Back in May, I wondered what would happen to the GMAC Demand Notes name since Ally seemed to be taking over the GMAC brand.
It didn’t take long, probably no more than a few weeks, before I got notification in the mail announcing that it would indeed be called Ally Demand Notes as it looked like the GMAC name would be erased from anything and everything.
I can understand that since GMAC was associated with pretty much everything bad about GM, the banking industry, the housing bubble, and the credit crisis.
Everything on the website and the information I get in the mail has completely eliminated the GMAC name and they are now called ‘Ally Demand Notes’.
The checks still say ‘GMAC Demand Notes’ but since they are underwritten by a third party bank, they are still valid and will be honored. I confirmed this with customer service.
If you are eligible for participation in Ally Demand Notes (you have to be a GM employee or retiree, or related to one), I still think it’s a good investment for long term cash holdings, where you are agreeable to some risk (they are considered a money market and are not FDIC insured). The interest rate is 2.25% which is pretty much double of even the best savings account or CD rates.
Though there is the risk I mentioned, I think (for the moment) that Ally looks to be on solid footing. If my opinion changes, I will definitely let you know!