Ally Bank savings interest rate dropping from 1.25% to 1.10%

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anon_investor
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Ally Bank savings interest rate dropping from 1.25% to 1.10%

Post by anon_investor »

I just got an email from Ally Bank saying that the savings account interest rate effective 6/12/2020 will be dropping from 1.25% to 1.10%. Go out and open some no penalty CDs today while they are still at 1.20%...
MindTheGAAP
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Re: Ally Bank savings interest rate dropping from 1.25% to 1.10%

Post by MindTheGAAP »

anon_investor wrote: Thu Jun 11, 2020 2:05 pm I just got an email from Ally Bank saying that the savings account interest rate effective 6/12/2020 will be dropping from 1.25% to 1.10%. Go out and open some no penalty CDs today while they are still at 1.20%...
Got the same... not sure it is worth doing for the 0.10% on a typical balance we have but definitely an option
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Re: Ally Bank savings interest rate dropping from 1.25% to 1.10%

Post by nalor511 »

Alliant dropped to .9% last week, further drops likely coming, second the NPCD recommendation.
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Re: Ally Bank savings interest rate dropping from 1.25% to 1.10%

Post by 02nz »

The race to the bottom continues. CIBC Agility (where I have $50K parked for a $400 bonus) is still at 1.35%. (Yes, that is a Canadian bank, yes it does operate in the U.S.)
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Re: Ally Bank savings interest rate dropping from 1.25% to 1.10%

Post by Momus »

I got 4 open no penalty unfunded CDs just for this. Will be dumping some $ there now.
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Re: Ally Bank savings interest rate dropping from 1.25% to 1.10%

Post by MrJedi »

Do you have to sign up for these alerts?

I noticed Discover dropped to 1.05% APY today.

Capital One is at 1.15%, but I've noticed they lag behind Discover by a short time usually.
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Re: Ally Bank savings interest rate dropping from 1.25% to 1.10%

Post by anon_investor »

Momus wrote: Thu Jun 11, 2020 3:17 pm I got 4 open no penalty unfunded CDs just for this. Will be dumping some $ there now.
How long do they let you have them unfunded? What rates are they?

I was bummed my last no penalty CD was only able to renew last month at 1.35% (1.30% + 0.05% renewal bonus). But feeling a little better about that now... Sure glad I opened a bunch of no penalty CDs in Feburary at 1.85%. I have a no penalty CD that expires next month (currently 2.05%), I wonder how low the rates will be then.
MrJedi wrote: Thu Jun 11, 2020 3:51 pm Do you have to sign up for these alerts?

I noticed Discover dropped to 1.05% APY today.

Capital One is at 1.15%, but I've noticed they lag behind Discover by a short time usually.
I did not sign up for any alerts that I know of, but I do always get these rate drop emails from Ally Bank (it seems like some people do not).
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Re: Ally Bank savings interest rate dropping from 1.25% to 1.10%

Post by Ricchan »

Synchrony also dropped their rate from 1.30% to 1.00% since the last time I checked.
Marcus is still at 1.30%, though likely not for long.
Last edited by Ricchan on Thu Jun 11, 2020 5:56 pm, edited 1 time in total.
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Re: Ally Bank savings interest rate dropping from 1.25% to 1.10%

Post by MikeG62 »

anon_investor wrote: Thu Jun 11, 2020 4:03 pm
Momus wrote: Thu Jun 11, 2020 3:17 pm I got 4 open no penalty unfunded CDs just for this. Will be dumping some $ there now.
How long do they let you have them unfunded? What rates are they?
I believe they give you 10 days from opening to fund the CD's at the rate in effect when opened.

