Ally Online Savings Rate Increase

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BogleMelon
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Ally Online Savings Rate Increase

Post by BogleMelon »

[Title was "Ally rate is now 0.6%"
July 29, 2022: Rate increase to 1.4% starting at this post --admin LadyGeek]


Just received an email
Your Online Savings Account rate is increasing from 0.50% to 0.60% Annual Percentage Yield (APY) on all balance tiers. Your new APY goes into effect on 05/11/2022, and will appear in your account on 05/12/2022
A whooping 0.10%! :D :sharebeer
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JoeRetire
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Re: Ally rate is now 0.6%

Post by JoeRetire »

BogleMelon wrote: Tue May 10, 2022 3:46 pm Just received an email
Your Online Savings Account rate is increasing from 0.50% to 0.60% Annual Percentage Yield (APY) on all balance tiers. Your new APY goes into effect on 05/11/2022, and will appear in your account on 05/12/2022
A whooping 0.10%! :D :sharebeer
I just got my email.

That beats a poke in the eye with a sharp stick...
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alfaspider
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Re: Ally rate is now 0.6%

Post by alfaspider »

BogleMelon wrote: Tue May 10, 2022 3:46 pm Just received an email
Your Online Savings Account rate is increasing from 0.50% to 0.60% Annual Percentage Yield (APY) on all balance tiers. Your new APY goes into effect on 05/11/2022, and will appear in your account on 05/12/2022
A whooping 0.10%! :D :sharebeer
All of these "high yeild" (HA!) savings accounts are looking pretty stingy at .6% when 1-year treasuries are around 2%.
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nisiprius
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Re: Ally rate is now 0.6%

Post by nisiprius »

It's still a hopeful sign, it means that there is competition and it is having some effect.
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anon_investor
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Re: Ally rate is now 0.6%

Post by anon_investor »

About time!
2pedals
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Re: Ally rate is now 0.6%

Post by 2pedals »

alfaspider wrote: Tue May 10, 2022 3:50 pm
BogleMelon wrote: Tue May 10, 2022 3:46 pm Just received an email
Your Online Savings Account rate is increasing from 0.50% to 0.60% Annual Percentage Yield (APY) on all balance tiers. Your new APY goes into effect on 05/11/2022, and will appear in your account on 05/12/2022
A whooping 0.10%! :D :sharebeer
All of these "high yeild" (HA!) savings accounts are looking pretty stingy at .6% when 1-year treasuries are around 2%.
Usually, it takes time to get higher rates in the retail sector. Until they don't get enough takers or more people leave for greener pastures it is what is. High yield savings accounts are not the same as 1-year treasuries. Some people may not care to invest in 1-year treasuries for convenience reasons.
sam1838
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Re: Ally rate is now 0.6%

Post by sam1838 »

I saw VMFXX hit .53% today, and I was wondering if I should start considering moving my money out of Ally Savings. I guess I'll just check periodically. My memory is that VMFXX exceeds Ally Savings rates once the Fed raises rates enough, but we're probably in the middle period where they are comparable.
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Candor
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Re: Ally rate is now 0.6%

Post by Candor »

Yes, the CD rates have also increased recently but I didn't get a notification for that.
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BowBog
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Re: Ally rate is now 0.6%

Post by BowBog »

Check out Bask Bank, 1.25% online.
https://www.baskbank.com/
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Kevin M
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Re: Ally rate is now 0.6%

Post by Kevin M »

Funny. I checked earlier today, and still saw 0.50%, so moved a big chunk from savings to No-Penalty CD at 0.60%.

Also, for me the muni MM funds now have a taxable equivalent yield (TEY) of 0.57%, at fed marginal 22% and state 9.3%.
If I make a calculation error, #Cruncher probably will let me know.
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Drew31
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Re: Ally rate is now 0.6%

Post by Drew31 »

No email yet for me... probably cycling through the queue. Good sign. Hopefully more to come although I've removed most out of Ally presently and shifted into T-Bills for now.
Drovor
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Re: Ally rate is now 0.6%

Post by Drovor »

Recieved the same email as well. I closed my older NP CDs and placed in Savings account. Better than nothing!
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anon_investor
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Re: Ally rate is now 0.6%

Post by anon_investor »

Drovor wrote: Tue May 10, 2022 5:07 pm Recieved the same email as well. I closed my older NP CDs and placed in Savings account. Better than nothing!
I plan to do the same tomorrow when the 0.60% rate kicks in.
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Nicolas
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Re: Ally rate is now 0.6%

Post by Nicolas »

Synchrony has been at 0.60% for awhile already.
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Kevin M
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Re: Ally rate is now 0.6%

