high-yield savings: stay or switch?

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GordonG
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high-yield savings: stay or switch?

Post by GordonG » Mon Aug 05, 2019 9:33 pm

I have a decent amount of cash parked in an Ally "high yield" savings account. However, they just announced they are dropping their rate to 1.9%. I also have accounts with Amex and GS Bank, which bother are currently offering higher rates. Wondering if I should transfer the money to those, or maybe wait a few weeks to see if they follow suit and drop their rates, too?

HEDGEFUNDIE
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Re: high-yield savings: stay or switch?

Post by HEDGEFUNDIE » Mon Aug 05, 2019 9:34 pm

Wealthfront.

7eight9
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Re: high-yield savings: stay or switch?

Post by 7eight9 » Mon Aug 05, 2019 10:03 pm

If someone else is paying more why wouldn't you move? Especially since you already have the accounts set up. I would have no concerns with moving money around to chase the highest rate.

It may be too much bother for too little money but there are Netspend accounts that pay 5% on the first $1,000. DCU is paying 6.17% on the first $1,000 too.
I guess it all could be much worse. | They could be warming up my hearse.

tibbitts
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Re: high-yield savings: stay or switch?

Post by tibbitts » Mon Aug 05, 2019 10:09 pm

GordonG wrote:
Mon Aug 05, 2019 9:33 pm
I have a decent amount of cash parked in an Ally "high yield" savings account. However, they just announced they are dropping their rate to 1.9%. I also have accounts with Amex and GS Bank, which bother are currently offering higher rates. Wondering if I should transfer the money to those, or maybe wait a few weeks to see if they follow suit and drop their rates, too?
If this is enough money to make it worth moving to Ally 11mo CDs at 2.3%, you could do that - less hassle than moving elsewhere if you don't already have an account at a higher-yielding institution and don't want to lock up the funds.

Topic Author
GordonG
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Re: high-yield savings: stay or switch?

Post by GordonG » Tue Aug 06, 2019 5:08 am

7eight9 wrote:
Mon Aug 05, 2019 10:03 pm
If someone else is paying more why wouldn't you move? Especially since you already have the accounts set up. I would have no concerns with moving money around to chase the highest rate.

It may be too much bother for too little money but there are Netspend accounts that pay 5% on the first $1,000. DCU is paying 6.17% on the first $1,000 too.
Kind of what I was thinking. I was just worried they'd drop their rates right after I transferred, but I guess it really doesn't cost me anything besides a few minutes of time.

HawkeyePierce
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Re: high-yield savings: stay or switch?

Post by HawkeyePierce » Tue Aug 06, 2019 5:09 am

I would jump on the Ally no-penalty CD at 2.3% before they adjust their rates. I moved all my cash into one a few months ago.

MikeG62
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Re: high-yield savings: stay or switch?

Post by MikeG62 » Tue Aug 06, 2019 6:59 am

HawkeyePierce wrote:
Tue Aug 06, 2019 5:09 am
I would jump on the Ally no-penalty CD at 2.3% before they adjust their rates. I moved all my cash into one a few months ago.
Exactly what I have been doing, except I have opened lots of no-penalty CD’s (and continuing opening new ones as more of my Treasuries are maturing) vs. putting the money all in one CD (this way should I need access to some of the money I won’t have to break the one larger CD). Also, since OP has an account at Marcus, he can open no penalty CD’s at Marcus at 2.35% for 13-months (vs. 2.30% for 11-months at Ally).
Real Knowledge Comes Only From Experience

remomnyc
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Re: high-yield savings: stay or switch?

Post by remomnyc » Tue Aug 06, 2019 8:38 am

MikeG62 wrote:
Tue Aug 06, 2019 6:59 am
HawkeyePierce wrote:
Tue Aug 06, 2019 5:09 am
I would jump on the Ally no-penalty CD at 2.3% before they adjust their rates. I moved all my cash into one a few months ago.
Exactly what I have been doing, except I have opened lots of no-penalty CD’s (and continuing opening new ones as more of my Treasuries are maturing) vs. putting the money all in one CD (this way should I need access to some of the money I won’t have to break the one larger CD). Also, since OP has an account at Marcus, he can open no penalty CD’s at Marcus at 2.35% for 13-months (vs. 2.30% for 11-months at Ally).
If you already have CDs at Ally and you roll them over at Ally, Ally gives you a 0.05% retention bonus, so you would get 2.35%, too for the 11-mo no penalty.

alfaspider
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Re: high-yield savings: stay or switch?

Post by alfaspider » Tue Aug 06, 2019 8:53 am

GordonG wrote:
Mon Aug 05, 2019 9:33 pm
I have a decent amount of cash parked in an Ally "high yield" savings account. However, they just announced they are dropping their rate to 1.9%. I also have accounts with Amex and GS Bank, which bother are currently offering higher rates. Wondering if I should transfer the money to those, or maybe wait a few weeks to see if they follow suit and drop their rates, too?
I would expect GS Bank and other to drop rates soon unless bond rates start coming back up. Probably not sustainable to offer substantially more than 10-year T-notes. If you plan to park the cash for the longer term, you might consider a CD.

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Pobre
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Re: high-yield savings: stay or switch?

Post by Pobre » Tue Aug 06, 2019 10:03 am

GordonG wrote:
Mon Aug 05, 2019 9:33 pm
I have a decent amount of cash parked in an Ally "high yield" savings account. However, they just announced they are dropping their rate to 1.9%. I also have accounts with Amex and GS Bank, which bother are currently offering higher rates. Wondering if I should transfer the money to those, or maybe wait a few weeks to see if they follow suit and drop their rates, too?
Leave it at Ally. Great Bank, with a great website. Getting an Ally No Penalty CD (currently 2.30% with $25,000 minimum) as some here suggested it's a great idea. Thank you, those who suggested it!