Rate as of now is 1.20% for 11-months.
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Re: Ally Bank savings interest rate dropping from 1.25% to 1.10%

Post by indexfundfan »

I opened 3 unfunded NP CDs too. I think I have 10 days to fund them.
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Re: Ally Bank savings interest rate dropping from 1.25% to 1.10%

Post by tenkuky »

My 11 mo NPCD comes due tomorrow with an automatic roll-over to another 11 mo NPCD (with 0.05% loyalty bonus). I was dreading they would drop the NPCD rate today as well.
Please, please not till after this weekend. :greedy
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Re: Ally Bank savings interest rate dropping from 1.25% to 1.10%

Post by anon_investor »

indexfundfan wrote: Thu Jun 11, 2020 5:54 pm I opened 3 unfunded NP CDs too. I think I have 10 days to fund them.
I should probably do this tonight before they drop the rate tomorrow. Can you keep adding more during the 10 days or is it a 1 time fund and you are done.
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Re: Ally Bank savings interest rate dropping from 1.25% to 1.10%

Post by tenkuky »

anon_investor wrote: Thu Jun 11, 2020 6:04 pm
indexfundfan wrote: Thu Jun 11, 2020 5:54 pm I opened 3 unfunded NP CDs too. I think I have 10 days to fund them.
I should probably do this tonight before they drop the rate tomorrow. Can you keep adding more during the 10 days or is it a 1 time fund and you are done.
Can they drop the NPCD rate without a heads-up? I mean they told people today about the HYSA, so at the very least if they notify tomorrow, it is effective Saturday, right?
Please :greedy
PS: I didn't get notified about the rate drop mentioned above and it is already 7 PM EDT.
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Re: Ally Bank savings interest rate dropping from 1.25% to 1.10%

Post by anon_investor »

tenkuky wrote: Thu Jun 11, 2020 6:07 pm
anon_investor wrote: Thu Jun 11, 2020 6:04 pm
indexfundfan wrote: Thu Jun 11, 2020 5:54 pm I opened 3 unfunded NP CDs too. I think I have 10 days to fund them.
I should probably do this tonight before they drop the rate tomorrow. Can you keep adding more during the 10 days or is it a 1 time fund and you are done.
Can they drop the NPCD rate without a heads-up? I mean they told people today about the HYSA, so at the very least if they notify tomorrow, it is effective Saturday, right?
Please :greedy
PS: I didn't get notified about the rate drop mentioned above and it is already 7 PM EDT.
Ally definitely has dropped the CD rates before without emailing. It happened to me right before my last no penalty CD expired last month. I think it went from 1.4% to 1.3% and I renewed at 1.35%, which looks better now than it felt back then...
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Re: Ally Bank savings interest rate dropping from 1.25% to 1.10%

Post by indexfundfan »

anon_investor wrote: Thu Jun 11, 2020 6:04 pm
indexfundfan wrote: Thu Jun 11, 2020 5:54 pm I opened 3 unfunded NP CDs too. I think I have 10 days to fund them.
I should probably do this tonight before they drop the rate tomorrow. Can you keep adding more during the 10 days or is it a 1 time fund and you are done.
It's a one-time funding. You can't add more, even in the first ten days.
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Re: Ally Bank savings interest rate dropping from 1.25% to 1.10%

Post by whodidntante »

MikeG62 wrote: Thu Jun 11, 2020 5:13 pm
anon_investor wrote: Thu Jun 11, 2020 4:03 pm
Momus wrote: Thu Jun 11, 2020 3:17 pm I got 4 open no penalty unfunded CDs just for this. Will be dumping some $ there now.
How long do they let you have them unfunded? What rates are they?
I believe they give you 10 days from opening to fund the CD's at the rate in effect when opened.

Rate as of now is 1.20% for 11-months.
Yeah, but they probably pull ChexSystems for each one. At least Synchrony does. That's no good for churners. And that's where the money is.
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Re: Ally Bank savings interest rate dropping from 1.25% to 1.10%

Post by anon_investor »

whodidntante wrote: Thu Jun 11, 2020 6:59 pm
MikeG62 wrote: Thu Jun 11, 2020 5:13 pm
anon_investor wrote: Thu Jun 11, 2020 4:03 pm
Momus wrote: Thu Jun 11, 2020 3:17 pm I got 4 open no penalty unfunded CDs just for this. Will be dumping some $ there now.
How long do they let you have them unfunded? What rates are they?
I believe they give you 10 days from opening to fund the CD's at the rate in effect when opened.

