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.
{ 190 comments… read them below or add one }
Good review, I am sure many will find this useful. So if GMAC was a standalone bank, what relations did they have with GM then? GM funded them, didn’t they – I mean, I know they were the “parent company.” Interesting to see them rebrand after the bankruptcy. I’d be concerned about the solidity of the company, too.
Actually, GM is not the parent company. GMAC is its own business and have a totally separate operating. When the bank started though, it was pretty much owned by GM. In 2006, 51% was sold to Cerberus Capital Management LP so GM doesn’t even own the majority stake of GMAC anymore.
Can someone tell me why I should bother with CDs and online savings accounts that I see all over the web? I mean, I can invest in bonds or government stable funds that give me 4-5% (some bonds give 10% even) while the online savings accounts are like 1% (well, this one gives 2% but still, the interest rate is still low).
It boils down to the fact that CDs are virtually riskless while bonds and funds aren’t. For example, while bonds yields may be good for the last few months, the value of your holdings actually dropped in the last 12 months, eating into your yields while everyone who had a CD still have every penny of their principal plus interest.
Also, note that government stable funds (if you are talking about what I’m thinking) are only available to 401k plans.
Pete,
Which bonds are paying 4-5 or 10%?
Thanks.
Earlier this week, President Obama signed a new law that extends the $250000 FDIC limit until Dec 31, 2013. That may entice you to seek out institutions like this one, at least temporarily.
I totally missed that so thanks for letting me know about the FDIC limit extension. A couple more years for some people to sleep better is always a good thing!
An extension to financial morass we have gotten ourselves without any backstops or protections!!!
Agreed. I thought about sending you an email so that you could correct it, but I figured that a comment would probably reach you faster. I know that you are usually on top of the comments. The last thing I wanted to be was insulting. Hope you didn’t take it that way!
-Matt
Just opened an account and the process was smooth. I’m waiting for my deposit to clear but so far so good. The rate is good and I hope that it stays high with the treasury yields going up and all.
Ally has good rates, and are FDIC insured.
I opened a GMAC/Ally Bank account a couple of months ago. The application process and verification were simple and fast. As a test I transferred money back to my checking account to see how readily available my funds would be in an emergency. The money moved the next day, far faster than FNBO or ING. My money will stay with Ally for sure.
I had an account with FNBO and HSBC and ING your right Ally Bank moves money far faster then any other online bank so Ally Bank gets a A+
so my money will stay with Ally for years to come.
Did your bank or Ally charge to move the funds?
I have my answer from comments below. Thanks.
Since it’s Internet Banking, how do I access my funds with Ally Bank?
Is there any fee for transferring money?
Ally Bank will let you setup a few accounts outside of the bank where you make the transfers. Also, unlike wire transfers which cost money, these transfers are free so there’s no need to worry about transferring cost.
MoneyNing is correct. You just link a regular checking or savings account to the Ally Bank savings account to transfer money in and out. Easy Peasy.
Rob
The whole bailout is so stupid on so many levels. Paying workers not to work, paying workers to quit, giving Chrysler to a company along with billions of dollars. This FAKE bankruptcy is a fraud by our US Treasury, among others. Anyhow, get ready to print some more money. This GMAC did not ever qualify as a bank. it was switcharoo and the Treasury has funded it completely. They have raise sqwaut funding except from our GOVEREMENT, otherwise nothing. Changing the name, FRAUD, magic trick, still same POS.
Completely agree!
You are right!
You are wrong: GMAC Bank was a standalone bank long, long before the government bailout. Additionally, Ally is not owned by GM so your assertion and linkage with the auto industry is specious at best.
Speak not of that which you know nothing about, my friend.
Would you please quit spreading rumors and Republican FUD. Are you guys trying to ruin our chances at recovery? Why do you hate America so much?
At least provide some links to evidence and facts.
As has been demonstrated here, GMAC is not GM.
I Have a question, I am holding a BOND SMART NOTE GMAC which
has a call date 11/15/2009 . Will ALLY BANK honor this bond?
Please advise: THANK YOU Sheldon Apple
Recent commercials regarding allybank and their lack of ” fine print ” are disconcerting. Couldn’t they have found a way to get their message across without using the pained look of children getting their feelings hurt. If I see that little dark haired girl one more time trying not to cry as the other girl gets a real pony I will cancel my account.
