I know that I am behind the wagon here, but I still wanted to highlight this “newcomer” to the online banking arena. For anyone who has missed it Ally Bank is a re-branded GMAC bank. Ally is a fully FDIC insured entity, specifically they are insured under FDIC Certificate number #57803. So for those of you afraid of you money now that GM is filing Bankruptcy don’t worry because the FDIC has your back. More than that they aren’t actually GM. In November 2006 Cerebrus Capital Management picked up a 51% ownership stake in GMAC. And for those who follow the news you may remember GMAC applying to be a bank holding company so they could get their hands on some TARP Cash. Since then GMAC has become Ally Bank and they have taken on a pretty giant advertising campaign. You may have seen the commercials… everywhere. They have done a great job re branding and they are offering some great products.
What They Offer
—Rates Quoted here are as of 06/11/2009 01/08/2010 rates are subject to change at anytime and you should check with Ally.com for current rates–
Traditional CD’s – Ally offers anywhere from a 3 month CD for APY to a 5 year CD at APY. Like other traditional Certificates of Deposit you are going to pay a fee if you make any early withdrawals. For 3, 6, and 9, month CD’s they charge 3 months interest and 18 month and over you are charged 6 months interest if you withdrawal early
No Penalty CD’s – One of the products Ally is really pushing is their No Penalty CD. They offer only a 9 month CD. What they are doing is offering a CD at a rate lower than their traditional CD but you don’t have to pay any fees if you want to withdrawal your funds after the first 6 days of funding your CD. You can open a CD with $0 but your rate and term don’t actually go into effect until you fund it.
Savings Account – Ally’s savings account offers a competitive rate at APY and based on my current rate list that puts them in the top. With fully FDIC insured deposits, no fees, and no minimum balance it seems like a pretty good bet for an online savings account.
How They Compare
Ally looks like a great deal, their rates are super competitive and the no penalty CD is a great concept. They are only .03% above my current savings rate so I won’t be opening an account anytime soon but I know people who were happy with their GMAC accounts. Your deposits are FDIC insured and the rates can’t be beat so if you are in the market I would definitely consider going with Ally Bank.