Originally Posted by GrayHare
What heeyy_joe said. When Ally and Discover have to pay higher interest rates to attract more deposits, there's a reason. They are not just being kind to depositors. Ally evolved from GMAC, and Discover has a host of problems. An extra point of interest isn't worth the risk to me.
As long as you maintain limits within FDIC, there is no worry whatsoever. Ally and the other Internet only banks must pay higher rates because of their lack of local branch operations. No, they're not just being kind but their model of limited overhead helps a great deal. That plus the simple fact that the government remains a major investor in their business allows them to pay higher than standard rates.
I agree that a few extra basis points would not be worth the risk ... But their Savings rate is significantly higher than most bank One year CD rate right now!