Comparing Investment Features of Tellus Superapp and Ally Bank
Technology has given investors a wide array of options for where to put their money. A simple way has been to just put money in a savings account at a bank, sit back, and watch it grow. There are risks to this method, and alternative, safer methods than just putting money in the bank. This article will compare investing in a savings account with Ally Bank versus investing in the real estate investing platform Tellus superapp.
Ally Bank
Ally Bank advertises their online savings account as a safe place for your money with no monthly fees or minimum balance requirements with a 1.60% Annual Percentage Yield (APY). According to their Daily Balance Calculator, a daily balance of $25,000 in a savings account with an APY at 1.60%, the investor’s estimated earnings would be $400. Compared to other banks like Citibank, Chase, and Wells Fargo, the estimated earnings are considerably more than the other banks’ earnings at $2.50 — $15. Their 24/7 support is also an appealing feature.
It sounds great, but how guaranteed is Ally’s APY? After diving more deeply into the details, the APY rate of 1.60% is flexible and subject to change after opening an account. The example they use is only for California and does not take other states into consideration.
Just because there are no monthly fees doesn’t mean there aren’t other fees that would reduce earnings. There is actually a list of fees that would lower the estimated 1.60% APY:
- $10 fee for excessive transactions (they allow 6 per transaction cycle)
- $25 daily charge for overdrafts
- $15 for expedited delivery
- Their 24/7 support could charge an investor $25/hour for account research
- $20 for outgoing domestic wires
- $7.50 for a returned deposit item
Tellus superapp
Tellus superapp is a real estate investment and management platform. They also provide the Tellus Cash account feature that acts as a savings account at a bank. An investor transfers money from their bank to their Tellus Cash wallet to put stake in a property. When they choose a property, the cash is then out of the wallet and staked in the property. When the user sells their shares of an investment, the funds go back to the wallet and can be transferred to their bank if they choose. Otherwise, it sits in their Tellus Cash wallet and earns 0.75% with no fees or penalties.
On their investment website, they provide no list of fees that could potentially lower earnings because there are no hidden fees or penalties.
Final Thoughts
After comparing the two investment strategies, Ally Bank may provide a bigger percentage on returns than Tellus superapp, but Ally’s APY is not guaranteed and could change at any time. With no fees or penalties, the Tellus superapp seems like the safer place to invest money.
