Ally Demand Notes It Is! (Bye Bye Forever GMAC)

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!

5 thoughts on “Ally Demand Notes It Is! (Bye Bye Forever GMAC)”

  1. I, like you, pulled all but the account minimum from my GMAC account back in late '08. Now that things have settled and the rate of return has even increased – finally – I'm considering moving half of my cash reserves back into Demand Notes. Nothing even close to the 2.25 and my risk tolerance is generally quite high.

  2. I think the GMAC has done really good by making newer changes in its plan and ready to give more to its employees…I've met some people who really try hard to get good position in their companies yet don't get too many good offers…I hope the situation will ease out in some more companies…:)

  3. Hi,

    I’m new to Demand Notes but am a GM investor and therefore eligible to use Ally Demand Notes. Wondering if you’re still feeling confident in the viability of this product. Do you still have your cash there?

    Many thanks for your blog!

Comments are closed.