It used to be revolutionary to hold your money with a bank that didn’t have any brick and mortar locations for you to visit.
Now high yield online savings accounts are more common and the decision comes down to which online bank you should open an account with.
There are many key factors in that decision — high interest rate, customer service, and account fees — that Ally Bank’s online savings comes out on top if you compare to other accounts.
What is Ally Bank?
Ally Bank’s story sounds eerily familiar to the mythical firebird phoenix that is rebirthed out of its own ashes.
That might sound strange for a bank, but Ally Bank is the new edition of GMAC or General Motors Acceptance Corporation.
GMAC was originally founded in 1919 and grew over the course of time, but like many banks a few years ago, got caught up in the financial crisis due to loose mortgage lending standards. The bank had to take on TARP funding from the government and was rebranded to shed some of the bad image associated with the financial crisis. A significant portion of the company is still owned by the US government, although the company is actively repaying on the funds it received. (And a majority of the problems are on the mortgage side of the business, not on the personal banking side that Ally is on.) Continue Reading