Surprise! Ally Bank Increases Savings Account Rate

Well, this really comes as a surprise because I have already gotten used to Ally Bank’s endless adjustments of the rates of their banking products. I was so pissed by the bank’s weekly rate reduction (yes, a rate change here or there every week) that I left Ally Bank only a couple of weeks after opening an account with it. I mean, what’s the point of twisting the savings account rate every week? Seriously, what do they expect to gain from making such frequent rate changes? In my opinion, nothing but annoying people.

However, for whatever the reason (nothing has changed in the environment since the Fed has kept the benchmark rate at the same low level for a long time), Ally Bank has decided to move up the rate of their online savings account from the current level of 1.70% APY to 1.75% APY, starting tomorrow. A strange move that I doubt will impress savers. Thought, this is a positive move, I am not impressed. Not only because the rate increase is so small (only 0.05%) that it’s almost meaningless, but mainly because I don’t feel there’s any stability in terms of rates at the bank right now. When I look at a savings account, I first want a good rate, then I want it to be stable. Unfortunately, Ally Bank offers neither from what I can see.

Despite the tiny change, I still hope it marks the beginning of an upward trend. Is that possible? It is, but unlikely. It will be too funny if Ally Bank makes the rate up one week, then down the next.

Update: Ally Bank made another increase of its Online Savings Account in September, which is now at 1.80% APY.

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