Time to Dump Ally Bank

I decided to end my short relationship with Ally Bank, though not completely.

For the two weeks that I banked with Ally, I felt very disappointed about the bank, not only because the trouble it caused during the process when I was opening my second CD account last week, which is very discouraging, but also the way the bank adjusts its interest rate. I was attracted to Ally because it had very competitive rates when the bank was re-launched in late May. However, in less than two months, the bank has reduced rates of all its products (CDs, Savings, and Money Market) significantly. What bothers me even more is that Ally Bank now seems to change its rates every week!!! Unlike other banks that made an adjustment then stay there for a while (a few weeks or even a few months), Ally Bank kept making small changes on a weekly basis since early June when it reduced its rates the first time. What I see from these small, but constant adjustments is that they just can’t make up their mind on how much they can afford to offer their customers. I really can’t figure out the reason behind all these frequent changes, even though they have every right to make whatever change they feel like to make. It’s like every time they looked around, they found that they can go a little bit lower and did exactly that.

I don’t understand it and I am not going to try to understand what they are doing. As I said, the only reason I opened an account with Ally Bank was that I liked the rate. Now that factor is gone, there is simply no reason for me to stick around. So today I moved the $1,000 initial deposit I have in the savings account back to Dollar Savings Direct, where I can earn 2.00% yield. After the transfer, I only have $1,000 left with Ally Bank in the 9-month CD account at 2.15% APY.

Maybe it’s a mistake to open the account with Ally Bank in the first place, with all what happened with the bank in the past two weeks.

BTW, I am very happy to see that two transfers I made last week didn’t go through after all. Bank of America blocked the two withdrawals, so no negative balance on my account any more. Maybe the stop order did work :)

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This post was written by Sun You can find out more about Sun and his activities on Facebook , or follow him on Twitter .

7 Responses to “Time to Dump Ally Bank”

  1. Matt B |  Jul 11, 2009 at 7:38 am

    Good to know, for a hot minute…I actually thought about moving some money to Ally to try them out. Now I know better.

    • Sun |  Dec 23, 2009 at 10:32 pm

      I just can’t believe why a bank changes its savings account interest rate every week.