Ally Is the Former ....

[Xoron]

I've seen the ads everywhere for Ally, as I'm sure most of you have. Didn't think much about it as I don't plan on parking cash in a high interest account (which is the product I see most often advertised by Ally).

I was quite surprised when found out that Ally is the former GMAC financing. GMAC was one of the major losers in the credit crisis and probably would have failed if not for the US Government. Just something to keep in mind when doing your due diligence on where to park your cash.

[warp]

You are right , but ALLY ( in Canada), is covered under CDIC ( canadian deposit insurance corporation.)

What this means is that all deposits are insured by the Canadian Government up to $100,000.00 per account.


Technically, if you deposit up to $100 K in Ally, you are as safe as with any financial institution in Canada, including the big banks.

[CanadianCapitalist]

You are right , but ALLY ( in Canada), is covered under CDIC ( canadian deposit insurance corporation.)

What this means is that all deposits are insured by the Canadian Government up to $100,000.00 per account.


Technically, if you deposit up to $100 K in Ally, you are as safe as with any financial institution in Canada, including the big banks.

It is hard, if not impossible for depositors to look into the credit worthiness of a bank or trust before simply parking their money. For all I know, Ally could be safer than ING Direct. That's why we have CDIC coverage. As long as you stay within the $100K limit for principal + interest, we should be okay.

[andrewf]

The only thing is that, from what I hear, if a financial institutions fail, it can take quite some time to get your deposits back through the CDIC process. But, we very rarely have banks fail in Canada.

[the-royal-mail]

Has there even been a bank failure in this country that caused citizens to make use of CDIC?

http://www.youtube.com/watch?v=QgdTymCZowU

http://www.youtube.com/watch?v=1caAJ5CfU2g

[CanadianCapitalist]

The only thing is that, from what I hear, if a financial institutions fail, it can take quite some time to get your deposits back through the CDIC process. But, we very rarely have banks fail in Canada.

A bank hasn't failed here in recent memory but so many have in the US. Apparently, the way FDIC works, the failed bank closes for the weekend and opens Monday under new ownership. Often, the depositors don't even have a clue that their bank went under. I'd be very surprised if CDIC doesn't work along the same lines.

[fatcat]

remember though that ally is owned by resmor trust

so, if you have a $40K gic with resmor and then plop $75K in ally and it goes belly up, you are only insured for 100K and would lose $15K

it's my understanding that resmor is going to disappear and then only ally will be left

A bank hasn't failed here in recent memory but so many have in the US. Apparently, the way FDIC works, the failed bank closes for the weekend and opens Monday under new ownership. Often, the depositors don't even have a clue that their bank went under. I'd be very surprised if CDIC doesn't work along the same lines.

right, i lived in the states for quite a while and that is exactly what happens, i had a bank that went under, it just stayed open, under the control of the fdic and hadn't even been bought by another bank yet which is what always happens, another bank will usually buy the failed bank ... and you can just walk in and do your business as usual

[warp]

I think you are wrong there Fatcat.

My understanding is that CIDC insures up to $ 100K per account.
So the Resmor account is separate from the Ally account and each gets $100K protection.

You can go on Ally.ca, and they will actually give you advice on how you can split up your money around several accounts and get $100K insurance on each one.....

Thats because they want you to be able to put more than $100 K into Ally.

[warp]

think I found it:


AcceleRate Financial AcceleRate Savings 2.20%

[fatcat]

I think you are wrong there Fatcat.

My understanding is that CIDC insures up to $ 100K per account.
So the Resmor account is separate from the Ally account and each gets $100K protection.

You can go on Ally.ca, and they will actually give you advice on how you can split up your money around several accounts and get $100K insurance on each one.....

Thats because they want you to be able to put more than $100 K into Ally.

warp, i have a bunch of gic's at ally ...yes, they are helpful and they are very good about showing you how to protect your money if you are married, there are ways, as they demonstrate to split the money and get protection

but i am referring to resmor trust and ally

ally is a subsidiary of resmor ..... many of the big banks sell resmor gic's ... so, if you have an individual account (i.e. no joint accounts) you cannot have more than 100K spread between ally and resmor

i think it's a bit of a moot point because resmor may no longer be offering gic's (i haven't had a quote for one from td in quite a while), i think resmor is going to disappear and only ally will remain

but if you are an individual and have a 50K gic with resmor, and you buy a 75K gic from ally, you are only insured for 100K (i.e. 25K is uninsured)

note that i am not talking about using different account types at ally which can get you well over 100K if you are a couple (i am single)

for the purposes of cdic coverage resmor and ally give 100K total per individual

does that make sense ?