Post by Kevin M »

Nicolas wrote: Tue May 10, 2022 5:21 pm Synchrony has been at 0.60% for awhile already.
Right, but one downside is that you can't hold this in an IRA, but only the IRA money market account, which has a rate of only 0.40%.
If I make a calculation error, #Cruncher probably will let me know.
boatdriver79
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Re: Ally rate is now 0.6%

Post by boatdriver79 »

Im curious about withdrawing from SoFi, Bask, etc... the new breed of online banks. The fine print says that they can limit your withdrawls, sometimes to 100K per month. Does anyone have any experience with getting your money out of these banks? I plan on depositing 250K at several of these banks but dont want to get stuck getting the money out later on. I only do ACH transfers.

Thanks!
UpperNwGuy
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Re: Ally rate is now 0.6%

Post by UpperNwGuy »

PenFed raised their HYSA rate from .5% to .6% on April 14.
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GerryL
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Re: Ally rate is now 0.6%

Post by GerryL »

Haven't gotten the email yet, but today I just finished up taking $10k out of my Ally Online Savings Account to buy I Bonds. Oh, gee, I'm going to miss that extra 0.10% on the $10K. Not.
vaylie
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Re: Ally rate is now 0.6%

Post by vaylie »

boatdriver79 wrote: Tue May 10, 2022 7:09 pm Im curious about withdrawing from SoFi, Bask, etc... the new breed of online banks. The fine print says that they can limit your withdrawls, sometimes to 100K per month. Does anyone have any experience with getting your money out of these banks? I plan on depositing 250K at several of these banks but dont want to get stuck getting the money out later on. I only do ACH transfers.

Thanks!
You should check their reviews on DepositAccounts.com and other place to see if there's been user experiences. There's the usual 'only unhappy people post reviews' syndrome, but if a lot of reviews overwhelmingly point out the same thing, it's worth being wary of it. For example, I wish I'd done my due diligence before going with Comenity/Bread Savings for their interest rates, but after two months of fighting with them, I finally got my money out of their claws and back with Ally (who I've never had transfer/limit issues with).

From what I've seen at a glance, the reviews definitely mention slow fund availability (for Bask) and transfer limits (for both) though, but some banks also disregard the transfer limit if you initiate it from an external bank instead of from them. So you'll probably have to do a bit more research to see. I definitely would *not* deposit 250k at any of these banks without trying a much smaller amount first though.
LateStarter1975
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Re: Ally rate is now 0.6%

Post by LateStarter1975 »

BogleMelon wrote: Tue May 10, 2022 3:46 pm Just received an email
Your Online Savings Account rate is increasing from 0.50% to 0.60% Annual Percentage Yield (APY) on all balance tiers. Your new APY goes into effect on 05/11/2022, and will appear in your account on 05/12/2022
A whooping 0.10%! :D :sharebeer
Ally has been slow this time around to raise rates. Barclays raised their rates in March to 0.6% with the first Fed rate increase. As at today, Barclay's online savings rate is 0.7%
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JoMoney
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Re: Ally rate is now 0.6%

Post by JoMoney »

Vanguard Federal Money Market Fund (VMFXX) 7 day SEC yield (as of 05/09/2022) 0.53%

Fidelity® Government Cash Reserves (FDRXX) 7 day SEC yield (as of 05/09/2022) 0.30% (... not great compared to Vanguard's, but can be used with the CMA for direct debit/ATM/check-writing etc...)
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criticalmass
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Re: Ally rate is now 0.6%

Post by criticalmass »

BogleMelon wrote: Tue May 10, 2022 3:46 pm Just received an email
Your Online Savings Account rate is increasing from 0.50% to 0.60% Annual Percentage Yield (APY) on all balance tiers. Your new APY goes into effect on 05/11/2022, and will appear in your account on 05/12/2022
A whooping 0.10%! :D :sharebeer
0.6% is less than a checking account. I’m waiting for something substantially better than 1% interest for T-Mobile Checking/1.1% Kabbage.
02nz
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Re: Ally rate is now 0.6%

Post by 02nz »

Sofi gives you 1.25% with direct deposit.

