Bank CD Rates

For those of you that did not catch the news, the old GMAC was renamed to Ally Bank. CD Rates from this financial institution are still guaranteed by the FDIC.

One of the bad things about having the government involved in private corporations is their meddling with systems that they do not understand. A good example of this was a notice that was sent to Ally Bank. CD rates were order to be lowered by the director of FDIC’s Division of Supervision and Consumer Protection. She has decided that Ally CD rates had to be lowered since they were among the highest paying CD’s in the country.

This came after a letter from the American Bankers Association was received by the FDIC that accused Ally Bank of risky financial strategies since they were paying out a great rate on CD’s. A great interest rate on a CD is how any financial institution attracts customers. The reason the American Bankers Association has interfered is clear, they still wish to have the established institutions that have siphoned off millions of dollars to their pockets to remain powerful while the general public has to pay for their greed and financial mistakes that have caused this current financial recession.

What should be understood it that Ally Bank did take a governmental payout to help keep it in business. But as a way to help those that are hurt the most during this current recession they gave good bank CD rates with this governmental money, which came from tax payers.  

At the same time the major financial institutions of this great nation also took payout money to keep their institutions running. The difference is that they spent the money on executive bonuses. This means tax payer money went into the pockets of those that put the world in recession.

For this reason alone Ally Bank CD rates should be looked at and their CD’s purchased. At least they care about their customers.