Online Banking

[Animorph]

I agree and we do the same. But any cash not needed for the next 30 days or so is held at Ally earning 1%. Fidelity has no similar offering that I'm aware of.

+1

Fidelity for checking, Ally for longer term savings.

 

[jazz4cash]

I use Ally's online savings because they do pay 1%, which seems to be better than most. The only thing I have to pay close attention to is the number of withdrawals and transfers I make in a month. You are limited to six online transactions per month. After six, they asses a $10 penalty, and you get a warning letter stating if you continue to exceed six transactions, they are required to close your account.

You have to read the fine print to determine which transactions count toward the six. Online transfers out of Ally count, but deposits in do not. Manual checks that you ask them to issue for you also do not count. It's mainly the online transfers out of their account that they want to limit.


Sent from my iPad using Early Retirement Forum

The limitations on my BofA savings account are very similar. I never really noticed the limitation until I RE'd but now it is very annoying as I am adjusting to not getting a semi monthly paycheck. This is just a regular savings account that pays ~0.01%. Here is the fine print on the excess withdrawal policy (which seems very gray to me):

Certain types of withdrawals and transfers from savings accounts​

are limited to a total of 6 per monthly cycle. This limit is governed​

by federal Regulation D and our deposit agreement.​

However, this limit doesn’t apply to transactions made at financial​

centers, by mail or at an ATM. (Please note that Withdrawal Limit​

Fees still apply to these types of transactions.)​

If you exceed the transaction limitations on more than​

an occasional basis, we’ll convert your account to a checking​

account that will no longer earn interest.​

 

[JOHNNIE36]

Ally for long term checking, BOA for every day banking and debit card. Someone mentioned only getting one pack of checks on a reorder at Ally. Probably because you are limited to 10 transactions/month without a penalty. They don't expect you to be writing a lot of checks. That's why I use BOA for daily activity and transfer funds from Ally to BOA when checking account runs low. Checking is free at BOA with direct deposit.

 

[Options]

Ally for long term checking, BOA for every day banking and debit card. Someone mentioned only getting one pack of checks on a reorder at Ally. Probably because you are limited to 10 transactions/month without a penalty. They don't expect you to be writing a lot of checks. That's why I use BOA for daily activity and transfer funds from Ally to BOA when checking account runs low. Checking is free at BOA with direct deposit.

I have this same setup. While working, had direct deposit with BOA. I don't recall how I pulled it off, but after retiring, I called up BOA and (IIRC) they switched me to another account allowing me to keep the checking account free without direct deposit. I probably told them I was thinking of switching to a free online bank so they accomodated me, but it's been so long now ICR.

 

[jazz4cash]

I have this same setup. While working, had direct deposit with BOA. I don't recall how I pulled it off, but after retiring, I called up BOA and (IIRC) they switched me to another account allowing me to keep the checking account free without direct deposit. I probably told them I was thinking of switching to a free online bank so they accomodated me, but it's been so long now ICR.

Why do you guys use Ally checking instead of savings for your long term deposits?

It looks like savings pays 1% vs 0.6% for checking. As I mentioned I have similar arrangement w/ GS Bank savings account but plan on switching to Ally because GS Bank does no offer IRA accounts. I need the IRA to manage taxable distributions.

 

[nwsteve]

I agree and we do the same. But any cash not needed for the next 30 days or so is held at Ally earning 1%. Fidelity has no similar offering that I'm aware of.

+1

 

[ProspectiveBum]

Ally for long term checking, BOA for every day banking and debit card. Someone mentioned only getting one pack of checks on a reorder at Ally. Probably because you are limited to 10 transactions/month without a penalty. They don't expect you to be writing a lot of checks. That's why I use BOA for daily activity and transfer funds from Ally to BOA when checking account runs low. Checking is free at BOA with direct deposit.

I don't believe that 10 checks per month limit is accurate (at least for Ally). I looked at Ally's site, and didn't see any checks-per-month limits at all. They do have a limit of 6 outbound transfer on their savings account, which is pretty standard.

