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I've seen the ads everywhere for Ally, as I'm sure most of you have. Didn't think much about it as I don't plan on parking cash in a high interest account (which is the product I see most often advertised by Ally).

I was quite surprised when found out that Ally is the former GMAC financing. GMAC was one of the major losers in the credit crisis and probably would have failed if not for the US Government. Just something to keep in mind when doing your due diligence on where to park your cash.
 

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You are right , but ALLY ( in Canada), is covered under CDIC ( canadian deposit insurance corporation.)

What this means is that all deposits are insured by the Canadian Government up to $100,000.00 per account.


Technically, if you deposit up to $100 K in Ally, you are as safe as with any financial institution in Canada, including the big banks.
 

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You are right , but ALLY ( in Canada), is covered under CDIC ( canadian deposit insurance corporation.)

What this means is that all deposits are insured by the Canadian Government up to $100,000.00 per account.


Technically, if you deposit up to $100 K in Ally, you are as safe as with any financial institution in Canada, including the big banks.
It is hard, if not impossible for depositors to look into the credit worthiness of a bank or trust before simply parking their money. For all I know, Ally could be safer than ING Direct. That's why we have CDIC coverage. As long as you stay within the $100K limit for principal + interest, we should be okay.
 

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The only thing is that, from what I hear, if a financial institutions fail, it can take quite some time to get your deposits back through the CDIC process. But, we very rarely have banks fail in Canada.
 

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The only thing is that, from what I hear, if a financial institutions fail, it can take quite some time to get your deposits back through the CDIC process. But, we very rarely have banks fail in Canada.
A bank hasn't failed here in recent memory but so many have in the US. Apparently, the way FDIC works, the failed bank closes for the weekend and opens Monday under new ownership. Often, the depositors don't even have a clue that their bank went under. I'd be very surprised if CDIC doesn't work along the same lines.
 

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remember though that ally is owned by resmor trust

so, if you have a $40K gic with resmor and then plop $75K in ally and it goes belly up, you are only insured for 100K and would lose $15K

it's my understanding that resmor is going to disappear and then only ally will be left
A bank hasn't failed here in recent memory but so many have in the US. Apparently, the way FDIC works, the failed bank closes for the weekend and opens Monday under new ownership. Often, the depositors don't even have a clue that their bank went under. I'd be very surprised if CDIC doesn't work along the same lines.
right, i lived in the states for quite a while and that is exactly what happens, i had a bank that went under, it just stayed open, under the control of the fdic and hadn't even been bought by another bank yet which is what always happens, another bank will usually buy the failed bank ... and you can just walk in and do your business as usual
 

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I think you are wrong there Fatcat.

My understanding is that CIDC insures up to $ 100K per account.
So the Resmor account is separate from the Ally account and each gets $100K protection.

You can go on Ally.ca, and they will actually give you advice on how you can split up your money around several accounts and get $100K insurance on each one.....

Thats because they want you to be able to put more than $100 K into Ally.
 

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I think you are wrong there Fatcat.

My understanding is that CIDC insures up to $ 100K per account.
So the Resmor account is separate from the Ally account and each gets $100K protection.

You can go on Ally.ca, and they will actually give you advice on how you can split up your money around several accounts and get $100K insurance on each one.....

Thats because they want you to be able to put more than $100 K into Ally.
warp, i have a bunch of gic's at ally ...yes, they are helpful and they are very good about showing you how to protect your money if you are married, there are ways, as they demonstrate to split the money and get protection

but i am referring to resmor trust and ally

ally is a subsidiary of resmor ..... many of the big banks sell resmor gic's ... so, if you have an individual account (i.e. no joint accounts) you cannot have more than 100K spread between ally and resmor

i think it's a bit of a moot point because resmor may no longer be offering gic's (i haven't had a quote for one from td in quite a while), i think resmor is going to disappear and only ally will remain

but if you are an individual and have a 50K gic with resmor, and you buy a 75K gic from ally, you are only insured for 100K (i.e. 25K is uninsured)

note that i am not talking about using different account types at ally which can get you well over 100K if you are a couple (i am single)

for the purposes of cdic coverage resmor and ally give 100K total per individual

does that make sense ?
 

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Ally is just the name of the products. The deposit taking institution is ResMor Trust. As fatcat mentions, ResMor GICs are available at many discount brokers. So, the total of all deposits in different categories (jointly owned, RRSP etc.) with ResMor should not total more than $100,000.
 

