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Ally Savings Rate drops to 1.8%

Posted: Wed Oct 09, 2019 1:29 pm
by Rob5TCP
Not exactly news, but Ally again is dropping the savings rate to 1.8% effective tomorrow.

Re: Ally Savings Rate drops to 1.8%

Posted: Wed Oct 09, 2019 5:24 pm
by Trader Joe
Rob5TCP wrote:
Wed Oct 09, 2019 1:29 pm
Not exactly news, but Ally again is dropping the savings rate to 1.8% effective tomorrow.
Is there a reason why you use Ally for your savings?

Re: Ally Savings Rate drops to 1.8%

Posted: Wed Oct 09, 2019 5:35 pm
by bogleblitz
still a good rate compared to local banks.

Re: Ally Savings Rate drops to 1.8%

Posted: Wed Oct 09, 2019 5:46 pm
by vshun
Discover is still 1.9.
Vanguard federal MMF is also 1.9. So this is way bigger reduction for MMF than it is for either Ally or Discover compared to rates 6 months ago.

Re: Ally Savings Rate drops to 1.8%

Posted: Wed Oct 09, 2019 6:10 pm
by Rob5TCP
Trader Joe wrote:
Wed Oct 09, 2019 5:24 pm
Rob5TCP wrote:
Wed Oct 09, 2019 1:29 pm
Not exactly news, but Ally again is dropping the savings rate to 1.8% effective tomorrow.
Is there a reason why you use Ally for your savings?
Convenience and the amount I keep is not exactly staggering (less than 20K).
While their rates are never the highest, they are usually competitive.

For my CD's I use c.u. which usually have much higher rates.

Re: Ally Savings Rate drops to 1.8%

Posted: Wed Oct 09, 2019 6:23 pm
by sunny_socal
Everyone else has dropped their rates as well. Not really a big deal.

Re: Ally Savings Rate drops to 1.8%

Posted: Wed Oct 09, 2019 6:43 pm
by Tdubs
Rob5TCP wrote:
Wed Oct 09, 2019 6:10 pm
Trader Joe wrote:
Wed Oct 09, 2019 5:24 pm
Rob5TCP wrote:
Wed Oct 09, 2019 1:29 pm
Not exactly news, but Ally again is dropping the savings rate to 1.8% effective tomorrow.
Is there a reason why you use Ally for your savings?
Convenience and the amount I keep is not exactly staggering (less than 20K).
While their rates are never the highest, they are usually competitive.

For my CD's I use c.u. which usually have much higher rates.
For my family, I try to keep it simple and keep checking and savings in one place. Scattering accounts to the four winds for an extra 0.2% would not serve them well if I passed on.

Ally savings rates dropping — again — from 1.90% to 1.80%

Posted: Wed Oct 09, 2019 8:23 pm
by jader201
[Thread merged into here, see below. --admin LadyGeek]

It looks like Ally is dropping their rates for the third time in 5 months, from 1.90% to 1.80%, following a drop from 2.10% to 1.90% in August — two months ago — and a drop from 2.20% to 2.10% in June — two months before the last one.

I had just recently (this year, when it was still 2.20%) moved all of my accounts to Ally, after having been with Fifth Third for 22 years. So it’s no surprise that I’m a little disappointed by three drops happening right after moving.

Not that I would consider moving again, but I’m a little concerned this isn’t the end (I thought surely it would be a while after the first drop... and then the second drop).

Maybe it’s time to consider CDs (like their email suggests).

Re: Ally savings rates dropping — again — from 1.90% to 1.80%

Posted: Wed Oct 09, 2019 8:58 pm
by A_Bond
With the continual pressure on interest rates, it was bound to happen. I have steadily moved more and more of my medium-term savings into CDs.

Re: Ally savings rates dropping — again — from 1.90% to 1.80%

Posted: Wed Oct 09, 2019 9:01 pm
by runner3081
I believe this was already posted.

