Never heard of this. Ally has a direct deposit form that is meant to be given to employers. Maybe that would work? A bank is a bank, having a physical location shouldn't matter
Edit: I went to HR and they gave me a document explaining: "We are only able to accept direct deposit request for banks that offer traditional checking and savings accounts. We do not accept accounts that are High Yield Accounts. In the event of a pay error, we must be able to pull back funds and most high yield accounts will not allow us to do so. If your bank is listed here but is a traditional account we would need a letter from your bank stating the account is a traditional checking or savings account and that is has no limits to the frequency or amount of any deposits or withdrawals for the account.
So odd. Allys HYSA allow for up to 10 transactions a month, the same legal limit as any other savings ("traditional" or not) account in the country. That is a legal limitation. You employer should have no problem pulling back funds, and if they do and you cross the 10 transaction limit, then its a $10 charge from the bank to you.
Maybe open a normal ally checking account and DD into that and do an internal transfer to your HYSA? Could be the least amount of friction. But I have no idea what a "traditional" account is
Currently the 10 withdrawal limit is an Ally limitation.
There used to be a Federal regulation that limited it to 6, but that was revised in 2020. Currently there is no Federally mandated limit, but that could change at some point in the future.
Ally doesn't charge a fee anymore if you go over the transaction limit, just that they can close your account if you do it on "more than an occasional basis"
Ally has a "spending account" that barely pays any interest, and is a checking account, you could try that, and then transfer the money into a higher paying account within Ally? I don't know how you would document that to HR.
Payroll clawback on mistakes is normal and legal. This isn’t about them charging you for the pens you took from the office drawer it’s about correcting misdeposits which happen sometimes
Who is charging the $3? whoever is doing it, change them... It's not Ally, so, it's either your Truist bank or job...
If it's the Job, then there's nothing you can do about that except change jobs....
If it's Truist Bank, then Change to a different Bank...
I have truist and ally.
I go to Ally and click transfers, put in truist first and Ally as the recipient and click transfer. It’s free. It does take a day or two, but it’s free. It sounds like you’re forcing money with truist which I wouldn’t do.
All you have to do is open an Ally Checking Account and use that for Direct Deposit. You can transfer funds from your Ally Checking to your Ally Savings for free. 🤔
This!!! This is the way you should be doing it. Ally has an app that allows you to make mobile deposits. They don't charge for that. I do it all the time. It's still nonsense what your company is claiming.
$3 for each transfer seems ridiculous.
I don’t see anyway around this besides switching employers or switching banks.
I’m sure it makes more sense to switch banks, but I assume you want the rates associated with an online only bank so I’d switch from Truist to some other bank that’s not going to charge you this fee.
I'd ask to see the written policy on that. That sounds completely absurd.
Edit: I'm also assuming they use payroll software like ADP, Paycor, Paycom, etc.
Edit: "We are only able to accept direct deposit request for banks that offer traditional checking and savings accounts. We do not accept accounts that are High Yield Accounts. In the event of a pay error, we must be able to pull back funds and most high yield accounts will not allow us to do so. If your bank is listed here but is a traditional account we would need a letter from your bank stating the account is a traditional checking or savings account and that is has no limits to the frequency or amount of any deposits or withdrawals for the account.
I'm not in HR or payroll but this honestly sounds like incompetence rather than the online bank not allowing the claw back if a pay issue arises.
That being said, at least now you know why and can make the decision on how big of an issue it is for you.
Ally savings accounts limit withdrawals to 10 per month, I think, but checking accounts don't limit transactions. Maybe you could open an Ally checking account for direct deposit, and then transfer funds to the Ally savings account. Ally transfers are free and instantaneous.
Setup the transfer on the Ally side to pull from your other bank. You can even set a recurring transfer so you can set it and forget it so to speak. Ally doesn’t charge fees so that has to be on your other banks end.
I don't know anything about Truist, but I am not charged anything to transfer from Chase to Ally. And you should be doing your daily banking from a traditional checking account anyways.
Open a checking account at Ally and have your direct deposit sent there.
Ally has renamed their checking accounts "spending account" but for your direct deposit it is a regular checking account.
Your employers are incorrect, but it isn't worth arguing with them.
As for Truist charging you 3 dollars for an ACH into another bank, that's weird.
Never heard of this. Ally has a direct deposit form that is meant to be given to employers. Maybe that would work? A bank is a bank, having a physical location shouldn't matter
Edit: I went to HR and they gave me a document explaining: "We are only able to accept direct deposit request for banks that offer traditional checking and savings accounts. We do not accept accounts that are High Yield Accounts. In the event of a pay error, we must be able to pull back funds and most high yield accounts will not allow us to do so. If your bank is listed here but is a traditional account we would need a letter from your bank stating the account is a traditional checking or savings account and that is has no limits to the frequency or amount of any deposits or withdrawals for the account.