I want to see that little dark haired girl MANY more times. Then I’d like to see if anybody is dumb enough to cancel their account because of a commercial.
Count me in as someone “dumb”. There should be a better way to get their point across.
Any company dumb enough to present a cruel commercial is going to loose my business. Those kids walked in cold. What kind of parent allows thier children to be subjected to this?
It catches the attention for Ally, but the wrong kind. You will never get my business.
uhh…she still got a free toy pony!!
You all are taking that commercial really WAY too seriously. How do you know that those children weren’t actors? And don’t come back with “oh but their looks were really genuine!”, I’ve seen some scarily talented child actors in my day. Seriously, it’s marketing, and it got you all talking about a little commercial, so mission accomplished. As long as they’re backing up what they preach, then preach on.
I say with the nation being subjected to losing more and more money each day with higher prices on EVERYTHING, it’s no wonder Ally’s answering the shouts of people looking for a way to GAIN some more of their hard earned cash BACK. I’m a very hard worker, and it pains me to see more than 1/3 of my hard earned check just be slashed away, with barely a 10th of it coming back at tax season. Show me the $interest$.
really? are you basing your investments on commercials maybe you shouldnt invest, ally is a strong reliable online bank, the point of there commercials is to get the point accross, were not smoke and mirrors
ya some people plays games with others feelings we should discourage them…
I have “GMAC smart notes” paying good interest and matureing in 2012, 2013 and 2016. Is there any legal way that ALLY bank can avoid paying the interest and paying the notes when they mature ? Since ALLY bank is now a legitament USA bank and governed by the rules of the american banking system I believe they must honer these smart notes, but I am also very suspicious of what I would call “bank fraud”. I would appreciate an answer if you have one.
I think the commercial about the poor little girl who gets the small toy pony and the other girl who get the real pony is one of the saddest commercials I have ever seen. The girl with the dark hair looks so totally betrayed by the callous man who litterally destroyes her innocence and I believe she just learned that the world is totally unfair and cruel. I start to cry everytime I see it and even when I think of what was going on emotionally inside that little girl. She has such a look of wisdom, but it’s a lesson that should never have been taught to such an innocent girl at that age. How did her parents react? I would have been completely angry about the cruelty of this and seeing the reaction on that young face. It’s even worse because the little girl is certainly not a pretty girl and the one who gets the real pony is cute with blondish hair. I am a rational 58 year old mother of an 18 year old son…there is such a deep betrayal in this commercial that I just have to communicate it to someone in your organization!
I love that commercial! Mayby I’m a bit twisted, but I thought it was touching but very true about things that happen to kids.
I also love the one with the boy playing with the truck and the guy take the truck and gives him a cardboard cutout.
It’s a commercial, for God’s sake. The kids are actors, under direction to give the looks you see. I’m sure the makers appreciate that it tugged at your heartstrings, but sheesh.
Do you think soap operas a real too?
Huh? is wrong. “The kids walked into the situation blind. They didn’t know they were shooting a commercial. The parents told them only that they were going to a meeting with someone and that they were going to get to play. Director Hank Perlman of Hungry Man productions specifically asked the parents not to prepare the kids too much.”
This a quote from: http://www.cnbc.com/id/31963049
I’m on Constance’s side on this one.
Funny how people find the commercial off. I didn’t like it but it did make me watch it to try to figure out what it was about. That is the goal. I have to say if that little girl can act that well at her age kudos to her. She has a job and I probably should be thinking about opening a few accounts.
Odd about your supposition that GMAC doesn’t write mortgages. To our knowledge, they hold the one on our house and have done so for five years.
I called and reached a person at ALLY bank and asked if my GMAC smart notes were payable by ALLY bank for both bi yearly interest and payoffs at maturity. This person indicated that my smart notes were not in the ALLY bank financial system with no explanation why !!!! If GMAC became ALLY bank how is that possible ??? Why can’t I receive an honest answer to a fair and ligetament question ???This sounds very illegal to me and I feel should be investigated. I would appreciate some help here.
