# Ally? CDIC Insured



## Sampson (Apr 3, 2009)

I'm interested in setting up an account with Ally and although I think there's another thread on the topic but can't find it. Anyone have accounts with this Co.? 

More importantly is this organization an independent entity from ResMor Trust Co.? The latter IS CDIC insured, but the name Ally can not be found on the CDIC list. Everything on the Ally website leads me to believe they are not CDIC insured since instead of explicitly stating so, they simply highlight that they are 

"built on the foundation of ResMor Trust Co."


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## fatcat (Nov 11, 2009)

this should answer your question:

http://www.ally.ca/en/cdic.html

they are insured by cdic


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## CanadianCapitalist (Mar 31, 2009)

I wrote about Ally when it launched. They are CDIC insured. I don't have an account with them but would be interested in hearing from anyone who did.


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## Sampson (Apr 3, 2009)

I'm sure I read that too CC  Thanks for the reminder.

I think I'll open an account pending confirmation that there are no account maintenance or withdrawal fees - which according to the comments, seems to be the case.

http://www.canadiancapitalist.com/savings-products-from-canadian-direct-peoples-trust-and-ally/

The attractive rates PLUS no penalty for early withdrawals makes it seem like one of the better places to park short to mid-term cash. GIC-ladder anyone?


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## ShowMeTheMoney (Apr 12, 2009)

I've set up a savings account and TSFA with them. It was painless, no fees whatsoever, they are insured. I'm happy so far.


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## CuriousReader (Apr 3, 2009)

I opened account with Ally as my new "high-interest" saving account a while ago and I dont have complain so far. Their web interface is simple and straight forward, no hassle to do online transfers and customer support are very easy to reach (phone, chat, email), you dont have to listen to random songs while on hold.

(I have no relation to Ally other than being a customer)

I asked them to double check about their CDIC status and why they dont explicitly mention etc etc ... and they said that because Ally is a _product of_ Resmor, and because Resmore is CDIC insured, so Ally itself is insured.


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## fatcat (Nov 11, 2009)

i have called them a couple of times and in both cases got very fast, very friendly and very knowledgeable customer service

i will be opening an account with them


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## ssimps (Dec 8, 2009)

My question is how long will the rate be 2%? 

I've been burned by Scotiabank last spring and by Canadian Tire Financial in the summer by their offers of high savings accounts that actually had 2 - 3 % interest. Within a couple months (once they likely have the $ they want) the rate drops like a rock. Scotiabank is now at 1% and you need a $5K min and CTF is at 1.35%.

I know that some of this (well at least for the Scotiabank one) was that prime also dropped, but the difference between the 'high interest' saving account % change and the prime rate change was huge, especially with CTF.

They (banks) seem to entice you in with a high rate, and then drop it within a few months of launch. I hope Ally really is an Ally and does not do this.


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## CuriousReader (Apr 3, 2009)

ssimps said:


> My question is how long will the rate be 2%?


if you are keeping some money on high interest account, I guess you just have to be vigilant on who over the best rate and move your money around


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## CanadianCapitalist (Mar 31, 2009)

ssimps said:


> My question is how long will the rate be 2%?
> 
> I've been burned by Scotiabank last spring and by Canadian Tire Financial in the summer by their offers of high savings accounts that actually had 2 - 3 % interest. Within a couple months (once they likely have the $ they want) the rate drops like a rock. Scotiabank is now at 1% and you need a $5K min and CTF is at 1.35%.


I believe Ally also offers a 1-year cashable GIC at 1.75%. Yes, the rate is 0.25% less than the savings account but you are assured of receiving that rate for at least 1 year.


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## Sampson (Apr 3, 2009)

CanadianCapitalist said:


> I believe Ally also offers a 1-year cashable GIC at 1.75%.


It was precisely the cashable GICs that I was originally interested in. But I've been 'hesitating'.

70% due to procrastination
30% due to a suspicion that rates will be on their way up soon, and now's not exactly the best time to lock anything in.


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## CanadianCapitalist (Mar 31, 2009)

Sampson said:


> 30% due to a suspicion that rates will be on their way up soon, and now's not exactly the best time to lock anything in.