Brokered CDs are at around 3% for 2 years.
Bluemnatra
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Re: Ally rate is now 0.6%

Post by Bluemnatra »

Does anyone else use SoFI with DD for 1.25%?
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TetrisCollider
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Re: Ally rate is now 0.6%

Post by TetrisCollider »

JoMoney wrote: Tue May 10, 2022 8:57 pm Vanguard Federal Money Market Fund (VMFXX) 7 day SEC yield (as of 05/09/2022) 0.53%

Fidelity® Government Cash Reserves (FDRXX) 7 day SEC yield (as of 05/09/2022) 0.30% (... not great compared to Vanguard's, but can be used with the CMA for direct debit/ATM/check-writing etc...)
Fidelity® Money Market Fund (SPRXX) 7 day SEC yield has gone from 0.01 to .39% (as of 5/11/2022) in one week. I am expecting this to keep going up due to all the Fed Rate Changes. As soon as this goes above .6%, adios Ally. This particular fund is very special at FIDO, because you don't need to actually perform a sell transaction before using the money from it (unlike a similar fund at Schwab). It acts as liquid Cash account (the required amount that you are removing from the fund - either to fund other transactions or just to withdraw/transfer the funds - is automatically sold by FIDO).
For some reason, people that know nothing, seem to know everything...
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JoMoney
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Re: Ally rate is now 0.6%

Post by JoMoney »

TetrisCollider wrote: Tue May 10, 2022 10:28 pm
JoMoney wrote: Tue May 10, 2022 8:57 pm Vanguard Federal Money Market Fund (VMFXX) 7 day SEC yield (as of 05/09/2022) 0.53%

Fidelity® Government Cash Reserves (FDRXX) 7 day SEC yield (as of 05/09/2022) 0.30% (... not great compared to Vanguard's, but can be used with the CMA for direct debit/ATM/check-writing etc...)
Fidelity® Money Market Fund (SPRXX) 7 day SEC yield has gone from 0.01 to .39% (as of 5/11/2022) in one week. I am expecting this to keep going up due to all the Fed Rate Changes. As soon as this goes above .6%, adios Ally. This particular fund is very special at FIDO, because you don't need to actually perform a sell transaction before using the money from it (unlike a similar fund at Schwab). It acts as liquid Cash account (the required amount that you are removing from the fund - either to fund other transactions or just to withdraw/transfer the funds - is automatically sold by FIDO).
Yup, the ER is a bit high on it though, but since Vanguard transformed it's "Prime" money market into a government MM fund, that leaves Fidelity's commercial paper MM fund in rare territory... If there was a bigger spread between what SPRXX was offering vs FDRXX it could be more appealing to me, but at smaller amounts I don't think it's enough to get me over the fear the fund could be locked up if there was a run causing the control gates that Government MM funds aren't subject to.
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slowandsteadywins
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Re: Ally rate is now 0.6%

Post by slowandsteadywins »

Wealthfront’s Cash Account is at 0.85% and will increase as the Fed Rate continues to increase.
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Re: Ally rate is now 0.6%

Post by Watts »

Bluemnatra wrote: Tue May 10, 2022 10:05 pm Does anyone else use SoFI with DD for 1.25%?
I do. I’ve been very satisfied with SoFi checking.
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Re: Ally rate is now 0.6%

Post by tennisplyr »

Better than a drop.
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Cruz
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Re: Ally rate is now 0.6%

Post by Cruz »

Watts wrote: Wed May 11, 2022 3:57 am
Bluemnatra wrote: Tue May 10, 2022 10:05 pm Does anyone else use SoFI with DD for 1.25%?
I do. I’ve been very satisfied with SoFi checking.
That's an appealing rate. I use BofA for checking and have been using Capital One and Marcus (both 0.6%) for savings. I don't like chasing rates and changing auto-pay is a pain but may be worth it at 1.25%....
evelynmanley
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Re: Ally rate is now 0.6%

Post by evelynmanley »

BowBog wrote: Tue May 10, 2022 4:54 pm Check out Bask Bank, 1.25% online.
https://www.baskbank.com/
Federal Reserve, the Economy and CD Rate Forecast - May 10, 2022
POSTED ON WEDNESDAY, MAY 11, 2022 BY Ken Tumin

Ken Tumin mentions Bask Bank in his article today:

https://www.depositaccounts.com/blog/fe ... edictions/

<<Savings, Checking and Money Market Rates

There was a slight acceleration of online savings account rate increases last week when the Fed did its first 50-bp rate hike. I expect to see more acceleration after the next two 50-bp Fed rate hikes that are anticipated for June and July.

