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CapWest Mortgage: Discounts For Costco Customers, Good Rates For Good Credit

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My wife and I have been looking recently at possibly either buying a new home, or even building one if we were able to find the right lot.  Home prices are more reasonable now than they've been in a long time, and it sure is tempting to think about buying or building our dream home right now while the prices are so reasonable.

The thing is, however, so many are predicting that we still haven't hit the bottom of the real estate market, and in fact we may see a newer and lower bottom to the price floor.   While I think that idea has cooled us a bit on the idea of buying a new house right now, we're still looking, and keeping our eyes open for a mortgage company that we could use if we were to move. We're pretty sure we won't want to use Bank Of America again, for a variety of reasons. One mortgage company we're considering is CapWest Mortgage.

History Of CapWest Mortgage

Farmers Bank & Trust, is a small regional bank  founded in 1907 in a central Kansas town.  Their main business was with local farmers in the area.  Over the years they've grown and now have representation in several metropolitan areas in the Midwest, and across the country via the web. CapWest Mortgage, which this review is focused on is a subsidiary of Farmers Bank & Trust. From their site:

CapWest philosophies are paralleled with that of its parent, Farmers Bank & Trust, N.A., of Great Bend, Kansas; quality, honesty, integrity and ethics. A progressive national banking organization, Farmers Bank & Trust has strengthened customer confidence for over 97 years.

Since 1971, this family owned community bank has grown in assets from $4 million to more than $520 Million and maintains branch banking locations throughout the Central Kansas Region.

So CapWest is the relative newcomer to the Farmers Bank and Trust family, but they've been quickly expanding over the past decade and offering their services beyond just the Kansas area.

Better Business Bureau Rankings

I did a little bit of research on CapWest Mortgage, their customer service, and their Better Business Bureau rankings.  While you can't always rely on the BBB rankings, it still can be one of many indicators showing whether or not a company has good customer service.   When checking out CapWest, they came through with flying colors with an A+ rating on a scale of A+ to F.  While I wouldn't stake my entire reputation on the BBB, it's at least one of many signals to check.

CapWest Rate Check

One of the most important things to consider when checking out a mortgage company – is figuring out what your rates will look like when using the company.

I came up with a hypothetical situation where I would be taking out a $300,000 mortgage on a home purchase price of $350,000 for my city here in Shakopee, MN.  Here are the rates it gave me (in April 2011), all with closing costs around $3100.

  • 30 Year Fixed Rate Mortgage: 4.750% Rate – 4.979% APR – $16821.44/month
  • 20 Year Fixed Rate Mortgage: 4.375% Rate – 4.474% APR – $1922.77/month
  • 15 Year Fixed Rate Mortgage: 3.875% Rate – 3.978% APR – $2245.32/month

Their rates are going to be right in the middle when comparing to other companies I've run quotes for today.  The only thing is – if you're a Costco customer, you may be paying less – so it could mean a better deal.  To find out more details about that and to run a quote, click on the link or banner below.

Get Up To The Minute CapWest Mortgage Rates Here

Costco Member Discounts

One thing that I saw when researching CapWest was the fact that they advertise as having “special rates for Costco members”.  We're not members yet, but a membership isn't that expensive – and if we could save some good money by becoming members, we'd definitely consider it.

So what are the Costco Discounts? That's where it gets a little hazy.  On the Costco.com site they talk about their approved mortgage lenders, which CapWest Mortgage is one of, and how they have capped lender fees and lower rates than might otherwise be available to non-members.

Lender Fees have been capped at $600 for an Executive members and $750 for all other members. In addition, the borrower will pay for what is typically called 3rd party fees, such as appraisal, title, and credit report. These fees vary based on the details of your loan. All out of pocket expenses, lender fees and closing costs will be discussed with you at the time of application.

So depending on just which fees are capped, and what out of pocket costs they keep lower, this could definitely save you quite a bit of money. My only suggestion is if you're seriously considering using them, give them a call and see what they can tell you the discount might be.

What Do I Think?

