As part of the agreement, GMAC agreed to keep interest rates on deposit accounts offered through its banking unit at certain levels, according to people familiar with the situation.
Hopefully, Ally Bank will be allowed to keep interest rates competitive with other internet banks. The FDIC publishes weekly rate caps that are intended for "less than well capitalized institutions." The rate cap for a savings account is currently only 0.96%. The FDIC still doesn't have separate caps for internet banks. I have more on these FDIC rate caps in this May post.
Ally/GMAC Bank's high deposit rates received attention by the American Bankers Association last May, and they complained to the FDIC (see post). In June, GMAC released news on the FDIC's plans to tie GMAC's tapping of funds under a federal debt guarantee program with Ally Bank's deposit rates (see post).
Ally Bank deposit rates have gone down since June, but the rates have remained competitive as compared with other internet banks. It appears Ally Bank has been able to avoid significant limitations on its deposit rates. Hopefully, this will continue. However, if we see big rate cuts, we'll know the cause.
Thanks to the reader who emailed news of this WSJ article.