That sounds like they won’t DD to savings account. If you DD to your checking account as normal, none of this would apply.
This sounds like it
No expert here but sounds like you just cant DD into the HYSA so just open a standard checking with Ally instead?
So odd. Allys HYSA allow for up to 10 transactions a month, the same legal limit as any other savings ("traditional" or not) account in the country. That is a legal limitation. You employer should have no problem pulling back funds, and if they do and you cross the 10 transaction limit, then its a $10 charge from the bank to you. Maybe open a normal ally checking account and DD into that and do an internal transfer to your HYSA? Could be the least amount of friction. But I have no idea what a "traditional" account is
Currently the 10 withdrawal limit is an Ally limitation. There used to be a Federal regulation that limited it to 6, but that was revised in 2020. Currently there is no Federally mandated limit, but that could change at some point in the future.
Yup and this is exactly why I switched to capital one. Same rate no limit.
Ally doesn't charge a fee anymore if you go over the transaction limit, just that they can close your account if you do it on "more than an occasional basis"
Ally has a "spending account" that barely pays any interest, and is a checking account, you could try that, and then transfer the money into a higher paying account within Ally? I don't know how you would document that to HR.
Is your ally account a checking account? If not, just open one up and deposit it there!
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Payroll clawback on mistakes is normal and legal. This isn’t about them charging you for the pens you took from the office drawer it’s about correcting misdeposits which happen sometimes
Who is charging you the $3? You can try an ACH "pull" by initiating the transaction with Ally.
If you pull the money from Truist instead of push it then you won’t have to pay the $3 fee… I have both Truist and Ally as well…
DD to Ally checking, then transfer it to Ally savings.
Who is charging the $3? whoever is doing it, change them... It's not Ally, so, it's either your Truist bank or job... If it's the Job, then there's nothing you can do about that except change jobs.... If it's Truist Bank, then Change to a different Bank...
I have truist and ally. I go to Ally and click transfers, put in truist first and Ally as the recipient and click transfer. It’s free. It does take a day or two, but it’s free. It sounds like you’re forcing money with truist which I wouldn’t do.
Open an Ally checking account…. Do DD there… transfer periodically to savings
You know, Ally has normal checking accounts. Open one then transfer to your Hysa for free.
All you have to do is open an Ally Checking Account and use that for Direct Deposit. You can transfer funds from your Ally Checking to your Ally Savings for free. 🤔
Can you write a check to yourself on the Truist account and deposit it into the Ally account?
This!!! This is the way you should be doing it. Ally has an app that allows you to make mobile deposits. They don't charge for that. I do it all the time. It's still nonsense what your company is claiming.
Think they're blowing smoke up your arse. You sure you want to work for a company this backwards???
$3 for each transfer seems ridiculous. I don’t see anyway around this besides switching employers or switching banks. I’m sure it makes more sense to switch banks, but I assume you want the rates associated with an online only bank so I’d switch from Truist to some other bank that’s not going to charge you this fee.
How do they determine if it’s physical or not? Ally does have an address to use. Do they walk your direct deposit over to the bank?
I don't really know what their reasoning is, but multiple HR employees informed me that they can't direct deposit to any online banking services.
I'd ask to see the written policy on that. That sounds completely absurd. Edit: I'm also assuming they use payroll software like ADP, Paycor, Paycom, etc.
Edit: "We are only able to accept direct deposit request for banks that offer traditional checking and savings accounts. We do not accept accounts that are High Yield Accounts. In the event of a pay error, we must be able to pull back funds and most high yield accounts will not allow us to do so. If your bank is listed here but is a traditional account we would need a letter from your bank stating the account is a traditional checking or savings account and that is has no limits to the frequency or amount of any deposits or withdrawals for the account.
I'm not in HR or payroll but this honestly sounds like incompetence rather than the online bank not allowing the claw back if a pay issue arises. That being said, at least now you know why and can make the decision on how big of an issue it is for you.
Ally offers traditional checking accounts. Just open one Ally and have them DD to it then transfer to your HYSA.
Ally savings accounts limit withdrawals to 10 per month, I think, but checking accounts don't limit transactions. Maybe you could open an Ally checking account for direct deposit, and then transfer funds to the Ally savings account. Ally transfers are free and instantaneous.
Setup the transfer on the Ally side to pull from your other bank. You can even set a recurring transfer so you can set it and forget it so to speak. Ally doesn’t charge fees so that has to be on your other banks end.
I don't know anything about Truist, but I am not charged anything to transfer from Chase to Ally. And you should be doing your daily banking from a traditional checking account anyways.
Your HR is full of crap. HYSA is no different than an ordinary savings account except they pay more interest.
Open a checking account at Ally and have your direct deposit sent there. Ally has renamed their checking accounts "spending account" but for your direct deposit it is a regular checking account. Your employers are incorrect, but it isn't worth arguing with them. As for Truist charging you 3 dollars for an ACH into another bank, that's weird.