CapWest Mortgage has quickly popped onto my screen lately because of the buzz I've been seeing on other PF blogs, and via companies like Costco that now list them on their website as an approved lender.  From everything I've read on the Better Business Bureau site and other sources they have good customer service, and their rates are competitive. If you've got good credit (do you have good credit?) you'll probably be able to get some good rates, and if you become a member at Costco you can probably have your lender fees capped and get a lower rate.  All in all CapWest Mortgage is definitely worth checking out.

To find out more about CapWest or their mortgage discounts you can go to their site through the link below.

Betterment.com Review: Making Investing As Easy As 1-2-3

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There's been quite a bit of buzz lately about a new investing and brokerage account through a website called Betterment.com.

A lot of personal finance blogs are writing about it because it takes a topic that can be confusing for a lot of people, and makes it accessible. 

They take the investing process and make it as simple as 1-2-3.  Sign up, fund and invest.

Ok, let's back up for just a moment. 

What is Betterment?

At it’s very core it’s just another of the online brokerages that we hear about all the time on this site and others.  They allow you to hold stocks and bonds as investments via ETFs, like an account through Scottrade or ShareBuilder. But it’s more than just a brokerage account.  It’s also a tool that helps automate the investing process,  to make it simpler for the average Joe. 

You can set up automatic investments every month, and it will also automatically re-allocate your investments for you on a regular basis. In essence it's a set it and forget it investing solution.

I recently signed up for Betterment to give it a run-through, and today I thought I'd do a quick review of Betterment.com.

Quick Navigation
Betterment History
Recognition & Awards
Simple Investing? How Simple Can It Get?
Forecasting And Visualization Tools
Portfolio Out Of Whack? Automatic Re-allocation To The Rescue
What Does It Cost?
I’ve Signed Up For Betterment

Betterment History

Betterment.com was founded back in 2008 by Jon Stein.  While it was founded back in 2008, Betterment.com only recently launched at TechCrunch Disrupt 2010 NYC. In December 2010 Betterment.com received $3 Million in a series A financing round from Bessemer Venture Partners (lead) and Anthemis Group.

Betterment LLC is a Registered Investment Advisor with the SEC and they’re SIPC insured.  You can be assured of the same protections as you would with a larger financial institution.  Of course since this is an investing account and not a savings account, there is no assurance of not losing your money.

Betterment only launched a few months ago, but because they've got such an innovative concept, it's receiving a ton of buzz.  They've received writeups in The New York Times, CNNMoney, Investment News, Mint.com and more.

Recognition & Awards

While Betterment has only been around since the end of last year, they've already started garnering a ton of attention, and a few awards for their trouble.

  • TechCrunch Disrupt NYC 2010 “Battlefield Finalist”
  • TechCrunch Disrupt NYC 2010 “Best NYC Startup”
  • FinovateFall 2010 “Best of Show”

So while they have just launched folks are already starting to recognize them and their concept as a powerful one.

Simple Investing? How Simple Can It Get?

So what's the idea behind Betterment?   Their basic idea is this – so many folks in this day and age are either too busy to get too involved or too intimidated by the complexity of investing that they just don't do anything at all.  Betterment looks to take all of that away by just making investing simple, and removing a lot of un-necessary choices. Here's a video run-down of how Betterment works:

http://www.youtube.com/watch?v=qArLnDl5YuY

So when you sign up for an investment account with Betterment, the process will be as simple as choosing:

  • How much to invest.
  • How much of your investment you want in equities (Stock Market).
  • How much you want in Treasury bonds (TIPs).

You can also set up automatic investments on a regular basis if you want to.

Within stocks and bonds, they divide up your holdings into a variety of ETFs so that you are diversified.   Here is what you get on the stocks side:

  • 10% SPDR Dow Jones Industrial Average ETF (DIA)
  • 20% iShares S&P 500 Value Index ETF (IVE)
  • 20% iShares S&P 1000 Value Index ETF (IWD)
  • 15% iShares Russell 2000 Value Index ETF (IWN)
  • 15% iShares Russell Midcap Value Index ETF (IWS)
  • 20% Vanguard Total Stock Market ETF (VTI)

For Treasury bonds, you get

  • 50% iShares Barclays 1-3 Year Treasury Bond Fund (SHY)
  • 50% iShares Barclays TIPS Bond Fund (TIP).

