Move Money?

Buckeyes | Aug 10, 2020 | 292 posts since 2018

Who would you say Is likely to have the better rate in the near term. American Express or Ally? I have about 50k I can move but I'm wondering if switching from Ally to Amex is smart.

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Answers

JeffinEasternFL | Aug 10, 2020 | 744 posts since 2020

.1% difference on $50K is $50~ in a year, ...and that's not counting the time between accounts moving money as totally lost interest. Maybe the best bet is to keep some $$in both accounts, i.e. 50/50 or 70/30 etc., and leave it be unless the spread widens? I've watched CIT money market be a leader, a laggard and now a leader again without moving a cent, on $75K~ it's not really worth it unless it's trailing the field by .2% or more! (IMHO). Go golf, chasin rates except for a longer CD term isn't worth the time anymore

enduser | Aug 15, 2020 | 711 posts since 2015

Ally is very flexible when it comes to moving funds but don't count on them to be a rate leader. Amex is also not a rate leader and the variation between those two FI's is usually within .10% anyways. You have to look at the current situation and strategize based on past patterns.

Ally is known to offer bonuses. By my calculations they may do it again next year so you don't want to keep high balances there when they declare the bonus as it will require new money to qualify. Same goes for CIT, and Marcus. When Ally offers the bonus CIT and Marcus are sure to follow suit within a few months of each other. With that being said keep your funds at FI's that don't offer bonuses just in case a bonus offer comes to light. Right now focus on doing current bonuses being offered by other FI's to pad your funds.

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