I filled a claim against Ally Bank through the Federal Banking Authority at 877-275-3342 because they have been unresponsive to me with a banking issue.
So what’s the issue…so we all know???
Just killing time here. First, GMAC and Ally Bank are NOT the same
companies.
I wish it were so as I am loaded with Smartnotes.
Also, re. the commercials, you people need to get a life. Hello!
I’ll bet you are the same folks who bought into that “hope and change”
thing.
Johnny
how do i know that ally bank is the bank that pay good interest rate. Also ally bank is stable for me.
Since it’s the accounts are FDIC insured, your money is safe. You can look up Ally Bank on the FDIC official website if you don’t trust Ally’s (or the author’s) word for it.
People (including me) are already getting the interests as we speak. I’m not sure how to tell you otherwise but I love Ally. The interest rates are truly higher. I’m rather happy that they have a bad name since I’m getting a higher interest rate as a result.
My father passed away in April, 2009 and since then I have been trying to get his money market account transferred to me and Ally Bank has been giving me the run around and a lot of apologies. I have sent them all the paperwork that has been required numerous times and have been told I will receive a call from the Bank Operations in two business days numerous times and no call has been received. I SUGGEST THAT NO ONE DOES BUSINESS WITH ALLY BANK BECAUSE THEY ARE UNRESPONSIVE TO THE CUSTOMERS…..
My family has had the same problem with Ally Bank. Our Father died resently and these people are impossible to work with!!!! They say they are going to call and don’t…everyday for the last three months since my Father’s death we have had to drag up the same issues with these people . And if you ask them a question they say ,”I can’t answer that!” Just how painful do you think it is to have to talk about this on a daily basis.
Then when we asked if there was a phone number to lodge a complain… they replied NO!
We have sent everything they have needed ( registered mail) then the next day it’s something new….if just one person at this company had a list of protocal it would be nice.
They even asked for a death certificate of our Mother( she wasn’t on the account anywhere)…which was sent and they kept saying ,”oh we are just waiting on the death certifcate of your Mother ( we sent registered mail to them) ….then they sent the certificate back to us with no note in it!!!!
One hand in this company doesn’t know what the other one is doing!!!!!
I have no respect for this company ! They have made a very difficult time in our lives worse….
Ally has good rates plus they are FDIC insured with great customer service so my money is staying with Ally Bank for years to come .
I have had no problems with Ally Bank’s customer service and issue I have had was quickly corrected within two business days of my issue.
I have had absolutely no problem with Ally Bank. I recently did a transfer back to my checking account from my Ally Banks savings and it was perfectly smooth and much faster than the time frames with FNBO or ING. I am sticking with Ally Bank.
Negative comments based on a commercial are amusing.
I ran across this on the internet: Ally Bank bows to FDIC and cuts interest rates. The banking arm of troubled lender GMAC came under attack for offering above-market rates to savers. FDIC urged Ally to trim costs.
How many of you have a problem with the FDIC telling Ally Bank to cut its interest rates? but the FDIC does not tell banks to cut there interest rates on credit cards what is going on here?
is this ALLY GMAC or NOT??? is this ALLY in anyway linked with them?? It seemed the commercial started to run full blast during the news of Bankruptcy IMO….Can we have at least 5-8 customers (not employees or friends of employee, or anyone that would GAIN in ANY way by saying good things )PLEASE comment on this board about ALLY and if its a “to good to be true” bait and switch move of ANY kind? Thanks a bunch
I am only a customer of Ally Bank and love this bank!
Ally is definitely GMAC renamed. However, GMAC is not really linked to GM so the bankruptcy doesn’t concern them. However, one of the major business units give out loans to Chrysler and GM so the livelihood of those automakers affect GMAC heavily.
Finally, if you are worried about your money, know that FDIC pretty much have you covered as no one has ever lost a penny as long as they are within the FDIC limit.
Thanks, for all that have replied so far,. Can we have let’s say,”5″ other people comment on my original post about Ally?
I understand FDIC protection and that’s great, BUT Im dealing with a good size amount, and don’t want to be baited into a great % pay out, only to have to go and Have that number drop FAST just as ING did after all of it’s advertising(without being part of the GMAC-GM problem) worst of all having to go through with an FDIC claim?) IMO
thanks again
Spelling counts. If you write an article in which you use “it’s” instead of “its” you reduce your credibility to zero in my book.
