Glossary

Additional account owner

Anyone other than the primary owner on a joint account.

Ally-affiliated Companies

These are companies in the Ally Financial group, such as our mortgage and insurance arms. Check out a more complete list of affiliates by reviewing Ally's Privacy Notice

Ally/GM/GMAC family

Includes all employees and retirees of the Ally/GM group of companies and subsidiaries, as well as their immediate family members (spouse, children, parents, siblings, and grandparents of the employee or retiree). Also includes associated GM dealers and their employees and associated GM stockholders and suppliers.

Annual Percentage Yield (APY)

A percentage rate reflecting the total amount of interest paid on an account, based on the interest rate and the frequency of compounding for a 365-day period.

Are there exceptions?

We will waive our early withdrawal fee for closing the CD before maturity if the account owner dies or is judged legally incompetent.

Asset generation business

Ally Bank is a part of the GMAC family of companies. We originate competitive, quality loan assets from our mortgage and auto loan operations profitably at these deposit rates.

Automated Clearing House (ACH)

A computer-based interchange that electronically clears deposits and payments.

Automated Teller Machine (ATM)

An electronic terminal where you can make transactions. Just remember, individual machines usually charge a fee.

Automatic transfer

Allows you to move funds from one account to another automatically on a pre-arranged schedule—for example, every payday or once a month.

Average daily balance

The sum of the daily balances during an accounting period, usually a month, divided by the number of days in the period.

Bank

A state or federally chartered institution that is authorized to offer deposit accounts.

Basis Point (BP)

One-hundredth of one percent (0.01%). Basis points measure the changes in yield—such as the interest paid by our CDs, Online Savings Accounts, and Money Market Accounts.

Beneficiary

An individual or organization you can designate to get benefits if you pass away. For example, an In Trust For (ITF) account holder names a beneficiary to whom the account will be paid in the event of the depositor's death.

Best capitalized banks

As a new bank, our Tier 1 capitalization leverage ratio is almost triple what is deemed "well capitalized" under the FDIC's regulations.

Bill Pay

A service that lets you pay most bills online rather than mailing a check. You can also pay multiple bills or schedule recurring payments.

Bookmark

A way of marking and remembering a specific Web page for easy access. For example, bookmarking the Ally Bank home page gives you a quick shortcut to that page. Your Web browser provides this feature, which can be used by selecting in the menu bar.

Bounced check

A check or other deposit that is not paid by the bank on which it was drawn. See your Ally Bank Deposit Agreement for rules concerning bounced checks.

Browser

A program that enables you to view Internet locations. Examples of browsers are Mozilla Firefox® and Microsoft Internet Explorer®.

Business day

Monday through Friday, excluding holidays, of course. Saturday, Sunday, and legal holidays are considered part of the next business day.

Cash back when you shop

Use your debit card to withdraw money anywhere a retailer gives you the cash back option. It's convenient and there's no fee for the withdrawal.

Cashier's check

A check issued by a bank and drawn on the bank's own funds. Also called an Official check.

Certificate of Deposit (CD)

A deposit account that grows money at a fixed rate, usually higher than other types of deposit accounts. If you withdraw before the maturity date, you'll be charged a fee—unless you have a .

Check safekeeping

A service in which the accountholder's bank keeps copies of cancelled checks and makes them available only on request, instead of returning them with a monthly statement.

Co-borrower

An additional borrower whose income and credit history contributes to the qualification process for an account. A co-borrower usually has the same legal obligations as the primary borrower.

Collected balance

The balance in an account, not including deposited items that haven't been paid or collected. The balance is used to calculate interest payments.

Compound interest

Interest that is calculated not only on the initial principal but also previously accumulated interest. Interest can be compounded quarterly, yearly, or—as we do it—daily. The more often your interest is compounded, the more it grows.

Consumer Price Index (CPI)

A measure of the average change over time in the prices paid by urban consumers for consumer goods and services.

Cookie

A cookie is a small piece of code sent from our site and stored on your computer. A persistent cookie is associated with our site so that when you return, our site recognizes that you have visited before. We use this information to help us improve your experience as well as to measure site activity. You may use your browser settings to erase or to refuse the placement of a cookie. However, if you do refuse cookies, some of our site features, including account management features, will not be available to you.

Credit

In the case of a deposit account, this is an amount added to the account, such as a deposit.

Credit Card

A card that lets you make purchases using credit. A credit limit is established by the issuer of the card.

