New 2% High Interest Saving Account-Ally

[Xenko]

hmmm, daily compounded interest.

That is interesting.

[Lyrrad0]

So, on an account compounded monthly @ 2% $10,000 would earn $201.84 in a year.

The same account would earn $202.01 if compounded daily.

This is the equivalent of about a 0.0017% increase in the interest rate.

[bruizeman]

I didn't see much info on their page... but..

How would I transfer money in/out from their accounts?

[Xenko]

So, on an account compounded monthly @ 2% $10,000 would earn $201.84 in a year.

The same account would earn $202.01 if compounded daily.

This is the equivalent of about a 0.0017% increase in the interest rate.

I agree the difference isn't much (1 or 2 cents per month on $10,000) but this is the first time I have ever seen daily compounding interest. It also means that if another account had 2% rate, then ally would still be (very slightly) better.

[Xenko]

I didn't see much info on their page... but..

How would I transfer money in/out from their accounts?

I'm assuming it would be similar to ING Direct or CTFS, where you would link to a chequing account you have, and then do electronic fund transfers between the accounts to transfer money in and out.

[CorSter]

I'll bite. I'm going to open an account next week. I'll keep you posted.

[MrDisco]

I'll bite. I'm going to open an account next week. I'll keep you posted.

i'll bite as well. will set one up later today.

[hola2005]

American banks are moving into CA. Oh Oh. We better watch out from these, I hope they wont cause another recession in the near future.

[angel_wing0]

How would I transfer money in/out from their accounts?

online transfers...

[gazix]

So with more and more virtual banks with high rate savings accounts popping up everywhere. Does that mean, because of so much competition, might start to get better rates? Or will they just assume that there are enough people tired of crappy gic rates and have more than enough customers to go around. Then throw in incentives just for the first few months just as a lure?

Canada savings bonds, just had a pamphlet at work. Years ago would have been tempted, but now I'm financially aware and know better Thanks to this website and reading financial books! Wish I would have converted from a financial lemming years ago!

[angel_wing0]

well u give up cheques for online banking...so it really depends on preference.

[poop_on_you]

All of these banks should tell people exactly the max number of holding days, number of debits, charges for extra debits, etc.

[evoviii]

5. We must receive your request at least three business days before the scheduled transfer date. If you write or send an email request to cancel a transfer, you may be charged for a stop payment if permitted under your account agreement. Refer to your account agreement for more information.

Looks like you have to have the funds 3 bus days in advance and if you cancel could be charged a fee.

I didn't see anymore details regarding time to transfer in or out. They can charge you NSF as well if you don't have enough funds at the time of transfer.

Since I never had an issue with that, I'm curious if any of the other online banks charged such fees.

[matradley]

I agree the difference isn't much (1 or 2 cents per month on $10,000) but this is the first time I have ever seen daily compounding interest. It also means that if another account had 2% rate, then ally would still be (very slightly) better.

I believe most banks with standard savings accounts compound daily and pay monthly.

[Jon Lai]

Hmm... this might be a good choice, since People's doesn't have online banking

With several banks now at 2.00%, which one is best to go with?