Posted by Chuck on June 25, 2019
High-Yield APY Accounts

Published on June 25th, 2019 | by Chuck

56

Ally Lowers Savings Rate from 2.20% to 2.10%

[Update 6/26/19: They sent out an email with details of the change from 2.20% to 2.10%. Points for transparency.]

A lot of us use Ally Bank as a high-yield interest account. They just lowered the rate from 2.20% APY to 2.10% APY.

Back in January, they increased the rate from 2.00% to 2.20% as they saw people leaving them after getting their Payback Bonus offer; now, they’ve put it down to 2.10%. It’s getting more compelling to switch over to one of the 2.50% options. Or you can move the funds to the Ally no-penalty CD which remains at 2.30% APY, as before.

Update: a reader notes that existing Ally accountholders are still seeing 2.20% in their account. Unclear if it’s still maintaining that rate for existing users (for the time being) or it just hasn’t been updated yet.

Hat tip to reader Evelio204



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Won
Won

I’m still seeing 2.20%. Is this change rolling out gradually?

qmc
qmc

I see it on the (mobile) home page. Where do you see 2.20?

eclipsor
eclipsor

shows 2.2 still for me on desktop

qmc
qmc

https://screenshots.firefox.com/ELIpgjd1S09Eddov/www.ally.com (desktop) Tried clearing browser cache, maybe?

Won
Won

Both, for me. I’m still seeing 2.2% on mobile. Just checked right now.

RC
RC

I noticed some cuts to their CDs too over the past few months

syn999
syn999

fed hasnt drop rate yet

DCJoe
DCJoe

Mortgage rates, Treasury rates, everything is dropping across the board, as the economy slows and in anticipation of a Fed rate drop. Not surprising and we will probably see similar rate drops from other banks in the next few weeks.

Ferris
Ferris

The market has already had HUGE drops in rates. The Fed only controls the overnight and 2-year yield. The market determines everything else and it has already determined there WILL be a Fed rate drop next month.

Noah
Noah

Why are they dropping though? Federal reserve hasn’t cut rates and market is performing about the same just a bit slower

AB
AB

Inflation is lower than anticipated.

Snorlax
Snorlax

SoFi Money still at 2.25% APY.

E
E

Maybe worth noting that the 2.3% No Penalty CD rate is only good with a $25,000 minimum opening deposit.

Brandon
Brandon

Good to know as this may kill the deal for many like me. I will be moving my savings to something a litte beefier

Chris
Chris

I just closed my account with them today. I hope wealthfront remains at 2.5% for a while…

D Villalobos
D Villalobos

I checked today. Wealthfront actually raised it from 2.52 to 2.57% today. I too closed my Ally account and moving my funds to Wealthfront.

Aks
Aks

Is it FDIC insured?

Bobby C
Bobby C

are these well trusted banks to be putting your money in?

Tolikfox
Tolikfox

PNC still 2.4%

AP
AP

You’re talking about the VW Growth Account, right?

Burton
Burton

Yes. CIti Accelerate is 2.36% if you happen to be finishing up their checking/low interest savings account bonus as well.

AP
AP

Yes, I’m doing that too. I remember your post about the Accelerate account. For PNC, I just moved my balance from HYS to Growth since I’m eligible for 2.40% from monthly DDs to the VW.

Cliftonmcdnl

I just signed up for a Citi account today for the $400 bonus. How do I change it to an Accelerate account and would I still be eligible for the bonus? Or do you mean for after?

Obtain the Grain
Obtain the Grain

Is it time to re-up the 11-month No-Penalty CD?

Kevbo Sampson
Kevbo Sampson

Dumb question. If I deposited money into a savings account at the 2.20% rate in May will that rate stay active for me until May 2020? Or, can Ally retroactively lower my rate to 2.10%?

K
K

They can drop the rate at any time with a Savings or Money Market account.

If it was a CD most options lock you in at a certain rate.

AP
AP

It was a good run, Ally, but I’m still keeping the account. I followed the rate increases with Ally and its competitor, Marcus, for a couple years. Ally would always lag behind Marcus by a couple weeks as far as increasing their rates by 0.05%. Now, Ally is down to 2.10% from 2.20%, but Marcus is still 2.25%. I expect Marcus to decrease as well, but I find it interesting that Ally wasn’t afraid to decrease their rates first.

Jonathan
Jonathan

Yeah. This exactly. Last to raise their rates to compete. First to lower their rates in anticipation of a decreased fed rate. Slow on one side of the equation, and ultra-fast on the other. It’s too cheap to move money these days. Might as well just chase the highest rate.

Daniela S Cervantes
Daniela S Cervantes

Just got an email from Marcus saying that starting tomorrow they’re lowering my rate from 2.25 to 2.15

Sam
Sam

Shame. Ally is worse and worse these days anyway, have already moved all my money out after the extra 1% interest rate debacle. Now Ally is becoming the leader in moving rates down but a follower in moving it up.

qmc
qmc

debacle? what was your issue? worked great for me!

Grant
Grant

Lots of others who have been at 2.25% or higher so not really a surprise to see Ally drop rates, I feel in these circles Ally is over hyped.

SamL
SamL

I use Ally as my main/hub account for all my actual banking (get paycheck, pay bills, ACH in/out), and it works fine for that. But I usually only keep less than $5k in there, so if I’m losing maybe $20 interest per year it’s worth it for having a solid reliable bank. If I have excess cash I’ll put it elsewhere, and just leave what I need at Ally. No point chasing every last penny of interest, and besides, if you’re opening a new account, a bonus is usually more lucrative than higher interest. That said, Ally had better not push their luck too far with seeing how low they can go.

MrObvious
MrObvious

Agree – chasing the differences of 0.1-0.2% for your emergency funds not already tied up in opening bonus accounts is going to be a frustrating and often losing battle.

JackRyan
JackRyan

FWIW Barclays is still 2.2%

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