So the stocks and bonds you get will give you a nice diversified portfolio that will for the most part track index performance across various sectors.

Forecasting And Visualization Tools

One of the cool things in the Betterment account are the allocation and visualization tools that they have available. The tools make it easy for the average investor to see what kind of returns they might see (given historical returns)  if they invest with a 5, 10, 20 or even 30 year time horizon.   Once you come up with an allocation and time horizon that you are comfortable with, just hit the button to change your allocation, and within a few days your changes are made!  Check out their online demo here: (demo).

Let’s say that you have about $50,000 invested as the demo account does.   If you have 80% invested in stocks and 20% in bonds, given a 20 year time horizon it will show you a forecasted range of returns that you could expect to see – anywhere from $100,000-$600,000.  Change the percentages and time-line and it can drastically affect your results.  It's interesting to look at just how drastically things can changed based on the decisions you make.

So if you decide you want to change your allocation either to include more stocks or bonds, you just move the slider up or down, and then hit the “change” button, and Betterment will update your account holdings and purchasing decisions going forward.

Portfolio Out Of Whack? Automatic Re-allocation To The Rescue

One thing that often happens with traditional retirement accounts is that the account owner neglects to ever update his or her portfolio on a regular basis, and in the end their allocations get all out of whack.

One of the nice things about an account with Betterment is that you never have to re-allocate your money. It will automatically re-balance your portfolio for you every three months, or if your allocations ever drift more than 5% before that.  Without re-balancing your account can easily shift over time to have an allocation that is heavier on stocks or bonds than you want it to be. If you start out at say 90/10 stocks to bonds, if you don’t reallocate over time you could one day find that your account has an allocation more like 80/20 or 85/15.

This is one of those things that most investors neglect to do on a regular basis, so it’s nice to have that part of the account be automatic.

What Does It Cost?

What kind of fees can you expect to pay for using Betterment   Well first off, there are no minimums to invest, and there are no fees for trades.   The only fee Betterment charges is a pro-rated yearly fee that is in a range of 0.15% to 0.35%, depending on your account balance. For most beginning investors it will come out to .35% annually.

For starter accounts with a minimum balance of $0 and $100/month minimum deposit, you'll have a .35% annual fee.  Minimum balance of $10,000?   You'll get next day transfers and a  .25% annual fee.  Minimum balance of $100,000?   You'll get next day transfers and custom portfolio options along with a low .15% annual fee.

For an account where you'll be having someone manage your investments for you, re-allocating their portfolio every so often, and not having to worry about ever paying any other fees or charges for making trades – these are some pretty reasonable fees.  It makes the account a winner.   I think it definitely makes sense for most people.

I've Signed Up For Betterment

While I did have some reservations about the site back when they launched,  I went ahead and signed up for Betterment.com.  I'm gonna try it out for a while. One of the great things about the account is that it's more like a traditional bank account in that getting your money in and out of the account is as simple as withdrawing it. No fees associated with making trades. The only risk you take is the same risk that any investment in equities has.   Add to that they've got a account signup bonus now as well, and you've got nothing to lose. So why not try it out?

Personally I just really love the idea of making investing that much more simple as it will make it more accessible for a ton of other folks.  So we'll see how it goes – I'll probably report back in a while to give a rundown of what I think of the site after I've actually been investing – and playing with their tools for a couple of months.

Get a bonus when you open your Betterment account. Click here.

 Get StartedWith Betterment

Zions Bank Review: High Yield Savings, Checking, Money Market Accounts

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I’m always trying to stay on top of what the best banks out there currently are, and where you can find the best bank rates currently in the market. I’ve written about quite a few banks here, including the one we currently have our cash stashed at, Ally Bank. We've been happy with Ally, but this past week I heard about another bank that has piqued my interest.

