Ally Bank was formerly GMAC Bank, which was General Motors Acceptance Corporation, providing financial services to GM dealers. General Motors succeeded in separating the relationship between GM and GMAC in 2006 when they sold a large part of GMAC to Cerberus Capital Management. The further conversion of GMAC to a bank holding company allowed them access to TARP funds.
GMAC Financial was apparently about to fall when they converted from a loan issuer to a bank holding company (GMAC Bank) so they could take advantage of the government’s Troubled Asset Relief Program (TARP). Due to many media reported bad decisions when it came to lending and their heavy burden of sub prime mortgage loans, GMAC Bank had to apparently come up with a new public image to save itself by establishing a new image as a trustworthy bank.
Due to the problems that General Motors was having, GMAC decided to change their name. Even though their base company had not been connected to General Motors for many years, the financial problems General Motors was experiencing was having an impact on the bank. In an attempt to start fresh, in May 2009, they changed their name to Ally Bank to disassociate themselves even more from General Motors.
All in all the reasoning is that when the consumer thinks a bank is linked to companies that are in trouble, the bank is not going to attract customers. In addition, those with money in that particular bank will move their money elsewhere. This was exactly what GMAC hoped to avoid by changing their name to Ally Bank.
What Does Ally Bank Provide?
In keeping with the name change the services this U.S. bank offers include finding the aspects of banking that are not desirable and changing them. One of the features they have focused on is being able to call anytime day or night and talk to a person rather than an automated service. Being open all the time is another aspect Ally Bank is using to capture new customers and hopefully increase their depositors.
At the beginning of 2010 Ally Bank account holders pay no monthly fees for account holders. Neither do they currently require a minimum deposit nor a minimum balance. An account can be opened for a mere $1. Additionally, they offer an online savings account with a high APY rate that is much higher than others are offering at this time. Their Classic CD has automatic renewal and is a high yield CD with compounding interest rates daily for the highest earnings. For timely information on Ally service offerings it is necessary to seek timely independent professional advice.
A no penalty CD allows holders to withdraw their money without an early withdrawal penalty. Offered by this U.S. bank, this CD is one without fees and has high fixed rates without a minimum deposit. Insured by FDIC, Ally Bank’s certificate of deposits, money market accounts of up to $250,000 for each depositor and online savings accounts are all insured. The new changes in FDIC regulations insure bank accounts up to $250,000 until December 31, 2013.
In keeping with their name change, Ally Bank has a new and improved website that is easier to maneuver. Their customer service has new and improved services that are focused on keeping their customers happy. The upgrades include a number that is highly advertised on the website offering 24 hour a day, 7 day a week customer support.