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Any_Parsnip5967 t1_je8ig8d wrote

Ally money market is now at 4% as of last week

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Dylan552 t1_je9bw9l wrote

What are the cons to using this as a savings account seems like it’s all upsides?

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Just_a_mument t1_je9iz0f wrote

Probably just the limited amount of transactions per statement

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Dylan552 t1_je9jb1y wrote

Savings account has a limit of 6 by law are money market accounts less than that? It didn’t seem that way

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Fit_Vegetable_4922 t1_je9najn wrote

I believe that typical "money market" accounts are not FDIC insured, while I know that the Ally savings account is. Given the state of the banking sector, and Ally's financial state in particular, I'm willing to sacrifice 0.25% for the knowledge that the FDIC is insuring all of my deposits.

EDIT: My assumption was incorrect; money market accounts by Ally are FDIC insured, so I'm also not seeing a substantive difference between the Ally savings and Ally money market account.

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Budget-Scared t1_je9ntge wrote

MMDAs are usually FDIC insured.

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Fit_Vegetable_4922 t1_je9o82q wrote

Looks like you're right: https://www.consumerfinance.gov/ask-cfpb/is-a-money-market-account-insured-en-1007/#:~:text=Yes.,however%2C%20are%20not%20federally%20insured.

I was thinking of my money market account with Fidelity (my "core account"), which is probably not FDIC insured. But I don't expect my "investment" money to be insured, and it may lose value, so I'm OK with that.

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Budget-Scared t1_jea6atb wrote

If its through fidelity I bet its invested and could technically lose value which is why its not FDIC insured. It's probably SIPC insured though.

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gk802 t1_jeafoos wrote

Per ally customer service: "All accounts that Ally offers are FDIC insured."

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