Ally Bank will be the new name for the banking unit of GMAC’s banking unit. GMAC has dropped its own name from the banking division GMAC Bank. The name change to Ally Bank comes even as GMAC is creaking under losses of billions of dollars. Reuters reported that the name Ally Bank was chosen because the bank did not want the baggage of a taxpayer-aided bank.
As of now, a search for GMAC Bank leads you to gmacbank.com, with an introduction to Ally Bank. The new bank website is ally.com.
Ally Bank said that it is changing “more than just its name.” There will be no monthly fees or minimums at Ally Bank. Ally Bank, the site said, offers competitive rates, and display them alongside the rates offered by competing banks. Ally Bank’s call centres will be open day and night. The bank has also pledged not to use teaser rates for loans, something which misled home buyers through the subprime boom and brought down many banks later. All Ally Bank deposits, like other FDIC-backed deposits, are insured up $250,000.
The service – call centre number for Ally Bank is 1-877-247-ALLY.
GMAC Bank, now Ally Bank, is a unit of GMAC Financial Services. The bank is among many financial institutions (including Morgan Stanley and Goldman Sachs) which applied for bank-holding company status to make themselves eligible for treasury’s capital programs.
GMAC Financial Services, now Ally Bank, was founded in 1919, primarily to finance GM car buyers. “We certainly value our relationship with General Motors and GM continues to be an important customer. In addition to that, GMAC wants to grow as a bank holding company. The launch of Ally Bank provides a new platform to increase deposits,” said Sanjay Gupta, GMAC’s CEO.
Ally Bank said in a press release that the world does not need another bank; it rather needs a better bank. However, the fact remains that Ally Bank is seen as one of the likely candidates which will still need to go to the treasury for more taxpayer funds.
Those who wish to open accounts with Ally Bank can call the bank’s call centre, log on to the bank’s website or email the bank.
Ally Bank’s chief marketing officer said that the choice of the name “fits the character of the bank.”
All existing online account holders of Ally Bank will have smooth transition to the new bank website, the company said in a press release.