Another Reader
Thinks s/he gets paid by the post
- Joined
- Jan 6, 2013
- Messages
- 3,417
Barclays, Marcus and Sallie Mae need to catch up...
I understand the "no penalty" feature but even if they raise it to 2.15%, you can get a 12-mo brokered CD for 3.2%. That's a big difference just to get the no penalty feature. Heck, you can get a 3-mo brokered CD for 2.7%. Rather than taking such a low return with Ally, why not just ladder some brokered CDs. You can buy one maturing every month if you'd like.Today Ally's No Penalty CD is 2% which is 15 bp above their online savings account. I wonder if the NP CD will go up 15 bp tomorrow?
Not on the Android app.In the header.
Not on the Android app.
I never really noticed there is no header on the mobile app. I’ll need to keep that in mind going forward.
What app is that? I access the site on my phone using the browser and mobile version of the site. I see the headers on iPhone.
I wonder what goes on inside the institutions that lag on interest rates? Eventually they seem to pony up. Maybe that's their strategy. Something like, "We know our depositors follow interest rates, but ours aren't on top of things day-to-day, and they'll usually not switch institutions on a dime."
Well, it cut off my latest. Lol.I think a lot matters based on their clientele. Our local credit unions have pathetic rates, and I don't think most clients even know what's out there. There likely is not much movement or outflows.
Meanwhile, Ally, Marcus, Synchronicity, etc. all play off each other, and many of their clients also are sophisticated enough to know about treasuries. They are assuredly seeing outflows, just judging by the posts I see here and bogleheads, it can't be trivial either.
BTW: I used my Discover card and Ate at Joes. And what's your problem with 86 characters?
Train approaching / Whistle squealing / Stop / Avoid that run-down feeling / Burma-Shave
I worked in a small town bank for a couple of years after leaving the corp world and it is amazing how many people have 10s and more than handful 100k+ in plain old savings account earning next to nothing (this was in 17 and 18). I sometimes thought I would slip them a note saying for 5% of their gain I could show them how to make thousands, ie move their money to Ally, etc. For many, this was all the money they had but I think internet banking scared them and they had no one (or didn’t trust) to guide them.Lagging is not so bad compared to places like BofA. Their highest tier savings is .05%. 1M in a 3 yr CD earns .05%. They haven’t raised rates at all.
I understand the "no penalty" feature but even if they raise it to 2.15%, you can get a 12-mo brokered CD for 3.2%. That's a big difference just to get the no penalty feature. Heck, you can get a 3-mo brokered CD for 2.7%. Rather than taking such a low return with Ally, why not just ladder some brokered CDs. You can buy one maturing every month if you'd like.
Exactly what I've done.I moved most of my money from Ally to Vanguard and have been in the Settlement Fund and buying T bills.
I worked in a small town bank for a couple of years after leaving the corp world and it is amazing how many people have 10s and more than handful 100k+ in plain old savings account earning next to nothing (this was in 17 and 18). I sometimes thought I would slip them a note saying for 5% of their gain I could show them how to make thousands, ie move their money to Ally, etc. For many, this was all the money they had but I think internet banking scared them and they had no one (or didn’t trust) to guide them.
I never could get my dad to open an account at Ally (or anywhere online). He wanted to be able to drive to his bank and buy a CD from the nice guy at the desk. So, he'd buy a .5% CD when he could get 3% or 4% at an online bank. All of his money was at the local bank in CDs. I think a lot of older people are uncomfortable with their money being not being local.
I wonder if that dynamic is changing as those of us who grew up with technology become the old folks. My parents' generation didn't have computers and internet and smartphones until late in life, if at all. On the other hand, I started taking computer programming classes in 5th grade and we got our first mobile phones in 1992.I never could get my dad to open an account at Ally (or anywhere online). He wanted to be able to drive to his bank and buy a CD from the nice guy at the desk. So, he'd buy a .5% CD when he could get 3% or 4% at an online bank. All of his money was at the local bank in CDs. I think a lot of older people are uncomfortable with their money being not being local.
Will the digital-native generation aging force physical banks to change their ways?
I wonder if that dynamic is changing as those of us who grew up with technology become the old folks. My parents' generation didn't have computers and internet and smartphones until late in life, if at all. On the other hand, I started taking computer programming classes in 5th grade and we got our first mobile phones in 1992.
Even for our bricks and mortar bank checking account, we do 98% of our transactions on our phones or online, and everything else financial is 100% online. I don't think we will suddenly change to in-person banking 10 or 20 years from now.
Will the digital-native generation aging force physical banks to change their ways?
And how many of your Fidelity/Schwab transactions are done in person vs online? I have a Schwab account. I think the last time I was in a physical location was in the 90s when I opened the account. Otherwise it's been all online. The bulk of our money is with Vanguard. I have the need to call them on occasion but never has there been a situation that would have required me to be face to face with someone.Eventually, as most things do change. But they still have their place for a great many people, so I don't see any big changes happening soon. Just like many of us here gravitate to Fidelity or Schwab largely because they have a B&M presence within a reasonable distance.