They rise and fall, I am not too worried about it, personally.

The only cash we have in savings is for the eFund, so no need for it to make money (it would be nice, but not an issue).

EDIT - Yep: viewtopic.php?f=11&t=292211&p=4786259

Re: Ally savings rates dropping — again — from 1.90% to 1.80%

Posted: Wed Oct 09, 2019 9:05 pm
by Wiggums
The fed lowered the interest rates three times -
June, July and September. Another rate cut is expected in October.

https://tradingeconomics.com/united-sta ... erest-rate

Re: Ally savings rates dropping — again — from 1.90% to 1.80%

Posted: Wed Oct 09, 2019 9:07 pm
by abuss368
It has been expected. Unfortunately rates may continue to decrease.

Re: Ally savings rates dropping — again — from 1.90% to 1.80%

Posted: Wed Oct 09, 2019 9:08 pm
by abuss368
I was starting to feel happy about cash keeping up with inflation.

Re: Ally savings rates dropping — again — from 1.90% to 1.80%

Posted: Wed Oct 09, 2019 9:10 pm
by Alan S.
When the fed is cutting rates, all yields will eventually come down for all institutions. There is nowhere to hide.:

1) MM funds gradually trickle down, a basis point or two at a time a couple days each week
2) Savings accounts less frequently, perhaps every one or two months, but larger drops to offset the reduced frequency.
3) CDs when they mature, with the drop being substantial for longer term CDs - however, with some luck you will avoid a maturity close to the bottom of the interest rate cycle.

Moving a savings account to a high rate payer means you are likely to get hit with a reduction very soon. Very similar to moving your home or auto insurance to the carrier with the lowest quote, since they are overdue for an increase.

Re: Ally savings rates dropping — again — from 1.90% to 1.80%

Posted: Wed Oct 09, 2019 9:27 pm
by nix4me
You do realize that savings rates and cd rates follow the federal interest rates - right? It’s a race to zero right now - down down down

Re: Ally Savings Rate drops to 1.8%

Posted: Wed Oct 09, 2019 10:38 pm
by LadyGeek
I merged jader201's thread into the ongoing discussion. The combined thread is in the Personal Finance (Not Investing) forum (bank).

Re: Ally Savings Rate drops to 1.8%

Posted: Wed Oct 09, 2019 11:04 pm
by 6d1v7x3
vshun wrote:
Wed Oct 09, 2019 5:46 pm
Discover is still 1.9.
Vanguard federal MMF is also 1.9. So this is way bigger reduction for MMF than it is for either Ally or Discover compared to rates 6 months ago.
I'm sorry but what exactly is an MMF?

Re: Ally Savings Rate drops to 1.8%

Posted: Wed Oct 09, 2019 11:05 pm
by 6d1v7x3
Rob5TCP wrote:
Wed Oct 09, 2019 6:10 pm
Trader Joe wrote:
Wed Oct 09, 2019 5:24 pm
Rob5TCP wrote:
Wed Oct 09, 2019 1:29 pm
Not exactly news, but Ally again is dropping the savings rate to 1.8% effective tomorrow.
Is there a reason why you use Ally for your savings?
Convenience and the amount I keep is not exactly staggering (less than 20K).
While their rates are never the highest, they are usually competitive.

For my CD's I use c.u. which usually have much higher rates.
What is the CD that you are referring to? Thank you.

Re: Ally Savings Rate drops to 1.8%

Posted: Wed Oct 09, 2019 11:39 pm
by Jerry55
6d1v7x3 wrote:
Wed Oct 09, 2019 11:04 pm
vshun wrote:
Wed Oct 09, 2019 5:46 pm
Discover is still 1.9.
Vanguard federal MMF is also 1.9. So this is way bigger reduction for MMF than it is for either Ally or Discover compared to rates 6 months ago.
I'm sorry but what exactly is an MMF?