About a month ago, I moved some money from Ally to Wealthfront(2.57% at the time), and some from Ally to a Citi Accelerate Savings Account (2.36% at the time). I just moved everything back to Ally and probably won't move it out again just to chase the higher rate elsewhere.

Thanks to Bogleheads, I found out Wealthfront is not a bank, and that any money deposited there is then deposited into participating banks who I don't know, who don't know me. Some people are okay with this, but I am not.

In addition, I tested withdrawing money from Wealthfront a couple of times. Although they claim it takes 2-4 business days to complete the transaction, it took 7 business days from the time I initiated the transaction to the time the money appeared in my external checking account. This is unacceptable to me, especially if the money is for emergencies. The reason it takes so long is probably because they first have to transfer the money from all those participating banks, then transfer it back to you. Ally is so much faster, I believe 2 business days max.

Wealthfront also dropped the API from 2.57% to 2.32% just a few weeks after I opened the account. Again, Ally's No Penalty CD is currently 2.30% with $25,000 minimum, and it won't drop once you're locked in.

I also don't like the way Wealthfront links your external bank accounts. They ask for your user id and password from the external bank, just like Mint.com does. After that, they can see ALL of your accounts with that bank, not just the one account you want to link...creepy.

The Citi Accelerate Savings Account was an even bigger nightmare. After going through the trouble of verifying my external, linked checking account so I can fund the Citi savings account, waiting for them to make the tiny deposits, then going back to the Citi site to confirm, my linked account mysteriously disappeared from the Citi site soon after my second transfer. Every time I tried to add it again, the site would send me to my Citi credit card payments page. I tried finding a phone number to call, but no luck. I tried chatting online, but they said they couldn't help me and instead gave me a number to call. After being on hold for 45 minutes, someone finally said that they had a lot of problems to workout with their website, and that they would mail me a check and close my account, but that I wouldn't get my earned interest because it had not yet posted. I demanded my earned interest. So they told me that they would monitor the account, wait until the interest posted, mail me a check and then close the account.

Oh Ally, I missed you so much. Forgive me. It won't happen again. :(

abyan
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Re: high-yield savings: stay or switch?

Post by abyan » Tue Aug 06, 2019 10:13 am

HEDGEFUNDIE wrote:
Mon Aug 05, 2019 9:34 pm
Wealthfront.
So, a word about Wealthfront. I had moved there a few months ago, then left after discussing the risks with a cousin who is far more up on financial matters than I. Here's the thing, they're FDIC protected when your money is in a partner bank, but not when it's transferring for that day or two you're trying to deposit or withdraw funds. And while that's only a risk during the most unusual and dire situations, like 2008, isn't that exactly when you may be trying to withdraw your funds and move them somewhere safer? In the end, even though it's a small risk, it wasn't worth it for me.

Also, I didn't like the fact that I have no idea where they put my money, in which bank or banks? How will this affect my FDIC limits on my other savings accounts and CDs? And let's say Wealthfront goes belly up, where exactly is my money since I don't have an account number, or even know the banks my money is at?

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Pobre
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Re: high-yield savings: stay or switch?

Post by Pobre » Tue Aug 06, 2019 10:18 am

abyan wrote:
Tue Aug 06, 2019 10:13 am
HEDGEFUNDIE wrote:
Mon Aug 05, 2019 9:34 pm
Wealthfront.
So, a word about Wealthfront. I had moved there a few months ago, then left after discussing the risks with a cousin who is far more up on financial matters than I. Here's the thing, they're FDIC protected when your money is in a partner bank, but not when it's transferring for that day or two you're trying to deposit or withdraw funds. And while that's only a risk during the most unusual and dire situations, like 2008, isn't that exactly when you may be trying to withdraw your funds and move them somewhere safer? In the end, even though it's a small risk, it wasn't worth it for me.

Also, I didn't like the fact that I have no idea where they put my money, in which bank or banks? How will this affect my FDIC limits on my other savings accounts and CDs? And let's say Wealthfront goes belly up, where exactly is my money since I don't have an account number, or even know the banks my money is at?
Exactly. BTW, when I withdrew all of the money from the Wealthfront account, the balance at Wealthfront was $0.00 after a few business days, but the money didn't show up in my linked checking account until one or two business days later. So my money was in limbo briefly. I have never seen that before with any other bank, and I do pay attention. Scary.

DaftInvestor
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Re: high-yield savings: stay or switch?

Post by DaftInvestor » Tue Aug 06, 2019 10:22 am

Marcus/GSBank may drop their rates as well but they have always been slightly higher than Ally (at think at one point they were the same - but usually slightly higher - I've been watching for years). Synchrony also tends to be about the same as Marcus (and always higher than Ally).

HEDGEFUNDIE
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Re: high-yield savings: stay or switch?

Post by HEDGEFUNDIE » Tue Aug 06, 2019 10:22 am

Pobre wrote:
Tue Aug 06, 2019 10:18 am
abyan wrote:
Tue Aug 06, 2019 10:13 am
HEDGEFUNDIE wrote:
Mon Aug 05, 2019 9:34 pm
Wealthfront.
So, a word about Wealthfront. I had moved there a few months ago, then left after discussing the risks with a cousin who is far more up on financial matters than I. Here's the thing, they're FDIC protected when your money is in a partner bank, but not when it's transferring for that day or two you're trying to deposit or withdraw funds. And while that's only a risk during the most unusual and dire situations, like 2008, isn't that exactly when you may be trying to withdraw your funds and move them somewhere safer? In the end, even though it's a small risk, it wasn't worth it for me.

Also, I didn't like the fact that I have no idea where they put my money, in which bank or banks? How will this affect my FDIC limits on my other savings accounts and CDs? And let's say Wealthfront goes belly up, where exactly is my money since I don't have an account number, or even know the banks my money is at?
Exactly. BTW, when I withdrew all of the money from the Wealthfront account, the balance at Wealthfront was $0.00 after a few business days, but the money didn't show up in my linked checking account until one or two business days later. So my money was in limbo briefly. I have never seen that before with any other bank, and I do pay attention. Scary.
No problem, more interest for the rest of us.

