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Update on Ally's Bank-to-Bank Transfers


Last October when Ally Bank changed their account center and their bank-to-bank transfer service, most were disappointed with this change. Transfers were a little slower, and as I described in this January post, transfer summaries were vague. There have been some small improvements. In the last month or two, the transfer descriptions that are shown in the account transaction summaries have improved. Before, the description had very little information. Here's an example:


Now the descriptions have all relevant information. Here's an example of what it looks like now:

Requested transfer from JOHN C DOE (WELLS FARGO BANK Checking XXXXXX1234)

This is a small improvement, but it's nice to see Ally making these tweaks in addition to adding new products and services.

There hasn't been any change with the automatic emails that are sent after you initiate transfers. They can't be disabled or adjusted. Even though these emails don't include account numbers, some readers have been concerned that these emails have too many details for unsecure communications. The transfer details include the dollar amount of the transfer and the name of the bank that's on the other end of the transfer.

A more important issue for the bank-to-bank transfers is the speed. I did another test at Ally this week. On Tuesday morning, I initiated two transfers at Ally: one outbound transfer and one inbound transfer. In short, these completed in two days which are inline with reader's 511h test. Here's a summary of my recent test:

For an outbound transfer to my credit union initiated at Ally on Tuesday 7/19:

  • On Wednesday 7/20, the amount is debited from my Ally account
  • On Thursday 7/21, the amount is credited to my credit union account

For an inbound transfer from my Wells Fargo account initiated at Ally on Tuesday 7/19:

  • On Wednesday 7/20, the amount is debited from my Wells Fargo account
  • On Thursday 7/21, the amount is credited to my Ally account (not available)
  • On Friday 7/22, the amount is available

In summary, both inbound and outbound transfers are taking two business days with one day of loss interest. Make sure to avoid initiating transfers on Thursday and Friday. In those cases, the transfers will likely take two extra days for the weekend. It's not the best, but it's no worse than many other internet banks.

Related Pages: Ally Bank, savings account, money market accounts
  |     |   Comment #1
No matter how you slice it, it is slower than what it used to be. Actually it is mediocre transfer speed (3 business days for ACH in and 2 business days for ACH out) and I stop using Ally as a hub. 

It will take a week or more to transfer money from point A to point B using Ally’s ACH system.

Many other banks offer one day free ACH transfers.

Sending confirmation e-mails with the bank’s name and amount is a security threat.
  |     |   Comment #2
I have done an ACH's with another bank, and they sent me an e-mail stating "you have a secure e-mail on our web site.  Please log onto our site to receive it".

This could be a more secure way to get ACH notices, but it adds an extra step.
  |     |   Comment #3
Ken, have you tried inbound and outbound through the weekend?  My experience if initiated on thurs morn pulled into ally...  isn't around til mon and avail tues.  I'm pretty sure thats been my recent experience.  Haven't done it in a couple of months...
  |     |   Comment #4
The issue I ran into with Ally before was the extra day to hold incoming fund (for large amount), so if the transfer (using Ally as a hub) starts on Monday from Bank A to Ally, it arrives Ally on Wednesday and is held till Thursday, then the transfer to Bank B on Thursday will incur many days of interest loss due to pending weekend.  I am not sure whehter they still have such a hold; mostly likely yes. 
  |     |   Comment #5
Does Ally Bank do a hard pull on credit report when you open an account as a new customer?
  |     |   Comment #6
The e-mails are such an obvious security threat.  Wonder how long it will take them to figure it out.  Wonder if they ever will.

Of course, if the e-mails were at the discretion of the customer it would be fine.  Some people likely would want them.  I would not.
  |     |   Comment #7
Ally Bank did them self a big disservice by contracting an outside ACH system.
They lost lots of float on the money since most of the customers stooped using Ally as a hub, for inter bank transfers. Very few people will opt for such transfers and yes, there is now loss of interest of at least 3 days when transferring money from Point A to point B.
  |     |   Comment #8
Not only that (all the latency and loss of interest), it now places a hold on the transferred fund for at least another day.  I just did a test transfer on 7/25 ($2), it arrived at my account on 7/27; but it not available (a hold was placed for $2!!).

Drop Ally as a vehecle for hub transfer!!!
  |     |   Comment #9
  |     |   Comment #10
So, you all have any recommendations for a bank to use a a hub instead of Ally?  If so, please post and tell us why.

  |     |   Comment #11
I initiated a single transfer from my credit union account through the ally system and it kept repeating this transfer until it overdrafted my other account.  It has cost me nearly $100 in fees.  Ally says this had to be my fault because their system just wouldn't do that.  Essentially they are calling me a liar.  As soon as the dust settles, I will no longer use Ally Bank.  Beware of transferring funds...make sure you track your transfers closely.

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