You may have been seeing a bunch of purple ads for something called Ally Bank recently. Actually, this “new” bank used to be GMAC Bank. But besides a cosmetic name change, they have revamped the website and tweaked their product offerings. Their pitch: “No minimum deposits. No monthly fees. No minimum balance. No sneaky disclaimers.”
Here are the products that are most compelling, with interest rates:
12-month CD – An Ally Bank 12-month CD has a top rate available for a 12-month CD with no minimum deposit restrictions. Interest is compounded daily.
No-Penalty 11-month CD – No early withdrawal penalty, daily compounded interest. With an uncertain future rate outlook, this seems like a good compromise between a savings account and a CD. If rates stay low (or get lower?!) you can stay in the CD and get a great return. If rates start rising, you can keep earning the higher rate up until you withdraw without penalty.
APY Online Savings Account – A competitive rate for an online savings account, a la Capital One 360 and such. No minimum balance, no fees, as you’d expect. Daily compounded interest. A differentiating factor to this account is their fast and easy transfers between Ally and your other banks.
FDIC Coverage & More
I noticed that they now also offer 24/7 telephone customer service and even share the current wait time online. Neat idea, I wish more sites did this:
Ally Bank is FDIC-insured, which means accounts are insured at least to $250,000. The new $250,000 limit was recently extended to at least the end of 2013, after which it is still $100,000.