Thanks. tempting...Ron Ronnerson wrote: ↑Fri Nov 11, 2022 12:27 pm I don’t know much about Brilliant Bank but they’re offering 4.01% on their money market account.
https://www.brilliant.bank/saving/
Ally Online Savings/Money Market Rate Increases
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Re: Ally Online Savings Rate Increase
- anon_investor
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Re: Ally Online Savings Rate Increase
Buying T-Bills is a good option because the yield is exempt from state/local income taxes.
If you want easy, you can use a treasury only money market fund, the yield would be exempt from state/local income taxes. At Vanguard I use VUSXX, at Fidelity I use FDLXX and at Merrill Edge I use TTTXX.
Re: Ally Online Savings Rate Increase
Bask Bank is currently 3.60 interest rate for apy of 3.65. I've had my house money(300K) there since March 2022. They seem to increase rates before anyone else. There are some stipulations to work around. 100,000 limit per month going into the account unless you do it by phone with a rep. No problem taking it out and sending it to my Vanguard acct. I've never had an Ally account, but i'm sure they are fine.
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Re: Ally Online Savings Rate Increase
This is very helpful, thanks a ton! Switched to VUSXX for now, and will consider T-Bills soon.anon_investor wrote: ↑Sat Nov 12, 2022 9:08 amBuying T-Bills is a good option because the yield is exempt from state/local income taxes.
If you want easy, you can use a treasury only money market fund, the yield would be exempt from state/local income taxes. At Vanguard I use VUSXX, at Fidelity I use FDLXX and at Merrill Edge I use TTTXX.
Re: Ally Online Savings Rate Increase
Ally's No Penalty CD rate is now 3.3%. Apparently Ally offers a 10 day best rate guarantee, so when the CD rate goes up within 10 days from opening an account, they are supposed to bump up the rate on the account to match the higher rate. I opened my No Penalty CD 9 days ago at 3.1%, and it still shows that rate on my account. Has anyone here had their CD rate automatically adjusted as part of the 10 day guarantee? I hate calling Ally, giving the long hold times. I guess I could just break my CD and open a new one, but wanted to hear about others' experiences first.
Re: Ally Online Savings Rate Increase
I've had it happen before, they updated the rate on the 11th day. If you dont see a change in 2 weeks of when you opened it, you can either call them. The easier method is just to close and then reopen (no penalty after 7 days), takes like 2 minutes. Much less time than calling customer service.
Re: Ally Online Savings Rate Increase
3.30% in a no-penalty CD is simply not competitive given what can be earned in a premium MMF or short-term Treasuries.
Real Knowledge Comes Only From Experience
- SmileyFace
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Re: Ally Online Savings Rate Increase
Hopefully folks know the differences between savings deposit accounts and MMs and Treasuries. Folks always compare apples and oranges in terms of yield in these threads without mentioning the other differences.
Re: Ally Online Savings Rate Increase
The rate on my No Penalty CD has been adjusted to 3.3% when I checked it this morning.dink2win wrote: ↑Thu Nov 17, 2022 7:23 pm I've had it happen before, they updated the rate on the 11th day. If you dont see a change in 2 weeks of when you opened it, you can either call them. The easier method is just to close and then reopen (no penalty after 7 days), takes like 2 minutes. Much less time than calling customer service.
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Re: Ally Online Savings Rate Increase
Yup. Hopefully Ally considers it an “eligible account”. Lots of chatter on this board from folks who’ve been unable to get confirmation that it is eligible for the purposes of the bonus.TravelGeek wrote: ↑Fri Nov 18, 2022 9:36 amIt’s certainly competitive for those who just moved $50k or so to Ally to earn the 1% bonus.
I moved $50K into my Ally account to get the bonus, but I’m not getting cute trying to scrape off a tad more yield by moving the funds around within Ally due to the risk of losing the bonus.
Real Knowledge Comes Only From Experience
Re: Ally Online Savings Rate Increase
Me either. I figure the savings account will probably be bumped up to 3% soon anyway.MikeG62 wrote: ↑Fri Nov 18, 2022 9:46 amYup. Hopefully Ally considers it an “eligible account”. Lots of chatter on this board from folks who’ve been unable to get confirmation that it is eligible for the purposes of the bonus.TravelGeek wrote: ↑Fri Nov 18, 2022 9:36 amIt’s certainly competitive for those who just moved $50k or so to Ally to earn the 1% bonus.