Up until a couple of months I had never heard of Zions Bank. At first I thought that maybe they were a newer bank trying to capitalize on the slow savings market, but then after researching them a bit I read that they were founded way back in 1873, so they've got a bit of history.  Now that they're offering a good rate of interest, and a good slate of account offerings, I thought I'd write about them here.

Zions Bank Background

From Wikipedia:

Zions Bank (Zions First National Bank) is an American bank, and a subsidiary of Zions Bancorporation. According to the company, it is the oldest financial institution in Utah.  The bank has 103 full-service branches and 150 ATMs, and over 2,700 employees in both Utah and Idaho

Zion’s Savings Bank and Trust Company was started by Brigham Young on July 10, 1873. This became Utah’s first chartered savings bank and trust company.

On April 22, 1960, The Church of Jesus Christ of Latter-day Saints decided to sell a majority of Zions First National Bank to Keystone Insurance and Investment Company. Zions First National Investment Company became the majority owner of the bank stock in Nevada on February 17, 1961. Still under the control of the Keystone group, the investment company became Zions Bancorporation in 1965. Zions Bancorporation went public for the first time in January 1966. There were some minority shareholders of Zions First National Bank, but in April 1972 all of the remaining shares were exchanged for Zions Bancorporation shares.

Is Zions Bank Safe?  Is My Money Insured?

With Zions Bank your money will be safe and sound because the bank is FDIC insured. If you deposit your money and the bank goes under, you’ll be fine – as long as you don’t have more deposited than the FDIC insurance will cover. Currently that amount is $250,000 per depositor.  I would never even consider a bank unless they were FDIC insured.

Zions Bank Account Offerings

Zions Bank has several different account types that you can get, but I’ll focus on three of them here – their savings, checking and money market accounts.

Zions Bank Savings Account

The minimum to open a savings account is $100, which is about standard for a lot of these accounts.  One thing that should be noted is that you’ll need to maintain a minimum balance of $1,000 in order to receive the maximum interest rate.  That rate is currently at 1.01% APY – easily among the top interest rates in the nation as of the day this post was written.

Zions Bank Checking Account

Zions bank has several checking account flavors – one for whatever your tastes are.  They have options with great perks, ones with a good interest rate or no fees.  Their three most popular checking account options include:

  • Gold Account Checking – While this account has a $10/month fee associated with it, it has a bunch of services included.  Among them are unlimited check writing, free personalized checks and better rates on a variety of savings accounts. You even get a discount on most consumer loans if you are already a Gold Account Checking customer.  There is a $100 minimum deposit
  • Free Checking – This is the standard free checking account with no monthly free, and a $100 minimum deposit.
  • Free Interest Checking – This account will earn some interest along with giving you free checking, although it may not have all of the options of the other account.  Direct deposit is required and there is a  $100 minimum deposit.

Zions Bank Money Market Account

This account type is going to be similar to the online savings account.  Sometimes a money market account will give you a better rate, but this particular one currently has the same 1.01% rate.  Among the provisions of this account type is a $3 fee for withdrawals at a teller window, and that you can make up to six transfers within a 30-day period.  There is an initial minimum deposit of $2,500.

Zions Bank Account Opening Procedure

Opening an account with Zions bank is a 5 step process that you'll be done with in no time.  First you select the account type that you want along with if you’ll have a joint account holder.  Then you enter your personal information including full name, date of birth and social security number.  Next you choose account options and setup a linked account to fund your savings.  After entering some final details you’ll receive confirmation of how to use your new account once it is approved.

I’m told that your application for an account will be processed within two days and you’ll then be able to proceed and login online.  No problem, and it sounds pretty comparable to opening an account with just about any other online bank.

Open your account with Zions Bank. Click here for details!

Zions Bank Mobile Banking

Zions Bank mobile banking service allows you to bank anytime, anywhere from your smartphone or mobile device. You can securely access your checking, savings or money market accounts to:

  • View account balances
  • Search account activity
  • Transfer funds

There are apps for Iphone, Ipod Touch, in addition to a ton of other smartphones.

Conclusion

At the time that I wrote this, Zions Bank has some of the highest interest rates in the country and all of their accounts are FDIC insured. Add to that their other solid account options, mobile banking, no fees or minimums, good security and solid history, you’ve got a bank you can count on.