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Pobre
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Re: high-yield savings: stay or switch?

Post by Pobre » Tue Aug 06, 2019 10:24 am

HEDGEFUNDIE wrote:
Tue Aug 06, 2019 10:22 am
No problem, more interest for the rest of us.
More power to you. More risk, more reward. Right? :D

MikeG62
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Re: high-yield savings: stay or switch?

Post by MikeG62 » Tue Aug 06, 2019 2:03 pm

DaftInvestor wrote:
Tue Aug 06, 2019 10:22 am
Marcus/GSBank may drop their rates as well but they have always been slightly higher than Ally (at think at one point they were the same - but usually slightly higher - I've been watching for years). Synchrony also tends to be about the same as Marcus (and always higher than Ally).
This is true but the delta is usually 5 to 10 basis points max. It’s hard to envision Ally dropping to 1.90% and the others staying at 2.15% for very long.
Real Knowledge Comes Only From Experience

HockeyFan99
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Re: high-yield savings: stay or switch?

Post by HockeyFan99 » Tue Aug 06, 2019 2:53 pm

Have moved money into NP CDs at both Ally and Marcus. FWIW, one advantage of Marcus (in addition to longer term: 13 months vs. 11 months and APY: 2.35% vs. 2.30%) is that the minimum deposit for a CD is $500 (vs. $25,000 at Ally). That may make it a bit easier to break up money across multiple CDs for those who want to, especially those of us who are using these CDs as part of an emergency fund.
"I'm spending a year dead for tax reasons." - Hotblack Desiato

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IcedDog
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Re: high-yield savings: stay or switch?

Post by IcedDog » Tue Aug 06, 2019 3:14 pm

Funny you should ask, just yesterday I moved the majority of my cash in Ally savings to Ally's 12-month CD (2.5%). It's actually the first CD I've ever opened, but it seemed an opportune time with rates now falling. I do have a savings account (currently unfunded) with Marcus, but they will likely be dropping their rate soon as well. I've been quite happy with Ally the last 10 years, so I'll likely leave my cash there for now.

retiredflyboy
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Re: high-yield savings: stay or switch?

Post by retiredflyboy » Tue Aug 06, 2019 5:33 pm

Stay put, not worth chasing the yield.
Facts are stubborn things. Everything works until it doesn’t.

MoneyMarathon
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Re: high-yield savings: stay or switch?

Post by MoneyMarathon » Tue Aug 06, 2019 6:00 pm

GordonG wrote:
Tue Aug 06, 2019 5:08 am
7eight9 wrote:
Mon Aug 05, 2019 10:03 pm
If someone else is paying more why wouldn't you move? Especially since you already have the accounts set up. I would have no concerns with moving money around to chase the highest rate.

It may be too much bother for too little money but there are Netspend accounts that pay 5% on the first $1,000. DCU is paying 6.17% on the first $1,000 too.
Kind of what I was thinking. I was just worried they'd drop their rates right after I transferred, but I guess it really doesn't cost me anything besides a few minutes of time.
The credit union, DCU, has had this rate (5% + something on top, currently 6.17%, on the first $1k) for a long time and probably isn't taking it away, IMO. Might not be worth doing by itself, ofc, but I originally joined for an auto loan.

02nz
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Re: high-yield savings: stay or switch?

Post by 02nz » Tue Aug 06, 2019 6:04 pm

I've found that it's far more profitable to get bank bonuses than worry about small differences in interest rate. Simple has a $250 bonus for $10K on savings ("protected goal"), on top of ~2% interest. Easy $750 for two people (they can get the bonus for a shared "protected goal" as well). Marcus (Goldman Sachs) recently ran a 1% promo that could've netted you $500. Doctorofcredit is a good source of info for these.

7eight9
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Re: high-yield savings: stay or switch?

Post by 7eight9 » Tue Aug 06, 2019 6:26 pm

02nz wrote:
Tue Aug 06, 2019 6:04 pm
I've found that it's far more profitable to get bank bonuses than worry about small differences in interest rate. Simple has a $250 bonus for $10K on savings ("protected goal"), on top of ~2% interest. Easy $750 for two people (they can get the bonus for a shared "protected goal" as well). Marcus (Goldman Sachs) recently ran a 1% promo that could've netted you $500. Doctorofcredit is a good source of info for these.
Simple was a nice bonus. Easy $750 if both parties are US citizens. Green card holders can't open a protected goals account. :( We only were able to get $250.

Link to Doctor of Credit discussion of offer --- https://www.doctorofcredit.com/simple-f ... wo-people/
I guess it all could be much worse. | They could be warming up my hearse.

dantheman46
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Re: high-yield savings: stay or switch?

Post by dantheman46 » Tue Aug 06, 2019 6:29 pm

Northern Bank Direct MOney Market is 2.5% and rate is guaranteed through the end of 2019. I've been with them since 2018 and they are a great bank IMHO. I have liquid money parked there. I will reevaluate towards the end of the year if they don't extend the rate guarantee(which they already did once previously). Bonus - the account comes with an atm card and checks which is fairly rare to find nowadays.

HockeyFan99
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Re: high-yield savings: stay or switch?

Post by HockeyFan99 » Tue Aug 06, 2019 7:14 pm

retiredflyboy wrote:
Tue Aug 06, 2019 5:33 pm
Stay put, not worth chasing the yield.
I’ve been trying to understand why I bother chasing yield on cash when it amounts to a relatively small amount of money, especially after tax.

I think one reason is that it gives me something “active” to do that doesn’t involve messing with our actual portfolio. I’ve noticed that I tend to move our cash around more often at times of significant market movements, so perhaps it’s functioning as an outlet to avoid doing something stupid (and when I can’t quite fully follow the “don’t just do something, stand there!” advice).

