A year ago, GMAC Bank, or its brand, ceased to exist. In order to distance itself from its parents, General Motors and GMAC Financial Services, the bank changed its name to Ally Bank. With government funding, Ally Bank went on to become a competitive online bank, offering interest rates high enough to draw the ire of the American Banking Association and a warning from FDIC. Here’s my recent review of my experiences with the bank.
Following the success of Ally Bank, the parent company is jumping on the “brandwagon.” GMAC Financial Services, offering primarily auto loans and mortgages, is becoming Ally Financial. GMAC is celebrating a return to profitability with first quarter earnings of $162 million. With continued profitability, Ally Financial will eventually pay back the government for both loans and other government investments.
Banking Deal: Earn 1.20% APY on an FDIC-insured savings account at Barclays.
From a brand standpoint, the name change is a good idea. The General Motors brand has been somewhat poisoned by politics. When the government relinquishes its control over GM, I wouldn’t be surprised if a full re-branding follows soon after.
How does Ally Motors sound?
Updated November 2, 2016 and originally published May 4, 2010.