Posted by Chuck on January 15, 2019
High-Yield APY Accounts

Published on January 15th, 2019 | by Chuck

156

Ally $1,000 Promo Ends Today – What to do with the funds now

The Ally Payback promotion offered a 1% bonus on any new funds brought into Ally, up to $1,000 back on a $100,000 deposit. Lots of us jumped on this deal, either as new Ally customers or as existing customers who added more funds to their accounts. A while back, Ally even sent out a confirmation email with exact details of how much we’ll get.

Today, January 15th, is the last day your funds are locked up. Beginning tomorrow, you are free to transfer the funds out of Ally if you so desire. The bonus will post sometime within the next month, but regardless, the funds are no longer required, just make sure to keep your account open in good standing.

What to do with the funds now?

Personally, I’ve done most of these bonuses making me ineligible. I’m pretty interested in the Sapphire Banking bonus, but the optimal way of doing that one is to first do a regular Chase checking/savings bonus and then upgrade – I’m not eligible for the regular bonus until next year, so we’ll see.

I’ll probably end up leaving my funds with Ally in a no-penalty CD for the time being until something better comes along.



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Mike Advantage
Mike Advantage

I’m glad I decided against the Ally CD. I went for the Ally Savings. Now I can pull the money out a month early and move 100k over to Heritage for 3.33% interest.:)

joE
joE

Heritage is a no brainer, my favorite place to park funds. Lets just see how long they will keep this rate going.

Halamadrid
Halamadrid

It’s not exactly parking though if you have to do things to maintain the high rate according to the terms (max is also 25K so you would have to do this for each account):
1. Make 10 or more debit card payments and/or purchases that will post to your account each month (excluding ATM transactions)
2. Have at least one direct deposit or automatic payment (ACH) each month
3. Receive monthly eStatements

Jason_08
Jason_08

You also have to login to the account. simple step, but still required

LC
LC

+1… not parking at all

Jay
Jay

Heritage only pays that much up to 25k though

Ellie Arroway
Ellie Arroway

You can have multiple accounts with them.

Debit
Debit

Multiple accounts under the same SSN?

Jason_08
Jason_08

yes, you can have multiple accounts all earning the rate

Chris Spencer
Chris Spencer

Really? is there an obvious way to do this? Can this also be done with First National Bank? I’m going to look into this when my Keesler CD expires!

Charles Mann
Charles Mann

Heritage who? Do you have more info?

Ann
Ann
JW
JW

I only have the no penalty CD with Ally and if I move my money out now, how would I receive the bonus? A check in mail?

DeeezNuuts
DeeezNuuts

“Account(s) must be open, funded, and in good standing from the time the new funds are deposited into the account(s) until the time of Cash Bonus payout.”

Based on this fine print, CDs have to stay open till 2/15, so those that went the No-Penalty CD route might lose part/all of their bonus if they close the CD on 1/16

steve
steve

any concerns on taking money out tomorrow when they said they would not pay the bonus till 2/15/19?

joe
joe

Im keeping mine in for another week or two to be safe. With the Capital One $500 bonus, i ACHd 50k in and out again 5 days later, and they gave me problems because i needed to leave it in for 10 days even though it wasnt mentioned anywhere. Eventually got the bonus, but just throwing this out there for those who want to be on the safe side

DeeezNuuts
DeeezNuuts

It should be fine to pull out as long as the account(s) funded during the bonus time-frame are still open by 2/15. Hence, it’s ok to take out of your ally savings/checking accounts as long as you don’t close them. CDs will have to be untouched till 2/15 since you can’t take money out of them unless you close them.

James
James

10/19; signed up for bonus with new savings account
10/25; closed no penalty CD with Ally and moved funds into external account
10/29; moved new funds from external account to fund the newly opened bonus savings account.

I hope I can receive the bonus, but I didn’t know Ally sent a follow up email with exact bonus details. Since I never received it, I’m guessing I don’t qualify. I’ll find out shortly, I suppose

JV
JV

they probably didnt count your money since the promotion was based on net deposits, not total deposits. I use Ally as my main bank so couldnt participate in this promotion since most of my funds were already there and i didnt have inside knowledge to move my money out before the start of the period.

edmund
edmund

I emptied my Ally savings to Discover on 10/11 and I qualified for the bonus. My account was emptied between the look back date and when they announced the offer though.

James
James

Did you get a follow up email detailing the exact bonus amount then? Their terms indicate from 10/8/18 thru 11/5/18 for new funds.

edmund
edmund

Yup. Moved it all out to Discover, signed up for the Ally offer, and pushed the money back in before the end of the month (plus some money from other accounts/paycheck). Email said I’d get $110 but I put $12k in there. I’m not exactly sure how they got that number but I wasn’t going to ask them!

Lil Ol' Me
Lil Ol' Me

I was told by a friend of mine who works at Ally that you could move the money from one CD to another. So I believe you only need to have an account open at the time the money is paid out. In other words, if you open a savings account, and fund it with your CD you can then withdraw most of the money ad put it elsewhere and you should be fine.

JZ
JZ

man, funded my CD. closed it and transferred to the savings. No bonus posted…

AP
AP

Compared to their competitors, Ally has always been slow to increase their APY %. I reckon that soon we’ll see an increase on the Savings account APY%, probably to the tune of 2.20% APY.

Sam
Sam

Nailed it.

RMM
RMM

I can only imagine how much funds are transferred around (to Ally in this case) because of your posts. Great job!

