Investing with Ally Bank?

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  • Investing with Ally Bank?


Answer #1 | 20/12 2013 02:47
Does your employer offer a 401K plan? if so check into it and the rate of return, if you could max out your contributions via your paycheck you would get a tax benefit as you don't pay federal taxes on it, and you could use your inheritance to make up for the difference. if you don't have such a plan look into a Roth account, you won't get a tax benefit now, but when you get to retirement age you will withdraw the principle and the interest tax free. Keep some in a short term CD for emergencies but sock the rest away
Answer #2 | 20/12 2013 07:54
Ally is FDIC insured. They have good customer service and a 24/7 call center as well as online chat. I have a savings account there. But I would never use them as my only bank because sometimes you need to be face-to-face with someone at a bank. If I had an emergency need of $2,000 from my local bank I can have it in minutes. What would I do if I needed it from Ally or any other internet bank? I'd have to wait two days or maybe longer.
Answer #3 | 20/12 2013 14:04
Ally is a great online bank. Your deposits (including CDs) are FDIC insured. You will notice some differences between Ally and local brick and mortar banks like Chase. Ally does not offer many of the "services" offered by local banks. For example, Ally does not offer mortgages and loans, or credit cards. There is no local building where you can have paperwork notarized. You can not deposit cash. On the other hand, they offer comparatively high yields on your deposits. Ally's CD yield is almost five times that of Chase's 5 year CD. They also offer free checking, free (unlimited, anywhere) ATM use, free checks, 24 hour humans on the phone, .... If you are looking for a place to save your money, Ally is a good choice. Just realize that you are not really "investing" - - you are "saving". At 1.6% you are actually losing buying power because the U.S. inflation rate is higher than 1.6%.

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