Rate as of now is 1.20% for 11-months.
Yeah, but they probably pull ChexSystems for each one. At least Synchrony does. That's no good for churners. And that's where the money is.
Ally uses TransUnion, but you can easily freeze/unfreeze online.
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Re: Ally Bank savings interest rate dropping from 1.25% to 1.10%

Post by anon_investor »

indexfundfan wrote: Thu Jun 11, 2020 6:58 pm
anon_investor wrote: Thu Jun 11, 2020 6:04 pm
indexfundfan wrote: Thu Jun 11, 2020 5:54 pm I opened 3 unfunded NP CDs too. I think I have 10 days to fund them.
I should probably do this tonight before they drop the rate tomorrow. Can you keep adding more during the 10 days or is it a 1 time fund and you are done.
It's a one-time funding. You can't add more, even in the first ten days.
Thanks, good to know, I have never opened an unfunded one before. But I might as well now.
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Re: Ally Bank savings interest rate dropping from 1.25% to 1.10%

Post by BooBearBoy »

Thanks for the heads up! I opened a no penalty CD after reading your post. I just received an email from Ally announcing the rate change.
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Re: Ally Bank savings interest rate dropping from 1.25% to 1.10%

Post by Miriam2 »

Barclays On-LIne Savings account is 1.15% and their 12-mo CD is now 1.00%.
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Re: Ally Bank savings interest rate dropping from 1.25% to 1.10%

Post by MikeG62 »

whodidntante wrote: Thu Jun 11, 2020 6:59 pm
MikeG62 wrote: Thu Jun 11, 2020 5:13 pm
anon_investor wrote: Thu Jun 11, 2020 4:03 pm
Momus wrote: Thu Jun 11, 2020 3:17 pm I got 4 open no penalty unfunded CDs just for this. Will be dumping some $ there now.
How long do they let you have them unfunded? What rates are they?
I believe they give you 10 days from opening to fund the CD's at the rate in effect when opened.

Rate as of now is 1.20% for 11-months.
Yeah, but they probably pull ChexSystems for each one. At least Synchrony does. That's no good for churners. And that's where the money is.
I don’t believe Ally pulls from ChexSystems. I say this because my ChexSystems account is frozen and I’ve opened around a dozen CD’s at Ally in the last year.
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Re: Ally Bank savings interest rate dropping from 1.25% to 1.10%

Post by anon_investor »

MikeG62 wrote: Thu Jun 11, 2020 8:20 pm
whodidntante wrote: Thu Jun 11, 2020 6:59 pm
MikeG62 wrote: Thu Jun 11, 2020 5:13 pm
anon_investor wrote: Thu Jun 11, 2020 4:03 pm
Momus wrote: Thu Jun 11, 2020 3:17 pm I got 4 open no penalty unfunded CDs just for this. Will be dumping some $ there now.
How long do they let you have them unfunded? What rates are they?
I believe they give you 10 days from opening to fund the CD's at the rate in effect when opened.

Rate as of now is 1.20% for 11-months.
Yeah, but they probably pull ChexSystems for each one. At least Synchrony does. That's no good for churners. And that's where the money is.
I don’t believe Ally pulls from ChexSystems. I say this because my ChexSystems account is frozen and I’ve opened around a dozen CD’s at Ally in the last year.
Ally uses TransUnion, it says in their FAQ. But if you have an existing account I think you can open a new CD with your credit still frozen (I always unfreeze my TransUnion before opening a new CD).

I know if you are an existing customer you can open a new Ally savings account with your TransUnion frozen, but they will call you (I found that out when I opened a new joint account without unfreezing my TransUnion :oops: ).
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Re: Ally Bank savings interest rate dropping from 1.25% to 1.10%

Post by nalor511 »

You do not have to unfreeze anything to open a new ally CD if you are an existing customer. Done it 8x now.
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Re: Ally Bank savings interest rate dropping from 1.25% to 1.10%

Post by Pam01 »

anon_investor wrote: Thu Jun 11, 2020 8:22 pm
Ally uses TransUnion, it says in their FAQ. But if you have an existing account I think you can open a new CD with your credit still frozen (I always unfreeze my TransUnion before opening a new CD).