I think the stinginess with sending new checks is just a way to keep costs down.

 

[mpeirce]

For those of you that only use online banking what do you do when you need a notary or a medallion signature guarantee?

I've never needed a medallion signature guarantee (had to look that one up!), but there are notaries all over the place. I used a UPS store a couple of years ago when I needed one.

 

[JOHNNIE36]

I don't believe that 10 checks per month limit is accurate (at least for Ally). I looked at Ally's site, and didn't see any checks-per-month limits at all. They do have a limit of 6 outbound transfer on their savings account, which is pretty standard.

I think the stinginess with sending new checks is just a way to keep costs down.

Last time I checked it was 10 "transactions" per month. I maybe write one or two checks per year at Ally, like property taxes.

 

[MBSC]

Source: https://www.ally.com/checking/a-checklist-for-online-interest-checking-accounts/

Ally Bank Interest Checking Account offers:

• Free standard paper checks and debit card
• Unlimited check-writing privileges
• Free online bill payment, which lets you make and schedule payments
• Balance alerts that let you know when your funds go above or below certain levels
• Free overdraft transfer service with no transfer fee, which automatically transfers money from another of your Ally Bank accounts

In addition, the Ally Bank Interest Checking Account gives you convenient online checking with no monthly maintenance fees...

 

[ProspectiveBum]

Last time I checked it was 10 "transactions" per month. I maybe write one or two checks per year at Ally, like property taxes.

Perhaps it's changed. I just called them to confirm, and there's no limit to the number of checks per month from an Ally checking account. There are limits to transactions from savings and money market accounts.

 

[jazz4cash]

Last time I checked it was 10 "transactions" per month. I maybe write one or two checks per year at Ally, like property taxes.

Same here but still wondering why you use checking instead of savings. I do pay property taxes by initiating a transfer from the county website. There is a 1.50 fee and you can select to transfer funds from checking or savings.


Sent from my iPhone using Early Retirement Forum

 

[Done]

I opened a free HSA at Alliant Credit Union and later found that they have good savings rates, no fees, fast transfers and great customer service. I pay only my largest bills from the savings account to keep the number of transactions under 6 per month. This means I don't have to keep such a large chunk in low-interest checking. Am thinking of moving my BofA checking to Alliant for some interest, but not looking forward to changing all my automatic debits.

 

[obryanjf]

I use Bank of Internet( based in CA, I'm not) to hold LT money and sweep my budget into a local bank with free checking, PNC.

 

[Henry Lili]

I'm happy with them. I initially signed up for a savings account with them, since they had the best interest rate (still only a pitiful 1%).

I recently signed up for a checking account because BofA was going to start charging me $25 per month for a checking account. That's been painless, and they'll reimburse $10 per month for ATM fees from other banks, so I can still use the BofA branch near my house to get cash if needed. The only annoyance with Ally checking is that when you request a check refill (which is free), they send a single book of checks, rather than the 100 we'd get from BofA. We've renewed online several times, and they come quickly, so it hasn't been a problem.

I've used Ally since they came into being. Always a competitive rate. No problems moving money back and forth to my checking account at another bank or my brokerage account.

 

[jazz4cash]

So do they charge for blank checks at Ally and can you choose the style, etc? I have to pay for checks at BoA and the standard order of carbon less checks lasts 3 years. So unless they are free I would use a 3rd party provider to supply checks if the ones Ally provides are not convenient. I probably will just go with Ally savings to get the higher rate and keep BoA checking.


Sent from my iPhone using Early Retirement Forum

 

[FANOFJESUS]

So do they charge for blank checks at Ally and can you choose the style, etc? I have to pay for checks at BoA and the standard order of carbon less checks lasts 3 years. So unless they are free I would use a 3rd party provider to supply checks if the ones Ally provides are not convenient. I probably will just go with Ally savings to get the higher rate and keep BoA checking.


Sent from my iPhone using Early Retirement Forum

They are free but they only mail one book at a time not a box. But for most people today that is enough.