The same is true of TLH, often for fairly modest tax savings.

I wonder if others, especially in the accumulation phase, have noticed anything similar.
"I'm spending a year dead for tax reasons." - Hotblack Desiato

7eight9
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Re: high-yield savings: stay or switch?

Post by 7eight9 » Tue Aug 06, 2019 7:25 pm

HockeyFan99 wrote:
Tue Aug 06, 2019 7:14 pm
retiredflyboy wrote:
Tue Aug 06, 2019 5:33 pm
Stay put, not worth chasing the yield.
I’ve been trying to understand why I bother chasing yield on cash when it amounts to a relatively small amount of money, especially after tax.

I think one reason is that it gives me something “active” to do that doesn’t involve messing with our actual portfolio. I’ve noticed that I tend to move our cash around more often at times of significant market movements, so perhaps it’s functioning as an outlet to avoid doing something stupid (and when I can’t quite fully follow the “don’t just do something, stand there!” advice).

The same is true of TLH, often for fairly modest tax savings.

I wonder if others, especially in the accumulation phase, have noticed anything similar.
Cash is cash. If you see it on ground you probably pick it up. I know I do. If you would bend over to pick up a coin why wouldn't you move your money around to get a better rate? Not necessarily a lot of money (although it can add up depending on how much you are talking about) but money none the less. My thinking is that if you don't chase rates you are being disrespectful of your money leaving it to sit somewhere sub optimal.
I guess it all could be much worse. | They could be warming up my hearse.

tibbitts
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Re: high-yield savings: stay or switch?

Post by tibbitts » Tue Aug 06, 2019 7:45 pm

7eight9 wrote:
Tue Aug 06, 2019 7:25 pm
HockeyFan99 wrote:
Tue Aug 06, 2019 7:14 pm
retiredflyboy wrote:
Tue Aug 06, 2019 5:33 pm
Stay put, not worth chasing the yield.
I’ve been trying to understand why I bother chasing yield on cash when it amounts to a relatively small amount of money, especially after tax.

I think one reason is that it gives me something “active” to do that doesn’t involve messing with our actual portfolio. I’ve noticed that I tend to move our cash around more often at times of significant market movements, so perhaps it’s functioning as an outlet to avoid doing something stupid (and when I can’t quite fully follow the “don’t just do something, stand there!” advice).

The same is true of TLH, often for fairly modest tax savings.

I wonder if others, especially in the accumulation phase, have noticed anything similar.
Cash is cash. If you see it on ground you probably pick it up. I know I do. If you would bend over to pick up a coin why wouldn't you move your money around to get a better rate? Not necessarily a lot of money (although it can add up depending on how much you are talking about) but money none the less. My thinking is that if you don't chase rates you are being disrespectful of your money leaving it to sit somewhere sub optimal.
But sometimes choices are so close that you don't know what will turn out to be optimal or sub-optimal. For example, will the Ally 2.3% 11mo or 2.5% 12mo CD work out better for you? Or will you move your funds to another institution only to see your rate drop to below competitors? At some point even the few days you are out of the market due to ACH moving money around might be the difference between what turns out to be optimal or not. Plus especially when moving between institutions there is always the possibility of a mistake. And with more accounts there is an increased probability error - I've accidentally left out 1099 entries on my taxes. So you have to balance all that out.

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GordonG
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Re: high-yield savings: stay or switch?

Post by GordonG » Wed Aug 07, 2019 7:23 am

Thanks, all :sharebeer I decided to just transfer it over to GS Bank. I already had the account, and it's 2.15% vs 1.90% at Ally. If the banks are gonna be stingy with their rates, I'll be stingy with my money.

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IcedDog
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Re: high-yield savings: stay or switch?

Post by IcedDog » Wed Aug 07, 2019 7:39 am

7eight9 wrote:
Tue Aug 06, 2019 7:25 pm
My thinking is that if you don't chase rates you are being disrespectful of your money leaving it to sit somewhere sub optimal.
Yes, let that be a lesson to everyone, have some compassion and don't be a deadbeat cash owner :mrgreen:

tibbitts
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Re: high-yield savings: stay or switch?

Post by tibbitts » Wed Aug 07, 2019 8:00 am

GordonG wrote:
Wed Aug 07, 2019 7:23 am
Thanks, all :sharebeer I decided to just transfer it over to GS Bank. I already had the account, and it's 2.15% vs 1.90% at Ally. If the banks are gonna be stingy with their rates, I'll be stingy with my money.
Interestingly that .25% might be enough to encourage me to take some action at current rates, while at 6.25% vs. 6.5%, I probably wouldn't have.

engineerbme
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Re: high-yield savings: stay or switch?

Post by engineerbme » Wed Aug 07, 2019 8:05 am

GordonG wrote:
Mon Aug 05, 2019 9:33 pm


I also don't like the way Wealthfront links your external bank accounts. They ask for your user id and password from the external bank, just like Mint.com does. After that, they can see ALL of your accounts with that bank, not just the one account you want to link...creepy.
this is totally untrue, I just linked a bank account via Wealthfront using the standard 2 trial deposit method. You don't have to give them your login or anything like that...

I also did not have delays moving funds. They moved over +$20k I had parked into my Wealthfront cash account over to my bank in a one day ACH transfer...

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Pobre
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Re: high-yield savings: stay or switch?

Post by Pobre » Wed Aug 07, 2019 1:09 pm

engineerbme wrote:
Wed Aug 07, 2019 8:05 am
GordonG wrote:
Mon Aug 05, 2019 9:33 pm


I also don't like the way Wealthfront links your external bank accounts. They ask for your user id and password from the external bank, just like Mint.com does. After that, they can see ALL of your accounts with that bank, not just the one account you want to link...creepy.
this is totally untrue, I just linked a bank account via Wealthfront using the standard 2 trial deposit method. You don't have to give them your login or anything like that...