Miss spelling happen “a lot” or “alot” if you are using iPhone “on screen” keyboard or a smartphone to type, it happens. Hopfullly we can stay the course and maybe “some1″ will reply on the original posted question to help all?
Thanks to all.
Hello and Thank you for taking the time to contact Ally Bank.
Please be assured we take all your constructive feedback to our operations and senior management. We pride ourselves at providing our customers with a differentiated customer experience, and want to do all we can to ensure your satisfaction.
We are committed to being competitive with our rates for both our Savings and Certificate of Deposit accounts. Rates are determined by a myriad of disciplines including, but not limited to: what the marketplace and industry are doing, the climate of the economy, and Ally Bank’s management. Please be assured we will take all your constructive feedback back to our respective areas and want to do all we can to ensure your satisfaction. Please keep in mind that the Money Market and Savings account rates are variable and are subject to change daily.
Should you have any additional questions, please give our Customer Care Department a call and we will be happy to assist you with this issue. For your convenience, we’ve recently expanded our hours and we’re here for you 24 hours a day and seven days a week. Our toll free number is 1-877-247-2559 (1-877-247-ALLY). Or, you can always visit us at allybank.com.
Thank you for choosing Ally Bank.
Sincerely,
Tanda Pederson
Ally Bank
That was a great post thank you. But can we just have just five people not employees or friends of employee, or anyone that would GAIN in ANY way by saying good things )PLEASE comment on this board about ALLY and if its a “to good to be true” bait and switch move of ANY kind?
I think this would help us all that are trying to figure if ALLY is a company that will be around, have at the least “GOOD” customer service? Rates are a totaly different thing. We all know most banks offer a pretty good rate when they first get the name out and start to get new customers on board, but through my past dealings with high payout(high rate/ APR) get a lot of folks to put money into the bank with them, BUT turn around and drop rates below the norm. We all understand this is business, but when a company had such a great rate, maybe not “to good to ne true” but at the least “to good to last” longer than a month or two , all this talk about the “ABA” asking to force All. To lower rates, some folks just want to know and hear from real customers about this bank, we see ut on TV about the “no fine print” that’s great if we can hear from regular customers.
Also I read on this board, “it’s GMAC” “it’s NOT GMAC but a totally different bank” “it WAS GMAC but the name was changed”
this is concerning I’m sure to lots of regular folk?
Saying just give em a try” because they are “FDIC insured” is a gamble(IMO) No one wants to have to file an insurance claim
so pleare I am not putting this bank down, I do make mistakes in spelling while Typing on my iPhone, but put thst aside, can we here from at least 5 satified customers of ally and if anyone knows for sure if this IS indeed GMAC “re named”?? This would be helpfull to lots..
(more than 5 happy customers would be GREAT!)
but also any info on name change, , any problems you may have had with Ally? There are a few comments on this board that say they have had problems with customer service (that may just simply be someone on a bad day, it may NOT?)
please, my original post is lagit, it’s in the best intrest of potential NEW customers , that just would like to know you story as a CUSTOMER of Ally and if in fact it is GM’s GMAC with a name change to ALLY?
Please read original post, and comment, I’m going to say before I end this, I’m not trying to upset anyone, thus post may have a few miss spelling / typo in it,, and with the ” yes it’s GMAC ,, NO it not GMAC” is a little frustrating.
Thank you for any reply to my original questions from customers ONLY and the real deal on Ally and GM??
Please seriouse replys
sorry it was so long …..
Cheers
Hi,
I am a customer of Ally and actually opened my account whilst it was still GMAC (not sure why they changed it). GMAC used to be owned partly by GM, the Treasury had them sell their stake in GMAC in order to proceed with their resturcturing. GMAC used to make loans for cars of any manufacturer, but the majority of those loans were for Chrysler and GM vehicles.
From my experience, Ally is good, their rates are dropping as well, but steadily higher than any other savings institution.
