Ally Bank

**Jmarie** · 09-09-2010, 10:55 PM

I have a question.. I am looking to switch my bank accounts from Bank of America (3 checking and 1 savings account) to Ally Bank. However, I would like to know if anyone here has heard of them and/or have any experience dealing with an online bank. I would like to switch because BoA is converting my savings accounts over to non interest checking accounts (not that I'm earning much interest) due to what they considered excessive cash flow (I would move money out of my checking into my savings accounts- I try not to keep much in checking, and savings does not have a card attached to it).

The rates with Ally for the savings is 1.25 and checking is 1.05, and for a CD it is 1.75% and the money market is at 1.25% and the interest is compounded daily..

Currently I have around 12K in checking account (converted savings), 7k in checking (converted to savings), 1k in checking and
and 1K in savings.

Thanks in advance, and look forward to everyones comments

**frugalwarrior2** · 09-10-2010, 12:26 AM

Have you checked out your local credit union?? Just NOT a big fan of banks.

**Palooka** · 09-10-2010, 12:29 AM

Anything has gotta be better than Bank of Hell.

**Libby** · 09-10-2010, 01:15 AM

In Canada - I think this bank just started up. I know nothing about this bank except for the commercials where the one kid gets punished for not being 'the newer kid' so he doesn't get ice cream.

**Birdie** · 09-10-2010, 09:43 AM

I have an account at Ally.com where I keep my Emergency fund. I only use their Savings account and have 1 CD there also. I've had accounts at ING and EmigrantDirect also, but have moved my money looking for better interest rates.

I've only been with Ally for 6 months or so, but have read a lot of reviews from other people with accounts there also.

**Russ** · 09-10-2010, 09:54 AM

Ally is formerly GMAC.

**khaski** · 09-10-2010, 06:07 PM

Have no specific advice, but as someone in process of getting the heck out of TDBank (America's most expensive bank, I say) I would encourage you to check out your local credit unions. A lot more bang for the buck, a lot less fees, at least in my neck of the woods!

But if you're considering TDBank, I advise you to steer clear- a lot of work going on over there to part you with as much of your $ as possible.

**taxgal1040** · 09-10-2010, 10:32 PM

I have been with Ally for over a year, they have some of the best rates right now n(not that the rates are great right now) and great customer service. I have multiple accounts with them, I set aside money for all types of events, and never have an issue.

**Jmarie** · 09-11-2010, 12:31 AM

Originally Posted by frugalwarrior2

Have you checked out your local credit union?? Just NOT a big fan of banks.

Yep the credit union rates are much lower.. I do like the credit unions over banks, but trying to get a better rate. Pen. Fed may be the highest last time I checked but I want to say that interest rate was under 1.00%..

**Jmarie** · 09-11-2010, 12:32 AM

Originally Posted by Palooka

Anything has gotta be better than Bank of Hell.

LOL..

exactly..

**mndtrp** · 09-12-2010, 07:54 PM

Originally Posted by Russ

Ally is formerly GMAC.

I refinanced my GMAC loan, and the paperwork came as Ally. If they are run the same, I had no problem with the mortgage side of Ally/GMAC.

**NikoSan999** · 09-14-2010, 09:51 PM

Read my signature at the end that I've had for over a year. Besides Bank of Hell another one to stay away from is Wachovia/Wells Fargo.
Just get away from Bank of Hell.

**prudent lass** · 09-14-2010, 10:16 PM

I was considering opening a GIC (CD) with Ally last year, but ultimately decided against it. As Russ mentioned, Ally is an extension of GMAC and the high rates they're offering don't seem to be due to solid business practices, but because of TARP funding. The FDIC actually slapped their hand last year and made them lower their rates because it didn't want to be on the hook for covering them if the bank couldn't make good on its commitments. It was speculated that up to 25% of its assets were "hot" deposits.

Ally IS covered by CDIC (the Canadian equivalent of the FDIC), but I found out that it only covers the initial deposit, not the interest accrued. So then what would be the point of my switching over when there's a possibility of getting zero interest in the end?

So yeah. I decided against switching to Ally because I wasn't confident about their stability. In the interest of full disclosure, I should note that I'm pretty anal-retentive though ("prudent" is just a synonym) and I know lots of financially astute people who have switched over and have no complaints.

**Jmarie** · 09-15-2010, 07:09 PM

Yeah still some research about Ally bank.. I just dont feel comfortable putting a large amount of money in an account withouth knowing everything about it.. or atleast as much as possible. I thought that I read somewhere where they are backed by the FDIC.. but off to recheck that.. thanks to everyone that has provided their comments and advice.. You all rock!!

**prudent lass** · 09-19-2010, 12:45 PM

Originally Posted by Jmarie

Yeah still some research about Ally bank.. I just dont feel comfortable putting a large amount of money in an account withouth knowing everything about it.. or atleast as much as possible. I thought that I read somewhere where they are backed by the FDIC.. but off to recheck that.. thanks to everyone that has provided their comments and advice.. You all rock!!

They're definitely covered by the FDIC. I was looking into their CDIC status only because I'm Canadian. If you're interested, NPR's Planet Money has done a couple of podcasts on Ally that are worth checking out. I think they did a good job of reporting impartially considering they're actually sponsored by Ally. Lol, the advertising department must've plotzed when they heard about the upcoming pieces.