Money Market Fund

Re: Ally Savings Rate drops to 1.8%

Posted: Thu Oct 10, 2019 12:13 am
by rj49
It still sounds pretty good compared to the .02% or whatever the VG MMFs were earning for years, or the .05% or so that many banks still offer. It's too big a hassle to chase high savings yields, just as it is to move stock investments around just because Fidelity and Schwab and others try to undercut VG's expenses, or offer free or low-cost stock/ETF trades. They're all just loss leaders designed to get you committed, so they can make more money from you off everything else, whether it's milk in a grocery store, 2-day Prime shipping, Costco hot dogs, or a high teaser savings rate.

I've been sticking with Discover, simply because of the 5% rotating categories on their credit card, free checks, and no banking fees at all now, as well as 1% back on their debit card, which I use at WInco, a no-credit-card store. Plus you have US-based customer service and they don't annoy me constantly with offers and junk mail.

Re: Ally Savings Rate drops to 1.8%

Posted: Thu Oct 10, 2019 7:05 am
by MikeG62
99% of the liquid funds I have in online banks (Ally and Marcus) is, and has been (since the spring of '19,) in no penalty CD's (I have a half dozen of them spread across the two banks so if I need access to funds I don't have to break one large NP CD). For the most part, just as liquid as online savings, but at least with a rate lock for a period of time.

Unfortunately the rates on NP CD's have come down quite a bit since the beginning of the summer. While I am in at 2.35% at Marcus and 2.30% at Ally, it's very doubtful I'll be able to renew at anything close to these rates when they mature.

Re: Ally Savings Rate drops to 1.8%

Posted: Thu Oct 10, 2019 7:16 am
by Jack FFR1846
Redneck hasn't dropped its MegaMoney rate from 2.4% as of yesterday. I'll have to go look now.

Re: Ally Savings Rate drops to 1.8%

Posted: Thu Oct 10, 2019 7:31 am
by -ryan-
When I first moved my savings to Ally it was to earn 1.00% when that was an extremely competitive rate. As others have posted, this isn't just an Ally thing. I was considering American Express as a new home for my savings a couple months ago at 2.1%, but they reduced to 1.9% shortly after and I am sure they will reduce again just as Ally has.

I still see it as an excellent option for safe storage of cash savings. My local bank has paid 0.01%-0.03% for the last 8 years that I have had a relationship with them, so I will probably stick with Ally as long as they remain competitive and continue to offer an online checking account option.

Re: Ally Savings Rate drops to 1.8%

Posted: Thu Oct 10, 2019 7:45 am
by simplesimon
When rates rose, Ally consistently kept up. It wasn't always the best but they were always very good especially with the 11-month no-penalty CD's. They offered monster sign-up bonuses around this time last year.

Ally is still competitive so there's no reason for me to switch.

Re: Ally Savings Rate drops to 1.8%

Posted: Thu Oct 10, 2019 8:51 am
by Cyanide123
Vio Bank for me is still at 2.42. it did drop from 2.52 to 2.42 with the last rate drop.

Re: Ally Savings Rate drops to 1.8%

Posted: Thu Oct 10, 2019 9:02 am
by Dendritic Tree
I agree that the Ally rate drop is just part of the tide generally speaking of all banks going back down. They are so convenient that it's still worth it to stay there even if I could get a few extra tenths of a percent elsewhere. Really a great bank.

Re: Ally Savings Rate drops to 1.8%

Posted: Thu Oct 10, 2019 4:45 pm
by tenkuky
Cyanide123 wrote:
Thu Oct 10, 2019 8:51 am
Vio Bank for me is still at 2.42. it did drop from 2.52 to 2.42 with the last rate drop.
Any credit pull with Vio?
I have my reports frozen for a while now and am not inclined to unfreeze-refreeze.

