Ally Online Savings Rate Increase

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anon_investor
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Re: Ally Online Savings Rate Increase

Post by anon_investor »

tennisplyr wrote: Thu Aug 25, 2022 3:56 pm News: APY of 1.85% now effective 8/26/22.
Kind of too little too late. Already moved my savings to money market funds all earning over 2% a couple of weeks ago. Switch most of my direct deposit over to my Fidelity CMA as well.
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Re: Ally Online Savings Rate Increase

Post by Eno Deb »

Another week, another rate hike. :happy

To be fair, they are less than a month behind e.g. FZDXX (one of the highest yielding money market funds at Fidelity). Unless you're hoarding large amounts of cash it's not going to make a material difference.
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Re: Ally Online Savings Rate Increase

Post by GoodOmens »

I was able to snag 2.53% savings account with NASB before they shut down new apps.
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Re: Ally Online Savings Rate Increase

Post by MikeG62 »

tennisplyr wrote: Thu Aug 25, 2022 3:56 pm News: APY of 1.85% now effective 8/26/22.
First time they have done back to back increases and without a Marcus rate increase in between.
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Eno Deb
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Re: Ally Online Savings Rate Increase

Post by Eno Deb »

Interest rate increasing to 2% effective 9/2.

I swear I'm the one causing this (since I transferred some more money out of my Ally account earlier today). :P
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zaplunken
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Re: Ally Online Savings Rate Increase

Post by zaplunken »

Eno Deb wrote: Thu Sep 01, 2022 3:38 pm Interest rate increasing to 2% effective 9/2.

I swear I'm the one causing this (since I transferred some more money out of my Ally account earlier today). :P
Online savings account going to 2%?

I was on Ally's site this morning and was surprised to see the NP CD is 2% while the OLS account is 1.85%, typically they are the same or the NP CD is just 5 bp difference.
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Re: Ally Online Savings Rate Increase

Post by Samueul »

zaplunken wrote: Thu Sep 01, 2022 3:47 pm
Eno Deb wrote: Thu Sep 01, 2022 3:38 pm Interest rate increasing to 2% effective 9/2.

I swear I'm the one causing this (since I transferred some more money out of my Ally account earlier today). :P
Online savings account going to 2%?

I was on Ally's site this morning and was surprised to see the NP CD is 2% while the OLS account is 1.85%, typically they are the same or the NP CD is just 5 bp difference.
Just got an email that my Ally savings account is going to 2% on 9/2.
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Re: Ally Online Savings Rate Increase

Post by zaplunken »

Ally is still behind T bills, their CDs still are not competitive.
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Re: Ally Online Savings Rate Increase

Post by atdharris »

Interesting that Marcus has not bumped theirs at all. It's still at 1.75% and they are usually the first ones to hike their rates.
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Re: Ally Online Savings Rate Increase

Post by anon_investor »

Too bad I already shifted to using a Fidelity CMA where I am currently earning 2.08% Let's see if how quickly Ally falls behind money market funds after the next rate hike.
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Re: Ally Online Savings Rate Increase

Post by theplayer11 »

zaplunken wrote: Thu Sep 01, 2022 3:53 pm Ally is still behind T bills, their CDs still are not competitive.
what's that have to do with their savings account rate?
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Re: Ally Online Savings Rate Increase

Post by zaplunken »

theplayer11 wrote: Thu Sep 01, 2022 6:42 pm
zaplunken wrote: Thu Sep 01, 2022 3:53 pm Ally is still behind T bills, their CDs still are not competitive.
what's that have to do with their savings account rate?
The OLS and NP CDs were often the same rate or the NP CD was 5 bp higher. It was a general observation about Ally's rates being slow to move and still below what is out there.
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Re: Ally Online Savings Rate Increase

Post by MikeG62 »

atdharris wrote: Thu Sep 01, 2022 4:04 pm Interesting that Marcus has not bumped theirs at all. It's still at 1.75% and they are usually the first ones to hike their rates.
Actually, Marcus is at 1.70% (at least my account is stuck there). And I agree, it is very odd they are sitting on their hands while Ally has raised three times in a row now.
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Re: Ally Online Savings Rate Increase