BankRate actually gives GMAC a decent rating of 3/5 stars compared to other financial institutions (Citi Bank got 2/5 stars)
See their financial ratings/memoramdon and risk/stability details here GMAC- http://www.bankrate.com/rates/safe-sound/memorandums-memos.aspx?fedid=3284070
CitiCorp – http://www.bankrate.com/rates/safe-sound/memorandums-memos.aspx?fedid=476810
Thank you for your info on the GMAC and ALLY connection, and rate info as well.
(if you were responding to my post asking if it was connected/ name change)
Anyone else? Can we all hear from a total of five customer info/ feedback on Ally?
Thanks again
A couple weeks ago (mid June) I was shocked when I logged onto the website and saw the zero balance. After a moment of wondering if it was an effect of bankruptcy, I checked with my local bank and found the funds had been transferred there. I looked back through the Deposit Agreement, and it said to contact the bank regarding unauthorized transactions. I called and the representative started a ‘ticket’ and said that someone would get back to me in three days. He also said that the bank sends a letter in seven to 10 days when closing an account. No return call, no letter, no e-mail to that call or to a voice-mail message I left about four weeks ago. I might try writing a paper letter…
I hate how much the government is getting involved in everything right now, I’d rather that we let bad businesses fail, and good businesses take over where they left off. I am not sure I think many of these businesses should be getting bailout money in the first place. With that said, if Ally Bank wants to take the bailout money and use it to give higher interest rates for their customers so be it. I think it’s silly for the ABA and FDIC to step in and try to take away their advantage and hurt customers trying to get a better rate.
Certainly we are seeing significant involvement from the government these days. However, the FDIC’s involvement with bank’s rates is not new. As a regulatory agency for any FDIC insured institution, they can take a stand on bank operations, including rate setting.
Keep in mind that higher deposit rates mean lower profitability for the bank. Everyone is trying to strike a balance. Ally must feel it can pay the higher rates and still be profitable. The FDIC wants to make sure the bank doesn’t fail. It’s a constant balancing act that isn’t new.
I have been with Ally (GMAC) for 3 years. I had no problem with GMAC before. Recently I spend 2 months in Ally and still can not open a new account, this experience is very frustrated. The customer representatives have inconsistent answers. One day they call you with one answer, and please don’t feel surprised for the call from them in the following days with another answer; I fax the documents to them, and they can not find/locate the fax. I am tired with several rounds of this kind of inconsistence.
My question is:
If representatives can NOT provide standard guidance/answer, what’s the meaning of customer service of the bank?
Although they have 7-24 call service, it won’t help if they can NOT solve your problem. (In fact, it wastes your time!)
I am searching for another bank with relative high rates. Enough is enough.
Thanks to ALL that have shared and written stories of how they “SEE” ALLY and what each person ( although a small amount of post) has delt with bad or good , most seem to be customers with at least some kind of problem with talking to Ally, and or get a simple thing such as opening an account(something I find peoe haveing more and more trouble doi g with “online” banking?!!)
many had berry simalar problems with WAMU ( remember that mess, essp if opening an online account in order to receive the better rates)
these “banks” that deal with YOUR money, being $50 or $50,000 it’s your money. It seems most get you “in” and turn around and lower rates as fast as the advertisments posted them, and forget the customers?? At least some, and really it shouldn’t be any custo
ets forgotten/ not helped.. IMO
It’s been one problem after another for me with this bank. Another person here mentioned having a zero balance suddenly in their online savings account, I had the same problem. This is only one problem that I had with them. It took about five hours worth of phone calls over several weeks to get sorted out. They are good at apologizing for things, bad at doing things correctly in the first place. Everything you read here about the lack of knowledge and unresponsiveness on the part of the customer service reps, and delaying response for 3-10 days is true. I hope losing your time and peace of mind is worth the trouble to get that extra interest point if you ever have a problem with them.
Understand that GMAC and GMAC Bank are two different entities. They are not interchangable terms. GMAC (now a bank holding company) owns GMAC Bank (now Ally Bank). Debt issued by GMAC is likely not FDIC insured. Debt issued (CD’s etc.) by GMAC Bank is FDIC insured. Since GMAC is a bank holding company, it qualifies for TARP funds, etc. making it less likely to default on it’s debt. The tie between GMAC and GM Corp. is that GM has an ownership stake in GMAC of less than 50%. The bankruptcy of GM does not have a direct impact on GMAC.
