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Ally Bank Cuts Rates - Linked to the GMAC Bailout?
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ON BY Ken Tumin
After Tuesday's WSJ article reported on GMAC being in talks with the government for another injection of capital, there were fears that we would soon see the effects to Ally Bank deposit rates. The article also mentioned that as part of the agreement, GMAC would have to keep deposit rates at Ally Bank below certain levels (see post). I don't know if this issue had any direct effect, but Ally Bank rates did fall today.
The biggest drop was the online savings account rate which fell from 1.70% APY to 1.55% APY. The money market account rate fell - 1.65% APY to 1.55% APY. It's interesting to see these two rates the same. My guess is that we'll likely see a rate cut on the money market next week to something like 1.45%. It has recently been common among internet banks to offer both a money market account with limited check writing and a savings account without checks. Without the cost of checks, banks can typically offer a little higher rate on the savings account. Below is the full list of the old and new rates as of 10/30/09. Refer to Ally Bank for the latest rates.
For more information on Ally Bank and the savings accounts and CDs, please refer to this post. Ally Bank deposit accounts are FDIC insured (FDIC Certificate # 57803).
This New York Times article has more on this possible third rescue of GMAC. I'm afraid this news isn't helping GMAC and Ally Bank's reputation. This SmartMoney commentary has some harsh opinions. I think it's a little unfair since Ally Bank is doing more than just offering high rates to attract deposits. Ally Bank has no monthly fees, and it has many great online banking features. For example, they have one of the best ACH transfer services with fast transfers, short holds, and easy linking of new accounts.
The biggest drop was the online savings account rate which fell from 1.70% APY to 1.55% APY. The money market account rate fell - 1.65% APY to 1.55% APY. It's interesting to see these two rates the same. My guess is that we'll likely see a rate cut on the money market next week to something like 1.45%. It has recently been common among internet banks to offer both a money market account with limited check writing and a savings account without checks. Without the cost of checks, banks can typically offer a little higher rate on the savings account. Below is the full list of the old and new rates as of 10/30/09. Refer to Ally Bank for the latest rates.
Account 10/29 10/30 Change
Term APY APY BPS
Savings 1.70% 1.55% -15
MMA 1.65% 1.55% -10
No-Penalty CD
9-month 1.60% 1.55% -5
Classic CDs
3-month 1.15% 1.10% -5
6-month 1.50% 1.45% -5
9-month 1.55% 1.45% -10
12-month 2.00% 1.95% -5
18-month 2.00% 1.95% -5
24-month 2.25% 2.20% -5
36-month 2.70% 2.60% -10
48-month 2.85% 2.80% -5
60-month 3.35% 3.25% -10
For more information on Ally Bank and the savings accounts and CDs, please refer to this post. Ally Bank deposit accounts are FDIC insured (FDIC Certificate # 57803).
This New York Times article has more on this possible third rescue of GMAC. I'm afraid this news isn't helping GMAC and Ally Bank's reputation. This SmartMoney commentary has some harsh opinions. I think it's a little unfair since Ally Bank is doing more than just offering high rates to attract deposits. Ally Bank has no monthly fees, and it has many great online banking features. For example, they have one of the best ACH transfer services with fast transfers, short holds, and easy linking of new accounts.