Post by exodusNH »

MikeG62 wrote: Fri Sep 02, 2022 8:24 am
atdharris wrote: Thu Sep 01, 2022 4:04 pm Interesting that Marcus has not bumped theirs at all. It's still at 1.75% and they are usually the first ones to hike their rates.
Actually, Marcus is at 1.70% (at least my account is stuck there). And I agree, it is very odd they are sitting on their hands while Ally has raised three times in a row now.
Vio is up to 2.15%. Vanguard's new FDIC option (by invitation only) is 2.5%.
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Re: Ally Online Savings Rate Increase

Post by drg02b »

MikeG62 wrote: Fri Sep 02, 2022 8:24 am
atdharris wrote: Thu Sep 01, 2022 4:04 pm Interesting that Marcus has not bumped theirs at all. It's still at 1.75% and they are usually the first ones to hike their rates.
Actually, Marcus is at 1.70% (at least my account is stuck there). And I agree, it is very odd they are sitting on their hands while Ally has raised three times in a row now.
Ally must be more hungry for money now... I think the 3 of us on the thread who moved money two months ago really put the hurt on them.
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Re: Ally Online Savings Rate Increase

Post by MikeG62 »

drg02b wrote: Fri Sep 02, 2022 8:44 am
MikeG62 wrote: Fri Sep 02, 2022 8:24 am
atdharris wrote: Thu Sep 01, 2022 4:04 pm Interesting that Marcus has not bumped theirs at all. It's still at 1.75% and they are usually the first ones to hike their rates.
Actually, Marcus is at 1.70% (at least my account is stuck there). And I agree, it is very odd they are sitting on their hands while Ally has raised three times in a row now.
Ally must be more hungry for money now... I think the 3 of us on the thread who moved money two months ago really put the hurt on them.
Maybe they are trying to stem the outflow on money to places where yields are more fertile? There are lots of options for above 2.0% rates that don't require locking up money for too long (or not at all). So, not sure this is enough to do it, but maybe it slows the movement out down? Also, some people just want to use a bank account for excess cash and don't see a MMF as similar enough. I am not in that camp.
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Re: Ally Online Savings Rate Increase

Post by Piehole »

Too little, too late.
I recently moved my Ally savings to Schwab and bought 4 week T-Bills at auction (no commission or spreads) with yield to maturity of 2.5%. Schwab also has a free AutoRoll feature, which is pretty nice.
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Re: Ally Online Savings Rate Increase

Post by atdharris »

Money markets are actually attractive now. Most are yielding 2.15%+ at Schwab/Merrill
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Re: Ally Online Savings Rate Increase

Post by Zetorman »

I too transferred out of Ally. I moved 250k to various treasury zeros with maturity dates of my choosing and no state tax. However, Ally was there for 0.5% when others were lower. I still keep DD 4yr college costs in a separate Ally account.

Buffet only buys very profitable companies and his purchase of Ally tells me that they are holding back on their rates to increase the bottom line. This is great for stockholders but not so much for account holders. I'm probably both via some mutual fund and the college account.
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Re: Ally Online Savings Rate Increase

Post by dvvader »

The highest I remember seeing Ally savings rates was 2.30% for a hot second in 2019, I've had a savings with them since 2016. 2.00% isn't too bad, but I did reduce my emergency savings held there to buy iBonds recently.
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Re: Ally Online Savings Rate Increase

Post by Jack FFR1846 »

2.00% is ok. Not as good as Redneck who was already at 2.25% up to $50k. But getting better. I especially like my DCU rate on my primary savings (limited to $1000 for the rate) of 6.17%.
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Re: Ally Online Savings Rate Increase

Post by anon_investor »

dvvader wrote: Fri Sep 02, 2022 9:49 am The highest I remember seeing Ally savings rates was 2.30% for a hot second in 2019, I've had a savings with them since 2016. 2.00% isn't too bad, but I did reduce my emergency savings held there to buy iBonds recently.
I remember getting some Ally NPCDs back then, then buying I Bonds as those NPCDs matured.
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Re: Ally Online Savings Rate Increase

Post by Marseille07 »

Has anyone gotten their checking account closed due to inactivity / low balance?