Re: Ally Savings Rate drops to 1.8%

Posted: Thu Oct 10, 2019 4:52 pm
by guitarman555
I thought about pulling my money out (from Ally) but decided to keep it there. It's not about the yield with that money anyway. It's about the security it provides while I stash the rest of my money (after retirement account contributions) into VTSAX (taxable brokerage)

Re: Ally Savings Rate drops to 1.8%

Posted: Thu Oct 10, 2019 5:38 pm
by Gnirk
Not switching as they have been very easy to work with. I did move some of my savings to the no-penalty CD.

Re: Ally Savings Rate drops to 1.8%

Posted: Fri Oct 11, 2019 1:25 pm
by ERISA Stone
Trader Joe wrote:
Wed Oct 09, 2019 5:24 pm
Rob5TCP wrote:
Wed Oct 09, 2019 1:29 pm
Not exactly news, but Ally again is dropping the savings rate to 1.8% effective tomorrow.
Is there a reason why you use Ally for your savings?
So......where else should it go?

Re: Ally savings rates dropping — again — from 1.90% to 1.80%

Posted: Fri Oct 11, 2019 1:30 pm
by Tamarind
abuss368 wrote:
Wed Oct 09, 2019 9:08 pm
I was starting to feel happy about cash keeping up with inflation.
Isn't it still? I thought YTD inflation in 2019 was below 1.8%? Though obviously ones personal inflation rate will be different.

Re: Ally Savings Rate drops to 1.8%

Posted: Fri Oct 11, 2019 3:31 pm
by Grt2bOutdoors
simplesimon wrote:
Thu Oct 10, 2019 7:45 am
When rates rose, Ally consistently kept up. It wasn't always the best but they were always very good especially with the 11-month no-penalty CD's. They offered monster sign-up bonuses around this time last year.

Ally is still competitive so there's no reason for me to switch.
They cut the rate on the 11 month no-penalty cd too!

Re: Ally Savings Rate drops to 1.8%

Posted: Fri Oct 11, 2019 3:54 pm
by greg24
Vanguard PMM 1.97% 7-day yield

Re: Ally Savings Rate drops to 1.8%

Posted: Fri Oct 11, 2019 3:55 pm
by abuss368
greg24 wrote:
Fri Oct 11, 2019 3:54 pm
Vanguard PMM 1.97% 7-day yield
That is not a bad yield at all.

Re: Ally Savings Rate drops to 1.8%

Posted: Fri Oct 11, 2019 4:05 pm
by anon_investor
Cyanide123 wrote:
Thu Oct 10, 2019 8:51 am
Vio Bank for me is still at 2.42. it did drop from 2.52 to 2.42 with the last rate drop.
Vio Bank just dropped to 2.27%...

Re: Ally Savings Rate drops to 1.8%

Posted: Fri Oct 11, 2019 7:01 pm
by ERISA Stone
abuss368 wrote:
Fri Oct 11, 2019 3:55 pm
greg24 wrote:
Fri Oct 11, 2019 3:54 pm
Vanguard PMM 1.97% 7-day yield
That is not a bad yield at all.
what's the ticker symbol for this one?

Re: Ally Savings Rate drops to 1.8%

Posted: Fri Oct 11, 2019 7:07 pm
by abuss368
ERISA Stone wrote:
Fri Oct 11, 2019 7:01 pm
abuss368 wrote:
Fri Oct 11, 2019 3:55 pm
greg24 wrote:
Fri Oct 11, 2019 3:54 pm
Vanguard PMM 1.97% 7-day yield
That is not a bad yield at all.
what's the ticker symbol for this one?
I have no idea what the ticker symbols are for any of our funds. You would have to check Vanguard's website.

