It is a mystery to me why Ally, which consistently offers better savings and GIC interest rates isn’t as popular as ING Direct. Take high-interest savings accounts: Ally has long offered a 2.0% interest rate compared to ING Direct’s 1.5%. And here’s how Ally’s GIC rates compare with ING Direct:
* – Special “Cyber Monday” interest rate.
Now Ally’s product line-up is not as extensive as ING Direct’s (Ally does not offer RSP savings accounts, business savings accounts or chequing accounts) but as you can see from the table above, Ally’s GIC rates are consistently better than ING Direct’s. Even Ally’s early redemption rate is better: 1% compared to 0.5% at the big Orange. I have held savings accounts at both Ally and ING Direct and found little difference between the two – both offer much higher interest rates than the competition and typically do not charge any fees. One explanation for cool response to Ally may be its association with GMAC. However, Ally is a product of ResMor Trust Company which is member of Canadian Deposit Insurance Corporation. CDIC deposit insurance should provide peace of mind for savers worried about the financial health of Ally.