Online only Banks & I-bonds - Ally Bank

[RVplusDog]

Has anyone managed to hook up their Ally Bank account with Treasury Direct for I-bond purchases? All my treasury direct ibonds are years old, from banks I no longer use. Wondering if I’ll have to open an account at a bank with physical branches, which is how the old purchases were made (using a paper form from Treasury Direct, which gets signed by a bank officer and snail-mailed). Or, I guess I could try connecting my E*Trade account (?).

TIA for your online bank + Treasury Direct experiences!

[njhowie]

I'm sure that Ally will work fine - it's a checking account with an ABA routing number and an account number.

You are more likely to have issues with the Etrade account.

Based on info from others, if you are using your existing Treasury Direct account, you will likely need to complete a form and send it in when adding the new bank account, regardless of where it is. Folks have indicated the form requests a Medallion stamp, but I've seen posts where some have indicated you do not need the Medallion stamp. If you have a brokerage account with a physical office near you, that will be the easiest way to get the Medallion stamp. Best to start on Treasury Direct, remove the old bank account(s), attempt to add the new bank account and see if it requests anything additional.

[Hopeful]

We have an existing Treasury Direct account. We were able to add an Ally account and Fidelity CMA account without problems. We had to get the Medallion stamp at a local Fidelity office, and mail it in which took about 3 weeks.

[Dash man]

We’ve been using Ally Bank connected to TD for years and have had no problems. We use a savings account.

[Livefree]

We use Ally Bank and made the transfer to Treasury Direct without any problems a few weeks ago.

[Pointby2]

I have been using my E*Trade bank account to fund Treasury Direct purchases and sales for decades. No issues.

[RVplusDog]

Thanks, everyone. I’m not sure if mine can be fixed. My Treasury Direct account number has a letter in it - I’m guessing that might be the issue for the connection. I did try to add Treasury Direct as a recipient, from the Ally side. That gave me an error. A while back, I also tried to add Ally as a debit source, using the paper form and a local bank certification. The local bank connection got added successfully, but the Ally account never worked, even though the same account is still open. The local bank account is long since closed. I’ll try calling Treasury Direct to see if there’s anything they can do. Thank you!

[xlf11]

We also just opened TD with both of us linked with Ally on-line saving with no problem last month.

[SnowballCamper]

Quote:

Originally Posted by RVplusDog Thanks, everyone. I’m not sure if mine can be fixed. My Treasury Direct account number has a letter in it - I’m guessing that might be the issue for the connection. I did try to add Treasury Direct as a recipient, from the Ally side. That gave me an error. A while back, I also tried to add Ally as a debit source, using the paper form and a local bank certification. The local bank connection got added successfully, but the Ally account never worked, even though the same account is still open. The local bank account is long since closed. I’ll try calling Treasury Direct to see if there’s anything they can do. Thank you!

I'm going through this too, with DW's Treasury Direct Account (TDA). I didn't have a TDA account and was able to make one, and link it to my checking account in a few minutes online.

DW's TDA has an old bank account associated with it, so she has to send in the form, signed by by a bank official in person, in order to add another checking account to her TDA. Then we'll be able to delete the old bank account off the TDA (according to TDAs website).

Yes, I think all the TDAs have a letter in the account number...

[Dash man]

All Treasury Direct accounts have a letter in them as far as I know. It’s best to link your bank on the Treasury Direct website.

[braumeister]

Quote:

Originally Posted by Dash man All Treasury Direct accounts have a letter in them as far as I know. It’s best to link your bank on the Treasury Direct website.

They didn't always.

Quote:

*If your account number starts with a number rather than a letter, your account isn't in TreasuryDirect. Our older program Legacy Treasury Direct uses account numbers in the format 1200-345-6789.

[David3]

I just set up a TD account this past Saturday for my wife and linked it to our Ally savings account. Purchased an I bond and the funds transferred yesterday with no issues.

