Opening up an Emigrant Direct and linking it to ALLY Bank is done via small deposits from Emigrant to ALLY Bank. Emigrant ALSO withdraws that money right back. Bank fees for the initial transfer, and the 2 deposit/withdrawals add $30 more to my bank fees. My fees total $50 and I’m trying to stay calm. I sent ALLY Bank an email asking for a bi but that’s pretty much a leap of faith.
You know that tiny print they write in light grey? I should learn how to read that because I just got hit with some MAJOR banking fees. Now my money market account “investment” is at a NEGATIVE return. And worst of all ninjas: I have to pay MORE banking fees and there’s nothing I can do about it this month.
Here’s what happened:
I have a flow of money from my Employer to my ALLY Bank account to my various bills. It looks something like this and it flows from my weekly paycheck:
I write checks to pay my utilities and rent. I use my debit card to make certain purchases. I do automatic transfers to my retirement, non-retirement, and student loan accounts. And I also do transfers to my credit card to pay off the balance.
Here are the words that I didn’t read in the ALLY bank agreement:
Customers are allowed 6 pre-authorized withdrawals per statement cycle. Internal transfers between accounts also count as a transaction against the account. Including telephone to 6 per statement cycle, no more than 3 by check, draft or debit card or similar order. A fee of $10.00 is charged in excess of 6 transactions and a notice sent.
Needless to say, I’ve gone over my “6 pre-authorized withdrawals”. So basically, every violation costs me 10 bucks a piece. Today, I had 2 automatic investments into my Vanguard account. Cost: $20 bucks. How can a bank charge $10 every time a withdrawal happens or when I write a check?!?! And on top of that, I have bills to pay still and this is where all of my liquid money resides. That means that I have to knowingly pay this $10 fee a few more times this month. This is infuriating to say the least.
What am I going to do now?
I’ve opened up an Emigrant Direct account for my “Rainy Day” money.
The ALLY Bank account will remain my main account. I’ll just have to be more careful and carry cash on me more so I don’t have to write checks or use my debit card too much.
I am going to restructure my accounts. My new waterfall of money might look like:
I am so pissed at myself right now…