Credit unions

A financial cooperative that makes personal loans and offers other consumer banking services to its members.

Custodian

An individual, bank, or other organization that holds assets (such as a deposit account) for a beneficiary. Frequently, custodians are named to oversee accounts designated for minor beneficiaries. Deposits in such accounts are held for the benefit of the minor according to the terms of the custodial agreement. See also minor custodial account.

Custodian account

A specific type of account offered by Ally Bank and created on behalf of a minor. If you have established the account as a custodian for a minor beneficiary under our state version of the Uniform Gifts to Minors Act, your rights and duties are governed by the Act. Upon the death of the custodian, a successor custodian will be appointed in accordance with the donor's instructions or state law, as applicable. You will not be allowed to pledge the account as collateral for any loan to you. Deposits in the account will be held by us for the exclusive right and benefit of the minor.

Daily compounded interest

Instead of just paying you interest on your initial deposit, we also pay you interest on the interest you earn—called compounding interest.

Debit

In the case of a deposit account, this is an amount deducted from the account, such as a check you've written.

Debit card

Free with your Ally Interest Checking Account or Money Market Account, this card can be used for ATM withdrawals and purchases.

Dejargonator Disclosure

The accuracy or completeness of this information is not guaranteed nor are any warranties given with regard to the results obtained from its use. The giving of the information shall not be deemed an offer or solicitation on the part of Ally Bank with respect to the sale or purchase of any securities, nor shall it be considered investment or other advice. Please consult your financial or tax advisor with regard to your individual situation.

Direct deposit

When wages or benefits, such as pension or Social Security, are deposited electronically into your bank account.

Diversification

The strategy of spreading investments across a number of different securities to reduce the risk of putting all your eggs in one basket.

Domestic Outgoing Wire

An electronic transfer from one U.S. bank account to another made through the Federal Reserve Wire Network.

Early withdrawal

When you withdraw money from a CD before its maturity date. You will usually be charged a fee for an early withdrawal—unless you have our No Penalty CD.

Earned interest

The amount earned on a CD, Online Savings Account, or Money Market Account since the initial investment or deposit was made.

Email

Electronic mail messages that you send through your computer, usually over the Internet. These messages may not be secure or encrypted.

Encryption

A standard of technology that protects data by scrambling it before it is sent through the Internet. When you send or receive information from us, we use this process. Please refer to our section for more information.

Equal Credit Opportunity Act (ECOA)

A federal law prohibiting creditors from discriminating on certain bases when marketing and extending credit.

Equity

The portion of a property's value over and above any liens against it. The term can also refer to the ownership of stock or other interests in a corporation or other business.

Escrow

An item of value, such as money or documents, deposited with a third party to be delivered upon the fulfillment of a condition. For example, the deposit of money by a borrower with a lender to pay taxes and insurance premiums when they become due, or the deposit of funds or documents with an attorney or escrow agent to be disbursed upon the closing of a sale of real estate.

Fair Credit Reporting Act (FCRA)

A law regulating providers and users of consumer credit reports.

Federal Deposit Insurance Corporation (FDIC)

A federal agency that insures deposits in member banks against loss.

Federal Open Market Committee (FOMC)

Part of the Federal Reserve System, the FOMC controls interest rates by instructing the Federal Reserve Bank to buy or sell government securities on the open market.

Firewall

Software or hardware that limits certain kinds of access to a computer from a network or other outside source.

Fixed APY

Annual Percentage Yield lets you know how much interest you could earn in one year. Since it is fixed, it stays the same regardless of market fluctuations.

Fixed rate

A rate of growth shown as a percent that is guaranteed to stay the same for a fixed period of time (term).

Floating interest rate

Also called a variable interest rate, it's a rate that goes up and down with the market.

Foreign exchange rate

The price of one nation's currency as it relates to the currency of another nation.

Future value

The value of a present sum at a future date found by applying compound interest over a specific period of time.

Grace period

Refers to a deadline that either: 1) allows payment without a late fee or other charge, or 2) indicates the date when a CD customer must provide notice of intent to close the CD.

HTTP

Short for HyperText Transfer Protocol, the underlying protocol used by the World Wide Web. HTTP defines how messages are formatted and transmitted, and what actions Web servers and browsers should take in response to various commands.

