Ally Bank

Discussion of the Cash portion of the Permanent Portfolio

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ochotona
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Ally Bank

Postby ochotona » Mon Mar 27, 2017 7:54 pm

They have had an upsurge in subprime auto loan defaults. They used to be called GMAC, and their portfolio is heavily auto loans. I love the 1% paid on deposits, but I am going the watch their quarterly profits. I run from potential problems. I never want to be in a bank where FDIC in invoked.
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Desert
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Re: Ally Bank

Postby Desert » Mon Mar 27, 2017 8:15 pm

ochotona wrote:They have had an upsurge in subprime auto loan defaults. They used to be called GMAC, and their portfolio is heavily auto loans. I love the 1% paid on deposits, but I am going the watch their quarterly profits. I run from potential problems. I never want to be in a bank where FDIC in invoked.


You could compare with PurePoint Financial, currently paying 1.25%, with a 10K minimum.
ochotona
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Re: Ally Bank

Postby ochotona » Mon Mar 27, 2017 9:04 pm

Desert wrote:
ochotona wrote:They have had an upsurge in subprime auto loan defaults. They used to be called GMAC, and their portfolio is heavily auto loans. I love the 1% paid on deposits, but I am going the watch their quarterly profits. I run from potential problems. I never want to be in a bank where FDIC in invoked.


You could compare with PurePoint Financial, currently paying 1.25%, with a 10K minimum.


I looked at DepositAccounts.com, Ally is A+ rated, PurePoint is A. Go figure!
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Desert
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Re: Ally Bank

Postby Desert » Mon Mar 27, 2017 9:22 pm

ochotona wrote:
Desert wrote:
ochotona wrote:They have had an upsurge in subprime auto loan defaults. They used to be called GMAC, and their portfolio is heavily auto loans. I love the 1% paid on deposits, but I am going the watch their quarterly profits. I run from potential problems. I never want to be in a bank where FDIC in invoked.


You could compare with PurePoint Financial, currently paying 1.25%, with a 10K minimum.


I looked at DepositAccounts.com, Ally is A+ rated, PurePoint is A. Go figure!


Yeah, Ally has a good reputation. There are plenty of other choices for 1% rates, but I'm not sure we can predict the loser. Probably best to just let the money sit there and use FDIC if required.
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dualstow
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Re: Ally Bank

Postby dualstow » Mon Mar 27, 2017 9:25 pm

Remember the John Oliver piece on auto loans? Seems like it could be the next big thing to really blow up.
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ochotona
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Re: Ally Bank

Postby ochotona » Mon Mar 27, 2017 9:31 pm

dualstow wrote:Remember the John Oliver piece on auto loans? Seems like it could be the next big thing to really blow up.


It doesn't sound good. Well, if I watch the quarterly financials I should see severe problems well in time to move money.
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Re: Ally Bank

Postby grapesofwrath » Tue Mar 28, 2017 5:39 pm

I'm at a loss why someone would put cash in bank CDs vs just bills/notes at treasury direct. The rates, even if better, don't seem worth it for the grief, continual churn and chasing, and lack of peace of mind.
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Re: Ally Bank

Postby dualstow » Tue Mar 28, 2017 6:02 pm

grapesofwrath wrote:I'm at a loss why someone would put cash in bank CDs vs just bills/notes at treasury direct.


A friend of mine feels the opposite. He cannot fathom why I would buy treasuries, "ignoring" higher yields from CDs.
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ochotona
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Re: Ally Bank

Postby ochotona » Tue Mar 28, 2017 8:53 pm

grapesofwrath wrote:I'm at a loss why someone would put cash in bank CDs vs just bills/notes at treasury direct. The rates, even if better, don't seem worth it for the grief, continual churn and chasing, and lack of peace of mind.


Because I'm not willing to give up the $3,000 in interest I earned last year, that's why!

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