I also did not have delays moving funds. They moved over +$20k I had parked into my Wealthfront cash account over to my bank in a one day ACH transfer...
It is true. I was not given the option to link a bank account using the standard 2 trial deposit method.

I had no delays transferring funds to Wealthfront. It was transferring funds out of Wealthfront, over $30K, that took 7 business days.

I'm glad that your experience was different/better. Good for you.

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Pobre
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Re: high-yield savings: stay or switch?

Post by Pobre » Wed Aug 07, 2019 1:14 pm

engineerbme wrote:
Wed Aug 07, 2019 8:05 am
GordonG wrote:
Mon Aug 05, 2019 9:33 pm


I also don't like the way Wealthfront links your external bank accounts. They ask for your user id and password from the external bank, just like Mint.com does. After that, they can see ALL of your accounts with that bank, not just the one account you want to link...creepy.
this is totally untrue, I just linked a bank account via Wealthfront using the standard 2 trial deposit method. You don't have to give them your login or anything like that...

I also did not have delays moving funds. They moved over +$20k I had parked into my Wealthfront cash account over to my bank in a one day ACH transfer...
Totally untrue, eh? Are you "totally" sure about that?

"To link your outside bank or brokerage accounts, simply log into Wealthfront and click “Link an Account” (screenshot below) on your dashboard

You can then choose from the most popular institutions (listed with icons) or search for your institution. We currently support linking at over 13,000 institutions.

Once you select your institution, you’ll be prompted to enter your username and password with that bank or brokerage, and we’ll then link to your account."
https://support.wealthfront.com/hc/en-u ... althfront-

engineerbme
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Re: high-yield savings: stay or switch?

Post by engineerbme » Wed Aug 07, 2019 3:24 pm

Pobre wrote:
Wed Aug 07, 2019 1:14 pm
engineerbme wrote:
Wed Aug 07, 2019 8:05 am
GordonG wrote:
Mon Aug 05, 2019 9:33 pm


I also don't like the way Wealthfront links your external bank accounts. They ask for your user id and password from the external bank, just like Mint.com does. After that, they can see ALL of your accounts with that bank, not just the one account you want to link...creepy.
this is totally untrue, I just linked a bank account via Wealthfront using the standard 2 trial deposit method. You don't have to give them your login or anything like that...

I also did not have delays moving funds. They moved over +$20k I had parked into my Wealthfront cash account over to my bank in a one day ACH transfer...
Totally untrue, eh? Are you "totally" sure about that?

"To link your outside bank or brokerage accounts, simply log into Wealthfront and click “Link an Account” (screenshot below) on your dashboard

You can then choose from the most popular institutions (listed with icons) or search for your institution. We currently support linking at over 13,000 institutions.

Once you select your institution, you’ll be prompted to enter your username and password with that bank or brokerage, and we’ll then link to your account."
https://support.wealthfront.com/hc/en-u ... althfront-
if you click 'manage my bank accounts' after you're viewing your wealthfront cash account, you can't do any other way but the 2 trial deposits by entering your routing and account number...i never setup my bank accounts that way.

it's also listed here: https://support.wealthfront.com/hc/en-u ... 0000336983

engineerbme
Posts: 46
Joined: Tue Jun 04, 2019 10:12 am

Re: high-yield savings: stay or switch?

Post by engineerbme » Wed Aug 07, 2019 3:25 pm

Pobre wrote:
Wed Aug 07, 2019 1:14 pm
engineerbme wrote:
Wed Aug 07, 2019 8:05 am
GordonG wrote:
Mon Aug 05, 2019 9:33 pm


I also don't like the way Wealthfront links your external bank accounts. They ask for your user id and password from the external bank, just like Mint.com does. After that, they can see ALL of your accounts with that bank, not just the one account you want to link...creepy.
this is totally untrue, I just linked a bank account via Wealthfront using the standard 2 trial deposit method. You don't have to give them your login or anything like that...

I also did not have delays moving funds. They moved over +$20k I had parked into my Wealthfront cash account over to my bank in a one day ACH transfer...
Totally untrue, eh? Are you "totally" sure about that?

"To link your outside bank or brokerage accounts, simply log into Wealthfront and click “Link an Account” (screenshot below) on your dashboard

You can then choose from the most popular institutions (listed with icons) or search for your institution. We currently support linking at over 13,000 institutions.

Once you select your institution, you’ll be prompted to enter your username and password with that bank or brokerage, and we’ll then link to your account."
https://support.wealthfront.com/hc/en-u ... althfront-
if you click 'manage my bank accounts' after you're viewing your wealthfront cash account, you can't do any other way but the 2 trial deposits by entering your routing and account number...i never setup my bank accounts the way you're explaining above.

it's also listed here: https://support.wealthfront.com/hc/en-u ... cess-work-

DaftInvestor
Posts: 4704
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Re: high-yield savings: stay or switch?

Post by DaftInvestor » Wed Aug 07, 2019 3:59 pm

MikeG62 wrote:
Tue Aug 06, 2019 2:03 pm
DaftInvestor wrote:
Tue Aug 06, 2019 10:22 am
Marcus/GSBank may drop their rates as well but they have always been slightly higher than Ally (at think at one point they were the same - but usually slightly higher - I've been watching for years). Synchrony also tends to be about the same as Marcus (and always higher than Ally).
This is true but the delta is usually 5 to 10 basis points max. It’s hard to envision Ally dropping to 1.90% and the others staying at 2.15% for very long.
True - but all else being equal why not go with the account that historically has always had higher yield (even if only slightly higher). Over a decade pennies can add up.
I also like Marcus better because transfers out always take 1-day. Last ACH transfer I did out of Ally took 3 days!

MikeG62
Posts: 2002
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Location: New Jersey

Re: high-yield savings: stay or switch?

