Author Topic: Who banks with Ally Bank? And how do you feel about it?  (Read 6806 times)

SenoritaStache

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Who banks with Ally Bank? And how do you feel about it?
« on: May 02, 2014, 10:00:17 AM »
Hello fellow mustachians, just wanted to know if anyone here has tried or is currently banking with Ally Bank online.  Makes me a little nervous that they are completely online, but they have the best rates I can find.  I need the money liquid so a savings is what I'm looking for but the saving account the money is currently in is paying me poopy interest.  Any suggestions? Comments or advise is welcome, thanks!

Sonorous Epithet

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Re: Who banks with Ally Bank? And how do you feel about it?
« Reply #1 on: May 02, 2014, 10:09:39 AM »
I have my savings account using CapitalOne 360 (fka ING), which is pretty similar. I miss having a brick & mortar savings account exactly 0%.

They require you to link to a checking account (mine is with US Bank, still brick and mortar). Transfers take about 3 days to clear either way, which has never created a problem for me.

Ally used to be GMAC, so it's a long-lived institution. And it's all FDIC insured. There's really nothing to worry about. Open an account there, put in a hundred bucks or so, and see what it's like. If you like how it works, go ahead and transfer all your savings.

hons2000

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Re: Who banks with Ally Bank? And how do you feel about it?
« Reply #2 on: May 02, 2014, 10:09:54 AM »
I've used Ally for a few years now and I don't have any complaints. They refund other banks ATM fees every month, pay interest on checking and savings, free bill pay, free checks, free deposit slips and postage paid envelopes. They also have a decent mobile app that lets you deposit checks, make transfers, etc. Only drawback, you can't mail in a cash deposit. Doesn't come up often, but a pain when it does.

seattlecyclone

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Re: Who banks with Ally Bank? And how do you feel about it?
« Reply #3 on: May 02, 2014, 10:14:19 AM »
Ally was my mortgage servicer. Their website worked well for the purpose and I never had to contact a person about their service for any reason. I have no experience with their savings accounts. In general, online banking is very reputable and usable for the vast majority of transactions, but you may still want to maintain an account at a brick-and-mortar bank for certain things.

As to interest, everyone's rates are "poopy" right now. Ally has a 0.87% APY savings account, which is fairly high in comparison to other banks. Capital One 360 has a 0.75% APY savings account. Lower, yes, but the difference in interest paid on a $10k emergency fund is a whopping $12 per year. Even if you go with Chase's laugable 0.01% interest, you only lose out on $86 per year per $10k saved. If you want your money to grow, it should not be in a savings account. Period.

Gen Y Finance Journey

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Re: Who banks with Ally Bank? And how do you feel about it?
« Reply #4 on: May 02, 2014, 10:15:32 AM »
I use Ally and I haven't had any major issues with them. They'll reimburse ATM fees (I think there's some monthly limit of how much they'll reimburse, but I've never hit it), so it doesn't really matter that they don't have any brick & mortar locations. There are no fees for low balances and basic checks are free. Depositing checks is really easy with their smartphone app, but if you don't have a smartphone, you have to scan the check images and I have had some frustrations trying to do that in the past, where they insist the file size is too big even though it's well within their stated limits.

Of course it's also worth asking yourself if the difference between a 0.87% interest rate at Ally and a 0.1% interest rate at another bank actually matters that much. If you're keeping enough money in a savings account that an extra 0.77% of interest is significant, you're probably keeping too much liquid cash.

ZiziPB

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Re: Who banks with Ally Bank? And how do you feel about it?
« Reply #5 on: May 02, 2014, 10:17:37 AM »
I have moved the majority of my emergency fund to Ally recently (I decided on a no-penalty CD, not a savings account - same interest rate).  I have been very pleased with their service so far (opening the account, transfer of funds, etc.).  I have dealt with their reps on the phone and used the website as well.  No complaints.

Another Reader

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Re: Who banks with Ally Bank? And how do you feel about it?
« Reply #6 on: May 02, 2014, 10:31:05 AM »
I have used Ally for many years, going back to the GMAC Bank days.  The only problems I have had were with opening CD's.  For a long time, it took a conversation with customer service to complete the transaction.  For the highest money market/savings rate, GE Capital Bank pays 0.90 percent and GE Capital Retail Bank pays 0.95 percent.  Sallie Mae pays 0.90 percent on one of their accounts.  To track rates, www.depositaccounts.com is fairly comprehensive.  Look at rates for both savings and money market accounts.  Both are FDIC insured. 

I use these as savings/e-fund accounts.  For checking, I use a bricks and mortar bank where I can go down and have a face-to-face conversation if there is a problem or question.  Getting a business card and being able to follow up is occasionally helpful, especially where large amounts of money are involved.

studentdoc2

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Re: Who banks with Ally Bank? And how do you feel about it?
« Reply #7 on: May 02, 2014, 10:44:01 AM »
I've used Ally for a few years and LOVE them. I was worried about being totally online, but it hasn't been a problem. Totally recommend.

giggles

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Re: Who banks with Ally Bank? And how do you feel about it?
« Reply #8 on: May 02, 2014, 10:46:34 AM »
Use them for CDs only, but never had any issues.  Good customer service as well.

tyd450

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Re: Who banks with Ally Bank? And how do you feel about it?
« Reply #9 on: May 02, 2014, 11:08:59 AM »
I do-  I have my emergency fund and a few other savings goals accounts with them.  I have had to contact customer service a few times and they are super responsive via chat which I think is available 24/7.