You are not locking in. It's a 1-year cashable GIC that can be cashed at any time without penalty. If interest rates go up, cash in your GIC and buy another 1-year cashable GIC (assuming Ally offers it at that time). Sweet


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## Sampson (Apr 3, 2009)

CanadianCapitalist said:


> You are not locking in. It's a 1-year cashable GIC that can be cashed at any time without penalty. If interest rates go up, cash in your GIC and buy another 1-year cashable GIC (assuming Ally offers it at that time). Sweet


I was going to argue that the longer term GICs were not fully cashable, but it turns out they are 

you got me CC,

its really:

90% procrastination  
10% considering buying more equities


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## ssimps (Dec 8, 2009)

CanadianCapitalist said:


> You are not locking in. It's a 1-year cashable GIC that can be cashed at any time without penalty. If interest rates go up, cash in your GIC and buy another 1-year cashable GIC (assuming Ally offers it at that time). Sweet


for the 1 year you are correct, but for other term lengths there seems to be small print:

http://www.ally.ca/en/privacy-legal/disclosures.html

Edit: they are all cashable, put all but the 12 month have penalties. You only get the listed interest rate on the 12 month GIC. Shorter periods you get no interest, longer periods, see the table in the link.


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## Sampson (Apr 3, 2009)

hey ssimps,

I can only speak for myself, but I'm okay with 0% interest (or in this case, reduced interest on 18month or longer terms) earned if I cash out early on longer term GICs.

If I cash out, I'm assuming it'll be for a very good reason, i.e. only if the probability of securing greater returns is in the cards - like another downturn (what happened to the double-dip recession we were all talking about?) 

I'm leaning more to keeping my cash completely liquid - hence the procrastination of setting these accounts up in the first place. Interest of 1.5% to 3.5% just isn't worth the hassle of setting up new accounts with 'untested' institutions. (IMHO)


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## ssimps (Dec 8, 2009)

Sampson said:


> hey ssimps,
> 
> I can only speak for myself, but I'm okay with 0% interest (or in this case, reduced interest on 18month or longer terms) earned if I cash out early on longer term GICs.
> 
> ...


I'm OK with anything if my principal is guaranteed as well, but from what I know / understand you don't keep up with inflation or therefore growing your wealth by just doing that. I wish you still could.  None of these products do right now IMO. 

That is the problem, and maybe one of the reasons for the delay in another market correction? People are generally greedy, greed feeds greed, low guaranteed options pushes people into things that offer higher yield, a.k.a the market. It is self feeding it seems.

I also agree that chasing these 'teaser' account offerings takes effort and time, and given that banks like to take their time handing over your money to another bank, if you jump too often you end up loosing in the end I'm sure.


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## Sampson (Apr 3, 2009)

ssimps said:


> I'm OK with anything if my principal is guaranteed as well, but from what I know / understand you don't keep up with inflation or therefore growing your wealth by just doing that. I wish you still could.  None of these products do right now IMO.


There in lies the problem hey?

I feel that even with real return bonds, since they are indexed to only certain measures of inflation, may not actually provide the 'real' protection against inflation they propose to.

Just look at some of the biggest areas people spend money on, housing, food and energy, all these elements have continued to experience inflation.

I really should stop procrastinating and just open an account already...instead of running through mental exercises


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## HaroldCrump (Jun 10, 2009)

Sampson said:


> I feel that even with real return bonds, since they are indexed to only certain measures of inflation, may not actually provide the 'real' protection against inflation they propose to.
> 
> Just look at some of the biggest areas people spend money on, housing, food and energy, all these elements have continued to experience inflation.


Exactly, it is outrageous how expensive basic household items have been getting for the last 2 years.
While the govt. and experts are screaming deflation, there is rampant and shameless inflation going on.


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## ssimps (Dec 8, 2009)

Sampson said:


> There in lies the problem hey?
> 
> I feel that even with real return bonds, since they are indexed to only certain measures of inflation, may not actually provide the 'real' protection against inflation they propose to.
> 
> I really should stop procrastinating and just open an account already...instead of running through mental exercises





HaroldCrump said:


> Exactly, it is outrageous how expensive basic household items have been getting for the last 2 years.
> While the govt. and experts are screaming deflation, there is rampant and shameless inflation going on.


I agree.

BTW, I did open an Ally 2% savings account online today before leaving work; figured why not; 0 cost. It was so easy I could not believe it. 100% internet based and you get your account number at the end of the 10 minute process. You then just have to mail them a $1 cheque with your Ally account number on it. Once the cheque clears your account is usable and you are ready to go (according to the Welcome to Ally web page at the end). So no reason to keep procrastinating, at least in terms of creating an account Ally has got it right! I was very surprised. Lets hope they do not drop their 2% savings rate in a month.


