[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
Ally now lowering online savings rate fro 2.10% down to 1.90% effective August 6th, 2019. Just received the email. Terrible on their part. I’m assuming they are “baking” in another rate cut this year by the Fed given the current state of the China Trade-war, down .35% in a matter of two months. Luckily in 2.80% and 2.8% 14 and 15 month special CDs with them for most of my balance.
I’m moving to Wealthfront and some of the other high interest accounts you’ve mentioned.
Corporate Greed!
My change was immediate. As soon as I read the email I checked my account and sure enough it was at 2.10% APY. I actually closed my account immediately, the reason being that Wealthfront raised their APY from 2.52 to 2.57% the same day that Ally lowered it.
Mine dropped to 2.10%
Just looked at my online account. Sure enough top right corner states 2.10%. They never sent me anything stating they were lowering their rates??
Reason it was still at 2.2 is because you were locked in until the end of the interest period (1 month), today it updated on my account and now it shows 2.1%.
Ah, okay, that makes sense. Wasn’t aware there was a month lock-in period.
There’re still several nationally available 2.5% accounts, but I do not like the trend.
Bummer. Switching my savings to Wealthfront.
Asked Ally via chat. They confirmed it. It takes 24 hours to reflect in users accounts.