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.
Sign up for an account by clicking here
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.
- Ally Bank – Official Site
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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Porter;
See my note of July 3. Answer is no and yes.
GMAC is a “bank holding” company that can get TARP funds. It issues it’s own debt, which is not FDIC insured since it is not a bank. Since it has access to Government funds, it is less likely to fail and leave debt holders in the lurch. Not impossible, but unlikely.
Ally Bank is the new name for GMAC Bank. AllyBank is a subsidiary of GMAC. This means it is a separate legal entity from GMAC and as a bank is subject to specific regulation, (likely more than the regulation of a bank holding company.) It is a bank and gets FDIC coverage for its account holders like any other bank.
Debt issued by GMAC is not related to Ally Bank and visa versa. GMAC still has that obligation (your bonds) and, as far as I know, is still up to date on the interest payments.
I am still comfortable with GMAC and Ally Bank. It is not surprising to me that so many folks don’t “get it”. In fact, it is interesting the complete
lack of financial knowledge among the general population. This used
to be called
capitalism, and it used to be the norm. Now, under “Obama”
it’s on life support. Anyway, there will always be winners and losers, no matter
what nutty schemes your government cooks up.
John Galt
It was BUSH that bailed out AIG and pushed legislation to bail out banks rocketman………Talk about not getting it
We republicans can lie to ourselves about the devastating and destructive performance of our party all we can, but one day the chicken will come homes to roast. Every dime Obama has used to support the economy was approived by a republican congress and president. Like it or not we screwed up very bad and should man up.
I think it was a Democrat run congress but yes, a Republican in the executive office.
Your line – “now under “Obama” it’s on life support” – shows your total lack of financial knowledge. Do you think our current financial catastrophes happened January ‘09? It was set up by years of neglect and abuse. The worst abuse was under the last eight years of “Bush”.
can i open an email with $100.
can i open ally online accountt with $100
do you mean i can only open for $250,000
Letti, the great thing about Ally is there is no minimum. You can open an account for $0. Of course you won’t make any interest on that. And no penalty for withdrawing your money – no minimum balance required. Also, they compound interest daily (like most banks) but pay you every month (instead of every quarter like any of the big banks out there). It’s a great deal – I made more interest in one month that I would at U.S. Bank the entire year.
I’ve been with ALLY (previously GMAC ) bank for a few years now. Good interest rates, easy to transfer money to linked accounts, friendly customer service, etc. But for me service has diminished greatly since the name change to ALLY.
In early August ‘09 I was speaking to customer service about a pending transfer, when the rep asked me about 2 identical debits from my account made within minutes of each other. A good catch by the rep because they weren’t mine! At my request the debit card was cancelled and replaced with a new one as a precaution. My account was then locked from any outgoing withdrawals while the Fraud dept. investigated. I signed and returned a form denying responsibility for the charges ($140 total).
It is now late August and my account is still locked. Numerous calls to customer service have been fruitless. They aren’t allowed to discuss my account, only the Fraud dept. can. I’ve been told twice now that I will get a call back within 48 hours. I’m now on hour 36 of the third promise of a call. I’ve talked to supervisiors, nothing. Not even they are allowed to speak with the super-secret Fraud dept.
So I have 10k I can’t access and can’t get any answers! My next call is to the State AG. First chance I get, I will close this online account. The feeling of helplessness when something goes wrong is not worth the interest earned!
Beware this bank !!!
It took me four or more takes to find out who and what was being advertised. Prior to that I just kept turning it off as fast as I could. It may not be real but it paints a miserable portrait. You think it was worth while because it got my negative attention. Negative Negative Negative!!!
The one thing I do know now is that I want nothing to do with an outfit that needs this kind of offensive nonsense to get attention. So you pay more interest, so did Madoff.
Do Not Trust GMAC, ALLY or Cerberus. All the same people who have ripped off American public that started with mortgage swaps, part of our financial crisis. GMAC Mortage was one of the big players in bad mortages. GMAC also has forcefully closed many Car Dealerships putting thousands out of work. Cerberus basically ruined then bankrupted Chrysler after buying it from Damlier. Failure after failure is whats behind Ally bank. Cerberus needs a bank to get public money and borrow from the Gov at the cheapest rates.