[mrfeh]

Quote:

Originally Posted by RVplusDog Has anyone managed to hook up their Ally Bank account with Treasury Direct for I-bond purchases?

Yes

[MBSC]

Quote:

Originally Posted by RVplusDog My Treasury Direct account number has a letter in it - I’m guessing that might be the issue for the connection. I did try to add Treasury Direct as a recipient, from the Ally side. That gave me an error. A while back, I also tried to add Ally as a debit source, using the paper form and a local bank certification. The local bank connection got added successfully, but the Ally account never worked, even though the same account is still open.

My TD account also has a letter. I needed the Medallion because the online bank's routing number changed. The form allows 2 accounts so I completed the bank page twice; my Fidelity account and 3 online banks. Took it to a local Fidelity office who had no problem completing it since they were included.

TD made a typo on one bank name but got the account # and routing # correct so it works. My WAG is they made a typo on your Ally numbers.

Quote:

Best to start on Treasury Direct, remove the old bank account(s), attempt to add the new bank account and see if it requests anything additional.

The current primary bank account cannot be removed until the form is submitted designating a new primary bank.

[RVplusDog]

I don’t understand how some (many?) people are able to complete all their Treasury Direct bank links online, but some (a few? Me only?) must use paper forms signed at a bank. In Ally’s case, that would theoretically make it impossible since they don’t have branches. Years ago, I changed banks and filled out the paper at a local small bank branch where we had an account, listing my Ally bank account as a secondary. TD did add the account, but it never worked (error connecting). TD responded to my recent inquiry about adding an online-only bank with no branches (Ally) by pasting in the instructions to take the paper form to a branch. Sigh. Here’s what they sent me: “ To add a new bank, click the "Add" button.
The ManageDirect >> Bank Change Form Request will appear.
A page will display with a link to a Bank Change FS Form 5512 to add a new bank to your TreasuryDirect Account
You must sign the paper form in the presence of an authorized certifying official available at a bank, trust company, or credit union and mail it to us for processing. Certification by a Notary Public is not acceptable.”

[mrfeh]

Quote:

Originally Posted by RVplusDog I don’t understand how some (many?) people are able to complete all their Treasury Direct bank links online, but some (a few? Me only?) must use paper forms signed at a bank. In Ally’s case, that would theoretically make it impossible since they don’t have branches. Years ago, I changed banks and filled out the paper at a local small bank branch where we had an account, listing my Ally bank account as a secondary. TD did add the account, but it never worked (error connecting). TD responded to my recent inquiry about adding an online-only bank with no branches (Ally) by pasting in the instructions to take the paper form to a branch. Sigh. Here’s what they sent me: “ To add a new bank, click the "Add" button. The ManageDirect >> Bank Change Form Request will appear. A page will display with a link to a Bank Change FS Form 5512 to add a new bank to your TreasuryDirect Account You must sign the paper form in the presence of an authorized certifying official available at a bank, trust company, or credit union and mail it to us for processing. Certification by a Notary Public is not acceptable.”

I linked accounts 7-8 years ago. Rules may have changed since then.

[lem1955]

Maybe states have different rules about whether the form + Medallion stamp is needed. In October I set up Treasury Direct and linked to my local credit union with no need for the form or stamp. Also registered as entity - Revocable Living Trust with no need for verification. Deposit has been accepted and shows up under my account.

[MBSC]

Quote:

Originally Posted by RVplusDog I don’t understand how some (many?) people are able to complete all their Treasury Direct bank links online, but some (a few? Me only?) must use paper forms signed at a bank. In Ally’s case, that would theoretically make it impossible since they don’t have branches.

Opening a new TD account does not require the bank form so Ally online bank can be linked. In a few cases, the person must prove their identity by submitting additional documentation.

Any changes to that original bank/brokerage account, or adding additional bank/brokerage accounts requires the bank form.

I suggest you contact TD and ask them to pull your Ally bank form and see if something needs to be corrected on their end.