Post by MikeG62 » Wed Aug 07, 2019 4:53 pm

DaftInvestor wrote:
Wed Aug 07, 2019 3:59 pm
MikeG62 wrote:
Tue Aug 06, 2019 2:03 pm
DaftInvestor wrote:
Tue Aug 06, 2019 10:22 am
Marcus/GSBank may drop their rates as well but they have always been slightly higher than Ally (at think at one point they were the same - but usually slightly higher - I've been watching for years). Synchrony also tends to be about the same as Marcus (and always higher than Ally).
This is true but the delta is usually 5 to 10 basis points max. It’s hard to envision Ally dropping to 1.90% and the others staying at 2.15% for very long.
True - but all else being equal why not go with the account that historically has always had higher yield (even if only slightly higher). Over a decade pennies can add up.
I also like Marcus better because transfers out always take 1-day. Last ACH transfer I did out of Ally took 3 days!
I have no-penalty CD’s at both Ally and Marcus (six at Marcus and four at Ally). The pluses with Marcus are 5bp higher rate, term is two-months longer and the funds are counted as at Marcus the day your initiate the pull (on the Marcus site), whereas Ally counts the funds only from the time the funds land in your account.

A plus with Ally “for me” is they consider the interest as income in the year the CD matures. So all the CD’s I have at Ally (12-months in duration or fewer) will be taxable to me in 2020 - which I prefer due to some other taxable income I have hitting this year. I’ve also had a banking relationship with Ally for over a decade now.

Ally also has only 60 day penalty on WD from traditional 12-month CD (I have four traditional CD’s with them as well). Marcus early withdrawal penalty is 270 days on a 12-month CD. So a big negative there - especially since the rate is identical (at 2.50%). I would not open a traditional CD at Marcus due to the sizable EWD penalty (unless their rate was significantly higher to accept that condition).

So I am not wed to Ally, but using both.
Real Knowledge Comes Only From Experience

dantheman46
Posts: 4
Joined: Tue Aug 06, 2019 6:25 pm

Re: high-yield savings: stay or switch?

Post by dantheman46 » Wed Aug 07, 2019 6:39 pm

dantheman46 wrote:
Tue Aug 06, 2019 6:29 pm
Northern Bank Direct MOney Market is 2.5% and rate is guaranteed through the end of 2019. I've been with them since 2018 and they are a great bank IMHO. I have liquid money parked there. I will reevaluate towards the end of the year if they don't extend the rate guarantee(which they already did once previously). Bonus - the account comes with an atm card and checks which is fairly rare to find nowadays.
Just wondering why no one seems interested in 2.5% guaranteed until the end of the year versus non-guaranteed accounts, many of which have been dropping since the fed rate cut last week. What am I missing?

MikeG62
Posts: 2002
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Location: New Jersey

Re: high-yield savings: stay or switch?

Post by MikeG62 » Wed Aug 07, 2019 8:11 pm

dantheman46 wrote:
Wed Aug 07, 2019 6:39 pm
dantheman46 wrote:
Tue Aug 06, 2019 6:29 pm
Northern Bank Direct MOney Market is 2.5% and rate is guaranteed through the end of 2019. I've been with them since 2018 and they are a great bank IMHO. I have liquid money parked there. I will reevaluate towards the end of the year if they don't extend the rate guarantee(which they already did once previously). Bonus - the account comes with an atm card and checks which is fairly rare to find nowadays.
Just wondering why no one seems interested in 2.5% guaranteed until the end of the year versus non-guaranteed accounts, many of which have been dropping since the fed rate cut last week. What am I missing?
I can’t speak for others, but I’ll tell you why I’m not that interested.

First, the rate is only locked for 5 more months. I’d rather lock a 12-month CD at 2.50% than take the risk of this account dropping to market rates once the lock expires. If it does, the drop could be quite substantial - given where interest rates appear to be heading.

Second, I value simplicity. So I’d rather not have money all over the place unless there were a very compelling reason to do so. I feel like I have better options at Ally and/or Marcus.
Real Knowledge Comes Only From Experience

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Pobre
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Re: high-yield savings: stay or switch?

Post by Pobre » Fri Aug 09, 2019 7:43 am

engineerbme wrote:
Wed Aug 07, 2019 3:25 pm

if you click 'manage my bank accounts' after you're viewing your wealthfront cash account, you can't do any other way but the 2 trial deposits by entering your routing and account number...i never setup my bank accounts the way you're explaining above.

it's also listed here: https://support.wealthfront.com/hc/en-u ... cess-work-
engineerbme,

Hopefully next time you won't be so quick to come here and accuse me or any other member of posting something that's "totally untrue", basically calling me a liar, just because your experience was different.

You never setup your bank accounts the way I'm explaining above? So what? That doesn't mean I'm lying. Besides, that's not me explaining it. That's Wealthfront explaining it. I provided the direct link to the Wealthfront website that explains it.

I emailed Wealthfront about this, asking if there are more than one way to link an external bank account. I asked why when I signed up I was given only one option to link my external bank, which required me to enter my user id and password at that bank, automatically giving Wealthfront view access to all my accounts at that bank.

Here is the response from Wealthfront regarding this:

"We want to make sure you're comfortable linking your accounts upon initial sign up and don't provide an alternative. We find that if you're not comfortable with linking your account electronically, it tends to lead to a poor client experience after an account has already been funded, which is why we want to be upfront about our linking process.

Because we're optimized to do everything electronically, linking your bank using your login information is how we have you link your account for deposits and withdrawals unless you have a bank account where we don't support the electronic login feature.

The reason for this is that linking an outside bank or brokerage account enables us to verify your account instantly, which simplifies deposits, withdrawals, and transfers. If your bank is unable to link, you must wait to deposit and withdraw funds until you verify your outside account through the cumbersome micro-deposit process, which can take several days.

