Why I left Ally For Betterment

Hey everyone, welcome back to the Lewis Pike Show. Today I'm going to talk about high-interest accounts, should you switch your money over, and things that you should be aware of. Make sure you tune in because you're going to want to check this out. There's been a lot of talk about the high-interest savings account, and some things to watch out for before you decide to switch over. So stay tuned.

All right, so the big news has been the high-interest savings accounts. Most recently, you guys are seeing within the last month, we've seen Wealthfront come out with a 2.57% interest rate. We've also seen Betterment come out with another one that topped them a week or two later, at 2.69% interest rate. Now the question is, I've been getting a lot from my list and my audience, is whether I should move my money over. Asking me what I've done with my money. And I to be honest with you, just jumping into it, I moved my money over last week from Ally bank, which is at the current time a 2.1%, over to Betterment.

The reason I moved over to Betterment and I chose not to move over to Wealthfront is, depends on how much money you have in your account. Is it really going to be that much of a difference? You know, if you're going to be hopping and moving around, like is it really worth your time? And for me, I'll give you some reasons why I switched over to Betterment. One, because I already had an account set up and two, because the interest rate was 2.69% and at my current bank, Ally, which I've been with for years, is at 2.11%. So when I did the math according to my savings and my emergency accounts and what I had in my accounts, if I moved over to Wealthfront at the current rate, I would get anywhere from an additional $40 to $60 a month just from money that's sitting in my savings and my emergency funds.

So yes, I moved my money over, but before I moved over I did go through the fine print and read. There was a catch to it. So at the time Betterment, they had in the fine print it said that this was one, a promotional interest rate. And I'm guessing they were doing it just to get people to move over. They already have the Robo investing that you can do through Betterment. So I already had an account through their set up where I did some investing, there just in index funds. But I think they were wanting to pull a lot of people. They wanted to get into the game of the high-interest savings account. So if you signed up then you have the promotional rate, which is like a 2.4 something percent, but if you signed up for the checking account waitlist, then you got the 2.69% interest rate.

And like I said, if you read the fine print, it was FTC insured up to I believe $1 million. So your money's safe there. I know that were some reservations with some of the accounts or some of the high-interest savings accounts in the past were, specifically like Robinhood where there wasn't quite federally insured with your money. So anyway, I moved my money over there, but this is something that I just discovered today and I feel like I should do a video on it. And the reason before you switch over, you should be aware of this. Already, and they did state this in the fine print that this was a promotional thing that went to the end of 2019, but they also had in there that the rates could change. And I moved as I said, I moved over a week ago and it has already changed.

So now the promotional rate is at 2.19%, which is just a barely slightly a little bit higher than where I was at with Ally. And now if you're on the waitlist it's at 2.46% now. So like I said, less than a week, they've already changed. The thing is, and the question is, is should you move over? Now, as I said, I've just walked you guys through why I moved over. So one, you should analyze your situation and see if it's worth going through the trouble of moving over and twp, just make sure if you're going to move it somewhere that you're going to let it sit. It's going to be somewhere that you're going to let it sit for a while, unless obviously like there is something like a deal or something just make sense where you're going to get a slight bump or some natural increase in finances, then it may be worth moving it over.

But at the end of the day right now… And before I moved it over, because honestly I wasn't going to move it over because I'm like, “It's just a promotional thing and if you really look at the time and energy that you have to put into getting these accounts set up and getting them moved over, is it really worth it?” So for me, it is worth it cause I already had a Betterment account, but if I didn't have a Betterment account at this point, it's what I thought it was. It was just a marketing ploy to get the rates, of who has the highest interest rates and that who is trying to get the most people over the short term. And I don't think any of these companies ever intended for these rates to be long term. Again, it's just their promotional way where they can get people over, get more people set up in their accounts, get into this war, steal some customers from the people or the banks like Ally that have already been established, and get some people over and hopefully you maybe starting investing once you get into their application.

But like I said, it's been a week into it and they've already dropped the price. So honestly if I didn't already have the account with Betterment, yeah, I would be kind of upset and it's not really worth the time, because they've already adjusted the price less than a week of me being over there. This promotion hasn't even been going over for barely even a month yet, and they've already dipped the rates. And they did have it in the fine print that it could adjust at any time, but I just want you to be aware. Before you make that decision to switch over don't get caught up in the race of jumping from high-interest savings account to savings account. Anyway, thank you guys for watching this video. If you guys moved over, if you have some more accounts that have a little bit better interest rate where you have your money, I drop your comments below.

Just curious to hear your thoughts. And if you're currently on your financial journey and you're currently in the process of trying to get your debt paid off, download the link. I've got a free download down below. It's the seven steps to get started with your debt repayment. I'm wanting to walk you through step by step of what you can do to get a plan in place to start knocking out your debt. If you're new to my channel, back in 2017 I knocked out about $70,000 in 12 months. I talk about the steps and all of the things that I did there in that plan, in order for me to be able to knock that out. Anyway, if you haven't subscribed as well, make sure you subscribe to a channel, like it. Share this video. If there's anyone that you think it would be helpful to, share it and don't forget to comment your thoughts below.

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