I moved $50K into my Ally account to get the bonus, but I’m not getting cute trying to scrape off a tad more yield by moving the funds around within Ally due to the risk of losing the bonus.
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Re: Ally Online Savings Rate Increase
Your Online Savings Account rate is increasing from 2.75% to 3.00% Annual Percentage Yield (APY) on all balance tiers. Your new APY goes into effect on 11/22/2022, and will appear in your account on 11/23/2022.
Re: Ally Online Savings Rate Increase
What's that for a $1.47 each month? 3%, they should be ashamed of themselves.
Re: Ally Online Savings Rate Increase
Nice of Ally to keep their rates competitive even though they have a fair amount of money "captive" right now due to the $500 promo.indexfund56 wrote: ↑Mon Nov 21, 2022 4:11 pm Your Online Savings Account rate is increasing from 2.75% to 3.00% Annual Percentage Yield (APY) on all balance tiers. Your new APY goes into effect on 11/22/2022, and will appear in your account on 11/23/2022.
- tennisplyr
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Re: Ally Online Savings Rate Increase
Just notified, rate now 3.30%
“Those who move forward with a happy spirit will find that things always work out.” -Retired 13 years 😀
Re: Ally Online Savings Rate Increase
Really nice jump! (10%) Glad to have my $10,000 for January's I-bond purchase hanging out here for a month.
70% Global Stocks / 30% Bonds
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Re: Ally Online Savings Rate Increase
Ally no-penalty CD rate also increased, from 3.30% to 3.50%
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Re: Ally Online Savings Rate Increase
I agree. When I moved some cash back to Ally for that I figured they'd be really slow to keep up with rates until that promo was about to end.02nz wrote: ↑Mon Nov 21, 2022 4:17 pmNice of Ally to keep their rates competitive even though they have a fair amount of money "captive" right now due to the $500 promo.indexfund56 wrote: ↑Mon Nov 21, 2022 4:11 pm Your Online Savings Account rate is increasing from 2.75% to 3.00% Annual Percentage Yield (APY) on all balance tiers. Your new APY goes into effect on 11/22/2022, and will appear in your account on 11/23/2022.
- anon_investor
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Re: Ally Online Savings Rate Increase
+1. Ally isn't keeping up with the money market fund (3.7%+) I transferred my funds from to Ally for that 1% bonus, but still nice to see they're up to 3.3%, they were under 3% only a little while ago.Onlineid3089 wrote: ↑Fri Dec 16, 2022 8:24 amI agree. When I moved some cash back to Ally for that I figured they'd be really slow to keep up with rates until that promo was about to end.02nz wrote: ↑Mon Nov 21, 2022 4:17 pmNice of Ally to keep their rates competitive even though they have a fair amount of money "captive" right now due to the $500 promo.indexfund56 wrote: ↑Mon Nov 21, 2022 4:11 pm Your Online Savings Account rate is increasing from 2.75% to 3.00% Annual Percentage Yield (APY) on all balance tiers. Your new APY goes into effect on 11/22/2022, and will appear in your account on 11/23/2022.
- slowandsteadywins
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Re: Ally Online Savings Rate Increase
Wealthfront Cash account, up to $2million FDIC insured, offering 3.80%APY; no minimums or transactions per month needed. FYI.
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- RickBoglehead
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Re: Ally Online Savings Rate Increase
Yup. Just closed my 3.3% and opened the 3.5%. Holding funds there through end of bonus period 1/15/23.vanguard111 wrote: ↑Fri Dec 16, 2022 7:51 am Ally no-penalty CD rate also increased, from 3.30% to 3.50%
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Re: Ally Online Savings Rate Increase
I will say I think it is absurd all these people hopping around and opening and closing accounts for a half or quarter of a percent here or there. How much money are you moving!? Even if it's $100k we are talking a few hundred bucks a year difference. Just not worth the hassle to me.
