What do you think of Ally bank? Is it safe to start a CD online?
- icprofit6000Lv 79 years agoFavorite Answer
Ally CD are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250000. It not be my first choice, but I biased (lost money in GM stock).
I would look around in any case. I do like DFS, but that because I had a Discover Card for years, and I always been happy with the way they treat me. Outstanding service. Not sure what their current rates are on CD are.
Starting CD is safe provide your computer is not infected with a netbot virus that key logging your system and sending it to a hacker
Following is from Google Finance
GMAC Inc. (GMAC) is an independent, globally diversified, financial services firm with $172 billion in assets and operations in approximately 40 countries. The Company is a wholly owned subsidiary of General Motors Corporation. Its banking subsidiary is Ally Bank, which is an indirect wholly owned subsidiary of GMAC Inc. Global Automotive Services and Mortgage are the Company’s primary lines of business.
Discover Financial Services (DFS), incorporated in 1960, is a credit card issuer in the United States and an electronic payment services company. The Company offers credit cards, personal and student loans, and deposit products. The Company is bank holding and financial holding company. It operates the Discover Network, its credit card payments network; the PULSE Network (PULSE), its automated teller machine (ATM), debit and electronic funds transfer network, and Diners Club International (Diners Club), its global payments network. The Company’s business segments include Direct Banking and Payment Services. Its Direct Banking segment includes credit cards issued to individuals and small businesses on the Discover Network, its other consumer lending products and its deposit products. The Company’s Payment Services segment includes PULSE, Diners Club and its third-party issuing business, which includes credit, debit and prepaid cards issued on the Discover Network by third parties.
The Company’s Direct Banking segment includes Discover card-branded credit cards issued to individuals and small businesses on the Discover Network, and other consumer products and services, including personal loans, student loans, prepaid cards and other consumer lending, and deposit products offered through its Discover Bank subsidiary. It offers credit cards to consumers and small businesses. In addition to credit cards, it offers installment loans, including personal loans and student loans. Its student loans include federal and private loans that help students, and parents finance the costs of attending post-secondary educational institutions. The Company offers deposit products, including certificates of deposit, money market accounts, online savings accounts and individual retirement account (IRA) certificates of deposit, to customers through two channels: directly through direct mail, Internet origination and affinity relationships (direct-to-consumer deposits), and indirectly through contractual arrangements with brokerage firms (brokered deposits).
- 4 years ago
If you have any debt, pay it down, because you are likely paying a higher interest than what you can earn. Other options may be a high interest rate checking account. A local Credit Union in our area is paying close to 3% APY, which is quite good considering it is zero to no risk. There are also some online accounts like ING Direct that pay a decent rate for little risk. If you want to put it in the stock market (be aware it is quite volatile right now) maybe you can purchase a mutual fund. Most mutual funds have contribution limits (like 1,000 to 2,500) so check them closely.