The head of the American Banker’s Association complained in this letter to Sheila Bair, Chairman of the FDIC, that Ally Bank’s CD rates and savings rates were too high. They find it to be “egregious” that this former GMAC bank is offering such tantalizing rates given the government stake in GM. While the trade group (of which Ally is not a part of) feels that these “high” deposit rates are anti-competitive and they’re crying foul, in my opinion, since these are FDIC-insured instruments, for individual investors in the market for a CD, now’s the time to get while the gettin’s good!
Why not take advantage of these highest rates around now before they’re potentially forced to comply with a mandate from the FDIC to lower their rates? They actually have some pretty neat products, including a no-penalty CD.
Ally Bank Is…
Ally Bank is from the old GMAC. They’ve rebranded given the obvious connotation with GM these days, even though they are really the old GMAC which wasn’t directly affiliated with GM any more, but I digress…as I’ve posted before, it’s great to buy CDs from distressed institutions since they’re still offering FDIC insured instruments, yet they are desperate enough that they offer above market average rates for savings and CD accounts.
No-Penalty CD
This is a pretty neat product I haven’t seen around much. And with the current rate being higher than just about any regular CD and with FDIC insurance to back it up, I figure this is a great option for anyone in the market for a CD these days.
As you can see below, the savings and money market accounts are among the highest in the nations as well.
*rates removed since not current; click through below for most recent
Since the rates may have changed since publication, visit the Ally Bank homepage to get a full listing of current rates.
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It is kind of amazing that GMAC is able to fund such a great rate using our tax dollars. I’m torn – is it a competition problem, or is it a good investment for the taxpayer?
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