Online Savings Account w/o thawing CR

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C4NT
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Online Savings Account w/o thawing CR

Post by C4NT » Fri Jul 13, 2018 6:20 pm

I just tried to open a savings account with Ally.com. They need my wife and I to thaw our TransUnion credit reports. In addition to the $10/person fee, it will also require my wife and I to call TransUnion because we haven't been able to thaw or even receive a credit report online from TransUnion in the past. I'm not sure why, but they can never "verify our identity" online. We've haven't had the same issues with Experian or Equifax.

I'm not excited about this new homework assignment or extra $20 cost.

Could anyone recommend a savings account offering at least 1.75% interest that won't make us thaw our credit, or at least will go through the other two bureaus.

Alternatively, is there a Fidelity fund (I have a brokerage account there) that I could transfer some funds to, that would meet 1.75% and be liquid. The CDs that they have would do the job, but I'm not sure I want to put these fund in a CD. Their MM fund look liked it was yielding less than 1.75% over the past year.

As always, thanks for your help.

go140point6
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Re: Online Savings Account w/o thawing CR

Post by go140point6 » Fri Jul 13, 2018 6:30 pm

Doesn't help you today, but starting Sept 21 it becomes free to freeze/unfreeze your credit.

MikeG62
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Re: Online Savings Account w/o thawing CR

Post by MikeG62 » Fri Jul 13, 2018 6:45 pm

C4NT wrote:
Fri Jul 13, 2018 6:20 pm

...Alternatively, is there a Fidelity fund (I have a brokerage account there) that I could transfer some funds to, that would meet 1.75% and be liquid. The CDs that they have would do the job, but I'm not sure I want to put these fund in a CD. Their MM fund look liked it was yielding less than 1.75% over the past year.

As always, thanks for your help.
Try SPRXX. Current 7-day yield is 1.85%.

If you’ve got more than $100,000, then try FZDXX, where the current 7-day yield is 1.97%.

These are MM Funds, so no FDIC insurance, but on the risk scale these would be quite low risk.

I am personally using FZDXX.
Real Knowledge Comes Only From Experience

SimonJester
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Re: Online Savings Account w/o thawing CR

Post by SimonJester » Sat Jul 14, 2018 8:48 am

This has been the case for many years now. Its a part of how the bank decided to implement the federal know your customer rules...
Plain savings accounts now requite a soft pull of one of the credit agencies. As go140point6 pointed thawing becomes free in September...
"They who can give up essential liberty to obtain a little temporary safety, deserve neither liberty nor safety." - Benjamin Franklin

sport
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Re: Online Savings Account w/o thawing CR

Post by sport » Sat Jul 14, 2018 8:52 am

C4NT wrote:
Fri Jul 13, 2018 6:20 pm
Their MM fund look liked it was yielding less than 1.75% over the past year.
Historic yield means little when looking at a MM fund. The current SEC yield is what you will receive now. Yields have been increasing for the last two years, or so.

Vanguard Prime Money Market fund is currently yielding 2.05%.

tenkuky
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Re: Online Savings Account w/o thawing CR

Post by tenkuky » Sat Jul 14, 2018 10:18 am

Are these prime MM funds brokerage house specific?
Can one get it across houses, like other MFs or ETFs?
I'm with Schwab for brokerage and don't think I have access to VG Prime MM.
Schwab minimums for the "Ultra" shares which are close to 2.02% yield are only if you have $1 mil to put in :(

annielouise
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Re: Online Savings Account w/o thawing CR

Post by annielouise » Sat Jul 14, 2018 10:27 am

Synchrony has a work around. It requires some followup calls to Synchrony, but it works.

Horsefly
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Re: Online Savings Account w/o thawing CR

Post by Horsefly » Sat Jul 14, 2018 10:37 am

Hmmm... I transitioned all our banking from Wells Fargo to Ally a few months ago. I have all three major credit reports frozen, and I'm pretty sure I never thawed them to open the Ally accounts. They never even asked.

I did see that they don't always pull a report at all, and sometimes they pull it from ChexSystems just to see if you have a history of bouncing checks (see here: https://www.bankrate.com/banking/why-yo ... it-report/).

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telemark
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Re: Online Savings Account w/o thawing CR

Post by telemark » Sat Jul 14, 2018 11:02 am

American Express Personal Savings. No credit check and they were at 1.75% before Ally was.

Actually, I think Ally is pretty much alone in requiring a credit check for a savings account.

SimonJester
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Re: Online Savings Account w/o thawing CR

Post by SimonJester » Sat Jul 14, 2018 12:29 pm

telemark wrote:
Sat Jul 14, 2018 11:02 am
American Express Personal Savings. No credit check and they were at 1.75% before Ally was.

Actually, I think Ally is pretty much alone in requiring a credit check for a savings account.
My local credit union did several years ago when I opened joint savings accounts for my kids...
"They who can give up essential liberty to obtain a little temporary safety, deserve neither liberty nor safety." - Benjamin Franklin

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C4NT
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Re: Online Savings Account w/o thawing CR

Post by C4NT » Sat Jul 14, 2018 12:46 pm

MikeG62 wrote:
Fri Jul 13, 2018 6:45 pm

Try SPRXX. Current 7-day yield is 1.85%.
Thanks, I should be looking at the 7-day yields, shouldn't I.