If you’re looking for a good high yield savings account where you can put your money, I think Zions Bank should be near the top of your list. To check out the details of their accounts, click on the links below.

Zions Bank Savings
Zions Bank Checking
Zions Bank Money Market Account

Do you have any experience with Zions Bank? Are you using them, and how do you like them? What are the pros and cons of their accounts? Leave us a note in the comments!

Discover Bank Review: High Yield Savings Account

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Over the past year or so I've done quite a bit of research on online savings accounts. During that time we ended up opening an account with Ally Bank that we've been quite happy with. While their rate is no longer the highest, using them has been easy and pain free.

Only now after I had opened my Ally Bank account did I discover that another bank actually had a higher rate than I had realized, and we could have gotten better returns there.  On top of that, from what I'm reading online people are relatively happy with them as well.  That bank is Discover Bank.

Discover Bank History

Discover Bank was originally known as Greenwood Trust Company, and it first opened it’s doors in Greenwood, Delaware in 1911.   They were renamed as Discover Bank in 2000.

Up until just recently they only offered a money market account type, but since then they’ve expanded their offerings to include a full online savings account, along with several other account type options.  Since doing so – and since their rate is near the top of current offerings, they’ve quickly become one of the industry leaders in the high yield savings account sphere.

Is Putting My Money With Discover Bank Safe?

With Discover Bank your money will be safe and sound because the bank is FDIC insured, and has been since 1934.  If you deposit your money and the bank goes under, you’ll be fine – as long as you don’t have more deposited than the FDIC insurance will cover.  Currently that amount is $250,000 per depositor.

Features Of A Discover Bank High Yield Savings Account

Discover Bank’s High Yield Savings Account has a good number of features. Here are a few of them:

  • Low opening deposit ($0) plus no minimum balance
  • Set up automatic transfers from any checking or savings account
  • Rated 5-star Safe & Sound by Bankrate.com
  • Bankrate.com Top Tier Winner for consistently high yields
  • Fast and free online money transfers
  • 24/7 live customer service
  • FDIC-insured to $250,000 per depositor

Opening An Account With Discover Bank

Opening an account with Discover bank sounds like a pretty simple process.  Their website claims that you can open in “minutes”.    Here’s how it works:

Open A Discover Account
  • Step 1:  You select the account type that you’re choosing, along with whether it is a single or joint account.  Enter your personal information including social security number.
  • Step 2: Enter your linked bank account information and enter how much you’d like your opening deposit to be.
  • Step 3: Verify trial deposits and your account is ready to go.

Doesn’t sound too hard!

Open a Discover Bank account. Click here to get more details now!

Other Discover Bank Account Options

In addition to it’s competitive high yield savings accounts  Discover Bank also has other options available including classic CDs, money market accounts, IRA CDs and their traditional credit card offerings. All of their offerings seem to have rates that are currently very competitive or near the top of the bunch.  For more details about their other account options, click here.

Conclusion

At the time that I wrote this, Discover Bank has some of the highest interest rates in the country (higher than my Ally Bank account unfortunately) and all of their accounts are FDIC insured.  Add to that their other solid account options, no fees or minimums, good security and 24/7 customer service and you have a solid bank offering.

If you’re looking for a good high yield savings account where you can put your money, I think Discover Bank should definitely be on your short list.

Do you have any experience with Discover Bank? Are you using them, and how do you like them? What are the pros and cons of their accounts? Leave us a note in the comments!

Annual Percentage Yield (APY) is accurate as of 3/14/2017. Applies to personal accounts only. Fees could reduce the earnings on the account. Rates may change at any time without prior notice, before or after the account is opened. No minimum balance to open.

Scottrade Review: Discount Online Stock Brokerages

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I ‘ve been doing quite a bit of research lately into what options are available to me when it come to finding a good discount brokerage.

I’m finding that there are a lot of good companies out there, so making a decision on which one to use may be a bit difficult.