Re: Ally Online Savings Rate Increase
I agree to an extent. If I'm opening and closing accounts I'd rather get sign up bonuses. Much more value there if you're going through the hoops and ladders anyway.the_wiki wrote: ↑Fri Dec 16, 2022 10:10 am I will say I think it is absurd all these people hopping around and opening and closing accounts for a half or quarter of a percent here or there. How much money are you moving!? Even if it's $100k we are talking a few hundred bucks a year difference. Just not worth the hassle to me.
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Re: Ally Online Savings Rate Increase
the_wiki wrote: ↑Fri Dec 16, 2022 10:10 am I will say I think it is absurd all these people hopping around and opening and closing accounts for a half or quarter of a percent here or there. How much money are you moving!? Even if it's $100k we are talking a few hundred bucks a year difference. Just not worth the hassle to me.
If the few hundred bucks require 10 hrs of work, it’s not worth it to me. If it means creating more accounts that need to be tracked and eventually closed, it’s not worth it to me. But closing my Ally CDs earlier this year and moving the funds to Fidelity to buy Treasuries? That was worth it. And moving some money back to Ally for the 1% bonus? That was worth it (no new account).
Re: Ally Online Savings Rate Increase
The current top savings account seems to be MySavingsDirect at 4.35%, which is 1.05% higher than Ally's 3.30%. I think an extra $1050 per year would be worth minimal effort it takes to open an account.the_wiki wrote: ↑Fri Dec 16, 2022 10:10 am I will say I think it is absurd all these people hopping around and opening and closing accounts for a half or quarter of a percent here or there. How much money are you moving!? Even if it's $100k we are talking a few hundred bucks a year difference. Just not worth the hassle to me.
I prefer inflation protected bonds and so don't have enough cash for this to be an issue. What little I keep in cash is in accounts paying even higher interest on limited balances.
Re: Ally Online Savings Rate Increase
I am glad to see some people are questioning closing an account or moving an account for 25 or even 50 bp. Too many accounts to keep track of, too many rules to follow to get a bonus and all that for what? An extra $100 or $200? I suppose if you were working with a half a million or a million that would be a decent reward but I doubt many people would keep that much cash laying around unless they have millions in which case does an extra $1000 really make a difference in your life? Now getting cash out of online savings accounts and putting it into treasuries makes sense. In the end, it is your money but to me this is a silly exercise.
Re: Ally Online Savings Rate Increase
I believe MysavingsDirect does not allow ACH pull from other banks. You can only ACH send from MySavingsDirect to other banks. Why would they do this? Does not sound right.patrick wrote: ↑Fri Dec 16, 2022 12:26 pmThe current top savings account seems to be MySavingsDirect at 4.35%, which is 1.05% higher than Ally's 3.30%. I think an extra $1050 per year would be worth minimal effort it takes to open an account.the_wiki wrote: ↑Fri Dec 16, 2022 10:10 am I will say I think it is absurd all these people hopping around and opening and closing accounts for a half or quarter of a percent here or there. How much money are you moving!? Even if it's $100k we are talking a few hundred bucks a year difference. Just not worth the hassle to me.
I prefer inflation protected bonds and so don't have enough cash for this to be an issue. What little I keep in cash is in accounts paying even higher interest on limited balances.
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Re: Ally Online Savings Rate Increase
"I believe MysavingsDirect does not allow ACH pull from other banks."
That is correct. MSD has a high rate, but is inconvenient to use because of this ACH restriction.
That is correct. MSD has a high rate, but is inconvenient to use because of this ACH restriction.
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Re: Ally Online Savings Rate Increase
Ally to 3.40%
All aboard the gravy train
All aboard the gravy train
- Chief_Engineer
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Re: Ally Online Savings Rate Increase
I know rate increases are slowing down, but a 0.1% increase is not very exciting. I'm not planning to move anything, but I am noticing MMFs topping 4% while Ally is just now going to 3.4%.
Re: Ally Online Savings Rate Increase
One of my bell weathers is Ken Tumin's Deposit Account's website. He has a splash page that shows the top 1% rate on savings accounts, which is currently showing 3.70% as the average. https://www.depositaccounts.com/ Ally has been at or above this tracking metric at some points during this rate cycle, but clearly behind it now and for a while. So not very exciting for sure.Chief_Engineer wrote: ↑Tue Jan 31, 2023 4:49 pm ..... but a 0.1% increase is not very exciting. I'm not planning to move anything, but I am noticing MMFs topping 4% while Ally is just now going to 3.4%.
