{ 12 comments… read them below or add one }

the weakonomist June 4, 2009 at 7:25 pm

So far I’ve been very impressed with Ally bank. They have a chance to do well in this market, but as of yet they don’t offer that “one thing” that would make me switch from ING Direct. You’ve got to really improve a product to get people to switch, and it just isn’t there.

Corey June 5, 2009 at 10:07 am

Are there any sites out there offering $$ to sign up with them? $25 bucks on a $250 account blows away any miniscule interest rate you can get.

Annuity Quotes Guru June 8, 2009 at 1:41 pm

I think people are mostly scared to change financial institutions – especially now that they can “insure” up to $250,000 per person at their local bank.

Tim on savings account October 11, 2009 at 4:11 pm

It seems that Ally bank is offering quite a good deal. While security is very important, ease of access and low charges is something that people took for as well.

John Rowe September 1, 2010 at 9:06 am

From my experience, I’ll take any other savings account other than what’s at Ally Bank’s. They lure you in as a customer by offering high interest rates, but after that, they change the rates on a daily basis. Seems quite fishy to me!

Das Guy September 16, 2010 at 8:59 am

John Rowe mentions the interest rates change daily and calls it fishy. If the changes are arbitrary, and especially if they diverge from what is offered to new customers I’d agree. But if the rates are pegged to some index that could be a good thing. Is there any information on how the rates are determined?

Silicon Valley Blogger September 16, 2010 at 9:10 am

@Das Guy,
Shifting interest rates on your account may be both good and bad. If rates are rising, heck we’d all want to be on board that train right away! Sure, rates are set by the government. There’s the Prime Rate that varies with the Feds Fund Rate. See here for more details on how the rates are pegged.

All I know is that Ally Bank’s rates shift the most, compared to all other savings accounts I’ve been covering/following.

SB (One cent at a time) May 25, 2011 at 7:22 pm

If a checking account can pay me 1.05%, I would prefer to open a checking account instead of a savings account. A checking account has several benefits, which we do not get from a savings account. I explain more in my blog post here. Recently, I did get a flier from Bankatlantic about a high interest checking account. This is one option every one should look at these days.

No Debt MBA May 26, 2011 at 10:57 am

I’ve been very happy with my experience at HSBC. Though their rates are no longer the best, I’ve never had a problem with my account.

Adam May 26, 2011 at 1:21 pm

Two things are currently consisted about banks:
1. They’re heavily regulated.
2. They pay very, very little yield.
If the purpose of a savings account save, and the banks are paying very little interest, then it’s best to find the least expensive (preferably free if possible) option. Thus, park you money in a safe bank account while looking for a better opportunity to invest.

Silicon Valley Blogger May 26, 2011 at 4:20 pm

Thanks Adam. It’s easy enough to use a savings account for short term savings goals, for emergencies and for a parking spot for money to be used for investments at a future date. You’re right that when rates are so low, one should really be focusing on the costs since these fees are now the big differentiator across banks and FIs.

Kosmo @ The Soap Boxers May 31, 2011 at 5:59 pm

We get 4.25% on a rewards checking account (on balances up to 25K). Requires one direct deposit per month (minimum $100 or $200, I think) and 12 debit-as-credit transactions that average $5 each. We make sure we hit the 12 transactions threshold (otherwise the rate drops below 1%), but essentially treat it as a savings account.

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