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Two small, western Canadian based banks failed in the mid '80's. Advanced age seems to have erased their names from my memory. This cost CDIC a lot which they got by raising premiums on the other big banks.
 

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fatcat, warp, and cc ... You’re all partly wrong and partly right ...

Ally isn’t a subsidiary of Resmor ... it is a “product” of Resmor ... not the same thing ... a subsidiary would be a separate legal entity and would have to get its own separate CDIC coverage, if it qualified ... for example, the following subsidiaries of Scotiabank each has their own separate CDIC coverage ...

• Bank of Nova Scotia (parent)
• Scotia Mortgage Corporation (subsidiary)
• Dundee Bank of Canada (subsidiary)
• Maple Trust Company (subsidiary)
• Montreal Trust Company of Canada (subsidiary)
• National Trust Company (subsidiary)

And each of the major banks has a similar list of half-a-dozen or so subsidiary institutions, each of which carries its own separate CDIC coverage. Since Ally is not a subsidiary, but only a product, it is protected under Resmor’s coverage ... therefore, $50k deposited at Resmor, with $75k at Ally, would indeed exceed the $100k limit, leaving $25k exposed.

CDIC coverage is not per account, per se... you could have $1million spread between 10 separate accounts, including brokerage accounts at other institutions, and still only be covered for the $100k... however, different account types (ie. RRSP, TFSA, and others) are eligible for separate coverage, separate individuals within a household are eligible for their own separate coverage, and a joint account is considered a separate individual ... so a married couple could, in theory, have more than $700k covered, at a single institution ... I say “in theory” because although the TFSA is covered up to a maximum of $100k, the contribution limits would make it difficult to reach that balance in the account with the sorts of deposits that are eligible. So a couple might face a practical limit of about $520k at Resmor/Ally, if we adjust for the TFSA contribution limits available to date.

A single person would face a practical limit of something like $210k coverage at Ally/Resmor ... so if a single person held a $50k Resmor GIC in an RRSP, and $75k in a non-registered Ally account, the entire $125k would be covered.
 

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Ally is just the name of the products. The deposit taking institution is ResMor Trust. As fatcat mentions, ResMor GICs are available at many discount brokers. So, the total of all deposits in different categories (jointly owned, RRSP etc.) with ResMor should not total more than $100,000.
To complicate things further, Resmor Trust in turn is owned by GMAC. But Resmor Trust has to operate under CDN rules for financial institutions, so GMAC's credit problems should not affect Resmor Trust - except to the extent that they might or might not sell it off to another investor.

An article in the Globe year ago said: "Meantime, GMAC is in the process of getting regulatory approval to convert ResMor Trust into a bank under the Ally name.". But it doesn't look as though they have accomplished it yet.
 

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I have always known that ALLY was"owned" by Resmor Trust/GMAC.
Several posters have now said that Ally is a "product" of Resmor.

I have money sitting in Ally.......and in some other HISA accounts.

Thats the simple solution......I never intended to buy any Resmor Trust products anyway, but its always good to keep up to date.

Even simpler...tomorrow, if I remember, I will call CDIC and get the correct answer ( assuming they are better than CRA.....who gives you the wrong info regularly...Im sometimes stunned at how unknowledgable some of their staff is, althoughthey are usually pleasant)

A bigger problem is I wish someone will tell me when we will get this "correction" I"ve been waiting for, so I can put some of this money to work!

Thanks for the heads up, to all.
 

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Which deposits are you referring to, that aren't currently covered?
I figured they are attempting a conversion from a trust to a bank to get more CDIC coverage.
I may be wrong about this though. Deposits in a trust and a bank may have the same CDIC protection.
I believe in the US, trusts that are regulated by the state don't have FDIC coverage - only the coverage that the particular state provides.
 

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the ally / cdic discussion has acquired an almost mythical status

go here: http://www.highinterestsavings.ca/forum/ally/new-sheriff-in-townallyca

and you will see months worth of posts back and forth arguing and wondering whether ally is actually covered by cdic (they are) but they have really dropped the ball on informing the public on just exactly what the relationship is between ally, resmor and gmac and where cdic coverage starts and ends

i have a bunch of money at ally in gic's and they have told me that resmor is in the process of dissolving as a trust and all operations will be folded into ally bank ... i have'nt heard of any new gic's being sold by resmor, has anyone else ?

i have found them to be excellent, fast and easy to deal with

needless to say, i hope they stick around !
 
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