topic Re: Ally Bank Interest Increase in Community Chat

Ally Bank Interest Increase

kivah — Tue, 12 Jun 2018 17:11:55 GMT

I have a 4-year CD with Ally Bank, maturing June, 2019. It's where I have the option of getting a higher interest rate - twice - during this period - if the interest rate increases. I forgot all about it until yesterday - and called the bank and now the interest on my CD went from 1.44% to 2.32%.

So - if ur with Ally Bank - or other banks - and have this option, call or email them.

Re: Ally Bank Interest Increase

Nightowlz — Tue, 12 Jun 2018 17:37:53 GMT

Our credit union has 2.60% on a 42 month CD.

They also have a 17 month CD at 1.35%.

We get 1.50% monthly on our checking account on up to a $30,000 balance.

Not much but better than any other checking account I have seen.

Re: Ally Bank Interest Increase

151949 — Tue, 12 Jun 2018 17:45:57 GMT

I would not place money in a CD with the low interest rates now. We have 85% of our savings in municipal bonds , getting a fairly good growth rate and 15% in the stock market so we get better growth there - hopefully. At least if we lose everything in the stock market - we can afford that.

Re: Ally Bank Interest Increase

millieshops — Tue, 12 Jun 2018 20:34:21 GMT

@151949What works for one person (family) may be inappropriate for someone else which is why when I deal with a financial advisor, I run from someone who tells me what to do with knowing my whole financial picture.

I've never heard that CD's are a poor placement for funds needed within a few years where the goal is protection of principal rather than long-term growth. And an extra % is always good!

Re: Ally Bank Interest Increase

gidgetgh — Tue, 12 Jun 2018 21:12:38 GMT

We just put some money in a cd at a local bank last Friday. 13 months, 2.30%. They were running a special.

We moved money from a “pays next to nothing” money market to the cd.

I’m happy with 2.30% for 13 months. FDIC insured. No risk.

We have another cd maturing near the end of this month. I’m going to renew it, but will be looking for better terms. It was in an 11 month cd for 1.00%. I’ll be able to get better than that now.

I’ve given some thought to dabbling in the stock market but I just don’t feel comfortable doing it right now. Maybe down the road.

Re: Ally Bank Interest Increase

151949 — Tue, 12 Jun 2018 22:03:57 GMT

@gidgetgh wrote:
We just put some money in a cd at a local bank last Friday. 13 months, 2.30%. They were running a special.

We moved money from a “pays next to nothing” money market to the cd.

I’m happy with 2.30% for 13 months. FDIC insured. No risk.

We have another cd maturing near the end of this month. I’m going to renew it, but will be looking for better terms. It was in an 11 month cd for 1.00%. I’ll be able to get better than that now.

I’ve given some thought to dabbling in the stock market but I just don’t feel comfortable doing it right now. Maybe down the road.

Municipal bonds are much safer than the stock market. The yield is lower but your money is safer. Say a town wants to build a sports complex - they float a bond - in other words they borrow money from many people at a certain interest rate, & pay it back like any loan. As the bond makes money - you make money. Your money is as safe as that town's government because that is who borrowed it.

Re: Ally Bank Interest Increase

gidgetgh — Tue, 12 Jun 2018 22:11:24 GMT

@151949 wrote:
@gidgetgh wrote:
We just put some money in a cd at a local bank last Friday. 13 months, 2.30%. They were running a special.

We moved money from a “pays next to nothing” money market to the cd.

I’m happy with 2.30% for 13 months. FDIC insured. No risk.

We have another cd maturing near the end of this month. I’m going to renew it, but will be looking for better terms. It was in an 11 month cd for 1.00%. I’ll be able to get better than that now.

I’ve given some thought to dabbling in the stock market but I just don’t feel comfortable doing it right now. Maybe down the road.
Municipal bonds are much safer than the stock market. The yield is lower but your money is safer. Say a town wants to build a sports complex - they float a bond - in other words they borrow money from many people at a certain interest rate, & pay it back like any loan. As the bond makes money - you make money. Your money is as safe as that town's government because that is who borrowed it.

@151949- I appreciate the info. I’m much more familiar with the stock market and how all that works, so that’s probably what I’ll do whenever the time comes. I freely admit that I don’t understand bonds very well and if I don’t understand them, I’m hesitant to invest in them.

Re: Ally Bank Interest Increase

Snowpuppy — Tue, 12 Jun 2018 22:29:01 GMT

8 cities and 28 municipal entities (utilities, public hospitals) have filed for bankruptcy since 2010.

Ally bank was rebranded from GMAC Financial after GM filed for bankruptcy.

Just sayin'.

Re: Ally Bank Interest Increase

FrostyBabe1 — Tue, 12 Jun 2018 22:54:37 GMT

January 2018 was the WORST month for muni's since 1981. While it's true that bonds are technically thought to be safer than stocks, the muni market, according to this article, remains "murky". Municipal entities can and do default on their debt, just like private companies.

https://www.cnbc.com/2018/02/28/are-muni-bonds-still-a-safe-investment-bet.html

DON'T take or believe investment advice from strangers on a message board. Talk to a professional. I worked at the management level in institutional investing, and I would never, ever give advice in a forum like this. Ever. It's foolish, and if you don't have the appropriate registrations with the SEC, it's illegal.