I am parking a good amount of money in Ally savings, but the checking side won't generate lots of activities going forward.
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Re: Ally Online Savings Rate Increase

Post by Ron Ronnerson »

dvvader wrote: Fri Sep 02, 2022 9:49 am The highest I remember seeing Ally savings rates was 2.30% for a hot second in 2019, I've had a savings with them since 2016. 2.00% isn't too bad, but I did reduce my emergency savings held there to buy iBonds recently.
I’ve had a money market account with Ally since circa 2005. They were called GMAC at the time. The rate was about 6% back at that time. I still have that same account, earning 2% now. I miss the old days.
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Re: Ally Online Savings Rate Increase

Post by ej0160 »

Marseille07 wrote: Fri Sep 16, 2022 12:31 am Has anyone gotten their checking account closed due to inactivity / low balance?

I am parking a good amount of money in Ally savings, but the checking side won't generate lots of activities going forward.
I've kept only $0.01 and no activity in checking account for 30+ months, and Ally has not closed it yet. Possible since I do keep active EF (savings account) there or since I do log in monthly to get statements, that may be good enough for Ally to leave it open. I assume as some point it will get auto closed down, but Ally hasn't been in any rush to proactively close it.
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Re: Ally Online Savings Rate Increase

Post by zaplunken »

Marseille07 wrote: Fri Sep 16, 2022 12:31 am Has anyone gotten their checking account closed due to inactivity / low balance?

I am parking a good amount of money in Ally savings, but the checking side won't generate lots of activities going forward.
No. IIRC, if there is no activity for 3 months they default you to getting a quarterly statement but if your balance is high enough to get interest then there is activity every month.
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Re: Ally Online Savings Rate Increase

Post by Marseille07 »

ej0160 wrote: Fri Sep 16, 2022 5:56 am I've kept only $0.01 and no activity in checking account for 30+ months, and Ally has not closed it yet. Possible since I do keep active EF (savings account) there or since I do log in monthly to get statements, that may be good enough for Ally to leave it open. I assume as some point it will get auto closed down, but Ally hasn't been in any rush to proactively close it.
Thank you, this is reassuring to hear. I don't need the checking functionality much (checkwriting) but I'd rather keep it open. As of now, I'm parking $100 as an insurance marker. As far as activity, I guess I can sweep small interest over to the savings side every month.
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Re: Ally Online Savings Rate Increase

Post by Marseille07 »

zaplunken wrote: Fri Sep 16, 2022 7:29 am No. IIRC, if there is no activity for 3 months they default you to getting a quarterly statement but if your balance is high enough to get interest then there is activity every month.
Thank you. By balance I hope you mean the combined balance of checking and savings, since I don't plan to have a high balance on the checking side.
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Re: Ally Online Savings Rate Increase

Post by LadyGeek »

Please stay on-topic, which is the savings rate.
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Re: Ally Online Savings Rate Increase

Post by Marseille07 »

LadyGeek wrote: Fri Sep 16, 2022 9:14 am Please stay on-topic, which is the savings rate.
Sounds fine. My question was so small, didn't seem worthwhile to create a new thread for that, that's why I asked here. I got the answers I needed so I won't continue this subject. I appreciate the responders.
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Re: Ally Online Savings Rate Increase

Post by dertere »

I just got an email announcing another rate increase from Ally, from 2.00% to 2.10%, effective tomorrow. Still seems like Ally is lagging the top of the field by 20 to 30 bps at least, but I'm too lazy to chase rates.
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Re: Ally Online Savings Rate Increase

Post by SmileyFace »

MikeG62 wrote: Fri Sep 02, 2022 8:24 am
atdharris wrote: Thu Sep 01, 2022 4:04 pm Interesting that Marcus has not bumped theirs at all. It's still at 1.75% and they are usually the first ones to hike their rates.
Actually, Marcus is at 1.70% (at least my account is stuck there). And I agree, it is very odd they are sitting on their hands while Ally has raised three times in a row now.
Fast-forward a couple of weeks and while Ally is at 2.1%, Marcus is now 2.15%.
Hopefully no one is constantly trying to move back and forth between the two.
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Re: Ally Online Savings Rate Increase

