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:
2.80% APY 12-month CD
2.80% APY is the best rate available for a 12-month CD with no minimum deposit restrictions. Interest is compounded daily.
2.50% No-Penalty 9-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 2.50% APY. If rates start rising, you can keep earning 2.50% up until you withdraw without penalty.
2.25% APY Online Savings Account
A competitive rate for an online savings account, a la ING Direct 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. If you want checkwriting ability and ATM fee rebates, you can go with the similar Money Market Account at a slightly lower 1.90% APY.
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.
Read more about Ally Bank Account Reviews: Online Savings, 9-month, and 12-month CDs…