And they pick a name for a new bank like Ally. What’s that supposed to make us think? they’re our Allies? silly. I wouldn’t give’m a dime even if their supposed return was 10%
Look into GMAC, Cerberus yourself, you’ll see…
If you see this “bank” coming, run the other way … fast!
I closed my account after two months. Interest rate kept dropping. Website didn’t accurately show account info. They kept insisting on snamil mail for some things
I Think that the Bankrupcy of General Motors Corp. makes a negative influence en the public impact over the GMAC
I would like to recieve e-mails newsletters and alerts from the Ally Bank, because I would like to Know it better. Thank you
my account was closed, but suddenly reopen with new account number and a couple new strangers joined the account.
I called report problem Sat, Mon, Tues and today is Wed morning, still not heard from them what is going on, why there is a stranger added to the account? why my closed account reopen?
When you call the Rep, they use your last name to pull up your account, that is easy for access wrong account.
Changed my mind after reading the reviews above . I think I am better off getting ZERO interest in my checking account than doing business online. Looks like Madoff in disguise, same deception for the middle class but with different faces.
What you wrote made me think of a quotation by Will Rogers, from many years ago. He said then, and it’s still true today: “I’m not so concerned about the return on my investment as I am about the return of my investment.”
perwaz A…I agree. I was seriously considering opening both savings and CD accounts. The above comments on customer service makes me say “stay where you are, big fella,” all that glitters (high rates) ain’t gold.
Follow up with my post on 9/2 above.
Finally I received phone call from Ally bank on Thursday morning and the reason was…..Someone opened the account and wanted to add a joiner to the account…the joiner happen to have same my first/last name and they mistaken selected my name to his account. So, the result as my account has strangers (his name and some others) in it and his account has my name on it.
I cannot believe that it takes 3 business days just to find that out. DO NOT BANK WITH THEM… I AM NOT RECOMMEND ANYONE!!!!
I am disappointed with all the negative comments about Ally Bank.
Disappointed but not surprised. OTOH, I have had these sorts of
problems with other financial institutions, brokers, etc. It’s
pervasive, or maybe just Murphy’s Law? Anyway, I have never used
the GMAC/Ally Bank, but I’ve had good results during my other
interactions with the various GMAC related businesses.
John Galt
I was internet shopping for a better savings rate and put Ally at the top of my list until reading these comments. Like most people reading these posts, over the years, I have had many different bank accounts with different banks (some of which no longer exist after the merger mania of the 80s). I have only 1x had a serious customer service issue. I fully expect these kinds of incidents to be the extremely rare exception. I’m not going with Ally after all.
I have to say that I am quite surprised at some of the comments. I have had several accounts with them for 2 years and had no problems whatsoever. So either I got lucky ( I opened a few more no penalty CDs recently) or the folks above are very unlucky.
Anyhow, I would recommend Ally based on my personal experience.
This spring I opened 5 CD’s with GMAC in an effort to diversify my
holdings with different financial institutions as the concern over
bank failures was increasing.
Through the GMAC / ALLY transition they effectively reduced my 2.65%
APY to 2.6% APY on my CD’s. This is BULL S$IT Ally. I am Finance
Major and I know how to calculate NPV equations.
ALLY will never receive another penny from me. I am staying with ING.
ALLY you are crooks!!!!
ING’s rates are even lower, so why would you do that if you are trying to maximize your return? I just experienced the opposite, where ING dropped the rate on me when I opened a CD with them and think it is funny our experiences are polar opposite! Ally has a higher rate and a 10 day rate guarantee so I am in the process of closing my accounts with ING. I was thinking about Discover as well but have not tried them yet.
As a financial advisor, I too am staying with INGDirect after giving Ally a try for several months. They are outright LYING when they advertise that they have no small print, no fees, etc, etc. I used Ally in the EXACT same way that I used ING Direct and ended up paying 2 $10 fees almost immediately. When I called about it, customer service LIED about the federal regulations for withdrawals on these types of accounts(I know the rules quite well) and would only refund one of the two fees. I even talked to a manager who LIED TO ME. Either that, or they are too incompetent to know the laws that apply to their accounts.
I then called ING to confirm what their policy is on the exact same situation, and THEY PAY the penalties for their customers if the customers make too many withdrawals. Eventually, they lock the account, but they have NEVER CHARGED me a penny in fees in 7 years of doing business with them. All of my clients will have INGDIRECT accounts, but I will not let any of my clients open Ally accounts.