Not many people know but you can create as many savings accounts as you want if you want to save for specific goals.  Similar to capitalone360/ING's sub savings accounts.

Transferring money is pretty easy too- between Ally accounts is instant obviously but to external accounts usually takes 2-3 days.


lb

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Re: Who banks with Ally Bank? And how do you feel about it?
« Reply #10 on: May 02, 2014, 11:27:10 AM »
The Ally money market savings account at 0.87% is one of the best options for a low risk place to put the short term savings you plan to use in 5 years or so, e.g. a downpayment for a house. If you are more risk tolerant you can invest that money, with the understanding that it might not be doing well when you want to take it out. We felt most comfortable with the lower risk of the money market or other savings account and just shopped around until we found the best rates with the least ridiculous internet bank.

We have roughly 40K sitting in an Ally account which at 0.87% gives us about $350/yr in interest, vs. the $4/yr it would have gotten at my credit union at a rate of 0.01%. Both of us kept our brick and mortar banks for things like cash deposits, which we then transfer into the Ally account. The website works well, haven't needed to use customer service yet.

dragoncar

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Re: Who banks with Ally Bank? And how do you feel about it?
« Reply #11 on: May 02, 2014, 11:33:00 AM »
Anyone seeking more info might look here:

http://forum.mrmoneymustache.com/ask-a-mustachian/ally-vs-capital-one-360/
http://forum.mrmoneymustache.com/ask-a-mustachian/ally-bank-vs-ing-direct/
http://forum.mrmoneymustache.com/ask-a-mustachian/barclays-vs-ally-bank/
http://forum.mrmoneymustache.com/ask-a-mustachian/online-banks/
http://forum.mrmoneymustache.com/ask-a-mustachian/banking-suggestions/
http://forum.mrmoneymustache.com/investor-alley/free-checking-and-free-checks/

The Ally money market savings account at 0.87% ...

I actually just noticed my MM is only paying 0.85% and Ally offers "online savings" at 0.87%.  I'm pretty sure the rates used to be equal, but I can't really figure out why I should prefer one to the other.  It's super easy to open a new account, so should I just go ahead and do it?  Maybe MM offers checks (which I don't use)?
« Last Edit: May 02, 2014, 11:35:45 AM by dragoncar »

curler

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Re: Who banks with Ally Bank? And how do you feel about it?
« Reply #12 on: May 02, 2014, 02:02:05 PM »

I actually just noticed my MM is only paying 0.85% and Ally offers "online savings" at 0.87%.  I'm pretty sure the rates used to be equal, but I can't really figure out why I should prefer one to the other.  It's super easy to open a new account, so should I just go ahead and do it?  Maybe MM offers checks (which I don't use)?

That's the difference.  MM lets you use ATMs and checks, while savings accounts don't.  I'm actually about to switch over from using a savings and checking account to just having a MM.

Dr. A

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Re: Who banks with Ally Bank? And how do you feel about it?
« Reply #13 on: May 02, 2014, 02:10:49 PM »
+1 to all of the above on Ally. I'm 100% satisfied with them.

I think it's a good idea to have an account with a brick-and-mortar bank. It's rare, but I do occasionally need one. Recent examples include obtaining a certified check for security deposit on an apartment, and taking out $4,800 cash to buy a car. Also, cash deposits.

Just find one with a low bar for avoiding maintenance fees. I have a TD Bank account that always has $200 for this purpose.

huadpe

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Re: Who banks with Ally Bank? And how do you feel about it?
« Reply #14 on: May 02, 2014, 02:15:05 PM »
I have used Ally for a number of years to store my emergency savings, while using a local credit union for my day to day banking.

I haven't had much issue with them, except one time they screwed up sending me out a new debit card, though when I called back to complain they were good about overnighting it to me free.

As to the .85 vs .87%, the difference is basically debit card access.  For the lower rate, you get a checkable account.

dragoncar

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Re: Who banks with Ally Bank? And how do you feel about it?
« Reply #15 on: May 02, 2014, 02:44:41 PM »

I actually just noticed my MM is only paying 0.85% and Ally offers "online savings" at 0.87%.  I'm pretty sure the rates used to be equal, but I can't really figure out why I should prefer one to the other.  It's super easy to open a new account, so should I just go ahead and do it?  Maybe MM offers checks (which I don't use)?

That's the difference.  MM lets you use ATMs and checks, while savings accounts don't.  I'm actually about to switch over from using a savings and checking account to just having a MM.

Ah, thanks.  I don't like the MM transaction limit, which is why I keep a checking account with a very small amount of money.