What you need to worry about with Ally is not that the bank is going under, or anything about FDIC. The problem with this bank is that they make a lot of careless mistakes with people’s money. They haven’t mastered the art of the electronic transfer, unlike ever other bank I’ve used. Since Ally is a new name, do a google search on GMAC Bank to see what I mean, you don’t have to take my word for it. If you must use this place, I wouldn’t put more than a couple thousand in an account with them, and fund it through a check, not an eft.
Before you decide to do business with Ally, you should consider what happened to me.
My wife and I tried to open a CD account with them. After several back and forth phone calls and requests to establish our residence and mailing addresses (in addition to our original paperwork and copies of our drivers licenses they wanted utility bills and a copy of our PO Box receipt), we told them to return our money. Their customer service said they would send our original check back. They didn’t. We never had an account with them but they cashed our check. Our bank statement showed the check was paid.
When I called to ask why my check was cashed, no one could explain. They told me that they would send my complaint to an escalation team for immediate resolution and they would call me back with the results 2 days later. No one ever did. When I called them to find out the status of my check, I was told that my account was pending and that in 5 days or so, they would review the matter. After yelling at the CSR, I was put on hold and eventually told by the rep that she made a mistake, my check was already mailed. I would have it in 7-10 working days.
A few days later, Ally called me again. This time, I was told that I would have to prove that the check had been cashed in order to receive a refund. So basically, they never opened an account for me, they cashed my check, lied to me that they had already refunded my money, then called me and told me that I had to prove my check had been cashed to get a refund. This is after they acknowledged receiving the check and accidentally cashing it. They knew the check number and the amount but still no refund. Unbelievable.
In all, they’ve held my money hostage for a month. Someone either lost or stole my check and they won’t give my money back yet. Don’t give this company your business.
carl, that is actually worse than what happened to me, unbelieveable. Sorry you had to go through that. My situation didn’t involve a check, but it was the same delays, 7-10 day waits, etc. You have to get very nasty with them to get them off the dime and do something. I’m still not sure what they’re deal is but, they don’t operate like a regular bank.
Thank you for this post!
I tried to open an account the other day and they wanted me to fax over my drivers license, etc.
After what happened to you, no way am I giving them MY money.
It’ s always crazy stuff with them, they wanted a utility bill from me and they did a credit check to open a bank account? Who does that? And changing their policies to supposedly be more straightforward doesn’t count for much when they make constant dumb mistakes with your account. Their CSRs are only empowered to apologize to you–over and over and over again. Not to follow through and and do things correctly. I don’t know how anyone could live with themselves working for that place. But then again they don’t really work there, they work for some outside call center. You’re smart to walk away from them.
all banks do either soft or full credit checks depending on the account your opening, check the patriot act before you judge an institue, as well how could you send a check when you didnt even have an account opened with them?(Carl), the acc cant be funded if your in the application process, ignorrent ppl are the worst to deal with when they know everything about nothing
You’re really whining about the credit check? Look up the Patriot Act. It may not be right, but it’s certainly legal.
I assume like a lot of other money hunting consumers, the interest rate got you in the door. YOU chose to invest your money in an online bank with NO physical branches that outsources ALL of its “bankers”, all with the hope of getting a few extra cents.
The lack of accountability among consumers blows my mind! I understand very well that the bank probably did cause this problem directly, in some weird eighth-party way, but come on.
Your money is safe, but their customer service is horrible. And, yay, now they are there 24/7, but you are better off talking to a wall any time of the day you need their help.
Hey,
I currently have an ING Savings account, which has treated me very nicely over the past few years. I remember getting 4% on my savings account!! However, I’ve seen my % rate drop dramatically over the past year. I have nominal savings, nothing major, about 12k, and I was wondering, is it worth the hassle of switching for just an extra .4%. I thought no, but it never hurts to get an objective, 3rd party opinion.
The extra 0.4% works out to be $48 for the first year when the principle is $12k, so it’s really up to you whether it’s worth it or not. I think it boils down to personality. Some people will do anything to get even $1, while others are okay with getting less for stability. Pick based on what feels most comfortable to you, because it’s ultimately you who benefit.