Re: Ally Bank Interest Increase

BirkiLady — Wed, 13 Jun 2018 00:16:13 GMT

@FrostyBabe1Some posters are authorities on every subject talked about on these boards. Just ask them anything; you'll get a determined answer. If you don't like the answer, you'll get an arguement! No proof or facts; Google is their source of reference!

Re: Ally Bank Interest Increase

shoekitty — Wed, 13 Jun 2018 00:27:52 GMT

This is a good thing for us. For a while I told the bank it was getting to where we had to pay the banks to keep our momey there. I remember the days when my mom lived off her interest.

Re: Ally Bank Interest Increase

froggy — Wed, 13 Jun 2018 01:01:18 GMT

If you don't want to tie up your money in a CD Synchrony Bank has a high yield savings account at 1.75% right now. They allow six transactions per month.

Re: Ally Bank Interest Increase

kivah — Wed, 13 Jun 2018 21:47:32 GMT

@millieshops

I like to tie up my money for 2 to 4 years with Ally Bank -- to be sure my money is safe and I don't spend it. I also have a checking acct. with a local bank - and a money market acct. with a credit union.

Re: Ally Bank Interest Increase

Trinity11 — Wed, 13 Jun 2018 22:06:59 GMT

@froggy wrote:
If you don't want to tie up your money in a CD Synchrony Bank has a high yield savings account at 1.75% right now. They allow six transactions per month.

My issue with changing banks because of a higher interest rate is exactly how long will the interest rate stay the same? I moved money into TD bank and then the next month they changed the rate with no warning. It is like a game of musical chairs with these banks. So far no one has guaranteed a specific rate for any length of time.

Re: Ally Bank Interest Increase

millieshops — Thu, 14 Jun 2018 00:03:05 GMT

@froggyI think that number is the federally allowed number of electronic transactions. Every bank I've ever used or researched allows the same 6!

Re: Ally Bank Interest Increase

itsmetoo — Thu, 14 Jun 2018 00:32:58 GMT

@FrostyBabe1 wrote:
January 2018 was the WORST month for muni's since 1981. While it's true that bonds are technically thought to be safer than stocks, the muni market, according to this article, remains "murky". Municipal entities can and do default on their debt, just like private companies.

https://www.cnbc.com/2018/02/28/are-muni-bonds-still-a-safe-investment-bet.html

DON'T take or believe investment advice from strangers on a message board. Talk to a professional. I worked at the management level in institutional investing, and I would never, ever give advice in a forum like this. Ever. It's foolish, and if you don't have the appropriate registrations with the SEC, it's illegal.

This is so true. Plus you are usually tied into a longer term and if you want to sell your muni before it matures (if interest rates continue to rise as predicted) then your bond will be worth less when you try to sell it.

Re: Ally Bank Interest Increase

CelticCrafter — Thu, 14 Jun 2018 13:29:40 GMT

@itsmetoo wrote:
@FrostyBabe1 wrote:
January 2018 was the WORST month for muni's since 1981. While it's true that bonds are technically thought to be safer than stocks, the muni market, according to this article, remains "murky". Municipal entities can and do default on their debt, just like private companies.

https://www.cnbc.com/2018/02/28/are-muni-bonds-still-a-safe-investment-bet.html

DON'T take or believe investment advice from strangers on a message board. Talk to a professional. I worked at the management level in institutional investing, and I would never, ever give advice in a forum like this. Ever. It's foolish, and if you don't have the appropriate registrations with the SEC, it's illegal.
This is so true. Plus you are usually tied into a longer term and if you want to sell your muni before it matures (if interest rates continue to rise as predicted) then your bond will be worth less when you try to sell it.

We have quite a few but have made the decision not to buy anymore. They go out too far now.

Re: Ally Bank Interest Increase

froggy — Thu, 14 Jun 2018 15:38:56 GMT

@millieshops wrote:
@froggyI think that number is the federally allowed number of electronic transactions. Every bank I've ever used or researched allows the same 6!

@millieshops

I didn't know that. I only mentioned it because it is a savings account and didn't want folks to think they could use it as an everyday checking account. Personally I rarely make transactions in my savings account.

Re: Ally Bank Interest Increase

Mothertrucker — Fri, 15 Jun 2018 02:55:31 GMT

@Snowpuppy wrote:
8 cities and 28 municipal entities (utilities, public hospitals) have filed for bankruptcy since 2010.

Ally bank was rebranded from GMAC Financial after GM filed for bankruptcy.

Just sayin'.

But Ally is no longer GM's captive lender.. GM Financial is, And as a comemercial truck salesperson, I can tell you that Ally's interest rates for vehicle loans have gone up 3 times over the past year, so good that they are passing it along to savers...

Re: Ally Bank Interest Increase

BirkiLady — Fri, 15 Jun 2018 06:09:42 GMT

@Mothertrucker Just went up. Expect it to go up one more time in 2019. Continue to sell those fabulous trucks!