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Thread: Ally Online Savings Account

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    Default Ally Online Savings Account

    Does anyone ever use Ally for banking? Savings account? How is it?

    Mint.com suggests I get a savings account with them to maximize interest (at 2.04 APY). I am easily tempted, but of course, I wanted to ask you guys first.


    How can I find out the cons of certain institutions without always heading to stripperweb.com anyway? I don't know any better place to turn to for advice, but I don't want to keep showing up in the dollar den with my n00b "financial" questions.

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    Default Re: Ally Online Savings Account

    Ally Bank is a newly formed division of GMAC. They are able to pay above market interest rates compared to other lending institutions due to the massive injection of US taxpayer TARP money they received at practically zero interest rate. They have chosen to market directly to 'retail' customers i.e. savings account and CD depositors because the US taxpayers are now effectively subsidizing them at both ends ... via 'almost free' TARP capital 'seed money' with which to make initial loans and pay above market interest rates to passbook / CD depositurs, and by 'almost free' FDIC insurance on those savings accounts and CD's.

    Might as well take advantage while the deal is available (even though this is a 'moral hazard' situation). But be aware that your own money is likely to be immediately used by GMAC to write 'affordable loans' to would-be buyers of GM and Chrysler cars whose 'subprime' credit ratings caused every other mainstream auto lender to either turn down their loan application or charge an astronomical interest rate. But hey what does that matter the FDIC is insuring your deposit ( unless of course their insurance fund goes broke - in which case THEY will beg for and get TARP money with which to pay you off anyhow !)

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    Default Re: Ally Online Savings Account

    Thanks Melonie!

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    Default Re: Ally Online Savings Account

    Quote Originally Posted by Melonie View Post
    Ally Bank is a newly formed division of GMAC.
    Looks good thank you for the info.

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    Default Re: Ally Online Savings Account

    Quote Originally Posted by lilymiaomiao View Post

    Mint.com suggests I get a savings account with them to maximize interest (at 2.04 APY).
    Make sure your savings is in an FDIC bank; then your money is insured by the government. Ally Bank is FDIC insured.

    I am not familiar with Mint but not only is all of your financial information stored with them you have to give them access to ALL of your accounts.

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