When it comes time to choose the right brokerage for me, I'll be considering quite a few things. Among them, the costs associated with having an account, how much the trades cost, user reviews and the tools they have available to users.  Today I want to look at one of the more popular discount online brokerages, Scottrade.

Scottrade Background

Some background on the founding of Scottrade, from Wikipedia:

In 1980, Rodger Riney, founder, moved from St. Louis to Scottsdale, Arizona where he and a partner incorporated Scottsdale Securities.

In 1981, Riney returned to St. Louis to open a second branch, but ultimately split apart from his partner in 1985 due to conflicting business models. Riney kept the company name, Scottsdale Securities, and lowered the price of commissions to attract more clients. Riney's approach was successful and by 1991 the Scottsdale Securities had a total of 15 branches throughout the US.

Scottrade.com was launched in 1996 (along with Scottrader.com to supply streaming online quotes to clients). Scottrade.com was successful and grew rapidly amidst the dot-com bubble of the 90s.

In 2000, Scottsdale Securities officially renamed to Scottrade due to the success of their online firm.

Scottrade saw substantial growth throughout the 2000s, expanding from 200 branch offices in 2004 to 500 by 2010.

Scottrade Awards

Scottrade has earned quite a few awards and has been recognized as one of the top online brokers, and apparently a great place to work. Among the awards:

  • In 2011, the firm was ranked No. 12 on Fortune's 14th annual “100 Best Companies to Work For” List
  • In 2008-2009, Scottrade was ranked No. 1 in investor satisfaction with online investing services for the eighth time since 2001, according to J. D. Power and Associates'
  • Scottrade was also selected by Computerworld magazine's 2008 16th best place to work in IT.
  • In April 2010, Scottrade was reviewed in CEOWORLD Magazine ranked 2nd Best Online Investments Stock Broker.

Scottrade Fees, Commissions And Minimums

Probably one of the most important things to consider when opening an online brokerage account is to consider what fees, commissions and minimums you’ll see when using an account.

Stock Trades

When it comes to trading stocks, Scottrade isn't the lowest cost in the industry, but they are certainly among the  most competitive with their $7 stock trades.  That rate is for stocks priced $1 and above, regardless of trade frequency, account balance or number of shares.  Phone trades are $17, while broker assisted trades are $27.

Options Trades

Scottrade's options pricing is at a similarly low $7 per trade, plus a $1.25 charge per contract

Fees And Minimums For An Account

There are no fees for an inactive account, annual account maintenance, account closing, IRA termination, or online statements.

There is a minimum account funding level of $2500 to open a cash account.

Investment Account Options

Scottrade offers a plethora of other investment account options for investors. Among them:

  • Traditional IRA
  • Roth IRA
  • Rollover IRA
  • SEP IRA
  • ESA
  • ETFs
  • Bonds
  • CDs

Scottrade Tools & Education

Want to learn more about investing, the markets and trading in general?  Scottrade has  live webinars and on-demand webcasts for members.  They also offer local branch seminars and regional user summits that not only go over investing in general but also specific aspects of using the Scottrade platform.

On the website itself they maintain a knowledge center, have tools for market research and real time quotes, in addition to having a variety of trading tools.  In other words, their website has pretty much everything you could need.

Scottrade Mobile Apps

Scottrade mobile apps

Scottrade also has a great set of mobile apps that you can use on a variety of platforms.  Download the apps for free:

What information can you get on the apps?

  • Advanced charts
  • Technical analysis
  • Market news and analyst ratings
  • Real-time streaming quotes and watch lists
  • Investor fundamentals and market earnings.

Customer Service

Scottrade has been rated highly for customer service, and unlike a lot of online brokers they have a network of almost 500 local branches. If you think you may want to sit down with someone face to face at some point, you may want to consider them as an option.

If you want to reach someone by phone, you can do that as well at (800) 619-SAVE.  Your calls will go into your local Scottrade office to be answered by someone there.

Conclusion

Scottrade is one  of the industry leaders when it comes to affordable online trading and investing.  They have $7 trades, low minimums and fees, and on top of it all they've got local branches and customer service should you ever need it.   In my opinion they should definitely be a contender if you're looking for a discount online broker.