Post by Marseille07 »

SmileyFace wrote: Thu Sep 22, 2022 3:57 pm Fast-forward a couple of weeks and while Ally is at 2.1%, Marcus is now 2.15%.
Hopefully no one is constantly trying to move back and forth between the two.
Why? That's exactly my plan, if Ally Savings is ahead, I park more money there and vice versa.
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Re: Ally Online Savings Rate Increase

Post by JupiterJones »

Just got the email from Ally about the latest rate increase, so of course I immediately popped on here to make sure someone had already posted about it, and that it was followed by the obligatory bunch of comments about how it's not enough and they've moved their money to [fill in the blank] bank. :D
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Re: Ally Online Savings Rate Increase

Post by SmileyFace »

Marseille07 wrote: Thu Sep 22, 2022 3:58 pm
SmileyFace wrote: Thu Sep 22, 2022 3:57 pm Fast-forward a couple of weeks and while Ally is at 2.1%, Marcus is now 2.15%.
Hopefully no one is constantly trying to move back and forth between the two.
Why? That's exactly my plan, if Ally Savings is ahead, I park more money there and vice versa.
So every 2 weeks you have been shifting money back and forth for an extra 0.05%? So today you are moving all your money OUT of Ally and over to Marcus? Next week you might move back to Ally if they are up 0.05%? Have you trued up the savings with the losses of interest while the money is in flight?
I wasn't refering where to put new money - I said "moving" money.
Last edited by SmileyFace on Thu Sep 22, 2022 4:16 pm, edited 1 time in total.
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Re: Ally Online Savings Rate Increase

Post by Marseille07 »

SmileyFace wrote: Thu Sep 22, 2022 4:15 pm So every 2 weeks you have been shifting money back and forth for an extra 0.05%? So today you are moving to Marcus? Next week you might move back to Ally if they are up 0.05%? Have you trued up the savings with the losses of interest while the money is in flight?
The frequency would be monthly at most because I update my finances monthly. I don't jump up and down mid-month.
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Re: Ally Online Savings Rate Increase

Post by SmileyFace »

Marseille07 wrote: Thu Sep 22, 2022 4:15 pm
SmileyFace wrote: Thu Sep 22, 2022 4:15 pm So every 2 weeks you have been shifting money back and forth for an extra 0.05%? So today you are moving to Marcus? Next week you might move back to Ally if they are up 0.05%? Have you trued up the savings with the losses of interest while the money is in flight?
The frequency would be monthly at most because I update my finances monthly. I don't jump up and down mid-month.
It would still be a move every month.
So today you are out of Ally then?
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Re: Ally Online Savings Rate Increase

Post by Marseille07 »

SmileyFace wrote: Thu Sep 22, 2022 4:17 pm It would still be a move every month.
So today you are out of Ally then?
Every month *at most*. And no, I'm still with Ally but if the rates stay as they are then I'd be moving to Marcus at the EOM.

Keep in mind, I'm not emptying the accounts completely. My account payable has enough money to pay bills either way.
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Re: Ally Online Savings Rate Increase

Post by SmileyFace »

Marseille07 wrote: Thu Sep 22, 2022 4:20 pm
SmileyFace wrote: Thu Sep 22, 2022 4:17 pm It would still be a move every month.
So today you are out of Ally then?
Every month *at most*. And no, I'm still with Ally but if the rates stay as they are then I'd be moving to Marcus at the EOM.

Keep in mind, I'm not emptying the accounts completely. My account payable has enough money to pay bills either way.
How many banks are you cycling around between every month? Are Synchrony and Barclays in the mix? Is a 0.05% difference enough to make the shift?
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Re: Ally Online Savings Rate Increase

Post by MikeG62 »

Marseille07 wrote: Thu Sep 22, 2022 4:20 pm
SmileyFace wrote: Thu Sep 22, 2022 4:17 pm It would still be a move every month.
So today you are out of Ally then?
Every month *at most*. And no, I'm still with Ally but if the rates stay as they are then I'd be moving to Marcus at the EOM.