I know if you are an existing customer you can open a new Ally savings account with your TransUnion frozen, but they will call you (I found that out when I opened a new joint account without unfreezing my TransUnion :oops: ).
I am an existing Ally customer and have opened many CDs with them without unfreezing ChexSystems or any credit reports (including TransUnion). They didn't call me either.
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Re: Ally Bank savings interest rate dropping from 1.25% to 1.10%

Post by anon_investor »

Pam01 wrote: Thu Jun 11, 2020 8:43 pm
anon_investor wrote: Thu Jun 11, 2020 8:22 pm
Ally uses TransUnion, it says in their FAQ. But if you have an existing account I think you can open a new CD with your credit still frozen (I always unfreeze my TransUnion before opening a new CD).

I know if you are an existing customer you can open a new Ally savings account with your TransUnion frozen, but they will call you (I found that out when I opened a new joint account without unfreezing my TransUnion :oops: ).
I am an existing Ally customer and have opened many CDs with them without unfreezing ChexSystems or any credit reports (including TransUnion). They didn't call me either.
They definitely called me when I opened an additional savings account. Since then, I just unfreeze TransUnion when opening CDs. But good to know that the CDs do not need unfreezing of TransUnion.
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Re: Ally Bank savings interest rate dropping from 1.25% to 1.10%

Post by Shael_AT »

Rates are going to hold at 0% or near 0% through 2022.

I suspect rates for savings accts will react with a 4-6 week per reporting lag time and trend downwards.
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Re: Ally Bank savings interest rate dropping from 1.25% to 1.10%

Post by anon_investor »

Momus wrote: Thu Jun 11, 2020 3:17 pm I got 4 open no penalty unfunded CDs just for this. Will be dumping some $ there now.
Silly question, how do you add funds to the unfunded CDs? I just opened 2 unfunded no penalty CDs, but now I am confused how to add funds once I am ready. I do not see a clear option to do so and the Ally FAQ is not helpful...
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Re: Ally Bank savings interest rate dropping from 1.25% to 1.10%

Post by Momus »

anon_investor wrote: Thu Jun 11, 2020 9:36 pm
Momus wrote: Thu Jun 11, 2020 3:17 pm I got 4 open no penalty unfunded CDs just for this. Will be dumping some $ there now.
Silly question, how do you add funds to the unfunded CDs? I just opened 2 unfunded no penalty CDs, but now I am confused how to add funds once I am ready. I do not see a clear option to do so and the Ally FAQ is not helpful...
Hit "transfer" on the top tab.
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Re: Ally Bank savings interest rate dropping from 1.25% to 1.10%

Post by TheDDC »

It may finally be time to move Ally funds to my state muni bond fund methinks. TEY on VPALX looks awfully good right about now.

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Re: Ally Bank savings interest rate dropping from 1.25% to 1.10%

Post by abuss368 »

Really unfortunate. I feel bad for all investors and retirees.
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Re: Ally Bank savings interest rate dropping from 1.25% to 1.10%

Post by TheDDC »

abuss368 wrote: Thu Jun 11, 2020 10:03 pm Really unfortunate. I feel bad for all investors and retirees.
Nothing to feel bad about for investors who are actually, you know, investing in equities, and not stockpiling excess cash.

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Re: Ally Bank savings interest rate dropping from 1.25% to 1.10%

Post by abuss368 »

TheDDC wrote: Thu Jun 11, 2020 10:19 pm
abuss368 wrote: Thu Jun 11, 2020 10:03 pm Really unfortunate. I feel bad for all investors and retirees.
Nothing to feel bad about for investors who are actually, you know, investing in equities, and not stockpiling excess cash.

-TheDDC
True.
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Re: Ally Bank savings interest rate dropping from 1.25% to 1.10%

Post by azianbob »

Yeah, sad times. My no penalty CDs I made back last summer are starting to come to maturity. They were for 2.5% … I put some excess savings in a CD at 1.75% when the news of 0% interest came out, but since then it's steadily dropped to 1.5%, 1.4%, 1.3% and now 1.2%. I opened up an empty 1.2% CD at Ally, and once the 2.5% CD hits maturity on Saturday, I will fund it with it.

