Ally Lowers Savings Rate To 1.60% APY (Begins Tomorrow)

Update 12/19/19: Rate will be reduced to 1.6% APY tomorrow.

Update 11/13/19: Rate reduced to 1.70%.

Update: Rate reduced to 1.8% APY

Ally is sending out an email that their online savings account rate will be lowered to 1.90% beginning tomorrow, August 6th.

Starting 08/06/2019, your Online Savings Account will earn 1.90% Annual Percentage Yield (APY) on all balance tiers.

Your APY is more than 20x the national average — so you can rest assured that your money is working hard in your savings.

In June they lowered from 2.20% to 2.10%, and now down to 1.90%. Many banks are lowering their rates recently due to the recent fed rate drop. We’ll probably see more on this coming days, I’m  just posting Ally separately since it’s a big step to drop under 2%, and because many of us use their savings account.

Far as we know, the Ally no-penalty CD rate will remain at 2.30%. We’ll see.

Hat tip to reader Avi

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114 Comments
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Guy who buys stuff
Guy who buys stuff (@guest_1106865)
December 10, 2020 16:50

0.5%. Almost time to empty accounts and use the money as mattress stuffing

Guy who buys stuff
Guy who buys stuff (@guest_1061506)
September 24, 2020 14:23

0.6%

Guy who buys stuff
Guy who buys stuff (@guest_1011614)
July 7, 2020 21:27

Ally goes to 1.0% as of 07/08

Walta
Walta (@guest_935990)
March 13, 2020 09:39

Ally is dropping the rate again 🙁 1.50%

Sam
Sam (@guest_899723)
February 5, 2020 18:11

When Ally refused to pay me the $1000 bonus for a promo they had back then when their terms and conditions were wrong, I never used them again for anything but a hub bank and keep less than a few hundred in there. I probably went from being one of the most profitable to a completely unprofitable customer after that

Jay
Jay (@guest_871323)
January 10, 2020 12:59

Anyone else notice that Ally went backward with their transfer speed on January 1st? Or am I the only one with this change. What used to be all 1 day external transfers now takes 3 days for any external transfer.

I guess their trying to discourage people using them as a hub account?

GoodCow
GoodCow (@guest_871349)
January 10, 2020 13:27

they’re trying to cut back on infrastructure cost

Shawn
Shawn (@guest_861379)
December 23, 2019 16:24

It seems like people make too big of a deal out of a 10 basis point change. This is a difference of $10/yr on a balance of $10,000. It’s not worth the time to keep chasing accounts that pay slightly more.

Sam
Sam (@guest_860492)
December 20, 2019 14:31

Ally is still the ideal hub but now terrible at interest rates and customer service.

SamL
SamL (@guest_861383)
December 23, 2019 16:32

I wonder how they feel about keeping a few bucks in there and then occasionally bouncing (e.g.) $10k+ in and straight out? (Sometimes transferring from X to Y may be easier via Ally than directly.)

COBOLCODERUSEALLCAPS
COBOLCODERUSEALLCAPS (@guest_871327)
January 10, 2020 13:05

This is what I use Ally Bank for. Their rates are never competitive.

SamL
SamL (@guest_871377)
January 10, 2020 13:58

So Ally doesn’t seem to mind being used like this? I’d used Ally as my regular bank for several years, but now I’m mostly just ACH-ing, and I wonder if that could set off flags.

John
John (@guest_860394)
December 20, 2019 10:45

Dang I just transferred a huge sum into Ally yesterday. Time to transfer it back out lol.

Abdol Chogi
Abdol Chogi (@guest_860519)
December 20, 2019 16:02

keep in mind that it always takes 3 -5 business days for the money to get transferred between banks, those days you are missing the interest

Ac
Ac (@guest_860369)
December 20, 2019 10:08

I don’t see any news about fed reducing interest rate, so now why the are reducing the rate?