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/biz/ - Business & Finance

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12738346 No.12738346 [Reply] [Original]

How the fuck does Ally bank offer 2.2% apy on savings accounts, and other online banks offer .1 or .2 at best?

What's the catch?

>> No.12738353

>>12738346
Bump for info

>> No.12738361

No catch. Other banks have much higher costs to provide retail banking by maintaining physical locations.

>> No.12738367

>>12738346
You're taking a risk in using a smaller bank with no physical branch to access your account. Your risk is being compensated, retard.

>> No.12738369

>>12738346
The catch is inflation is higher than 2.2% per year.

>> No.12738377

>>12738369
Its about 2.75% per year yet robinhood is offering 3% per year.

>> No.12738385

>>12738367
>Your risk is being compensated, retard.

This is nonsense, there are dozens of other online-only banks with significantly worse rates.

I have USAA right now and their best rate for a savings account with $10k or more is .2. POINT 2.

How does Ally bank offer 2.2? What's the catch? And its not 'its an online bank', as I've already demonstrated that other online banks have much worse rates.

>> No.12738397

>>12738385
American express is 2.1%

>> No.12738442

>>12738397

Nice, another outlier. How do american express and ally offer rates this high, but most other online banks don't?

>> No.12738477

>>12738442
Does it matter if in the end, it doesn't beat inflation by a long margin?

>> No.12738481

>>12738367
Fdic insurance covers 250k, so unless OP is planning on keeping more than that there, this is only a minor concern.

>> No.12738484

My credit union offers more than 2.2 and has for at least 4 years

>> No.12738492

They aren't brick and mortar so they have less overhead costs. Generally speaking a bank can expect 3+% ROI YoY in other investments while they hold your money for 2%, so they're guaranteed a profit with the minimal other costs. Also, other banks are dinosaurs and will cling to those margins rather than attracting new customers.

>> No.12738500

I really enjoy using ally.com/tradeking but dont know why. My spideysense tingles ever so delicately. Put in a high yield CD to put into stocks after the market tanks in a year.