Transferring Money To And From Online Only Banks

charged | Aug 31, 2016 | 12 posts since 2016

I've only been using brick and mortar banks, but I think I want to start a savings account with the only banks like Ally, American Express, Synchrony, or Capital One 360 where I can enjoy interest rates that are high enough to earn more than pennies.

I assume that the easiest way to get money to and from these accounts would be to do a transfer online while linking it to another bank. But I'm concerned that the fees might be high for this. I'm also wondering if security is an issue with the banks I listed. It would be a nightmare if I logged in one day and saw some hacker cleaned out the whole thing.

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Answers

MidAtlantic | Aug 31, 2016 | 142 posts since 2012

You are right. The easiest way is to link an external account and then do a direct transfer, which works both ways. I just did a transfer from Ally this week. I have never incurred any fees for this.

I suggest you also consider Barclays. I found their website to be one of the easiest to use.

charged | Sep 1, 2016 | 12 posts since 2016

It says on their website that they have a $20 fee for outgoing wire transfers. Would me transferring money from Ally online to another bank account I have at a different bank be considered an outgoing wire transfer? Sorry I'm a little uneducated on the terminology.

MidAtlantic | Sep 1, 2016 | 142 posts since 2012

You don't need to have it wired, unless you need the funds urgently. Just a regular EFT transfer works for free. Mine arrived in two days.

highrate | Aug 31, 2016 | 46 posts since 2016

Ally is greAT in this regard. There are no fees and you can withdraw and deposit in far away or close banks or cu easily and securely . I use it as sort of a hub to transfer eg from one cu to another. Very easy

Anon456 | Sep 1, 2016 | 249 posts since 2011

I almost never do wires. Usually get hit with fee to send, AND to receive them.

Using ACH is fast and easy, but it may take 2-3 days to arrive at the other institution. AND, there are daily and even monthly limits at some places. Requires the account to be registered in advance and that can take 3-4 days by itself. Have used online bill pay to make deposits, but watch out. Some places cannot process bill pay checks without instructions or special handling. Best to do those via paper checks and with letters of instructions.

I use ALLY for small transfers via ACH. Larger amounts are paper checks that are mailed to the other institution, or if credit union, hopefully deposited to the shared branch locally. If the institution is also out of town, like an internet bank, writing a check and mailing it works just fine. Same 2-3 days to get there and posted, and of course, cost of the stamp. Just the cost of doing business.

Chasing yield is a pain, but worth it. Moving say $10,000 to get .005 more interest is $50. Not bad for 5 minutes of paperwork.

Ally6770 | Sep 1, 2016 | 4,292 posts since 2010

I have done transfers and they were registered the next morning and also have done payments on my credit card at Citi asking Citi to debit my account that day and was given immediate credit. My balance was lowered immediately.

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