My emergency fund savings account at Fifth Third Bank is currently earning me 0.0384% annual percentage yield. That's $0.38 cents per $1,000 earned every year. What a joke.
Ally Bank to the rescue with a 1% annual percentage yield. Now I can earn $10 per $1,000 instead of $0.38.
Do some research and you'll discover many negative reviews about Ally Bank by folks using them for Auto Loans or as a primary bank:
I'm not going to let this prevent me from giving it a shot. This review from mybanktracker.com fits my use case:
Use it for what it is
I use ally's savings account to get the 1% for my extra rainy day fund.
Basically instead of storing that money in my normal bank where I get next to nothing, at least here I'm getting 1% which is not bad considering I have to park my rainy-day fund somewhere. I'd rather get 1% over nothing.
At first I was skeptical, but over the course of 2 years I've tested transferring money in and out several times in amounts ranging from $1,000 to $5,000. Yes, it takes a few days, but I always see my money getting transferred back to my main bank without a hitch. So far no problems whatsoever. Also, I don't see any transfer fees so I don't know what other posters are talking about when they claim they are getting transfer fees.
By the way I just spoke to their rep: "Our Online Savings account has a limit of six withdrawal transactions per monthly statement cycle. This includes electronic transfers, wires, and checks drawn from the account. A $10 excessive transaction fee is applied to each withdrawal which exceeds the limit. Deposits are unlimited." So my guess if people are using ally for primary banking purposes its not that great an idea. But, if your using it for some extra money that you would need access to within a few days. FDIC insured and 1% interest? Awesome~!
Worth A Shot
I opened my Ally Online Savings account today. I'll follow up on this post later and let you know if it goes well or not.