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{ 12 comments… read them below or add one }

Greg December 3, 2012 at 6:59 am

Since you ask…

Having used both, I have found Ally Bank to be superior to ING Direct. Ally has consistently high rates, almost always higher than ING. Ally’s website is just as good as ING’s, and you can use a real password instead of a short number. You can link open accounts, link external accounts, initiate transfers, and schedule transfers all online. Transfers usually take about 2 business days for external accounts and are instant between Ally accounts. The penalty for breaking a CD early is only 60 days of interest. Phone support is available 24/7 and there is usually little to no hold time. The reps are helpful, friendly, and domestic. There are no fees for normal activity. I did have to pay a fee for an outgoing wire. You can deposit checks by mail. Ally will send you addressed, postage paid envelopes on request.

Complaints: Their rates aren’t the absolute highest. I had some trouble getting an account open; I had to call and (I can’t remember) maybe fax something in. They don’t allow certain characters in passwords. They don’t provide OFX downloads for financial software to automatically grab. You have to call to break CD’s early.

I haven’t tried it yet, but they also have a well rated iOS app that supposedly allows for camera-based deposits.

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retirebyforty December 3, 2012 at 8:33 am

Thanks for your input. I’ll try Ally soon so I can compare them.

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Leigh December 3, 2012 at 7:12 am

I switched to Ally a year or two ago from ING after being with ING for many years like you. I went because I wanted to open some CDs and their rates were better. My main complaint with them is that they send me paper mail after I open a new account, but I guess that’s not the end of the world. Other than that, I’ve had pretty good experiences with them and would definitely recommend them!

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Kurt @ Money Counselor December 3, 2012 at 9:47 am

Very timely piece for me Joe, as I’m looking to open a new online account. I’ve been using EverBank for year–it’s fine, but it hasn’t kept up with the rates the CITs of the world are paying.

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retirebyforty December 3, 2012 at 1:45 pm

CIT has the highest rate right now, but Ally bank is also competitive. I’m not sure what happened to EverBank, they were always competitive before.

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Ian December 3, 2012 at 10:15 am

My girlfriend recently switched over to Ally and so far she has had a pretty good experience. I planned on seeing how she liked it then I will probably switch as well.

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retirebyforty December 3, 2012 at 1:46 pm

Thanks for the input. I’ll keep Ally in mind if I need to change.

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Tiffany December 3, 2012 at 11:48 am

I have really liked ING and our savings is less than $20k right now so the increase in interest is not worth it (for us) to change. But, if we had $50k+ there, we would consider it.

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retirebyforty December 3, 2012 at 1:47 pm

How about Ally bank? I wonder if Capital one will lower the rates further.

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Gen Y Finance Journey December 3, 2012 at 2:35 pm

Ally recently added mobile check deposit, so I now have no complaints about them anymore! I absolutely hate their online check deposit system (too frequently it tells you there’s something wrong with your check image even though it meets their stated requirements), but I just tried out their mobile check deposit for the first time and it went incredibly smoothly!

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Paul N December 3, 2012 at 3:00 pm

Just wondering why you would keep such a large amount of cash earning 1.00% interest? I’m in Canada, so I am not sure if you have the equivelent of a no load, no penalty for withdrawls after 30 days, Monthly income fund that pays you a monthly cash distribution? They are usually pretty conservative type funds. (Some people call them closet index funds with a bond component). Wouldn’t that be something to consider instead.

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retirebyforty December 4, 2012 at 10:06 pm

We wanted to keep a large cash cushion for a couple of years after I retire. This will give us a chance to figure out if I can stay retired. We’ll reduce the cash saving in 2014 if things look good.

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