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Re: Ally Online Savings Rate Increase
A rate increase of .1% is not enough to keep my funds there - my other HYSA is yielding 4%. I'm just waiting on the bonus and then I'll be moving my money and closing my Ally account.
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Re: Ally Online Savings Rate Increase
If you might prefer over 5%, here’s an option to consider: https://primisbank.com/primis-savings-accounts/TwstdSista wrote: ↑Wed Feb 01, 2023 4:10 am A rate increase of .1% is not enough to keep my funds there - my other HYSA is yielding 4%. I'm just waiting on the bonus and then I'll be moving my money and closing my Ally account.
Rates can always be lowered too, of course. I would personally keep the Ally account open just in case.
Re: Ally Online Savings Rate Increase
Yawn. One can get more than 4.20% in a MMF at Fidelity. Even 4-week Treasuries are yielding north of 4.50% (and this is even before the state tax benefit).
I moved most of my funds out of Ally the other day (well after the 1/15 date for the bonus).
Real Knowledge Comes Only From Experience
Re: Ally Online Savings Rate Increase
If you moved it over to Fidelity MMF, you realize it carries an average exp. ratio of .42% (so lop that off your rate of return). The average annual return has been 1.84% on MMF including the Fidelity MMF for the year. Someone riding the wave up from Ally for past year would carry a higher return, and no exp fees. MMF are slightly better when there is monthly changing rates as the rate is variable. Not sure someone on Ally needs to change strategy for a slightly better rate after fees unless we are talking about $50K in a savings account.
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Re: Ally Online Savings Rate Increase
My MMF is yielding ~4.2% and increasing every week. Right now, it is making my HYSA pretty irrelevant.
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Re: Ally Online Savings Rate Increase
This is wrong. The quoted yields are already net of expenses.
Also wrong. The 1-year return for an Ally HYSA (1 Feb 2022 – 31 Jan 2023) is about 1.6%, based on the rate history from this thread. Recall that Ally rates were well under 1% for the first half of last year, and didn't break 2% until a few months ago.
Last edited by Scorpion Stare on Wed Feb 01, 2023 2:02 pm, edited 2 times in total.
Re: Ally Online Savings Rate Increase
Yep. I transferred my first large chunk in 2022 to Vanguard Treasury MM fund on 7/29/2022. The taxable-equivalent yield (TEY) for me on that date was 1.84%, while the Ally savings rate was 1.15%.Scorpion Stare wrote: ↑Wed Feb 01, 2023 9:34 amThis is wrong. The quoted yields are already net of expenses.
Also wrong. The 1-year return for an Ally HYSA is about 1.6%, based on the rate history from this thread. (Recall that Ally rates were well under 1% for the first half of last year, and didn't break 2% until just a few months ago.)
If I make a calculation error, #Cruncher probably will let me know.
Re: Ally Online Savings Rate Increase
How does investing in Vanguard Treasury VUSXX compare against buying T-bills on a regular basis (ladder)?
Re: Ally Online Savings Rate Increase
Moved Ally to Wealthfront for the 3.8%. It's 4.3% if I can ever find someone to accept an invite again. Unless someone can tell me something wrong with their HYSA I'm sticking with it for the foreseeable future.
Re: Ally Online Savings Rate Increase
Nothing wrong with it, but money market funds can have higher taxable-equivalent yields (TEYs), depending on your marginal tax rates. SEC yield of VUSXX was 4.32% yesterday, so already higher before factoring in the state income tax exemption. For me, the TEY of VUSXX is 4.90%.
If I make a calculation error, #Cruncher probably will let me know.
Re: Ally Online Savings Rate Increase
Good to know, will be moving over to that sooner than later I guess. ThanksKevin M wrote: ↑Wed Feb 01, 2023 12:54 pmNothing wrong with it, but money market funds can have higher taxable-equivalent yields (TEYs), depending on your marginal tax rates. SEC yield of VUSXX was 4.32% yesterday, so already higher before factoring in the state income tax exemption. For me, the TEY of VUSXX is 4.90%.
