Ally Bank buckets are operational

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ochotona
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Ally Bank buckets are operational

Post by ochotona » Thu Feb 13, 2020 7:18 am

Super-slick. I set up buckets for Property Tax and Homeowner's / Flood insurance. I could even consolidate my Emergency Fund into my General savings account and just bucket it, but I think there's no need to.
Peter W., MBA, CRPC

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oldcomputerguy
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Re: Ally Bank buckets are operational

Post by oldcomputerguy » Thu Feb 13, 2020 7:34 am

Not bad. I had been doing similar tracking offline on a spreadsheet, but this seems it will be simpler. (ETA: it also lets you designate whether new incoming money will be placed into the core account or into one of your buckets.)
"I’ve come around to this: If you’re dumb, surround yourself with smart people; and if you’re smart, surround yourself with smart people who disagree with you." (Aaron Sorkin)

nolesrule
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Re: Ally Bank buckets are operational

Post by nolesrule » Thu Feb 13, 2020 7:42 am

It's a feature to tie you to their bank... which means eventually they will be able to lower rates faster because they've increased the friction for people to move their money elsewhere.

I use YNAB, so I am able to bucket my money in near-real time across 18 different accounts at 11 different institutions (although I am working to unwind some CD ladders that turned out to be more annoying than they are worth).

heerekj1
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Re: Ally Bank buckets are operational

Post by heerekj1 » Thu Feb 13, 2020 8:04 am

I have 10 savings accounts and 2 checking accounts at Ally that I have used as buckets for money to go for a long time. Are the new buckets at Ally still limited to 6 withdrawals per month of the underlying savings account? I have savings accounts for medical, travel, etc.. and routinely go over 6 total withdrawals in a month.

deikel
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Re: Ally Bank buckets are operational

Post by deikel » Thu Feb 13, 2020 8:14 am

nolesrule wrote:
Thu Feb 13, 2020 7:42 am
It's a feature to tie you to their bank... which means eventually they will be able to lower rates faster because they've increased the friction for people to move their money elsewhere.

I use YNAB, so I am able to bucket my money in near-real time across 18 different accounts at 11 different institutions (although I am working to unwind some CD ladders that turned out to be more annoying than they are worth).
...like they have NOT done in the last 8 years and instead are consistently in the top tier of APRs for savings and CDs....

...YNAB is a pay program that costs you 85/year or 12 /month...not saying anything bad about YNAB, but your suspicion of Ally seems a bit wild and I don't see the evidence to support that.
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nolesrule
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Re: Ally Bank buckets are operational

Post by nolesrule » Thu Feb 13, 2020 9:15 am

deikel wrote:
Thu Feb 13, 2020 8:14 am
nolesrule wrote:
Thu Feb 13, 2020 7:42 am
It's a feature to tie you to their bank... which means eventually they will be able to lower rates faster because they've increased the friction for people to move their money elsewhere.

I use YNAB, so I am able to bucket my money in near-real time across 18 different accounts at 11 different institutions (although I am working to unwind some CD ladders that turned out to be more annoying than they are worth).
...like they have NOT done in the last 8 years and instead are consistently in the top tier of APRs for savings and CDs....

...YNAB is a pay program that costs you 85/year or 12 /month...not saying anything bad about YNAB, but your suspicion of Ally seems a bit wild and I don't see the evidence to support that.
Ally has been faster than others at lowering rates lately, just as they were faster at increasing them.

I still use YNAB4 which I paid for back in 2014... plus I'm still grandfathered into the $45/year price if I ever decide to switch. There are also less expensive options out there that accomplish the same thing. And with enough money in savings you can more than make up the cost by spreading out among different institutions (signing bonuses or interest rate arbitrage) rather than being stuck at the bank that's leading the HYSA industry in lowering rates.

Gryphon
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Re: Ally Bank buckets are operational

Post by Gryphon » Thu Feb 13, 2020 10:34 am

heerekj1 wrote:
Thu Feb 13, 2020 8:04 am
I have 10 savings accounts and 2 checking accounts at Ally that I have used as buckets for money to go for a long time. Are the new buckets at Ally still limited to 6 withdrawals per month of the underlying savings account? I have savings accounts for medical, travel, etc.. and routinely go over 6 total withdrawals in a month.

In the Savings & Money Market FAQs, they say about buckets:
They are not individual accounts.
and
Keep in mind, FDIC and beneficiary rules apply at the account level.
The 6 withdrawals per month is a Federal Reserve rule rather than FDIC, but I'd say the same principle applies. A bucket is just a bit of extra accounting software on top of an account, so you're going to be limited to 6 withdrawals from the underlying account.

On the other hand, you should be able to move money between different buckets in the same account as much as you want, since the money isn't actually leaving the account.

I think buckets are going to be most useful for cases where you're saving up to make a single expenditure, like the down payment for a car, or you're going to spend all the money in a relatively short period of time, like a vacation. In those cases, you can empty the bucket into your checking account all at once. If you need to have a lot of buckets & you're going to be making regular withdrawals from those buckets, you're probably going to be better off using separate accounts instead to avoid the 6 withdrawal limit.

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