php?t=261504).

student
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Re: Moving to online banking (Ally)

Post by student » Wed Jan 02, 2019 2:42 pm

KT785 wrote:
Wed Jan 02, 2019 2:03 pm
student wrote:
Wed Jan 02, 2019 11:31 am
One thing that Ally has and Barclay's does not is 24/7 CS hours. Personally I do not have an account with Ally due to its policy of credit check when opening an account.
Is the credit check a new requirement? My wife and I opened our Ally (checking and savings) accounts in/around 2014 and don't recall a hard-pull inquiry at the time.
I could be wrong and talked to a CS who was mistaken. I recall calling them to ask about it but it was several years ago. Here are some discussions regarding it. https://www.thebalance.com/ally-bank-re ... ons-315132 (When you apply for an account, the bank will check your credit, even though you may not intend to borrow.)
The hard pull may be applied to checking account only https://ficoforums.myfico.com/t5/Genera ... -p/1706516 This site indicates a soft pull https://www.moneysmylife.com/hard-pull- ... #Ally_Bank

I can only guess that they do not have a uniform policy or its policy has changed.

atdharris
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Re: Moving to online banking (Ally)

Post by atdharris » Wed Jan 02, 2019 4:33 pm

I do this. I have all my investments and checking account of BofA where my paycheck is deposited, but all of my savings are at American Express with a 2.1% APY, and my travel savings are at Ally. I don't think anyone should keep their savings at one of the big banks that pays 0.03% or worse.

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