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Re: Ally Online Savings Rate Increase
I think you'd squeeze out a little more from the T-bill ladder in exchange for the reduced liquidity. Ideally you'd have VUSXX or similar set up as your settlement fund. For some accounts, my settlement fund doesn't pay anything, so it's a small drag on performance--especially when I forget to check and leave cash sitting around for a bit.
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Re: Ally Online Savings Rate Increase
Will be interesting how other banks respond after the 25 bps hike. I'm sure they're also raising soon.
Re: Ally Online Savings Rate Increase
I cannot think of any reason why I don't move the savings at Ally to VUSXX under the current interest environment. Is the yield delta between T-bills and VUSXX due to the recent interest trend or the expense ratio of VUSXX and will it ast?Super Hans wrote: ↑Wed Feb 01, 2023 2:32 pmI think you'd squeeze out a little more from the T-bill ladder in exchange for the reduced liquidity. Ideally you'd have VUSXX or similar set up as your settlement fund. For some accounts, my settlement fund doesn't pay anything, so it's a small drag on performance--especially when I forget to check and leave cash sitting around for a bit.
- anon_investor
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Re: Ally Online Savings Rate Increase
Even FDLXX (Fidelity treasury only MMF) which is mostly exempt from state/local income taxes is over 4% now...
Re: Ally Online Savings Rate Increase
This has been the case for months now (where MMF yields significantly exceed HYSA yields - at least those offered by Ally or Marcus). I would not expect it to suddenly change. But keep your eye on it.8301 wrote: ↑Wed Feb 01, 2023 3:05 pmI cannot think of any reason why I don't move the savings at Ally to VUSXX under the current interest environment. Is the yield delta between T-bills and VUSXX due to the recent interest trend or the expense ratio of VUSXX and will it last?Super Hans wrote: ↑Wed Feb 01, 2023 2:32 pmI think you'd squeeze out a little more from the T-bill ladder in exchange for the reduced liquidity. Ideally you'd have VUSXX or similar set up as your settlement fund. For some accounts, my settlement fund doesn't pay anything, so it's a small drag on performance--especially when I forget to check and leave cash sitting around for a bit.
Real Knowledge Comes Only From Experience
Re: Ally Online Savings Rate Increase
Scorpion Stare addressed your comment. Yields are "after" expenses. Focus should be in the current 7-day yield (and not trailing average annual return) compared to the HYSA yield. After all, these are cash equivalents not long term investments.dcraider wrote: ↑Wed Feb 01, 2023 9:06 amIf you moved it over to Fidelity MMF, you realize it carries an average exp. ratio of .42% (so lop that off your rate of return). The average annual return has been 1.84% on MMF including the Fidelity MMF for the year. Someone riding the wave up from Ally for past year would carry a higher return, and no exp fees. MMF are slightly better when there is monthly changing rates as the rate is variable. Not sure someone on Ally needs to change strategy for a slightly better rate after fees unless we are talking about $50K in a savings account.
Real Knowledge Comes Only From Experience
Re: Ally Online Savings Rate Increase
I bought some 17-week T-bills from today's auction. High rate is 4.625% and investment rate is 4.762%. I don't know what the equivalent APY is.MikeG62 wrote: ↑Wed Feb 01, 2023 4:34 pmThis has been the case for months now (where MMF yields significantly exceed HYSA yields - at least those offered by Ally or Marcus). I would not expect it to suddenly change. But keep your eye on it.8301 wrote: ↑Wed Feb 01, 2023 3:05 pmI cannot think of any reason why I don't move the savings at Ally to VUSXX under the current interest environment. Is the yield delta between T-bills and VUSXX due to the recent interest trend or the expense ratio of VUSXX and will it last?Super Hans wrote: ↑Wed Feb 01, 2023 2:32 pmI think you'd squeeze out a little more from the T-bill ladder in exchange for the reduced liquidity. Ideally you'd have VUSXX or similar set up as your settlement fund. For some accounts, my settlement fund doesn't pay anything, so it's a small drag on performance--especially when I forget to check and leave cash sitting around for a bit.