I heard last week that GMAC Financial Services is going to follow the lead of the GMAC Bank, which changed their name to Ally Bank in 2009. GMAC Financial Services will become Ally Finance.
I can understand this. GMAC has had a lot of negativity pressed upon it over the recent years from being part of the sub-prime mess to needing government intervention (aka abailout). GM is still not the most liked name, and I think that moving away from that association can only benefit them. Plus, you have to think that they want to make loans across the board and not be associated primarily only with writing loans for GM dealers.
All in all, I think it’s a pretty good strategic move. They tested the waters, so to speak, by trying it out last year with the bank, and people have seemed to take it pretty well. I’m guessing that the favorable reaction allowed them to move forward with Phase II (known internally as the ‘warm liquid goo phase‘) allowing them to re-brand the rest.
I have stuck with my GMAC Demand Notes account for some of our cash holdings. It’s been holding steady paying 2.15% which is pretty much double what ING and others are paying. The downside, of course, is that it’s not FDIC insured, but as of now, the worst of the storm seems to have passed so I’m thinking the risk is OK for now.
I wonder if the rates will change at all once this becomes Ally Demand Notes (or whatever they deem the new product to be). We’ll have to wait and see.