Skip Ally Bank... Here's a MUCH better option

TL;DR

Find out why Ally Bank is no longer the top choice for online savings accounts and discover the higher APY rates offered by Wealthfront and Betterment.

Transcript

• So in this video today we're going to be talking about the best place to put your short term or emergency fund savings. So a lot of people out there, including myself, have a decent amount of cash saved up that you don't necessarily want to go out there and invest in the stock market or real estate because this is money that you wanna have set as... Read More

Key Insights

• 🌸 Placing short term or emergency fund savings in traditional bank accounts is not a wise choice due to the low interest rates and the loss of value from inflation.
• 🥺 Ally Bank used to lead in online savings accounts, but their recent rate change has made them less competitive.
• ✋ Wealthfront's cash account offers a higher APY of 2.57% and other attractive features.
• ✋ Betterment Everyday Savings provides FDIC insurance, zero fees, and the highest APY of 2.69% among the mentioned options.
• ☠️ Both Wealthfront and Betterment are able to offer higher rates due to being in the growth stage and having significant venture capital support.
• 🤖 Betterment Everyday Savings will soon release an online checking account that integrates with their robo-investing platform.
• 👻 Affiliates of Betterment are not allowed to have a Betterment account, but can consider switching to Wealthfront or other options.

Questions & Answers

Q: Why do people avoid putting their emergency funds in traditional bank savings accounts?

Traditional bank savings accounts have a low interest rate of around 0.05%, which is significantly lower than the inflation rate, causing a loss of value over time.

Q: What are some disadvantages of using Ally Bank for online savings accounts?

Ally Bank used to offer a competitive rate, but recently lowered it to 2.1%. This change has made some people consider switching to other online savings account options.

Q: What are the advantages of using the Wealthfront cash account?

The Wealthfront cash account offers a higher APY of 2.57%, FDIC insurance up to one million dollars, unlimited free transfers, zero fees with a $1 minimum, and other appealing features.

Q: What makes Betterment Everyday Savings a better option than Ally Bank and Wealthfront?

Betterment Everyday Savings offers FDIC insurance, zero fees with a $0 minimum balance, and an impressive 2.69% APY, which is higher than both Ally Bank and Wealthfront.

Summary & Key Takeaways

• Traditional bank savings accounts pay around 0.05% interest, causing a loss in value due to inflation.

• Ally Bank used to have a competitive rate of 2.2% but lowered it to 2.1%, prompting people to consider switching to other options.

• Wealthfront introduced the Wealthfront cash account with a 2.57% APY and other appealing features.

• Betterment's Betterment Everyday Savings offers FDIC insurance, a $0 minimum balance, and an impressive 2.69% APY.