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Any readers have experience using this combination for your investments and the interchangeability between the accounts for liquidity. One major gripe with brokerages is they offer no return for idled cash which is pretty much forcing you to be fully invested.
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I have an account with them, Ally Bank is my primary savings account, so I thought it made sense for quickly being able to transfer funds from savings to Ally Invest, plus they have low trading fees.
But it's not so quick, it takes a couple days to transfer funds from Ally Bank to Ally Invest. I wish it was quicker. I also have a CapitalOne Investing account, they allow you to trade with $0 in your brokerage account, and it's free as long as you have an CapitalOne bank account tied to it. This also works for outside accounts, but there's a $6.95 fee --- it's called Express Funding.
I'm thinking about ditching Ally Invest and sticking with CapitalOne for this reason. I have $5,000 sitting in my Ally brokerage account un-invested just to have it when I'm ready to. CapitalOne Investing seems to be better for this, as you're not forced to miss out on gains.
So now your debate is 1.25% Yield vs 1.00% Yield, or free Express Funding vs $6.95 per trade Express Funding for using an outside account. -
If you have money in your CapitalOne 360 account they pay interest on any cash in your investment accounts by having the cash in money market fund. Snce I can only dump money a little at a time, I transfer it from my regular bank account to one of two investment accounts. One is just for saving in with most of the money in stocks and the other is a Roth IRA. Used to be that you could invest by telling them how much cash you wanted to use to buy whatever types of stock or mutual fund, now you have to buy full shares, so you end up with money leftover. I also have accounts to put away money to cover taxes, one for our rental security deposit, etc. I know to some that it would be cumbersome, but it isn't too me. I only wish I had realized sooner that I should have had all the investment money going into the Roth IRA as it would have saved me the dividend and investment interest that I end up paying on my taxes each year. Once that dawned on me, that is what I have been doing this past year, but I have no desire to sell out the one account and then putting it all on the Roth IRA as it would make for some taxable gains that I don't want to pay on as that account has done very well!
I've never checked into Ally, probably because I'm happy with CapitalOne.Comment
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