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This rate is not for a CD, this is a standard savings account rate. So the big difference is having complete liquidity versus putting your money into a CD which typically will have an early withdrawal penalty if you need to access your funds before maturity. Also, if you lock yourself into a CD and rates continue to go higher, you may lose out on some additional interest at other banks as they increase their rates. Once I see rates start to come down, I'll probably put some money into a CD that matures in a few years to continue to earn high interest even as rates start to decline.
They are jumping the gun by a week, counting on a 1/2 percent increase by the Fed in the next meeting. Assuming that happens, by the end of the month other online savings accounts will be in the 4.5% to 5% range. Solid rate tho.
And yeah, if you have more than $250k in an account, you might want to break that up and have a few accounts to keep your balances under that threshold…But I bet you already knew that if you have that much cash sitting around.
Nah takes like a day. They just sit on our money and earn on their end for a week then allow it to post so we start earning. LOL
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so, you like lower yield and locked in rates? get a Bank of America savings account
The CD is for people who have and use Ally already, and the value of a no penalty is liquidity at a good rate that compounds daily and is guaranteed for at least 11 months. If you're rate chasing rather than using Ally as a Hub account, then that's a different issue altogether. This is not a brokered CD, treasury, etc.
The way I test these online bank account's responsiveness to the fund transfer requests (how long it takes to transfer money out) is to initially deposit a couple of dollars and, once the money is available to transact, I put in a transfer-out request $1 at a time. There are some high-yield savings out there that transfer funds overnight so long as you schedule by, say, 4 pm Eastern, and there are others that are as slow as grass growing to do the same.
This UFB Direct has been reported to be in the "grass" category. I have just opened the account, so I am finding out soon.
If I see that a particular joint is too slow for me, then I just take out those $2 and leave it at zero balance.
So whats the verdict UFB or IvyBanks Index Savings Account?
If feds raise rates next week as UFB expected Ivybank will be in the 5% also
Currently 4.75% Annual Percentage Yield (APY)
the rate for this account is determined by the 1 Month Treasury Par Yield as published by the U.S. Department of the Treasury's Daily Treasury Par Yield Curve Rates on the first business day after the 15th of the month.
Using the external transfer feature online, within the first 120 days the external outbound transfer limit is $25,000 per transaction up to $100,000 a month.
After 120 days, this gets increased to $100,000 a day up to $500,000 a month. The inbound limit is $250,000 per transaction up to $1,000,000 a month.
No checks or ATM cards but not an issue for me.
Wire Transfers Incoming (Domestic and International) Free
Wire Transfers Outgoing (Domestic) $35.00 each
Wire Transfers Outgoing (International) $45.00 each
This is not the ACH transfer right? I used the transfer button then the app asked me to search for the bank, I searched for my discover bank then log in from that page and now my Discover account show up in that transfer page. Everytime I go back and I just pick it up the transfer from then transfer it.
Hope this type of transfer has no fee.
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And yeah, if you have more than $250k in an account, you might want to break that up and have a few accounts to keep your balances under that threshold…But I bet you already knew that if you have that much cash sitting around.
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The CD is for people who have and use Ally already, and the value of a no penalty is liquidity at a good rate that compounds daily and is guaranteed for at least 11 months. If you're rate chasing rather than using Ally as a Hub account, then that's a different issue altogether. This is not a brokered CD, treasury, etc.
Poor dude. How embarrassing...lmao 🤣
They've been around a long time, then lost leader status on highest rates. Guess they are getting back in the game.
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This UFB Direct has been reported to be in the "grass" category. I have just opened the account, so I am finding out soon.
If I see that a particular joint is too slow for me, then I just take out those $2 and leave it at zero balance.
If feds raise rates next week as UFB expected Ivybank will be in the 5% also
Currently 4.75% Annual Percentage Yield (APY)
the rate for this account is determined by the 1 Month Treasury Par Yield as published by the U.S. Department of the Treasury's Daily Treasury Par Yield Curve Rates on the first business day after the 15th of the month.
Using the external transfer feature online, within the first 120 days the external outbound transfer limit is $25,000 per transaction up to $100,000 a month.
After 120 days, this gets increased to $100,000 a day up to $500,000 a month. The inbound limit is $250,000 per transaction up to $1,000,000 a month.
No checks or ATM cards but not an issue for me.
Wire Transfers Incoming (Domestic and International) Free
Wire Transfers Outgoing (Domestic) $35.00 each
Wire Transfers Outgoing (International) $45.00 each
Hope this type of transfer has no fee.
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