Account Linking is also how we deliver a significant portion of our services in general for our clients (financial planning, making deposits, account transfers, withdrawals, etc.). When you link your financial accounts to Wealthfront, we factor your account details into our research-driven financial planning model to project your finances and net worth over time. Based on these projections, you get insights and advice to help you make smarter long-term financial decisions.
"

You are welcome to email Wealthfront yourself regarding this, if you still believe that I'm lying.

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indexfundfan
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Contact:

Re: high-yield savings: stay or switch?

Post by indexfundfan » Fri Aug 09, 2019 8:07 am

Pobre wrote:
Fri Aug 09, 2019 7:43 am
Here is the response from Wealthfront regarding this:

"We want to make sure you're comfortable linking your accounts upon initial sign up and don't provide an alternative. We find that if you're not comfortable with linking your account electronically, it tends to lead to a poor client experience after an account has already been funded, which is why we want to be upfront about our linking process."
I don't have an account with Wealthfront but oh wow, I didn't know you NEED to provide the login name and password of your bank in the initial sign up.

This is good to know because not everyone is comfortable with disclosing bank login information and this would save them time from trying to sign up.
My signature has been deleted.

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Pobre
Posts: 67
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Re: high-yield savings: stay or switch?

Post by Pobre » Fri Aug 09, 2019 8:21 am

indexfundfan wrote:
Fri Aug 09, 2019 8:07 am
Pobre wrote:
Fri Aug 09, 2019 7:43 am
Here is the response from Wealthfront regarding this:

"We want to make sure you're comfortable linking your accounts upon initial sign up and don't provide an alternative. We find that if you're not comfortable with linking your account electronically, it tends to lead to a poor client experience after an account has already been funded, which is why we want to be upfront about our linking process."
I don't have an account with Wealthfront but oh wow, I didn't know you NEED to provide the login name and password of your bank in the initial sign up.

This is good to know because not everyone is comfortable with disclosing bank login information and this would save them time from trying to sign up.
Exactly the reason why I came here to share my experience with Wealthfront, for those who might be considering it. That way they know ahead of time what to expect.

Some are just fine linking their bank this way, while other like me are not. The part that bothered me more than disclosing my bank login information is the fact that after doing so, Wealthfront had view access to all of my accounts at that bank. I only wanted to link one account at that particular bank, not all of them.

It appears they collect information about your deposits, withdrawals, transfers, and other details from all of your accounts at the bank you link.

They claim this is for their "research-driven financial planning model to project your finances and net worth over time. Based on these projections, you get insights and advice to help you make smarter long-term financial decisions." However, this is likely for their own benefit. All that data they are collecting from their users is very valuable.

engineerbme
Posts: 46
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Re: high-yield savings: stay or switch?

Post by engineerbme » Fri Aug 09, 2019 2:41 pm

Pobre wrote:
Fri Aug 09, 2019 7:43 am
engineerbme wrote:
Wed Aug 07, 2019 3:25 pm

if you click 'manage my bank accounts' after you're viewing your wealthfront cash account, you can't do any other way but the 2 trial deposits by entering your routing and account number...i never setup my bank accounts the way you're explaining above.

it's also listed here: https://support.wealthfront.com/hc/en-u ... cess-work-
engineerbme,

Hopefully next time you won't be so quick to come here and accuse me or any other member of posting something that's "totally untrue", basically calling me a liar, just because your experience was different.

You never setup your bank accounts the way I'm explaining above? So what? That doesn't mean I'm lying. Besides, that's not me explaining it. That's Wealthfront explaining it. I provided the direct link to the Wealthfront website that explains it.

I emailed Wealthfront about this, asking if there are more than one way to link an external bank account. I asked why when I signed up I was given only one option to link my external bank, which required me to enter my user id and password at that bank, automatically giving Wealthfront view access to all my accounts at that bank.

Here is the response from Wealthfront regarding this:

"We want to make sure you're comfortable linking your accounts upon initial sign up and don't provide an alternative. We find that if you're not comfortable with linking your account electronically, it tends to lead to a poor client experience after an account has already been funded, which is why we want to be upfront about our linking process.

Because we're optimized to do everything electronically, linking your bank using your login information is how we have you link your account for deposits and withdrawals unless you have a bank account where we don't support the electronic login feature.

The reason for this is that linking an outside bank or brokerage account enables us to verify your account instantly, which simplifies deposits, withdrawals, and transfers. If your bank is unable to link, you must wait to deposit and withdraw funds until you verify your outside account through the cumbersome micro-deposit process, which can take several days.

Account Linking is also how we deliver a significant portion of our services in general for our clients (financial planning, making deposits, account transfers, withdrawals, etc.). When you link your financial accounts to Wealthfront, we factor your account details into our research-driven financial planning model to project your finances and net worth over time. Based on these projections, you get insights and advice to help you make smarter long-term financial decisions.
"

You are welcome to email Wealthfront yourself regarding this, if you still believe that I'm lying.
point taken, but i was not accusing you of being a liar, you are correct about the initial account setup, however future account setups do not require this, so if you really cared enough you could just give a bogus account to link up, and then perform the trial deposits...the way you are addressing this is that there is no other way to move your money into or out of the wealthfront account besides directly linking the account via login password, which is infact still incorrect if you are spewing it that way...so you can get back on your high horse sir and keep your glory, you are correct about the initial setup.

I want to add that I've had nothing but a great experience with wealthfront. They move my funds out and into my account within 1 business day via ACH transfers, and their CS is great too. I recently pulled all my funds because their APY interest rate sucks now compared to other banks I have, but just wanted to share my experience too.

User avatar
Pobre
Posts: 67
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Re: high-yield savings: stay or switch?

Post by Pobre » Mon Aug 12, 2019 10:23 am

engineerbme wrote:
Fri Aug 09, 2019 2:41 pm
point taken, but i was not accusing you of being a liar, you are correct about the initial account setup, however future account setups do not require this, so if you really cared enough you could just give a bogus account to link up, and then perform the trial deposits...the way you are addressing this is that there is no other way to move your money into or out of the wealthfront account besides directly linking the account via login password, which is infact still incorrect if you are spewing it that way...so you can get back on your high horse sir and keep your glory, you are correct about the initial setup.