Keep in mind, I'm not emptying the accounts completely. My account payable has enough money to pay bills either way.
Treasuries (even very short-term Treasuries) yield more than either Ally or Marcus. I have $1 in each of my Ally and Marcus accounts. The rest is at Fidelity in short-term Treasuries and their premium MMF.
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Re: Ally Online Savings Rate Increase

Post by Marseille07 »

SmileyFace wrote: Thu Sep 22, 2022 4:22 pm
Marseille07 wrote: Thu Sep 22, 2022 4:20 pm
SmileyFace wrote: Thu Sep 22, 2022 4:17 pm It would still be a move every month.
So today you are out of Ally then?
Every month *at most*. And no, I'm still with Ally but if the rates stay as they are then I'd be moving to Marcus at the EOM.

Keep in mind, I'm not emptying the accounts completely. My account payable has enough money to pay bills either way.
How many banks are you cycling around between every month? Are Synchrony and Barclays in the mix? Is a 0.05% difference enough to make the shift?
It's a new process that I haven't even started, considering starting at the EOM. Just between Ally & Marcus.
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Re: Ally Online Savings Rate Increase

Post by Marseille07 »

MikeG62 wrote: Thu Sep 22, 2022 4:24 pm Treasuries (even very short-term Treasuries) yield more than either Ally or Marcus. I have $1 in each of my Ally and Marcus accounts. The rest is at Fidelity in short-term Treasuries and their premium MMF.
Yeah I believe MMF is better right now. I know another poster doing something similar.
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Re: Ally Online Savings Rate Increase

Post by MikeG62 »

Marseille07 wrote: Thu Sep 22, 2022 4:26 pm
MikeG62 wrote: Thu Sep 22, 2022 4:24 pm Treasuries (even very short-term Treasuries) yield more than either Ally or Marcus. I have $1 in each of my Ally and Marcus accounts. The rest is at Fidelity in short-term Treasuries and their premium MMF.
Yeah I believe MMF is better right now. I know another poster doing something similar.
The Premium MMF is currently at 2.26% and 1-month Treasuries are at 2.45%. If you can tie up the funds a bit longer, 3-month Treasuries are at 3.23% and 6-month is at 3.91%.

I've been on a buying spree with Treasuries this month (continuing the buying that I began in June and continued into July and August). I don't remember nominal yields being this attractive (I am sure they were back in the 1980's and 1990's, but I don't recall that).
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Re: Ally Online Savings Rate Increase

Post by strummer6969 »

Does anyone know if/when they'll raise their no penalty CD rates? They're currently the same rate as their savings accounts. They used to be slightly more.
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Re: Ally Online Savings Rate Increase

Post by Marseille07 »

MikeG62 wrote: Thu Sep 22, 2022 4:31 pm The Premium MMF is currently at 2.26% and 1-month Treasuries are at 2.45%. If you can tie up the funds a bit longer, 3-month Treasuries are at 3.23% and 6-month is at 3.91%.

I've been on a buying spree with Treasuries this month (continuing the buying that I began in June and continued into July and August). I don't remember nominal yields being this attractive (I am sure they were back in the 1980's and 1990's, but I don't recall that).
Most of my cash is earmarked for buying a house, I have to be careful not to overcommit buying treasuries. I think what you're doing is fine so long as you keep the duration somewhat short. I would not recommend intermediate / long-term bonds here.
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Re: Ally Online Savings Rate Increase

Post by SmileyFace »

Marseille07 wrote: Thu Sep 22, 2022 4:25 pm
SmileyFace wrote: Thu Sep 22, 2022 4:22 pm
Marseille07 wrote: Thu Sep 22, 2022 4:20 pm
SmileyFace wrote: Thu Sep 22, 2022 4:17 pm It would still be a move every month.
So today you are out of Ally then?
Every month *at most*. And no, I'm still with Ally but if the rates stay as they are then I'd be moving to Marcus at the EOM.

