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Ally up to 1.50%
Old 04-28-2018, 12:39 PM   #1
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Ally up to 1.50%

I received the following message from Ally regarding my online account. A little too late as I have already transferred my cash to PMMF that is currently yielding 1.81%.

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Good news! As of 4/27/2018 the annual percentage yield (APY) for our Online Savings Account is now 1.50% APY. This increased rate means your account is earning even more.
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Old 04-28-2018, 01:08 PM   #2
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I received the following message from Ally regarding my online account. A little too late as I have already transferred my cash to PMMF that is currently yielding 1.81%.
The Pine Mountain Music Festival is paying 1.81%?
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Old 04-28-2018, 01:09 PM   #3
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The Pine Mountain Music Festival is paying 1.81%?
Purepoint Financial up to 1.75% ($10K minimum for this rate)
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Old 04-28-2018, 01:18 PM   #4
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CIT is 1.75%APY and Capital One is 1.6%
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Old 04-28-2018, 01:46 PM   #5
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I got Ally. Do many folks on this site move around high yield savings accounts from bank to bank to gain each 5-10 basis point differential as applicable?
Not a negative question, truly just curious on the mind set.
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Old 04-28-2018, 02:20 PM   #6
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I've done some moving around, especially to catch a bonus cash offer in the past, but going forward trying to simplify the financials in case DW must take over. So for now, limit myself to only two online accounts at a time and they must be willing to provide paper periodic statements....again for my wife's benefit.
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Old 04-28-2018, 02:20 PM   #7
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I got Ally. Do many folks on this site move around high yield savings accounts from bank to bank to gain each 5-10 basis point differential as applicable?
Not a negative question, truly just curious on the mind set.
DW doesn't like me chasing yields, so keep it all in Ally. I have quite a few CD's, laddered so that we get maturing CD's often. We just roll them over. Because of this, though, the actual dollars we "lose" by not going after the few extra basis points is nominal. In exchange, our financial life is simpler.
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Old 04-28-2018, 02:25 PM   #8
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DW doesn't like me chasing yields, so keep it all in Ally. I have quite a few CD's, laddered so that we get maturing CD's often. We just roll them over. Because of this, though, the actual dollars we "lose" by not going after the few extra basis points is nominal. In exchange, our financial life is simpler.
That is where I am heading in concept, although will probably keep to 1 yr and under, as Ally not particularly competitive above that maturity.
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Old 04-28-2018, 03:34 PM   #9
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That is where I am heading in concept, although will probably keep to 1 yr and under, as Ally not particularly competitive above that maturity.
You should consider Fidelity, Schwab, or other broker - at least investigate.

You'll find that you have much more available with the CDs. The reason is simple - Ally is only going to offer you Ally CDs. The yields and terms available are only going to be what Ally is offering. If you have an account with Fidelity or Schwab, you'll be able to choose CDs from many banks and they are all offering competitive rates for all maturities.

The fact that you are looking to keep your maturities to 1 year and under because of what you perceive are Ally-specific issues with rates above 1 year emphasizes the point.

Below is the link to Fidelity's current rates - just focus on the top line in the table for CDs (New Issues) and be sure Highest Yield is selected for View by. The CDs being offered by Fidelity are higher yielding than at every maturity compared to what Ally is offering - and there are no minimums (aside from the $1000 for purchasing one CD) to get the rate, as is the case with Ally.

https://fixedincome.fidelity.com/ftgw/fi/FILanding

I can appreciate having everything at one institution to make your financial life easier. However, again, consider what you're doing and why. If you're sticking to one year and under, you're probably sacrificing more than just a few basis points by not going to 2-year, or 3-year. 3-year is going to be yielding 3% before the end of summer. That could be a full percentage point or higher than you're getting for CDs under one year - $1000+/year on $100k. That's a nice amount of additional cash for a little effort. I did just check out Ally's CD rates on their site, and I completely agree with you - they are not competitive for CDs longer than 1 year. But your savings/investing/returns should not be limited because of what the institution you're dealing with can offer - not in this era.

There's no cost to investigate.

As far as high yield savings accounts, American Express is at 1.55%, and we keep the bulk of our non-CD cash with DollarSavingsDirect.com, currently at 1.80%. Both Amex and DollarSavingsDirect are FDIC insured.

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Old 04-28-2018, 03:44 PM   #10
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Easier to simply leave my cash at Vanguard in VMMXX. The rate seems to rise every week. It's now at 1.81%.
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Old 04-28-2018, 03:52 PM   #11
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You should consider Fidelity, Schwab, or other broker - at least investigate.

You'll find that you have much more available with the CDs. The reason is simple - Ally is only going to offer you Ally CDs. The yields and terms available are only going to be what Ally is offering. If you have an account with Fidelity or Schwab, you'll be able to choose CDs from many banks and they are all offering competitive rates for all maturities.

The fact that you are looking to keep your maturities to 1 year and under because of what you perceive are Ally-specific issues with rates above 1 year emphasizes the point.