Starting to remind me of 08 again … with nowhere else to invest, I guess this will drive people to stocks and bonds again.
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Re: Ally Bank savings interest rate dropping from 1.25% to 1.10%

Post by bikechuck »

TheDDC wrote: Thu Jun 11, 2020 10:19 pm
abuss368 wrote: Thu Jun 11, 2020 10:03 pm Really unfortunate. I feel bad for all investors and retirees.
Nothing to feel bad about for investors who are actually, you know, investing in equities, and not stockpiling excess cash.

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Equities did not do very well at all today and I suspect could be in for a rough ride for some time into the future.

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Re: Ally Bank savings interest rate dropping from 1.25% to 1.10%

Post by TheDDC »

bikechuck wrote: Thu Jun 11, 2020 10:50 pm
TheDDC wrote: Thu Jun 11, 2020 10:19 pm
abuss368 wrote: Thu Jun 11, 2020 10:03 pm Really unfortunate. I feel bad for all investors and retirees.
Nothing to feel bad about for investors who are actually, you know, investing in equities, and not stockpiling excess cash.

-TheDDC
Equities did not do very well at all today and I suspect could be in for a rough ride for some time into the future.

Brother can you spare a dime?
Cool. I don’t invest for today, though. And the alternative is losing out to inflation.

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Re: Ally Bank savings interest rate dropping from 1.25% to 1.10%

Post by Gnirk »

tenkuky wrote: Thu Jun 11, 2020 6:07 pm
anon_investor wrote: Thu Jun 11, 2020 6:04 pm
indexfundfan wrote: Thu Jun 11, 2020 5:54 pm I opened 3 unfunded NP CDs too. I think I have 10 days to fund them.
I should probably do this tonight before they drop the rate tomorrow. Can you keep adding more during the 10 days or is it a 1 time fund and you are done.
Can they drop the NPCD rate without a heads-up? I mean they told people today about the HYSA, so at the very least if they notify tomorrow, it is effective Saturday, right?
Please :greedy
PS: I didn't get notified about the rate drop mentioned above and it is already 7 PM EDT.
I just checked the rate for Ally 11 month NP CDs and it’s at 1.05% APY, so I will earn less than that...a bit less than 1% because it’s only for 11 months?
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Re: Ally Bank savings interest rate dropping from 1.25% to 1.10%

Post by anon_investor »

Gnirk wrote: Thu Jun 11, 2020 11:16 pm
tenkuky wrote: Thu Jun 11, 2020 6:07 pm
anon_investor wrote: Thu Jun 11, 2020 6:04 pm
indexfundfan wrote: Thu Jun 11, 2020 5:54 pm I opened 3 unfunded NP CDs too. I think I have 10 days to fund them.
I should probably do this tonight before they drop the rate tomorrow. Can you keep adding more during the 10 days or is it a 1 time fund and you are done.
Can they drop the NPCD rate without a heads-up? I mean they told people today about the HYSA, so at the very least if they notify tomorrow, it is effective Saturday, right?
Please :greedy
PS: I didn't get notified about the rate drop mentioned above and it is already 7 PM EDT.
I just checked the rate for Ally 11 month NP CDs and it’s at 1.05% APY, so I will earn less than that...a bit less than 1% because it’s only for 11 months?
Bummer, glad I opened 2 unfunded no penalty CDs at 1.2% on Thursday. Now I just need to figure out how much to fund them with...
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Re: Ally Bank savings interest rate dropping from 1.25% to 1.10%

Post by rich126 »

And yet many here still are worried about inflation. Unfortunately interest rates are heading downward for a long time.
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Re: Ally Bank savings interest rate dropping from 1.25% to 1.10%

Post by bogledogle »

I guess I got in at 1.9 at the right time. It's been downhill since. I just checked and the new NPCD rate shows 1.05.
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Re: Ally Bank savings interest rate dropping from 1.25% to 1.10%

Post by RonSwanson »

Thanks for the heads up! I got 1.2% just under the wire.
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Re: Ally Bank savings interest rate dropping from 1.25% to 1.10%

Post by tenkuky »

:oops: It renewed like planned this morning, at the lower rate of 1.05% for my NPCD. Nothing I could do and despite my hopes.
I'll get the fabulous 0.05% renewal bonus in 10 days for the whopping 1.10%.
Oh well. Time to market time to make up the $30 lost :twisted:
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Re: Ally Bank savings interest rate dropping from 1.25% to 1.10%

Post by SimonJester »

Man glad I went ahead and bought my NPCD last night at the higher rate. I'm almost afraid to look at my other credit unions / bank rates, soon they will be negative....