BEWARE ALLY. – coming from a professional financial advisor.
I can’t understand why you are a financial advisor but fail to adhere to the rules of six withdrawal limit. ING may be nice in that they don’t charge when you go over a government imposed rule, but I think that Ally is actually doing the right thing in issuing a fee every time a customer goes over the limit so people don’t abuse this.
Rules are rules, and as a financial advisor, you should know not to break them.
Yes – I know the rules and I followed them. I only made 5 withdrawals with Ally – they started charging after 3 and then told me that the law is “3″ withdrawals, when I know it is 6. They charged fees preemptively. I wouldn’t be so upset if they had refunded both fees OR told the truth about the laws OR even treated me with any respect. They did not do any of the above; so here I am. What pisses me off even more is how they always advertise how well they take care of their clients, which could not have been farther from the case for me. Their CFO had been interviewed for an article not a month before I contacted customer service and talked about “no fees”, etc., etc. I QUOTED ALLY’s CFO to the customer service manager and she blew it off as if it the CFO was just some marketing peon who didn’t know what he was talking about. This company is so hypocritical that I just want to throw something at the tv when I see their bullshit ads. INGDIRECT does not need to advertise that they treat their clients well because THEY ACTUALLY TREAT THEIR CLIENTS WELL! I have had 5 or 6 interactions with INGDirect’s customer service and always came away impressed. ING does everything right. Even their legal jargon is interesting! Their legal print is the only legal print I think I’ve ever read in its entirety because it is interesting to read. No other company on earth can claim to even take care of their clients when it comes to legal jargon. -
Thank for all the input. After reading many of the comments I think I’ll leave my money where it is, with ING. I was a little bit concern on the name change and I believe there is something fishy with the bank. Where that name came from?
Ditto the comments re: ING Direct. Easy to use online banking and excellent phone support. Been a customer for 4 1/2 years.
ALLY sucks period. Stay away or suffer.
Stay away from Ally Bank. Their website doesn’t accurately show transactions and they are hung up on real paperwork
Members of Ally Bank who have an online savings account be aware that if you do two transfers, e.g. from an external checking account to your Ally Online Savings Acct., you will be given the SAME confirmation number. I was floored as I expected unique confirmation numbers for EVERY transactions I inititated. Firstly, I was told it was an error due to a system being updated, then a secure email reply that it was standard practice for transactions initiated on the same day (Unbelievable)…..I requested they change bank policy to issue UNIQUE confirmation numbers for EVERY transaction….we’ll see if my email makes any difference in policy.
I should have stated …..two transactions on the SAME day…..get the same confirmation number.
I was really thinking about actually opening accounts will ally. The above comments have scared me off. I work to hard for my money and I don’t want it to disappear.
Ally bank is the worst bank of all the one’s I have had experience with. They won’t transfer you to a supervisor when asked. They hang up on you. They get all your information wrong so when you give them the right info for verification they think it’s not you and freeze your account. I have been trying to get my money out of this bank for months and I can’t even speak with a supervisor! I never had a problem until GMAC switched to Ally. Do not put your money in this bank. You will regret it.
the ads with the children being teased by this jerk in
the suit is so disgusting. I would not use a company
or bank that uses this format.
Wow ! I was about to push the button and deposit a nice chunk in this Bank .
The no penalty CD looked attractive , and the rate sounded good , but it sounds like once they get your money – it’s nothing but problems …………..
I’ll stick with my local bank where they know me by face recognition .
I find their ads exploiting children that develop a mistrust in adults…I wouldn’t put my money in any of their banks. They are insensitive to children….what makes you think they will be sensitive to your needs..other than your money?????
I was with gmac since aug of last year and i loved the high interest rates higher than anyone else, ally’s interest rates not so hot. anywho i requested my money and within 7-10 days i received my check and my penalty was like months interest which i had already earned… love these guys!
After experimenting with ING, E-Trade and Discover, I have to say I was most impressed with Ally. I just opened a few more No Penalty CDs and can’t relate to some of the comments above. We all need to try different banks and make our own decisions but I would recommend Ally based on my experience.
