So I was reading another post the other day. I won't go into too many details but they were mentioning interest earned and everyone responded "you can do better". Well my first reaction was "WHA??????". So a quick google search later and WOW!
So heres the deal. I bank with USAA and am very happy but I am thinking of switching my savings account to FirstIB which is 2.02% (compared to USAA's well less than 1% rate). Here are my questions:
1. Does anyone else bank this way? Aka money in different banks due to rates.
2. Any problems with ACH transfer times when moving funds?
3. Does anyone have experience with FirstIB? We did our mortgage with them and liked the experience.
4. Anyone had importing troubles with FirstIB like there is with USAA?
5. Is there any question I am missing to ask/consider with moving this direction?
Capital One is still my primary checking account but most of my funds go into my Ally Savings account.
I pay most of my bills directly from the Ally account now (there's a couple I have to use a checking account for). It seems transfers to/from different places generally take a few days to fully complete, but bill payments are credited for the date you schedule the payment transaction for (at least for my credit cards/car loan).
One thing to keep is mind is the withdrawal transaction limit on savings accounts.
I use USAA as my main bank also. Have been there for many, many years but about a year ago, I moved my savings account over to Ally. At the time they had the best rate. They have been flawless in terms of ease of doing business and I have had absolutely no issues with downloading transactions to YNAB.
In terms of interest rates, I will tell you that unless you're depositing a hefty amount into the savings account, the difference in rates will amount to very little money. For every $10,000 you have deposited, the annual difference between 2.02% and 1.90% will amount to about $12 , not counting compounding, which can be substantial if you've got a lot of money. I'd rather know I'm dealing with a stable, easy to use bank. And who knows? Because Ally's rates are slightly lower now doesn't mean they will remain lower for any length of time. I'm not going to keep chasing the highest rate around. Maybe if I had a million bucks..................unfortunately, that's not the case for me 😪
I use FirstIB. Lack of a local branch hasn't been an issue for me for nearly 2 decades. ATM fees reimbursed. Mobile check deposit. Transfer between FirstIB savings/checking are instant. Bill pay works great.
I have imported via OFX file. I don't use Direct Import so can't offer any observations on that front.
I also use Synchrony for a slightly higher savings rate. FirstIB charges a fee to initiate transfers to an external bank, so I initiate from Synchrony to avoid that. Synchrony is slow at 3 business days, so I keep a cushion at FirstIB. The required savings balance at FirstIB is $4k (average, fortunately) to avoid fees (another reason for a cushion).
The FirstIB checking rate is quite good, though.
Ally has free next business day transfers, but typically a slightly lower rate than Synchrony (but better than FirstIB). I still have some money at Ally from a promotion they ran, just in case I gotta have it tomorrow. (I sweep pretty aggressively.)
if you originate the ACH transfer from FirstIB which was leaving FirstIB to another bank then they charge $5.
Thanks for the confirmation on this. Conveniently, the need to transfer is greatly reduced since the FIB savings rate matches anywhere I would transfer to. 🙂
Ally has free next business day transfers, but typically a slightly lower rate than Synchrony (but better than FirstIB)
So most of the time you find Ally to be higher than FirstIB? Wondering if I am just checking at a bad time. I contacted Ally and they said they changed their rate on Aug 9th of this year. Prior to that they were 2.2 which would have made this a no brainer for me. lol. They were not sure when they would change again but said they re-evaluate often.
since you're keeping the USAA checking, the savings institution is a bit arbitrary, isn't it?
I have read some reviews about some banks where interactions with them have been less than stellar. Being that some company is holding my funds, how there customer service is seems fairly important in my eyes :).
Are you willing to pay/lose 0.1% ($1 annually per $1k balance) for next day transfer?
This is a really good way to think about things. Thanks!