HTTPS

Hypertext Transfer Protocol Secure is the protocol for the server software that provides secure transactions on the World Wide Web. If a Web site is running on an HTTPS server, you will see HTTPS instead of HTTP in the address bar of your browser. This verifies that you are in secure mode.

Auto Services Hours of Operation

If you have a Money Market Account

If you have a Money Market Account, only three of the six-per-cycle withdrawal or transfer may be made by check or with your debit card at point of sale. Please remember, you will be charged a $10 fee for each transaction that exceeds these limits.

In Trust For (ITF)

An account is “In Trust For” if the funds are held in trust for a designated beneficiary.

Index

A published interest rate, such as the prime rate, LIBOR, T-Bill rate, or the 11th District COFI. Popular indices include the Standard & Poor's 500 and the Dow Jones Industrial Average. Banks use indexes to establish interest rates and compare investment returns. Indices are also used to measure market performance.

Inflation

The rise in the prices of goods and services, caused when goods and services are more scarce than money. Moderate inflation is considered by most economists to be the normal result of economic growth.

Inflation rate

The rate of change in prices. Two major U.S. indicators of the inflation rate are the Consumer Price Index (CPI) and the Producer Price Index (PPI), which track changes in prices paid by consumers and by producers.

Interactive Voice Response (IVR)

The system that allows you to get information about your account via telephone.

Interest rate

1) The rate paid by an interest-bearing account, such as a CD, Online Savings Account, and Money Market Account; and 2) the rate charged by creditors, such as banks, credit card companies, and mortgage lenders on a loan or other obligation.

Interest transfer

When interest earned in one account is transferred to another account. For example, interest earned on a CD can automatically be transferred at maturity to a designated checking account.

Internal Revenue Service (IRS)

The U.S. agency charged with collecting nearly all federal taxes, including personal and corporate income taxes, Social Security taxes, and excise and gift taxes.

International Outgoing Wire

An electronic transfer from a U.S. bank account to a non-U.S. bank account—and vice versa—made through the Federal Reserve Wire Network.

Internet Service Provider (ISP)

A company that provides access to the Internet in addition to its own proprietary content and services.

Joint account with right of survivorship

An account owned by two or more individuals. Each joint owner has full access to all funds on deposit and can close the account.

Market value

The price buyers and sellers use to trade similar items in an open marketplace.

Maturity

The end date of an investment, such as a CD, when both your initial deposit and earned interest can be received as income or reinvested in another CD.

Minimum daily balance

The minimum amount that may be required to be kept in an account each day to earn interest, avoid a service charge or qualify for special services. See also .

Minimum monthly payment

A minimum payment based on the percentage of your outstanding balance or a minimum fixed amount.

Minor's custodial account

An account created on behalf of a minor child, usually under a state law called the Uniform Gifts to Minors Act.

Money Market Account

Our interest-bearing account that allows transactions to be made electronically online, by phone, by check, and by check card. Federal law limits the number of withdrawals and transfers per statement cycle to six. ATM withdrawals, however, are unlimited.

NOW Account (Negotiable Order of Withdrawal)

A deposit account that pays interest and on which checks may be written.

No ATM fees

Go to any ATM and we'll automatically refund fees charged by other banks at the end of your monthly statement period. If you aren't near an ATM, you can get cash back when you shop at most grocery stores, gas stations and super stores and pay no fees.

No fee early withdrawal

A feature available with our No Penalty CD. Lets you make a withdrawal after a short time but before the maturity date without being charged a fee.

Non-Sufficient Funds (NSF)

Happens when you don't have enough money in your account to cover your expenses—an overdraft.

Note

A written promise to pay a specified amount to an individual or entity on demand, on a specified date or in installments, usually with interest.

Official check

A check issued by a bank and drawn on the bank's own funds. Also called a Cashier's check.

Official/Cashier's Checks

Online Banking

Lets you get account information and manage certain banking transactions through your computer.

Overdraft

When the amount of a paid check or other withdrawal exceeds the available balance in a checking account. Fees for overdrafts can be avoided by obtaining overdraft protection if available. See also Non-sufficient funds (NSF) and Overdraft protection.

Overdraft Transfer Service

Link an Ally Online Savings or Money Market account to your Interest Checking account. If you exceed your checking balance, we'll automatically transfer available funds from your savings account to cover the transaction(s)—at no charge to you. Other banks may charge you for this Overdraft Transfer Service.

Overdraft protection

A link between a checking or Money Market Account and another deposit account, or a credit line that transfers funds in order to avoid returned items or overdraft fees.