Ally Online Savings Account Rate Is: 2.00% while ING Savings Account Rate Is: 1.40%.
As of July 14th, the rate for Ally’s Online Savings Account has dropped to 1.95% and their rating with Bankrate.com has dropped from three stars down to two stars!
Stick with ING.
I have read your review with ally bank and completly dissagree with your views.
1. The FDIC coverage is 250k up to the year 2013. President Obama signed a bill extending this Coverage.
2. You stating that opening up a separate cd with ally bank will extend the 250k coverage. ” Customers, Please dont be fooled, this is not correct. ” You coverage is only 250k and can only be extended if you add a benificiary and another joint account holder. This will give you 500k max coverage.
3. Ally Bank has taken 5.6 millinon in tarp fund adnthen they took an addittional 7.6 billion fro tarp. They are abusing the system and taking our tax payer s Money.
4. They were offer high rates of 2.70 apy for 1year and were force to reduce becuase they were being investigated by the bankers association and BBB along with the government to show on there books that they can profit from this high rate… They couldnt and had to drop there rates once again.
5. Since last year they have gone from a 5 star bank down to a 2-3 star bank.
6. The government own a high portion of this bank now and with gmac going bankrupt, this will soon be ally fed bank.
7. They are advertising on premium channels at prime time and using all this tarp money to do so.
8 Finally, please all note THAT A BANK CAN CHANGE THE RATE AT ANYTIME WHEN GOING THRU A NAME CHANGE OR NEW OWNERSHIP. It does not matter if your locked in a cd. please Verify this on the fdic website.
Thank You
Manolo
5. Since last year they have gone from a 5 star bank down to a 2-3 star bank.
***As I recall in 2008 and this year they have been rated 3 stars they have never been rated 5 stars…
The following information is based on a Wikipedia article reproduced below. Ally Bank (formerly GMAC Bank) became a bank in December 2009 to access a Federal Government Bailout. So far it has accepted $12.5 Billion in the taxpayers money and is using that money to tout what a straight shooting honest bunch they are, and at the same time implying that other banks are deceptive. Well, there are thousands of community banks out there that kept their noses clean and did everything right, and now are competing with a government funded entity that has the chutzpah to call itself the only honest bank, and doing so nationally on a scale that community banks could never do. If you think taking your money out of your own community and putting it with Ally and their ilk for a few basis points, you just don’t get it.
From Wikipedia
GMAC (or GMAC Financial Services), formerly known as General Motors Acceptance Corporation, is a United States bank that was previously the wholly owned financial services arm of General Motors. GMAC Financial Services provide a suite of financial programs including insurance and mortgage operations in approximately 40 countries around the world. In 2008, the firm provided financing to 75 percent of the 6,450 GM dealers. On 24 December 2008, the Federal Reserve accepted GMAC’s application to become a bank holding company in order to gain access to billions of dollars in government aid, a crucial attempt to ensure the survival of the company.[1]
On December 29, 2008, the U.S. Treasury gave GMAC $5 billion from its $700 billion Troubled Asset Relief Program (TARP).
As of May 15th, 2009, GMAC’s banking unit officially changed its name to Ally Bank in order to “help shed the baggage that many Americans now associate with banks”.[2]
On May 21, 2009, the Department of the Treasury announced it would invest an additional $7.5 billion in GMAC LLC which gave the U.S. government the majority stake.[3]
I don’t think you “get it”. I’d love to keep my money in the community but why can’t they pay something close to what the ING’s and Ally’s are paying? My bank is only paying .4 % and I have given them my mortgage and other business. I maintain a required minimum balance in a checking account to receive a piddly .19% interest rate. When I had a big house repair and went below the minimum balance they stuck me with a service fee plus a per-check-fee. $8.10 in service charges. Furthermore, will that bank be there for me if I don’t meet my savings and retirement goals, smiling and giving me a hand-out? Nope. So why should I let them earn the difference between .4% and 2%? You know that they are putting the money where they can earn it. This is a stable community with very very few foreclosures because the banks didn’t make risky loans and they are not hurting.