Re: Ally Savings Rate drops to 1.8%

Posted: Sat Oct 12, 2019 9:33 am
by MikeG62
ERISA Stone wrote:
Fri Oct 11, 2019 7:01 pm
abuss368 wrote:
Fri Oct 11, 2019 3:55 pm
greg24 wrote:
Fri Oct 11, 2019 3:54 pm
Vanguard PMM 1.97% 7-day yield
That is not a bad yield at all.
what's the ticker symbol for this one?
VMMXX

Re: Ally Savings Rate drops to 1.8%

Posted: Sat Oct 19, 2019 3:14 pm
by ame
anon_investor wrote:
Fri Oct 11, 2019 4:05 pm
Cyanide123 wrote:
Thu Oct 10, 2019 8:51 am
Vio Bank for me is still at 2.42. it did drop from 2.52 to 2.42 with the last rate drop.
Vio Bank just dropped to 2.27%...
Thanks for the heads up. I had moved most of my EM from Ally to Vio Bank.

Re: Ally Savings Rate drops to 1.8%

Posted: Sat Oct 19, 2019 4:07 pm
by anon_investor
ame wrote:
Sat Oct 19, 2019 3:14 pm
anon_investor wrote:
Fri Oct 11, 2019 4:05 pm
Cyanide123 wrote:
Thu Oct 10, 2019 8:51 am
Vio Bank for me is still at 2.42. it did drop from 2.52 to 2.42 with the last rate drop.
Vio Bank just dropped to 2.27%...
Thanks for the heads up. I had moved most of my EM from Ally to Vio Bank.
Most banks dropped their rates some. I think Brio Direct ( 2.3%) and Popular Direct (2.3%) are the current highest ones.

Re: Ally Savings Rate drops to 1.8%

Posted: Sat Oct 19, 2019 4:11 pm
by Kevin M
anon_investor wrote:
Sat Oct 19, 2019 4:07 pm
ame wrote:
Sat Oct 19, 2019 3:14 pm
anon_investor wrote:
Fri Oct 11, 2019 4:05 pm
Cyanide123 wrote:
Thu Oct 10, 2019 8:51 am
Vio Bank for me is still at 2.42. it did drop from 2.52 to 2.42 with the last rate drop.
Vio Bank just dropped to 2.27%...
Thanks for the heads up. I had moved most of my EM from Ally to Vio Bank.
Most banks dropped their rates some. I think Brio Direct ( 2.3%) and Popular Direct (2.3%) are the current highest ones.
I see two banks offering 2.40% APY at DepositAccounts.

Kevin

Re: Ally Savings Rate drops to 1.8%

Posted: Sat Oct 19, 2019 4:15 pm
by Kevin M
I agree that Ally is a great hub bank--they provide all services one would want in an online bank, have high ACH limits, you can link many external banks, etc. That doesn't mean you have to keep a lot of cash there when you can earn more elsewhere. I have a local bank paying 2.50%, and it's easy enough to move money between it and Ally. My compound taxable-equivalent yield (TEY) on Vanguard Treasury Money Market fund is 2.12%, and it's easy enough to move money between Vanguard, Ally and my local bank.

Kevin

Re: Ally Savings Rate drops to 1.8%

Posted: Sat Oct 19, 2019 4:16 pm
by anon_investor
Kevin M wrote:
Sat Oct 19, 2019 4:11 pm
anon_investor wrote:
Sat Oct 19, 2019 4:07 pm
ame wrote:
Sat Oct 19, 2019 3:14 pm
anon_investor wrote:
Fri Oct 11, 2019 4:05 pm
Cyanide123 wrote:
Thu Oct 10, 2019 8:51 am
Vio Bank for me is still at 2.42. it did drop from 2.52 to 2.42 with the last rate drop.
Vio Bank just dropped to 2.27%...
Thanks for the heads up. I had moved most of my EM from Ally to Vio Bank.
Most banks dropped their rates some. I think Brio Direct ( 2.3%) and Popular Direct (2.3%) are the current highest ones.
I see two banks offering 2.40% APY at DepositAccounts.

Kevin
I stand corrected. I have heard of Tab Bank, not the other though.

Re: Ally Savings Rate drops to 1.8%

Posted: Wed Nov 13, 2019 7:10 am
by MikeG62
And now down to 1.70% (effective today).

Marcus and Barclay's still at 1.90% - for now.