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Ally Bank has launched a terrific promotion when transferring new money into one of the bank’s online savings accounts. The offer applies to both new and existing accounts and gives a 1% bonus for all new funds that are moved in by 10/31/22 (with a $500 max bonus). There’s no direct deposit required and the only catch is that the money has to remain in the account until 1/15/23.
This is low-hanging fruit that’s worth a look for most folks that have the ability to transfer in some cash.
The Deal
- Ally Bank is offering a 1% bonus on all new money transferred into online savings accounts. Offer is valid for new and existing customers.
In order to receive the bonus you must:
- Enroll by 10/21/2022. Be sure to use the email address associated with the Ally Bank account you plan on transferring new money to.
- Put money in your account by 10/31/2022. Move at least $1,000 from another financial institution to a new or existing eligible Ally Bank account (Online Savings Account, Money Market Account or a CD). Remember, transfers can take up to three business days.
- Keep the new money in your account through 1/15/2023. Your new money must remain in your eligible Ally Bank account through 1/15/2023. Keep in mind, any withdrawals made during this time may reduce your bonus.
- Keep at least one Ally Bank account open and in good standing until we deposit your
bonus, on or by 2/15/2023.
Terms and Conditions
- Cash bonus applies to new money added to an eligible Ally Bank account, not your total balance
- Your new money must remain in a new or existing Online Savings account, Money Market account, or CD at Ally Bank. If you have more than one of these accounts, we’ll consider all of them when calculating your bonus. Remember, the total maximum bonus you can receive is $500.
- Minimum cash bonus is $10 ($1,000 deposit), maximum is $500 ($50,000 deposit)
-
Ally Bank’s Online Savings Account and Money Market Account have an Annual Percentage Yield (APY) of 2.25% on all balance tiers. No minimum balance is required to open. APYs are variable, subject to change, and accurate as of 10/14/2022. Fees may reduce earnings. View Ally Bank’s CD rates
- For more details, check out our terms and conditions. Deadlines are subject to change.
Quick Thoughts
Based on how I read the terms, you only have to leave the money in the bank for ~81 days or so to get the bonus. This is because you have to deposit by 10/31/22 and leave it until 1/15/23. So, you could transfer the money in on 10/28 (just to be safe since the 31st is a Monday) and then transfer it back out on 1/16/23 in order to meet the terms. You have to leave at least one account open until 2/15/23, but there’s no requirement to leave the money in.
1% after 81 days effectively translates to a ~5% annual interest. Combine that with the 2.25% APY that Ally pays for online savings account and it means that you’re getting ~1.46% interest on the total deposited funds over the required time period (or about $730 on the full $50K). This is a good return, if not quite the gaudy 9.6% rates that we’ve recently had on I-bonds. At the same time, there’s much less time commitment and more flexibility with your money.
We would normally jump at this kind of return were it not for the largesse of the last couple of years, as well as current inflation rates. While it doesn’t seem as earth-shattering now, I’ll still probably take the plunge on this, simply because it’s so easy and the funds are tied up for a relatively short amount of time when compared to many other bank bonuses. In my opinion, this is absolutely worth taking a look at, especially for those folks wanting to dip their toes into the bank account bonus pool.
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Just also consider the likelihood that market rates on everything are likely to keep rising in the near term, so you may do just as well leaving your money liquid in a money market or t-bills. I personally don’t want to tie up money for even 3 months while the Fed is raising rates.
There are a lot of CD’s out there offering 4%+ right now and iBonds are paying close to 10%. For a 1% bonus payout, I’m not sure that moving funds over is really worth that effort, with current opportunity costs. You may come out a little ahead, but with some hassle, and potentially at the risk of future opportunities and adding another 1099.
which bank would offer 4%+ on CD?
Who cares Wait ..$$
Will this work wih automatic paycheck deposits?
Do it for the bonus
Sorry for the newbie question – could I open an account now and still get the bonus?
Absolutely. It’s for new and existing accounts.
$50k gets you $500??? Uhm no thanks.
I think u have to pay taxes on that SO Buy a T-bill and V Bernie ..ALOHA
Go online look at the rates only Go higher like 12%..No hassle no need to switch around and u can use to buy Tickets ..
Note that Federal Income taxes are due on T Bills, but not state and local income taxes, which may considerable in some locations.
THANK YOU !!!
Been looking I’m hoping I can just transfer from Ameritade to this account not thru my bank.I’ve done very little this year but 5% on the whole account So ?????
My uncle in 1981/ got 18% on a 1 year bill…
CHEERs
I would jump on this too, but I wish I had emptied my ally account before this promo comes in. They said any external withdrawal (even from non-eligible ally checking account) subtracts the qualified fund.
You can move money out from your account to another bank and then route it to P2 account if you have
Did you already enroll in the promo?
yes I did. any outbound transaction would count against funding already.
I learned from the similar promo from SoFi back in September. My $50k gross inbound (and balance during the term) only counted $24k net.
Ah shoot.
Good Post as in the way it really works..I did a lot of CD’s in 2006 a real hassle.. Every time u do this Stuff the IRS looks at anything over $10K and 87K more clowns are coming onboard ..Safe but a future nightmare so Flip a Card and be done with it..
Thank You for Posting..
Great article, I don’t know if anyone has mentioned this but BOA is now offering $1,000 for deposit of $250,000 but it includes IRAs, CDs and MMs in the total amount.
Nice!
isn’t that only for preferred rewards member or everyone? if it’s everyone do you happen to have a link?
I just walked in and saw the sign. I am new w/BOA but I believe anybody can sign up for preferred rewards but the amount you deposit (in almost any form) determines your reward level.