Although the more I look at MM funds, I see they often have pretty high expense ratios. SPRXX has an ER of 0.42%. Wouldn't that subtract from the yield, ultimately making it a lot lower than a high yield savings account?

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C4NT
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Re: Online Savings Account w/o thawing CR

Post by C4NT » Sat Jul 14, 2018 12:47 pm

telemark wrote:
Sat Jul 14, 2018 11:02 am
American Express Personal Savings. No credit check and they were at 1.75% before Ally was.

Actually, I think Ally is pretty much alone in requiring a credit check for a savings account.
Thanks, I almost went with them over Ally.

Nate79
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Re: Online Savings Account w/o thawing CR

Post by Nate79 » Sat Jul 14, 2018 1:00 pm

C4NT wrote:
Sat Jul 14, 2018 12:46 pm
MikeG62 wrote:
Fri Jul 13, 2018 6:45 pm

Try SPRXX. Current 7-day yield is 1.85%.
Thanks, I should be looking at the 7-day yields, shouldn't I.

Although the more I look at MM funds, I see they often have pretty high expense ratios. SPRXX has an ER of 0.42%. Wouldn't that subtract from the yield, ultimately making it a lot lower than a high yield savings account?
Yields are quoted after expenses. So no you don't subtract anything.

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C4NT
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Re: Online Savings Account w/o thawing CR

Post by C4NT » Sat Jul 14, 2018 1:07 pm

Delete repeated post.
Last edited by C4NT on Sat Jul 14, 2018 1:08 pm, edited 1 time in total.

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C4NT
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Re: Online Savings Account w/o thawing CR

Post by C4NT » Sat Jul 14, 2018 1:08 pm

Nate79 wrote:
Sat Jul 14, 2018 1:00 pm
C4NT wrote:
Sat Jul 14, 2018 12:46 pm
MikeG62 wrote:
Fri Jul 13, 2018 6:45 pm

Try SPRXX. Current 7-day yield is 1.85%.
Thanks, I should be looking at the 7-day yields, shouldn't I.

Although the more I look at MM funds, I see they often have pretty high expense ratios. SPRXX has an ER of 0.42%. Wouldn't that subtract from the yield, ultimately making it a lot lower than a high yield savings account?
Yields are quoted after expenses. So no you don't subtract anything.
Awesome, thanks.

Horsefly
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Re: Online Savings Account w/o thawing CR

Post by Horsefly » Sat Jul 14, 2018 1:15 pm

telemark wrote:
Sat Jul 14, 2018 11:02 am
American Express Personal Savings. No credit check and they were at 1.75% before Ally was.

Actually, I think Ally is pretty much alone in requiring a credit check for a savings account.
The article I linked to right before your post (https://www.bankrate.com/banking/why-yo ... it-report/) seems to cearly say that Ally is not alone.

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telemark
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Re: Online Savings Account w/o thawing CR

Post by telemark » Sat Jul 14, 2018 3:05 pm

Horsefly wrote:
Sat Jul 14, 2018 1:15 pm
telemark wrote:
Sat Jul 14, 2018 11:02 am
American Express Personal Savings. No credit check and they were at 1.75% before Ally was.

Actually, I think Ally is pretty much alone in requiring a credit check for a savings account.
The article I linked to right before your post (https://www.bankrate.com/banking/why-yo ... it-report/) seems to cearly say that Ally is not alone.
Read it again. For a loan or a credit card, yes, or for an account with an overdraft line of credit. Not a savings account. Also notice that they single out Ally as the exception.

Horsefly
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Re: Online Savings Account w/o thawing CR

Post by Horsefly » Sat Jul 14, 2018 3:16 pm

telemark wrote:
Sat Jul 14, 2018 3:05 pm
Read it again. For a loan or a credit card, yes, or for an account with an overdraft line of credit. Not a savings account. Also notice that they single out Ally as the exception.
I guess I don't read it that way. They actually get a quote from Alliant Credit Union on why they do pulls, and they do it for all new accounts. They also talk about UFB Direct doing it. Maybe I'm reading a different article than you.... 8-)

Anyway, like I said: We just opened accounts at Ally, and never had to thaw our credit.

AlphaLess
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Re: Online Savings Account w/o thawing CR

Post by AlphaLess » Sat Jul 14, 2018 5:24 pm

C4NT wrote:
Sat Jul 14, 2018 12:46 pm
MikeG62 wrote:
Fri Jul 13, 2018 6:45 pm

Try SPRXX. Current 7-day yield is 1.85%.
Thanks, I should be looking at the 7-day yields, shouldn't I.

Although the more I look at MM funds, I see they often have pretty high expense ratios. SPRXX has an ER of 0.42%. Wouldn't that subtract from the yield, ultimately making it a lot lower than a high yield savings account?
IMO they are quoted after expenses. But think about it: how much bigger the yield would have been, if the expenses were, say, 0.04%.

At those rates, I would prefer:
- either a high yield savings account, OR
- 1 year CD.

Marcus has 1.8% for the non-term deposit, and 2.3% for 1-year CD.
"You can get more with a kind word and a gun than with just a kind word." George Washington

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