So to review, some of the highlights of Scottrade:

  • Cheap stock trading rates, among the lowest of discount online brokers.
  • Few fees to worry about.
  • Local offices and customer service.
  • No fee IRAs and other investment options.
  • No transfer fees if you decide to go to another service.

Get more information or sign up for an account at Scottrade today

Have you used Scottrade? What has your experience been like? Are you happy with them? Tell us your thoughts in the comments.

Ally Bank Review: High Yield Savings Accounts

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For a while now I've been looking into all the online high yield savings accounts because we wanted to find a place to put our hard earned emergency savings. 

As of this writing, because we're so conservative, we're currently sitting on close to 12 months of expenses in savings.  As you might expect, 12 months of expenses is a nice chunk of change to be earning interest off of. 

We wanted to make sure we were putting our money in a place where it would be earning good interest, but also that it was a solid bank with a good reputation.

Today I’m reviewing one of the banks that we ended up getting an account with,  Ally Bank.

Ally Bank – Who Are They?

The brand – Ally Bank – has been around for a year or two now, although they aren't a new flash in the pan bank.  A lot of people don’t realize is that Ally Bank is the new face of an old name, GMAC bank.  They changed the name in May of 2009 at a time when they were giving the company a face-lift, and giving a promise to be the customer’s “ally”.  While the old GMAC bank wasn't my favorite bank – and the fact that they needed a face-lift from the start had me skeptical.  But when you also factor in the fact that they have one of the competitive bank rates right now, and that so far they've gotten good reviews – I was more than willing to give them a shot.

Kiplinger's Personal Finance named Ally Bank high yield savings account the “Best Internet Account” and “Best For Millennials” for 2018!

Is My Money Safe At Ally Bank?

Whenever you're considering signing up for a new bank account, it's important to find out if  your money will be safe at the institution, and whether or not the bank is insured.  Ally Bank is fully FDIC insured, and has been since August 2004 – under their old name of GMAC.  If  the bank has problems and goes bankrupt, you’ll be fine – as long as you don’t have more deposited than the FDIC insurance will cover.   Currently that amount is $250,000 per depositor.

Fees, Minimums And Other Features Of Ally Bank

Ally Bank’s high yield savings account has low fees, no minimum balance and you can open with zero dollars if you want!

  • Open with $0
  • No minimum balance
  • No monthly fees
  • Ability to create sub-accounts with different names and account numbers.
  • Daily compounded interest for maximum earnings
  • 24 hours a day, 7 days a week customer service at 1-877-247-ALLY (2559) for 24/7 assistance or by e-mail at customercare@ally.com
  • FDIC insured up to $250,000
  • Six withdrawals or transfers per statement cycle.  (mandated by the government for savings accounts)
  • high level of online security

Open An Account With Ally Bank

I opened my account with Ally Bank about 4-5 months ago.  It was pretty simple.

It’s a 5-step process.  You’ll have to give them some basic information (including your SSN and drivers license), and they’ll do a hard credit pull. Then you just set up your initial deposit from your linked account,  set up a few account options and you’re set to go.  No fuss, no muss.

Other Ally Bank Account Types

In addition to it’s competitive high yield savings accounts Ally Bank also has other options available including classic CDs,  no penalty CDs (ability to withdraw early with no penalties) and money market accounts.  All of them seem to have rates that are currently competitive.  For more details about their other account options, click here.

I Signed Up For Ally – You Should Too!

I've now been with Ally Bank for several months, and so far I've been extremely satisfied.  They offer some of the highest interest rates in the country and all of their accounts are FDIC insured (to find current updated rates, go here).  Add to that their solid 24/7 customer service (which I have used more than once) and other account type options, and you have a good solid bank that does what it should.

If you’re looking for a good high yield savings account where you can put your money, I think Ally Bank should be near the top of your list.  I know it reached the top of mine, and was one of the accounts I ended up opening.

Open an account at Ally Bank. Click here for details!

Do you have an account with Ally Bank? How do you like them? What are the pros and cons of their accounts? Tell us your thoughts in the comments!