Unlike many of the comments above, I am having no problems with Ally so far after about 3 months of service. They pay interest consistently and is actually one of the only banks to increase their rates in the last month or two.
If I had to choose a bank again knowing what I know, I would still choose Ally Bank, even after reading these comments.
I to was ready to change from ING after 10 years of great service to go to Ally when I decided to research them further. Seeing this page and the above comments will now keep me right where I am at ING. Thanks for all of your input.
I have been with Ally for 2 months and couldn’t be happier. I had absolutely no problem with them. Fantastic customer service.
I am a huge fan of Ally bank. I used to bank with ING and have found Ally to be much better. The customer service at Ally is better and so are the rates. I just closed my last ING account and moved the money to Ally. I would absolutely recommend Ally.
Don’t Bother with Ally. They suck, the rates are high but the trouble is not worth it… Seriously, I know from first hand experience. To call their customer service is just horrible, and to get your money back you practically have to fight with them. Not worth the time, money, or the spent energy.
Actually, I have found they transfer money faster than most other banks. Their online transfers work seamlessly and my experience with their customer service has been very good. Reps are generally friendly and very helpful.
Still looking for a bank with a good checking product, since Ally does not offer one. Any suggestions?
I was told that Ally will be offering a checking account by the end of October… so we’ll see!
I have an online savings and money market account and I have been very happy with them so far, customer service has been excellent, and their rates are still really good!
I have been a customer of Ally Bank for 5 months and could not be happier. I like the clean website interface and like the online chat feature to address any questions I might have. I used to be a fan of ING, but I think Ally is hands down a better bank. Ally reminds me of who ING used to be before they lost their way and started taking customers for granted.
I was researching where to put some of my money. Thanks for all your comments and for possibly saving me some of these hassles. Customer service is everything, so I’ll look elsewhere.
What else can you get 2% interest on CD? Only at Ally Bank and it is FDIC insured.
Thanks for the info on the checking account from Ally. That’s exciting news.
By the way for folks like Diane above, my advice is make your own decision rather than get swayed by any of these comments. There is no minimum balance requirement. So open a savings account with a small amount. It pays 1.7% which is an awesome rate for a savings account. If you like the experience, add more or open more accounts like I did. If not, you really don’t lose much. So make up your own mind like I did and I am glad I did, since I am very happy with my decision to go with Ally.
Since Chase acquired WaMu, the interest rate I am receiving has dwindled. I have a money market account paying a whopping .50% so am naturally looking for a higher interest rate bank. However, since I lost a bit when I had my money at Indy Mac (now One West Bank after reopening), I am much more cautious. The above comments have turned me off of Ally. Will check out ING and possibly others. Anyone else have suggestions for the Colorado area?
Put your money … overseas. As far away from the idiots in Washington as possible.
Once they hike income taxes in 2010 or 2011, you’ll NEVER ever see your money again. Uncle Sam is busy, spending your money before you even earned it.
Unfortunately overseas accounts are unsafe too. A relative put some money in Iceland/Isle of Man and is now fighting to get it back. It looks bleak. However, this mornings news noted that Europe is breaking up their big banks….something we should be doing.
You people must be nuts to even consider putting your money in an insolvent ‘bank’. FDIC is broke, people.
The depression that started is not a repub/dem issue. Plutocratic interests in DC have stolen the birthright of unborn generations for generations.
Need a place to park cash? Treasury Direct or Pentagon Fed. Credit Union.
I checked both of the accounts you mentioned. Treasury Direct only allows you to deposit a maximum of $5,000 per year while Pentagon Fed Credit Union pays .79% on accounts over $100,000. The latter rate doesn’t even come close to covering inflation. FDIC is still not broke but I certainly don’t want to put my money and learn that that bank has gone belly up. So, now where?
Technically, no bank will have all its funds available if every depositor tries to withdraw money so you may want to explain what you mean by insolvent.
FDIC also theoretically has a $500 billion line of credit with the Treasury so it’s far from being “broke”. Please don’t spread rumors like these and scare everyone, whether it’s for Ally’s sake or every US financial institution for that matter.
The FDIC is still sound as far as we can tell.