I want to add that I've had nothing but a great experience with wealthfront. They move my funds out and into my account within 1 business day via ACH transfers, and their CS is great too. I recently pulled all my funds because their APY interest rate sucks now compared to other banks I have, but just wanted to share my experience too.
Why would I have just given a bogus account to link up when I didn't know I had any other option? From my experience, and per Wealthfront's own admission, they don't provide and don't want you to know there is any alternative upon initial sign up. They prefer that you link your account by providing the login information.

Citi Accelerate Savings, on the other hand, does provide both options upon initial setup. That seems more professional and honest in my book.

Unlike you, I never said "totally untrue" when you shared an alternative way to link a bank account from Wealthfront. I was simply sharing the only way that I was given by Wealthfront to link up my account, and how much I dislike it.

The only one here on a "high horse", "spewing" misinformation is you. If anyone was addressing this as if there is no way to link up an account other than the way you did it, it was you.

Glad you had a good experience! Good for you.

engineerbme
Posts: 46
Joined: Tue Jun 04, 2019 10:12 am

Re: high-yield savings: stay or switch?

Post by engineerbme » Mon Aug 12, 2019 10:33 am

Pobre wrote:
Mon Aug 12, 2019 10:23 am
engineerbme wrote:
Fri Aug 09, 2019 2:41 pm
point taken, but i was not accusing you of being a liar, you are correct about the initial account setup, however future account setups do not require this, so if you really cared enough you could just give a bogus account to link up, and then perform the trial deposits...the way you are addressing this is that there is no other way to move your money into or out of the wealthfront account besides directly linking the account via login password, which is infact still incorrect if you are spewing it that way...so you can get back on your high horse sir and keep your glory, you are correct about the initial setup.

I want to add that I've had nothing but a great experience with wealthfront. They move my funds out and into my account within 1 business day via ACH transfers, and their CS is great too. I recently pulled all my funds because their APY interest rate sucks now compared to other banks I have, but just wanted to share my experience too.
Why would I have just given a bogus account to link up when I didn't know I had any other option? From my experience, and per Wealthfront's own admission, they don't provide and don't want you to know there is any alternative upon initial sign up. They prefer that you link your account by providing the login information.

Citi Accelerate Savings, on the other hand, does provide both options upon initial setup. That seems more professional and honest in my book.

Unlike you, I never said "totally untrue" when you shared an alternative way to link a bank account from Wealthfront. I was simply sharing the only way that I was given by Wealthfront to link up my account, and how much I dislike it.

The only one here on a "high horse", "spewing" misinformation is you. If anyone was addressing this as if there is no way to link up an account other than the way you did it, it was you.

Glad you had a good experience! Good for you.
thank you for responding back and continuing to add no relevant help to the original topic of this thread. I'm glad I waited until Monday morning to have an argument with an older 46 year old man, enjoy your day sir.

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Pobre
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Re: high-yield savings: stay or switch?

Post by Pobre » Mon Aug 12, 2019 10:54 am

engineerbme wrote:
Mon Aug 12, 2019 10:33 am
thank you for responding back and continuing to add no relevant help to the original topic of this thread. I'm glad I waited until Monday morning to have an argument with an older 46 year old man, enjoy your day sir.
You are welcome! Enjoy your day too!

mervinj7
Posts: 1012
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Re: high-yield savings: stay or switch?

Post by mervinj7 » Mon Aug 12, 2019 1:29 pm

Pobre wrote:
Tue Aug 06, 2019 10:24 am
HEDGEFUNDIE wrote:
Tue Aug 06, 2019 10:22 am
No problem, more interest for the rest of us.
More power to you. More risk, more reward. Right? :D
Assuming all these options (e.g. Wealthfront, Ally, Marcus) are all FDIC-insured, they should fairly equivalent in risk. It's more like more hassle, more reward. :D

anon_investor
Posts: 268
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Re: high-yield savings: stay or switch?

Post by anon_investor » Mon Aug 12, 2019 1:39 pm

There are still a few online FDIC insured online banks offering over 2.3%. I am not running to switch from Ally right now only because, it seems like everyone will be dropping their rates soon. I did lock in a good rate with a CD before the rates dropped, any money that I need to be liquid and can't be in a CD it is too much of a hassle to chase interest rates. I really like how I can keep those funds in my Ally savings getting 1.9% (for now), and instantly transfer to my Ally checking if needed. To me, that flexibility is worth the few basis points in interest.

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susa
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Re: high-yield savings: stay or switch?

Post by susa » Mon Aug 12, 2019 2:33 pm

We use Northern Bank at 2.50%

Full list is here and we move funds around to whereever there is best % plus bonus (ie. Marcus-GS Bank)

https://www.doctorofcredit.com/high-int ... gs-to-get/

engineerbme
Posts: 46
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Re: high-yield savings: stay or switch?

Post by engineerbme » Tue Aug 13, 2019 10:15 am

susa wrote:
Mon Aug 12, 2019 2:33 pm
We use Northern Bank at 2.50%

Full list is here and we move funds around to whereever there is best % plus bonus (ie. Marcus-GS Bank)

https://www.doctorofcredit.com/high-int ... gs-to-get/
+1 DoC is a great site!

guitarman555
Posts: 19
Joined: Fri Oct 26, 2018 1:43 pm

Re: high-yield savings: stay or switch?

Post by guitarman555 » Tue Aug 13, 2019 11:23 am

I thought about emptying my Ally account and putting it all in my Vanguard taxable brokerage VTSAX, but for now I think I'll sit tight. The cash at Ally is for emergencies and I'm glad it's there. Heck, whether it's 1.9 or 2.2 there's no money to be made really. It's just for peace of mind and easy withdrawals if needed (don't have to cash out any VTSAX in case of emergency).

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