Review: Ally Bank
Ally Bank has made some noise lately in the financial world, prompting many (including myself) to really take a look into this new old (huh?)rebranded bank. While most have probably never heard of Ally until recent articles regarding their questionable savings rate, most have heard of GMAC Bank. On May 15th of 2009, GMAC was re-launched as Ally Bank, offering four main products.
Products
Classic CD
- Open with $0
- No monthly fees
- Daily compounded interest for maximum earnings
- FDIC insured Maximize your coverage
- Automatic renewal at maturity
- Ability to withdraw and receive earned interest as income — just let us know before the CD maturity date or by ten days after
- Your term and rate will go into effect when you make your deposit
No Penalty CD
- Open with $0
- No fees whatsoever
- Daily compounded interest for maximum earnings
- FDIC insured Maximize your coverage
- Automatic renewal at maturity
- Ability to withdraw and receive earned interest as income – just let us know before the CD maturity date or by ten days after
- Want a no fee early withdrawal? We’ll hand over your full balance and interest any time after the first 6 days of funding your CD
- Your term and rate will go into effect when you make your opening deposit
Online Savings Account
- Open with $0
- No minimum balance
- No monthly fees
- Daily compounded interest for maximum earnings
- FDIC insured Maximize your coverage
- Six withdrawals or transfers per statement cycle. Why only 6?
- Your actual variable rate will go into effect when you make your opening deposit
Money Market Account
- Open with $0
- No minimum balance
- No monthly fees
- Check card and first 50 checks are free
- No ATM fees – if another bank’s ATM charges you a fee, we will refund the first four, up to $6 per month
- Daily compounded interest for maximum earnings
- FDIC insured Maximize your coverage
- Six withdrawals and transfers per statement cycle. Why only 6?
- Your actual variable rate will go into effect when you make your opening deposit
Ally made the financial world notice when they offered a savings rate that was over their lending rate. The feedback from the world (most notably the American Bankers Association, which Ally is NOT a member of) was that Ally Bank was paying “unfair interest rates”
"ABA believes it is completely inappropriate, and indeed risky, for GMAC/Ally Bank to be allowed by the regulators to continue to pay rates well above the market," the ABA said in its letter to the Federal Deposit Insurance Corp.
The FDIC typically restrains struggling banks from paying above-market interest rates or accepting risky brokered deposits to stay afloat.
GMAC said Ally is among the best capitalized banks in the United States and has a stated commitment to provide leading rates.
"While I find it highly inappropriate that the American Bankers Association would attempt to restrain competition in the banking industry, I am not surprised," said Al de Molina, chief executive of GMAC Financial Services, the parent of Ally.
Customer Service
As would be expected, Ally has no physical presence, rather operates 100% online. In this day and age, this is not shocking. Ala ING, they offer solid rates and provide customer service via phone and online.
24/7 Support number: 1-877-247-ALLY
Sign-up Process
The sign-up process was very (extremely) quick and easy. Another thing to note is that while moving thru the process you definitely take notice to the security awareness of Ally. This is usually a big concern for most users (especially those just jumping into online banking)
Conclusion
So far, I’m a buyer of Ally Bank. Great rates, solid security, and a easy to use interface…what more do you need? What is missing from Ally? How about an interest bearing checking account?!
