Today, we find ourselves examining a new bank to Canadians, Ally Bank. Some might remember Ally Bank previously as General Motors Acceptance Corporation (GMAC), a United States bank that was previously the wholly owned financial services arm of General Motors.
GMAC was rebranded to Ally Bank on May 15th 2009. The name change marked a shift away from the GMAC brand that has underscored the lender’s association with the auto maker.
Ally Bank gave a fresh start for the company which had a first quarter 2009 net loss of approximately $675 million.
Ally Bank is built on the foundation of GMAC Financial Services.
Ally Bank is an online bank, it is open 24/7; this includes customer service.
There are no monthly fees, no minimum deposits and no minimum balances. This gives you the chance to have new products developed for you.
Currently Ally Bank offers four banking products, all of which are insured by the Canada’s Deposit Insurance Corporation (CDIC).
The banking products are as followed: Guaranteed Investment Certificate (GIC), High Interest Savings Account and a Tax Free Savings Account
The GIC allows you to lock in a high fixed GIC rate from 3 months – 5 years. The best part is that you can open this account and not have to worry about monthly fees.
You are able to cash out early with any fee, and have daily compounded interest for maximum earnings.
Ally Bank allows you to have the Ally Ten Day Best Rate Guarantee; this is the option of having a higher rate.
The Ally Ten Day Best Rate Guarantee works by when you fund your GIC within ten days of opening or renewing your Ally account, you automatically get the best rate offered in the time period.
The High Interest Savings Account (HISA) allows you to earn a higher rate than traditional savings. It is currently at 2.00%.
With the new Tax Free Savings Account (TFSA), you are able to earn income on your TFSA deposits and investments, and best of all they are not taxed. You are allowed to deposit a maximum of $5,000 each year.
Keep in mind I only briefly highlighted the banking products Ally Bank offers, I will be sure to go through each in thorough detail, allowing you to see a side of Canadian banking outside of the larger banks, particularly the “Big Six”.
Ally Bank has only been around a few months, but its few banking products are turning heads, and you should take a look at what it has to offer.
Update: Content Has Been Made Accurate
Click here for a detailed review of Ally Bank of Canada’s Products & Services.
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