July 14th, 2009
Ally Bank: Finally, a bank on the consumer’s side
For an online bank that claims to “value integrity as much as deposits”, newcomer Ally Bank actually has the customer-friendly services to deliver. With competitive rates, straightforward and simplified terms, as well as live round-the-clock customer service, Ally Bank breaks away from its previous ties with GMAC Financial Services while also breaking away from traditional banking.
Their pro-customer attitude towards banking, with a name change like “ally” to fit the bill, promises no monthly fees, no minimum balances, and no minimum deposits. But is too-good-to-be-true Ally Bank better than all the brick-and-mortar and online banks already out there?
One of the best APY rates available
Ally Bank has an edge in offering 1.95% APY (as of 7/13/09), the highest savings rate you can get with no minimum balance or monthly fees, and also a rate double that of the national average. The closest competition with similar no minimum balance and monthly fees is HSBC Direct with 1.55% APY and ING Direct with 1.65% APY.
Ally’s all-online functionality allows for streamlined, cost-effective operations which passes it’s saving on to you directly through its high yield savings rate. This means you get to earn as much as you can by the simple act of saving your money with Ally.
APY rates and no penalties for CDs
Your best bet with Ally Bank is the No Penalty 9-month Certificate of Deposit with 2.00% APY. Simply put, you won’t get charged for withdrawing your money even if you withdraw within the first 9 months. While most banks carry high fees for withdrawing your money before the CD matures, Ally’s gives you a painless option for you and your savings without a fear of fine print.
If you don’t think you’ll be withdrawing prematurely, then enjoy an even higher rate of 2.10% APY with Ally’s 12-month classic CD. With one of the highest rates in the market and no minimum deposit restrictions, this makes it a product consumers should consider.
Unheard of in the market before, Ally’s CD rates stay high regardless of deposit size. Also, all APY rates, including that of the savings account, have interest compounded daily.
Looking out for you, the consumer
Small yet differentiating changes such as 24 hour telephone customer service, above average rates, and a vow of no “sneaky disclaimers” is quickly making Ally Bank a reliable place for better banking.
Ally Bank has been making a large investment in branding through a strong TV commercial and online advertising push that shows off its pro-consumer approach. If you haven’t seen their Pony commercial poking fun at traditional banks by commenting that, “Even kids know it’s wrong to hold out on somebody, why don’t banks,” Ally’s doing-it-right, straightforward mentality aims to let consumers feel that it’s safe to trust again.
Does the revamped look and philosophy work?
It’s going to take time and good customer experience stories, but in this day and age, finding a bank that claims to be accountable and honest may just be as easy as winning customers over with Ally’s simple, anti-gimmick philosophy to offer the best rates with customer flexibility.
It’s a great option that you can profit from and begin to feel secure again about the future of your savings.
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Was this post sponsored by any chance?
We will take/use affiliate links but that has never biased us on our reviews. Ally has good rates and they are promising a new way to approach customers. We think that is a great start. Now if we see poor customer service or poor member reviews, we will update this post. But for now, we think it is accurate.
This is the best company, that believes in people and willing to help the trouble people to get out of trouble. This is unbelievable yet wonderful.I am very glad I found this very valuable site. my confidence has gone up knowing I can start over and go forth. Thanks!!!!!!!
Ally Bank has been a dream come true so far. Wish I could say the same for E*TRADE. It’s like night & day. Their customer service is even better than any brick and mortar bank I’ve ever dealt with and response time has always been very quick.