Ally Bank Review

After being GMAC Bank first and then changing it’s name to Ally Bank, everyone’s no doubt seen the new advertisements that emphasizes no fine print.  When I heard about the new name and with General Motors filing bankruptcy, the first thing I can think of is whether my money will be safe.  Of course, I went to research further before my readers make any mistakes with this bank so this review represents what I think of whether putting money into its savings account offering is worth the time.

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Safety of Ally Bank

First things first, Ally Bank saving accounts and CDs are all FDIC insured so our money is safe.  The limit is $250k right now and it won’t be adjusted back to the original $100k until the end of 2013.  To increase the amount that you are covered for even further, you may want to open separate accounts under your name and also joint accounts so you get a higher limit.  (Another way is to open accounts across different banks, which is actually safer.)

Products Offered from the Online Bank

Ally Bank offers 2 main products that we are really concerned about – an online savings account and a certificate of deposit with above average rates.  The extremely good interest rates for this type of products and the bank being FDIC insured prompt me to open an account with them.

When I opened an account, it was also nice to see that I can actually open multiple savings accounts and certificate deposits all on one screen.  No more submitting multiple applications and spending time filling the exact same form more than necessary.

Ally Bank is Another Excellent Option

There’s really many options out there to compete for our money, but it’s nice to see that there’s still a savings account that offers more than a 2% savings rate.  The name GMAC may spook you in opening an account, but the safety of the FDIC guarantee should provide comfort, especially since you are getting more interest by going with them.

Other News You May Want to Know About the Ally Bank

News on This Financial Division

It seems that the American Bankers Association would like Ally Bank to lower its deposit rates because it’s so high.  In fact, they sent a letter to the FDIC saying that they think Ally Bank shouldn’t offer a rate that’s almost double the national average.  It’s a little absurd to think that someone would publicly express concern when one of the bank is clearly trying to gain deposits by offering attractive rates but hey, nothing should surprise us by now right?

Of course, Ally Bank fired back an email that states that the bank is very well capitalized and with the rush of people opening accounts because of the high rates, the capital position picture looks better every day. It is also saying that it will continue to offer high interest rates for its customers.

Is GMAC Really GM?

Many people asked me about this already, and I actually had the same question myself.  I always thought that GMAC Financial Services was part of General Motors but I was wrong.  GMAC is actually a standalone banking operation that provides lending and banking services.  The difference with GMAC to a traditional loan is that instead of offering mortgages and home equities to consumers, GMAC offers loans and lending to GM and Chrysler dealers to finance their operations.

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