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## jamesbe (May 8, 2010)

Old thread, but it looks like Ally may go belly up. Unless Canada and US operations are separate. Should one worry with money in their?


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## andrewf (Mar 1, 2010)

Ally is a member of CDIC.


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## GoldStone (Mar 6, 2011)

A post over at RFD:



NorthernRaven said:


> Ally Canada is actually part of ResMor Trust, a Canadian federal trust company that is part of CDIC. ResMor is a wholly owned subsidiary of Ally Financial of Detroit, which used to be GMAC. Ally Bank in the US is a different subsidiary of Ally Financial - they are siblings, not parent-child. Bottom line is that ResMor/Ally Canada are regulated by the CDIC and have to meet Canadian health rules, no matter what woes the US parent may have. If Ally Financial goes, the Canadian subsidiary should still be viable, and its business would likely be bought up by another bank. In any case, CDIC insurance applies to Ally Canada.
> 
> The worst bit of Ally Financial is probably its US mortgage subsidiary ResCap - that's what they are talking about putting into bankruptcy, not Ally Financial itself.


http://forums.redflagdeals.com/new-2-high-interest-saving-account-ally-785174/35/#post14703648


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## NorthernRaven (Aug 4, 2010)

Hmmm, that would be me... 

I suspect the Ally Financial/Ally Canada relationship is much like the Dutch ING Groep to ING Direct Canada - the parent owns ResMor (Ally Canada is a ResMor brand, and I think the intent was eventually to rename ResMor to Ally Bank of Canada or some-such), but ResMor's finances would be separate, and regulated by Canada.

Ally Bank US would be separate, but even that I think is fine as an ongoing concern - it's a major provider of auto loans these days. Ally Financial's main problem is the huge exposure to toxic mortgages and other loans from the past (they still owe the US govt $12 billion) - that's the US ResCap subsidiary they are getting ready to put into bankruptcy.

Unless they decide to sell off the Canadian operation to reduce their debt, I doubt much of anything will happen with Ally Canada, and the CDIC insurance is there in any case.


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## behappytoday (Sep 16, 2011)

I chose Ally for one of my TFSA's, and looked up my account online. They dropped the interest from 2% to 1.8%


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## NorthernRaven (Aug 4, 2010)

BTW, ResCap's bankruptcy filing went ahead today. Also, from their press release, notice the possibility that Ally's foreign operations, including Canada, may be considered for sale.


> International Businesses Ally will explore strategic alternatives for all of its international operations, which includes auto finance, insurance, and banking and deposit operations in Canada, Mexico, Europe, the U.K. and South America.
> 
> The international businesses represent strong franchises in each of the respective countries, and Ally's mission in exploring alternatives for these businesses is to maximize shareholder value in a timely manner, while also protecting the interests of the dealers and automakers that the company serves.
> 
> The international businesses operate independently of the U.S. businesses, and, as a result, strategic actions taken with regard to these businesses will have no adverse operating impact on Ally's U.S. businesses.


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## fatcat (Nov 11, 2009)

NorthernRaven said:


> BTW, ResCap's bankruptcy filing went ahead today. Also, from their press release, notice the possibility that Ally's foreign operations, including Canada, may be considered for sale.


i think ally.ca has a first-rate online bank presence, my dealings with them have been A+, somebody will recognize this and pick them up ... i'll throw in a $100, maybe us cmf'ers should go into together and buy em ... owning a bank has always appealed to me, that's where they keep the money right ?:tongue-new:


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## kcowan (Jul 1, 2010)

GM Canada is one of the rumoured acquirers so they can compete with Ford.


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## loggedout (Dec 30, 2009)

I have a savings account with Ally. Should I consider moving it in light of this news?


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## dnames (Apr 14, 2012)

Humm, I just transferred 70k to their USD savings account last week
I believe their USD account isn't CDIC insured .. anyone on the same boat having a decent chunk in their usd savings account ? 
I might move it out for the peace of mind ... their usd acct interest rate is one of the highest so it's unfortunate.


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## kcowan (Jul 1, 2010)

No. Their acquisition should make them more financially sound.


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