I hate Ally Bank! They misrepresented their product and how it works. I wrote a check for my property taxes and the bast@#Ds actually bounced it (even though I had 5 times the amount needed to cover the check in my account). Now I am on a “deadbeat” list with the county and can never write a check again for my taxes! I asked the customer service person for a letter from Ally explaining their error and it was out of the box so….I am screwed! I have been fighting to get this wrong righted for over a week now. As soon as the dust settles, I AM OUTTA THERE! BRICK AND MORTER FOR ME!
I have read all the comments and have decided NOT to put any money into ALLY Bank. I have another online account for savings, and I’ll leave it where it is. I have checked into local credit unions and have decided to open an account in this manner, as the interest rates are ok and the loan rates are unbeatable. GO WITH A PERSON WHO KNOWS YOU and YOU CAN TALK TO IN PESON, MUCH SAFER!!!!
Yea, there so well funded all right. They have a direct connection to the printing machine in the WH basement….and they use it. (Frequently) And guess who a lot of membership is…. auto workers?
KARENOFGA: Send a letter to MrObama to.
I have 2 CD’s and the On-Line Savings Account at 1.7%APR with Ally Bank. I have 3 external accounts attached to the savings account for transferring money both ways. I have had absolutely no problems with customer service or any other aspect of my banking experience with Ally and highly recommend it. I find the On Line Savings account a good place to park some money for a bit while I’m uncertain which way things are going with the market. It’s easily accessible but it’s earning at least a half-way respectable amount of interest while it’s sitting there.
I opened an online savings acct with Ally Bank in September, transferred money easily. Have called their Customer Service a few times and there were no problems. They offer the a high rate for online savings, and are FDIC insured. When I opened my acct, the rate was 1.75, now it’s 1.55, most likely due to the large number of people signing up. ING is only 1.30% . They used to be 4.40 % for online savings, in 2007, but those days are gone forever. No one is really paying good rates for savings. I think the highest is maybe 1.80% on Bankrate.com. Even 5yr cd’s are only paying 3.0-3.5% Not very high.
I am not happy about the rate cuts to the savings account but I guess all the other Banks whining about Ally Bank may be paying off! Besides, it is still a decent rate compared to ING and other big banks.
I have to support Ally for at least raising the issues that all these other banks have been getting away with. We don’t have to time to catch all the gotchas that Banks throw in the fine print and I applaud Ally for finally trying to do right by the customer. I hope the other Banks finally learn a lesson that they cannot take their customers for granted.
I opened my Ally bank account in the month of September 09.
After login to the website on my accounts page i am not seeing the Interest YTD being updated
Is anyone facing a same problem with their account. Upon calling Customer service they told me there is some technical snag and will be rectified soon. It almost 2 weeks now and yet to hear from them
Ketan,
Has your account gone through a FULL statement cycle? If not, your account will not pay the interest yet and it will not show up on the website. It is only updated after the statement cycle. You can ask Ally how much your account has accured since the opening of the account by using the online chat, e-mail or calling them.
Evan,
Yes, I have received one month statement. Physical statment does show the interest accrued but online it does not.
Remember I am not talking about daily interest accrued but what is the overall interest amount at the end of the month. Also, my balance just shows the total of the amount that I deposited. Isn’t this strange?
I did call Ally guys, and they told me they are working on my case. Need to know if anyone else is also having the same problem?
Hi Ketan,
If that is the case, then YES, I am still having that same problem.
Sweet Sweet Surprise!!!!
After chasing Ally, finally I could see the Interest YTD on my Accounts page and also the overall interest been added to my balance.
Evan, you could try too. Good Luck!
Hi Ketan,
I logged in today and mine was there too… weird!
Have you seen the disgusting advertising using small children? I try to turn it off as quickly as possible. These children are being exploited.
I agree about using kids. Maybe Obama can buy that one girl a REAL pony!!!!!!!!!
Obama had nothing to do with this, I think, although his henchmen may have. I doubt they really care about little girls/boys as their push for more spending at the expense of future generations is proving. I am disappointed in GMAC/Ally Bank for their continured use of these adds.
Try USPSFCU as an alternative. I have been with them since I was a teenager. They have a money market savings that pays 1.40% on $100K+. Anyone can join. There is only a $5 member sign up fee. Your money is also insured through NCUA. The only draw back is that the financial branches are very few but if you bank online that should not be a problem for you. Check them out for yourself.
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