I’ve written previously about why I think most folks need to look at their checking and savings accounts at their existing bank/credit union. For most people I talk with this about, it’s a fairly easy sell to get them to switch their savings account to a high-yield savings account at some place like Ally (currently paying 4.25% on savings, 4.4% on Money Market). But many of them tend to balk at also switching their checking account, because it only pays 0.10% interest (Ally) and it’s a hassle to switch your checking account because you also have to change your direct deposits and autopays to the new account.
My argument has always been that the 0.10% interest isn’t really the draw (although it’s better than nothing, there are no annoying miscellaneous fees, and checks are free). The reason to also move your checking to Ally (or whatever high-yield savings bank/credit union you choose) is that having your checking at the same institution as your savings always you to keep more in savings (which is earning decent interest) because you have the ability to instantaneously transfer money to checking if you need to. (If you transfer from one institution to another, it can take 2-3 days to show up). In addition, many banks (including Ally) allow you to setup free overdraft protection that will automatically transfer from your savings or money market account to your checking account should you mess up and overdraw.
Well now Ally is offering you $100 to open your checking account (which they’ve rebranded as a “spending” account, since most of us don’t write that many checks anymore) or open a savings or brokerage account, which hopefully might encourage a few more people who didn’t want the “hassle” to consider doing it. All you have to do is open and fund the account within 30 days (with any amount), and setup at least one direct deposit by December 31, 2024. As soon as have at least three direct deposits, you get the $100 bonus (note that the bonus is treated as interest, so you will owe taxes on it). If you decide to open a checking account, you can then begin the process of moving any other direct deposits and your autopays over.
So if you haven’t made the switch yet, or have only moved your savings, this would be a great time to consider doing this (this is the first time I’ve seen Ally with a bonus offer for checking, although it may have happened before and I just missed it).
Fisch Financial 