The bank formerly known as GMAC tackles CanadaPickles wrote:Rob Carrick has an article in today's G&M.
Note, however that this feature applies only to 1-year GICs, longer (and shorter) terms are not included [click "Cash out early" tab.]The one-year GIC offered by Ally pays a highly competitive 1.75 per cent, has no minimum investment and can be redeemed penalty free, with interest paid up until the day you call to get out. With most banks, a redeemable GIC means a big sacrifice on rates. Yesterday, some financial institutions posted rates as low as 0.15 per cent for cashable one-year GICs (please, no one tell me they bought one of these).
Some insight on the challenges that Ally, as well as CTFS, have in competing:
These rates do stand out, comparatively speaking. But financial industry consultant David McVay said Ally will still have to contend with what he believes is an overcrowded market for online banks. Take Canadian Tire, for example. "They have a strong brand, they're paying well above ING Direct on their savings account and they have a robust credit card base to market to," he said. "And yet they've done virtually nothing." It will be tough sledding for another bank to come in, he added.