More banks reached 1% last week. The savings accounts of the three noteworthy ones include Bask Bank Interest Savings (0.80% → 1.25% APY), First Foundation Bank Online Savings (0.65% → 1.00% APY), and My Banking Direct High Yield Savings (0.77% → 1.00%). Bask Bank Interest Savings (1.25% APY) is now the highest rate of a liquid account that doesn’t have small balance limitations or direct deposit requirements.<<
lukestuckenhymer
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Re: Ally rate is now 0.6%

Post by lukestuckenhymer »

VMFXX is at 0.58% today and will likely be above 0.60% by tomorrow.
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Re: Ally rate is now 0.6%

Post by iamlucky13 »

Apparently they are not very desperate for additional cash to lend out. Mortgage rates climb 2%. Savings rate climbs 0.1%.
KA0400
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Ally Bank savings interest rate increased to 0.75%

Post by KA0400 »

Just got the email, I’m going to try and not spend it all in one place at one time. :sharebeer
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tennisplyr
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Ally Online Savings Rate Increase

Post by tennisplyr »

Just got an email from Ally stating that their online savings is going from 0.60% to 0.75%.
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Tdubs
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Re: Ally Online Savings Rate Increase

Post by Tdubs »

tennisplyr wrote: Thu May 26, 2022 4:59 pm Just got an email from Ally stating that their online savings is going from 0.60% to 0.75%.
Woo Hoo!
Colorado14
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Re: Ally Bank savings interest rate increased to 0.75%

Post by Colorado14 »

I received the email notification earlier today. It's still a paltry rate, but I'm not inclined to chase rates by moving funds elsewhere for my money market savings.
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JupiterJones
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Re: Ally rate is now 0.6%

Post by JupiterJones »

Aaaaaand now it's 0.75%

:sharebeer
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anon_investor
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Re: Ally rate is now 0.6%

Post by anon_investor »

JupiterJones wrote: Thu May 26, 2022 5:13 pm Aaaaaand now it's 0.75%

:sharebeer
:beer
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HueyLD
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Re: Ally Online Savings Rate Increase

Post by HueyLD »

tennisplyr wrote: Thu May 26, 2022 4:59 pm Just got an email from Ally stating that their online savings is going from 0.60% to 0.75%.
I think they had to raise the rate due to serious erosion of their online savings aggregate balance?
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SmileyFace
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Re: Ally Online Savings Rate Increase

Post by SmileyFace »

tennisplyr wrote: Thu May 26, 2022 4:59 pm Just got an email from Ally stating that their online savings is going from 0.60% to 0.75%.
Thanks for letting us know - the other 2 threads on this 10 minutes earlier where not enough :D
BHawks87
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Re: Ally Online Savings Rate Increase

Post by BHawks87 »

Second increase this month! Both times I was about to withdraw and go to T Bills.

I'll do everyone a favor and ponder the move again in a few weeks.
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anon_investor
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Re: Ally Online Savings Rate Increase

Post by anon_investor »

HueyLD wrote: Thu May 26, 2022 5:16 pm
tennisplyr wrote: Thu May 26, 2022 4:59 pm Just got an email from Ally stating that their online savings is going from 0.60% to 0.75%.
I think they had to raise the rate due to serious erosion of their online savings aggregate balance?
People started to bailed probably because Ally was behind everyone else.
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Re: Ally rate is now 0.6%

Post by Jack FFR1846 »

I was hoping they were going to match Redneck's 0.85%. Oh well. Transfer away.
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atdharris
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Re: Ally Online Savings Rate Increase

Post by atdharris »

Leaping ahead of Marcus even. Impressive, although I don't plan to leave Marcus. They seem to be the quickest to raise rates when the Fed hikes rates.
tenkuky
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Re: Ally Online Savings Rate Increase

Post by tenkuky »

Just got it, and no mention of hiking CD rate. With this the savings is better than the no-penalty CD which is at 0.7%.
If I don't see a change in the next week, I will click, click and move the NPCD into savings for a whopping 0.05% raise.
mega317
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Re: Ally Online Savings Rate Increase

Post by mega317 »

I wonder if the mods dread Ally rate changes. Or is it exciting to catch and merge all the duplicate threads?
https://www.bogleheads.org/forum/viewtopic.php?t=6212
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anon_investor
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Re: Ally Online Savings Rate Increase

Post by anon_investor »

tenkuky wrote: Thu May 26, 2022 5:49 pm Just got it, and no mention of hiking CD rate. With this the savings is better than the no-penalty CD which is at 0.7%.
If I don't see a change in the next week, I will click, click and move the NPCD into savings for a whopping 0.05% raise.
I am sure the NPCD rate will move up when the 0.75% for HYSA is official, that happened when they jumped from 0.5% to 0.6%, NPCD went from 0.5% to 0.7%. I bet I goes up from 0.7% to 0.8% or even 0.85%.
rebellovw
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Re: Ally Online Savings Rate Increase

Post by rebellovw »

I got the email too.

I don't recall Well's Fargo ever doing this.

I really like Ally.
Flyer24
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Re: Ally Online Savings Rate Increase

Post by Flyer24 »

There were some threads that were merged. Let’s keep it all in one place.
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