Keep in mind, I'm not emptying the accounts completely. My account payable has enough money to pay bills either way.
How many banks are you cycling around between every month? Are Synchrony and Barclays in the mix? Is a 0.05% difference enough to make the shift?
It's a new process that I haven't even started, considering starting at the EOM. Just between Ally & Marcus.
Ah - okay. I misunderstood - thought you were already doing so. For a 0.05% difference I don't think it's worth the time. Ally, Synchrony, Marcus, etc where offering bonuses nearly yearly for a while (usually like an extra 1% if you moved money and left it there for a few months) but haven't done so in a while and that's how I ended up with all the accounts. I keep $5 in each and await the next bonus but keep most money at Marcus since they have the best ACH times (and when they have allowed bonuses in the past, they have allowed you to transfer out and back in for the bonus).
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Re: Ally Online Savings Rate Increase

Post by Marseille07 »

SmileyFace wrote: Thu Sep 22, 2022 4:36 pm Ah - okay. I misunderstood - thought you were already doing so. For a 0.05% difference I don't think it's worth the time. Ally, Synchrony, Marcus, etc where offering bonuses nearly yearly for a while (usually like an extra 1% if you moved money and left it there for a few months) but haven't done so in a while and that's how I ended up with all the accounts. I keep $5 in each and await the next bonus but keep most money at Marcus since they have the best ACH times (and when they have allowed bonuses in the past, they have allowed you to transfer out and back in for the bonus).
I see. That's a good approach because I've seen those promotions yet I don't have cash to move & end up missing those promotions.
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Re: Ally Online Savings Rate Increase

Post by mongstradamus »

MikeG62 wrote: Thu Sep 22, 2022 4:31 pm
Marseille07 wrote: Thu Sep 22, 2022 4:26 pm
MikeG62 wrote: Thu Sep 22, 2022 4:24 pm Treasuries (even very short-term Treasuries) yield more than either Ally or Marcus. I have $1 in each of my Ally and Marcus accounts. The rest is at Fidelity in short-term Treasuries and their premium MMF.
Yeah I believe MMF is better right now. I know another poster doing something similar.
The Premium MMF is currently at 2.26% and 1-month Treasuries are at 2.45%. If you can tie up the funds a bit longer, 3-month Treasuries are at 3.23% and 6-month is at 3.91%.

I've been on a buying spree with Treasuries this month (continuing the buying that I began in June and continued into July and August). I don't remember nominal yields being this attractive (I am sure they were back in the 1980's and 1990's, but I don't recall that).
If you buy at auction you could get slightly more yield and just auto reroll you probably would be in pretty good shape. Most recent 4 week auction was 2.703 3 month was 3.343. I am doing that with 3 month right now. I do have some in my treasury. Money market also though. That’s yielding a bit over two percent.
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Re: Ally Online Savings Rate Increase

Post by MikeG62 »

Marseille07 wrote: Thu Sep 22, 2022 4:34 pm
MikeG62 wrote: Thu Sep 22, 2022 4:31 pm The Premium MMF is currently at 2.26% and 1-month Treasuries are at 2.45%. If you can tie up the funds a bit longer, 3-month Treasuries are at 3.23% and 6-month is at 3.91%.

I've been on a buying spree with Treasuries this month (continuing the buying that I began in June and continued into July and August). I don't remember nominal yields being this attractive (I am sure they were back in the 1980's and 1990's, but I don't recall that).
Most of my cash is earmarked for buying a house, I have to be careful not to overcommit buying treasuries. I think what you're doing is fine so long as you keep the duration somewhat short. I would not recommend intermediate / long-term bonds here.
Depends on how soon you intend to make the purchase and need the funds.

I've been buying Treasuries maturing between 6-months and 3-years. Yesterday I bought 24-month and 36-month Treasuries at yields at or above 4.10%. Today I bought 5-year Treasuries (yield was 3.90%). I don't intend to liquidate before maturity, but even if I found myself in the position where I need to, Treasuries are the most liquid market in the world. I do agree that laddering is the way to go at least to the extent you think you might need access to some of the funds sooner than later.
Real Knowledge Comes Only From Experience
atdharris
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Joined: Wed Jan 02, 2019 3:18 pm

Re: Ally Online Savings Rate Increase

Post by atdharris »

Ally really is outpacing Marcus these days. It used to be the opposite. EDIT: nevermind, Marcus raised it and just didn't email.
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