And to confirm once you are a customer you can open new accounts with your credit / checks system frozen...
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Re: Ally Bank savings interest rate dropping from 1.25% to 1.10%

Post by MikeG62 »

tenkuky wrote: Fri Jun 12, 2020 7:02 am :oops: It renewed like planned this morning, at the lower rate of 1.05% for my NPCD. Nothing I could do and despite my hopes.
I'll get the fabulous 0.05% renewal bonus in 10 days for the whopping 1.10%.
Oh well. Time to market time to make up the $30 lost :twisted:
May want to consider bank or brokerage transfer bonuses to make up for the lost yield?
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Re: Ally Bank savings interest rate dropping from 1.25% to 1.10%

Post by TheOscarGuy »

anon_investor wrote: Thu Jun 11, 2020 2:05 pm I just got an email from Ally Bank saying that the savings account interest rate effective 6/12/2020 will be dropping from 1.25% to 1.10%. Go out and open some no penalty CDs today while they are still at 1.20%...
I usually hold emergency in Ally/Discover. I did see this email, but my response was 'oh well'. I am not going to chase other banks for a slightly higher yield. The money is anyway losing value, by way of being in savings account. At such a small difference should I really care.
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Ally 1.0%, AMEX Bank 1.15%, Live Oak 1.35%

Post by hudson »

There's at least .2% separation; does that meet Larry Swedroe's criteria for moving?
Move $100K and earn $200 per year....if rates stay the same.
I don't have nearly that much in savings; I like AMEX Bank's same business day transfer feature; therefore I'm staying.
Last edited by hudson on Fri Jun 12, 2020 12:30 pm, edited 1 time in total.
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Re: Ally Bank savings interest rate dropping from 1.25% to 1.10%

Post by anon_investor »

TheOscarGuy wrote: Fri Jun 12, 2020 7:43 am
anon_investor wrote: Thu Jun 11, 2020 2:05 pm I just got an email from Ally Bank saying that the savings account interest rate effective 6/12/2020 will be dropping from 1.25% to 1.10%. Go out and open some no penalty CDs today while they are still at 1.20%...
I usually hold emergency in Ally/Discover. I did see this email, but my response was 'oh well'. I am not going to chase other banks for a slightly higher yield. The money is anyway losing value, by way of being in savings account. At such a small difference should I really care.
I don't bother chasing yield either at other accounts either, but I did open up some no penalty CDs yesterday locking in 1.2%, and low and behold the no penalty CD rate dropped to 1.05% today.
UpperNwGuy
Posts: 4348
Joined: Sun Oct 08, 2017 7:16 pm

Re: Ally Bank savings interest rate dropping from 1.25% to 1.10%

Post by UpperNwGuy »

Moving money from bank to bank as rates drop is a fruitless undertaking because the rates are falling everyplace, just not on the same day.
sesq
Posts: 573
Joined: Wed Jan 30, 2013 9:24 am

Re: Ally Bank savings interest rate dropping from 1.25% to 1.10%

Post by sesq »

Citi dropped from 1.65% to 1.35%.

I am thinking about paying down the mortgage and opening a HELOC for emergencies. Has some risk, I acknowledge.
johnny
Posts: 103
Joined: Fri Dec 07, 2018 9:31 am

Re: Ally Bank savings interest rate dropping from 1.25% to 1.10%

Post by johnny »

Thanks for the heads up! Locked in a no penalty CD at 1.2% before it drops even further.
nalor511
Posts: 977
Joined: Mon Jul 27, 2015 1:00 am

Re: Ally Bank savings interest rate dropping from 1.25% to 1.10%

Post by nalor511 »

UpperNwGuy wrote: Fri Jun 12, 2020 9:00 am Moving money from bank to bank as rates drop is a fruitless undertaking because the rates are falling everyplace, just not on the same day.
Hence the suggestion to lock in a CD
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