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cdancer20 said:   
anthonyjh said:   Hmm, I was still able to transfer $1 over to the savings so at least for the time being mine isn't closed.  I wouldn't care if not for the $3/mo in fees they'll wither away at.  I just don't want to ACH the remaining funds out if they'll be making changes which would cause trouble with Ally. 
  I still don't understand what your concern is.  The fees get charged on the last day of the month.  Put all the money in your prepaid account.  Pull either all of it or all of it minus $3.  That's it.  Nothing to worry about.

  Has nothing to do with fees. As I stated in my initial post, my concern is that they'd close my second account - prepaid and savings - and leave me with a denied ACH and a pissed off bank.  It was my understanding that they were enforcing one mango account per SSN, including all Mango products. 

rated:
I decided to calculate the optimal deposit/withdrawal strategy under the new rules, and the resulting APY.

Mango Rules:
First $5000 gets 6% APY with net >=$800 deposits for the month, or 2% APY without >=$800 net deposits;
Balance over $5000 gets .1% APY
Monthly fee of $3
Additional assumption for calculations:
If not in Mango account, funds earn 1% APY at Ally.

So there is effectively a .9% "penalty" on funds over $5000 in Mango. There is a trade off between losing the 6% interest, and building up a balance over $5000 that earns only .1%.

Here's the optimal strategy:
Start with $5000 in Mango
Month 1: Deposit $800 at end of month.
Month 2: Deposit $800 at end of month.
Month 3: Withdraw $2400 at beginning of month.
Month 4: Deposit $800 at beginning of month
Then repeat Months 1 through 4 until they change the terms or close your account.

By my calculations, this gives you ~4% APY (after the monthly fee). If you make the cycle longer or shorter, you lose about .1% APY per month added or subtracted from the cycle length, although for much longer cycles the amount you lose compounds more. I may go with a 3-month cycle, which gets ~3.9% APY, because Ally lets you automatically schedule transactions every three months (but not every 4 months).

rated:
anthonyjh said:   cdancer20 said:   
anthonyjh said:   Hmm, I was still able to transfer $1 over to the savings so at least for the time being mine isn't closed.  I wouldn't care if not for the $3/mo in fees they'll wither away at.  I just don't want to ACH the remaining funds out if they'll be making changes which would cause trouble with Ally. 
  I still don't understand what your concern is.  The fees get charged on the last day of the month.  Put all the money in your prepaid account.  Pull either all of it or all of it minus $3.  That's it.  Nothing to worry about.

  Has nothing to do with fees. As I stated in my initial post, my concern is that they'd close my second account - prepaid and savings - and leave me with a denied ACH and a pissed off bank.  It was my understanding that they were enforcing one mango account per SSN, including all Mango products. 
As I stated above, they said they are only closing the savings account if you have more than 1. "Each natural person is limited to one Mango Savings Account".

rated:
frankot said:   I decided to calculate the optimal deposit/withdrawal strategy under the new rules, and the resulting APY.

Mango Rules:
First $5000 gets 6% APY with net >=$800 deposits for the month, or 2% APY without >=$800 net deposits;
Balance over $5000 gets .1% APY
Monthly fee of $3
Additional assumption for calculations:
If not in Mango account, funds earn 1% APY at Ally.

So there is effectively a .9% "penalty" on funds over $5000 in Mango. There is a trade off between losing the 6% interest, and building up a balance over $5000 that earns only .1%.

Here's the optimal strategy:
Start with $5000 in Mango
Month 1: Deposit $800 at end of month.
Month 2: Deposit $800 at end of month.
Month 3: Withdraw $2400 at beginning of month.
Month 4: Deposit $800 at beginning of month
Then repeat Months 1 through 4 until they change the terms or close your account.

By my calculations, this gives you ~4% APY (after the monthly fee). If you make the cycle longer or shorter, you lose about .1% APY per month added or subtracted from the cycle length, although for much longer cycles the amount you lose compounds more. I may go with a 3-month cycle, which gets ~3.9% APY, because Ally lets you automatically schedule transactions every three months (but not every 4 months).

  How do you withdraw $2400 at the beginning of month 3 if you've only deposited $1600 during months 1 and 2 unless you're starting with $800+ balance on your prepaid?

rated:
wyle1 said:   
frankot said:   I decided to calculate the optimal deposit/withdrawal strategy under the new rules, and the resulting APY.

Mango Rules:
First $5000 gets 6% APY with net >=$800 deposits for the month, or 2% APY without >=$800 net deposits;
Balance over $5000 gets .1% APY
Monthly fee of $3
Additional assumption for calculations:
If not in Mango account, funds earn 1% APY at Ally.

So there is effectively a .9% "penalty" on funds over $5000 in Mango. There is a trade off between losing the 6% interest, and building up a balance over $5000 that earns only .1%.

Here's the optimal strategy:
Start with $5000 in Mango
Month 1: Deposit $800 at end of month.
Month 2: Deposit $800 at end of month.
Month 3: Withdraw $2400 at beginning of month.
Month 4: Deposit $800 at beginning of month
Then repeat Months 1 through 4 until they change the terms or close your account.

By my calculations, this gives you ~4% APY (after the monthly fee). If you make the cycle longer or shorter, you lose about .1% APY per month added or subtracted from the cycle length, although for much longer cycles the amount you lose compounds more. I may go with a 3-month cycle, which gets ~3.9% APY, because Ally lets you automatically schedule transactions every three months (but not every 4 months).

  How do you withdraw $2400 at the beginning of month 3 if you've only deposited $1600 during months 1 and 2 unless you're starting with $800+ balance on your prepaid?

  
The line right before month 1 spells it out  - start with 5k.

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