Below is the link to Fidelity's current rates - just focus on the top line in the table for CDs (New Issues) and be sure Highest Yield is selected for View by. The CDs being offered by Fidelity are higher yielding than at every maturity compared to what Ally is offering - and there are no minimums (aside from the $1000 for purchasing one CD) to get the rate, as is the case with Ally.

https://fixedincome.fidelity.com/ftgw/fi/FILanding

I can appreciate having everything at one institution to make your financial life easier. However, again, consider what you're doing and why. If you're sticking to one year and under, you're probably sacrificing more than just a few basis points by not going to 2-year, or 3-year. 3-year is going to be yielding 3% before the end of summer. That could be a full percentage point or higher than you're getting for CDs under one year - $1000+/year on $100k. That's a nice amount of additional cash for a little effort. I did just check out Ally's CD rates on their site, and I completely agree with you - they are not competitive for CDs longer than 1 year. But your savings/investing/returns should not be limited because of what the institution you're dealing with can offer - not in this era.

There's no cost to investigate.

As far as high yield savings accounts, American Express is at 1.55%, and we keep the bulk of our non-CD cash with DollarSavingsDirect.com, currently at 1.80%. Both Amex and DollarSavingsDirect are FDIC insured.

Best regards.
You are right njhowie. I was/am going for convenience of 1 institution on the short end. I have my cash at Ally to be used for funding current spending this year and future years (ACA limits).

I actually have a 2 yr CD Ladder already at Fidelity with brokered CD's.
I have my TIRA and Roth at Fidelity. So totally familiar with Fidelity. I guess the same reason I am not using Schwab or Vanguard. Less to keep track of.
EDIT - I can't go out 3 years for some of the monies, as it will be used for some of the yearly expenses.

Will rethink. I appreciate the straight talk.
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Old 04-29-2018, 01:42 AM   #12
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Originally Posted by Dtail View Post
I got Ally. Do many folks on this site move around high yield savings accounts from bank to bank to gain each 5-10 basis point differential as applicable?
Not a negative question, truly just curious on the mind set.
I have three high yield savings accounts open. I may move some around a bit depending on rate. But in terms of opening a new account due to a slightly higher rate - I’m not so aggressive about it.

At the moment none of my accounts exceed 1.55%, and there are some higher yielding accounts out there. I haven’t bothered to open any - inertia.

I do have quite a lot in 1.75% short-term no penalty CDs at Ally, so I really don’t sweat it. Since they are no penalty CDs it’s the same instant liquidity as a high yield savings account.

Later this year I’ll probably start using t-bills.
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Old 04-29-2018, 05:08 AM   #13
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I stopped sending new money to Ally. Still making monthly deposits in several other high yield savings accounts and have some CD's scattered around. Treasuries through Fido are getting more of my attention and cash these days.
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Old 04-29-2018, 06:32 AM   #14
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I got Ally. Do many folks on this site move around high yield savings accounts from bank to bank to gain each 5-10 basis point differential as applicable?
Not a negative question, truly just curious on the mind set.
I used to bounce around, but stopped 4 or 5 years ago and settled on Ally for savings. If they don't have the best rate, they will be close enough to not make switching worthwhile.

CDs are a different matter - I look for the best rate I can find in that case.
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Old 04-29-2018, 07:15 AM   #15
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I switch between AmEx Personal Savings and Ally. This is basically short term money, so I don't ladder, but I did just put a little less than half of it in Ally's one year CD at 2%, not wanting to lock in longer than that but figuring that the savings rates probably won't get to that number or much past it in the next year, so why not get a smidge extra.

No more new banks for me, though. I'll chase points between these two, but that's it, unless one or the other loses its competitiveness over time.
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Old 04-29-2018, 08:29 AM   #16
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Easier to simply leave my cash at Vanguard in VMMXX. The rate seems to rise every week. It's now at 1.81%.
I had all our cash in VMMXX for many years (a handy sweep account), but moved it to Ally a few years ago after almost a year at essentially zero return from VMMXX. It would be nice to have our cash back at Vanguard with the rest of our portfolio, but I’ll give it some time. Ally paid much better than VMMXX for years. I’d rather not chase.
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Old 04-29-2018, 11:35 AM   #17
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One year t-bills are well above 2% and they are liquid.
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Old 04-29-2018, 01:08 PM   #18
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One year t-bills are well above 2% and they are liquid.
I didn't know they were liquid in the same way as cash? I thought you only got back principal if you sold them back to Treasury before term. And if you sell early on the secondary market, what "interest" you received was determined in much the same way as bonds? IOW if rates were the same at the time you sell, you would NOT get back 2% on the secondary market.
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Old 04-29-2018, 01:34 PM   #19
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I didn't know they were liquid in the same way as cash? I thought you only got back principal if you sold them back to Treasury before term. And if you sell early on the secondary market, what "interest" you received was determined in much the same way as bonds? IOW if rates were the same at the time you sell, you would NOT get back 2% on the secondary market.
Right, they're short term bonds. But due to their short term they're not subject to much interest rate risk. If held in a brokerage account you can sell them anytime you want at the market price.
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Old 04-29-2018, 05:11 PM   #20
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Easier to simply leave my cash at Vanguard in VMMXX. The rate seems to rise every week. It's now at 1.81%.


+1

Just moved my Ally savings here
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