Mike Advantage
Mike Advantage

i’m guessing around half a billion dollars 😉

datapoint1
datapoint1

I have the no-penalty CD as well. Wondering if I can open a savings account and break the money into that account, so that I can move the money while keep an account (the savings account) with Ally for the bonus payout.

DeeezNuuts
DeeezNuuts

“Account(s) must be open, funded, and in good standing from the time the new funds are deposited into the account(s) until the time of Cash Bonus payout.”

The account has to be “open” till 2/15. If you close a CD, you are putting the bonus tied to that CD in jeopardy.

A M
A M

Thanks for pointing this out

james
james

have you tried calling i called and talk to two reps they said as long as you have a savings account it is no issue

jp P thoms
jp P thoms

https://www.allypaybacktime.com/rules I am guessing that would be the best move. Once the savings account is opened, just move the funds there then disperse, but keep a few dollars in the account to keep open. The when the promotion posts, it will…(but best to call first to confirm”

Cash Bonus – Eligible customers that fulfill required enrollment and eligibility requirements will be paid the Cash Bonus within 30 calendar days to an account held by the enrolled customer. If the enrolled customer has more than one account with Ally Bank, the account that receives the Cash Bonus will be determined using the following logic:

1 Online Savings Account with highest balance
2 If no Online Savings Account: Money Market Account with highest balance
3 If no Online Savings or Money Market Account: Interest Checking Account with highest balance
4 If no Online Savings, Money Market, or Interest Checking Account: CD with highest balance. The Cash Bonus will be paid as interest during the term of the CD.

Rudy
Rudy

Ally has sent out promo emails saying “transfer your savings to 2.8% APY 14-month CD without affecting your bonus”

Decent choice too.

Jeremy
Jeremy

@DOC, another option is to open a brokerage account, get a brokerage sign-up bonus and invest in Vanguard funds as you pointed out. However, in states with state income tax, I would recommend Treasury bills/notes. The yield on the 4 week note is now at 2.42%, and you don’t pay state/city income tax on treasuries. No FDIC on treasury bills, but you shouldn’t need it. If you do, there are much bigger problems.

jan
jan

Which brokerage firms should we consider?

Erik
Erik

Fidelity has an auto re-buy feature and no commission. For people in CA and NY, Tbills are a no brainer right now.

Andrew
Andrew

Erik, sorry, what do you mean by “auto re-buy”?

Jeremy
Jeremy

Gotta love that extra 9.3% in CA on top of the 2.43% yield on 4 week notes.

Vivian
Vivian

Sorry what do you mean by the extra 9.3% for CA?

qmc
qmc

I’m guessing he’s talking about the state income tax rate ($56000-286000 bracket)

qmc
qmc

.

qmc
qmc

Merrill has a 100k/$275 offer (200k/$900) is one I know of.

Jeremy
Jeremy

I upgraded with Chase to the Sapphire Banking 60K offer. My plan is to move this money there and plant it in Treasury bills.

Steve

Where are you buying treasury bills (I’m aware of multiple options, but I’m curious which way you’re using)? TreasuryDirect? Or in a brokerage account? Or do you buy an ETF / mutual fund?

Another option that’s exempt from taxes is municipal bonds (I use a state-specific muni bond ETF).

Debit
Debit

but the optimal way of doing that one is to first do a regular Chase checking/savings bonus and then upgrade

If you do sapphire banking this year are you ineligible to do regular checking/ savings next year? Why is your strategy optimal?

F
F

I’ll also like to better understand this.

In addition, the 1/10/19 update on the Sapphire banking DoC page says “This offer is now only for new accounts.” Does that not mean that you are ineligible for the bonus when upgrading?

William Charles

Let me update, you can do upgrades still

Betelgeuse
Betelgeuse

Did everyone get the email from Ally today? I didn’t get any emails though I got the one in Nov about the bonus.

James
James

Was the email in Nov about the exact bonus amount that you’ll receive? What is today’s email state?

K
K

The CIT 2.45% rate is good, but I keep holding out for them to offer the $100 bonus for 90 days of $15,000 again. Hopefully they do it soon.

Rob
Rob

Seems like CIT’s app leaves something to be desired. it’s kind of putting me off from moving funds from Ally and just sticking it in the 2.3% CD. What’s been your experience with CIT?

Jeremy
Jeremy

DB: When I signed up for the account. I originally signed-up for a savings account. About a month later, I called to see if I could move the funds to a No-Penalty CD. They said since the funds would remain with Ally, I could. I left $1 in the savings account. I believe, based on this, I should be able to liquidate the CD and move it back to savings. We’ll see though…

Maz
Maz

I did the same — initially put funds in savings, then opened a no-penalty CD and moved most of the funds into it. I would think that as long as I still have a savings account open after I break the CD tomorrow, I will be eligible to receive the bonus even if I have moved the funds out of Ally.

Chatan
Chatan

I will be move $50K to Capital One to take advantage of the $500 bonus after about 100 days. The rest will be going to Orion FCU…

Victor
Victor

Can someone from CA open an Orion 4% checking account?

Chatan
Chatan

I would assume so. I’m in Texas and have multiple accounts open with them.

james
james

Did you open the 2nd and 3rd account online or via telephone?

arizonapv
arizonapv

james James James, I opened the 2nd account at Orion via the telephone.

arizonapv
arizonapv

Victor Victor, Yes, people from CA are reporting that they opened an Orion account.

Victor
Victor

Thanks guys!

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