R.L. You make good points. Competition is what keeps us all sharp. Looking out for your self interest is important. The frustration I feel as a community banker is that if you look at the FDIC web site you will see that Ally Bank (formerly GMAC Bank) is sustaining huge financial losses while using FDIC insurance and TARP funds to pay out higher than reasonable (I say this because they are losing money) interest rates while being funded by the government. So we are basically competing with a government funded entity and folks are like you are okay with that because the FDIC protects your investment. What really frosts me is that they are losing money, accessing the TARP, and making claims that they are the only honest bankers around. Knowing those facts if you want to trust your money to them, go for it. Remember that FDIC insurance does not protect your return, only your principal.
Wow. 2% on a savings account? I’m signing up now. Chase gives me 0.5% =[
Current Rate: 1.95% as of today rates can change every Friday on savings and market money accounts.
Community banks are failing just look at the FDIC web site for yourself people…..
FDIC Rate Caps
Last month the FDIC Board of Directors approved a final rule regarding interest rate restrictions that apply to banks categorized as less than well capitalized institutions. Although the new law applies to less than 300 of the nation’s 8,000 banks, it has gathered a lot of media attention. In reality though, not much has changed. The FDIC has always had the ability to restrict banks categorized as weak from aggressive deposit or lending practices. This new change is simply a revision in the benchmark used to compare the bank rates. The FDIC will now publish weekly national rate averages. Beginning in January 2010 a weak bank will have a deposit rate cap of the published national rate average plus 75 points. This could mean some weak banks may have to lower their rates on CDs, money market accounts, savings accounts, or checking accounts. Major online banks like ING Direct, Ever Bank, Ally Bank, and First Internet Bank will be completely unaffected by the rate cap and continue to set their rates as high as they want.
Let’s say that a local bank announces that they are going to crumble. Everyone that has a stake in the bank can quickly run to the bank and withdraw their money. If Ally crumbled, we wouldn’t have the chance to do that even though it is FDIC insured. Correct?
Hey Pete, which bonds are paying 4-5%?
I haven’t heard that Obama extended the FDIC insurance max of $250,000. Is that true?
Yes, he extended the 250K limit beyond the end of this year.
President Obama Signed Into Law The FDIC Coverage of 250,000.00 through December 31, 2012. Thanks President Obama.
I have had a very recent experience where Ally got the rate on my new CD
wrong and they said it would take 24 t0 72 hours to correct this mistake.
I just want to voice my opinion of you advertising. It appears you are exploiting children with your advertising. They might be paid to react that way or it might be natural. But the premise sucks.
Hello. I bought GMAC smartnotes back when they were GM owned, and even though
GM was bleeding cash, GMAC (different corp.) had huge profits. A lot has happened since then (Cerberus, bailouts, GMAC becoming a bank holding
company, renaming the bank Ally, etc. ) My experience with GMAC
(all parts) has been excellent. My outlook is still positive, and the market
value has recovered nicely (along with other “junk” bonds). Anyway,
I don’t have my whole “pile” with them. BTW, I never had any worries
about bank failures. I have had many accounts with failed banks.
Never lost a dime. Never skipped a beat. Seriously, that is the least of my worries.
John Galt
True my Junk Bond Mutual Fund is up more then 30% so far this year if you want to earn around 9% check out Junk Bond Mutual Funds as soon as possible as the economy slowly gets better Junk Bond Funds will keep going up slowly in value.
Their TV ads which involve manipulating children for their message borders on child abuse and I would NEVER do business with a firm who stoops to this level. I am sure they thought that the concept was “cute” but when you examine the children’s faces you can see the pain and confusion. Shame on these heartless bankers.
how about this? think of the child in the commercial as you, and think of the grown man as a big bank, hes repersenting the big banks who can take and give what they please, ally is getting the point that there not like the other banks, no smoke and mirrors, its hard to please and satisfy everyone, but no ones perfect
I own $10000 dollars in GMAC Bonds. Did Ally Bank assume this debt & will I still get the interest? Thanks
No and yes. My opinion is that GMAC bonds/smartnotes are pretty safe in the short term, all things considered. Long term? Who knows?
Anyway, at my age, I no longer have a “long term”.
I noticed another site that called Smart Notes the “roach motel”
of investments. Cute!
Johnny