Payable on Death (POD)

An account is Payable on Death if the funds are payable to the designated beneficiary at the death of the account owner.

Percentage point

One percent of the loan or a measure of the interest rate.

Personal Identification Number (PIN)

This code, chosen by you or assigned by the bank, allows you to use your Ally bank check card at ATMs and with certain vendors.

Phishing

Fraudsters send "phishing" emails to trick consumers into providing personal, non-public information on fake websites. Often that information can include account numbers, Social Security numbers and passwords, but, could also include answers to commonly asked screening questions such as mother's maiden name or high school mascot. Fraudsters then use the information provided on those fake websites to steal consumer identities, usually for the purpose of setting up or accessing financial accounts.

Potential earnings

Potential Earnings is a hypothetical example of what your earnings could be, and is determined by multiplying your opening deposit by the current rate on a daily basis.

Power of attorney

A legal document authorizing one person to act on behalf of another.

Present value

The current dollar value of a future sum. In other words, the amount that would have to be invested today at a given interest rate over a specified period in order to equal the future sum.

Principal

In the case of an interest-bearing deposit account, this is the amount deposited to that account on which interest is paid.

Privacy preferences

Privacy preferences are 1.The choices you make about how we may share your personal information with Ally-affiliated companies and unaffiliated third parties and 2.The marketing preferences you choose that indicate whether and how you wish to receive product and special offer information from Ally. Check out Ally's Privacy Notice for more information.

Raise your rate

If you see our 2 year CD rate has gone up during your term, you can just give us a call and request the better rate for the remainder of your term—at no cost to you and with no strings attached.

Real Simple Syndication RSS

Real rate of return

The return on an investment adjusted for inflation. For example, if an investment pays 6% annually, but inflation is 2%, the real rate of return is 4% (6% - 2% = 4%).

Receive interest as earned income

Once your CD matures, you can claim the interest you've earned as income, making it eligible for the federal government's Earned Income Tax Credit.

Return

The change in value of an asset plus any cash distribution, expressed as a percentage of the beginning investment value. For example, an investment of $100 that is worth $112 at the end of one year has a return of 12%.

Returned deposit item

A check or other deposit that is not paid by the bank on which it was drawn. See your Ally Bank Deposit Agreement for rules concerning returned deposit items.

Simple interest rate

The percentage rate at which interest accrues. This rate is used to compute the APY.

Sleeping Money alerts

If you have a Money Market or Online Savings account, we send you email reminders to let you know when your money could be working harder. If your account has not had withdrawals for a certain amount of time, we tell you ways your money could be doing more—even if it means recommending you switch to another account, such as our No Penalty CD, to earn even higher interest. This is just one way we work hard at being a better bank for you.

Stop payment

A customer's order to his or her bank not to honor the payment of a check after it has been delivered but before it is debited from the customer's account.

Substitute check

A paper reproduction of an original check.

Tax-exempt

Free from tax liability.

Ten Day Best Rate Guarantee

When you fund your CD within ten days of opening or renewing your Ally account, you automatically get the best rate we offer during that time period.

Term

The period of time between when a CD is opened and when it matures.

Title

The legal evidence of ownership rights to real property.

Transaction limitations

Limits imposed by law on the number of electronic and telephone withdrawals and transfers from a deposit account. Federal law limits electronic and telephone transactions from all U.S. savings and money market accounts to six per statement cycle. If you have an Ally Bank Money Market Account, three of the six transactions can be made by check or with your check card at point of sale. Please remember, you will be charged a $10 fee for each transaction that exceeds these limits. Withdrawals at ATMs and teller windows from these accounts are unlimited.

Truth in Lending Act

A federal law requiring full disclosure of credit terms, using a standard format, intended to facilitate comparisons between lending terms and financial institutions.

URL

Uniform Resource Locator is the address of a file or Web page accessible on the Internet—for example: ).

Unaffiliated third parties

These are persons and organizations that aren't part of the Ally Financial group with whom we share personal information. These may include credit reporting agencies, insurance, and mortgage companies. For a more complete description of unaffiliated third parties, please see Ally's Privacy Notice.

Uncollected funds

Deposited checks that have not been paid by the bank on which they were drawn.

Unlimited check writing

Write as many checks as you like—that's free. Plus, you can always order more Ally standard checks from us for free.

Variable APY

Annual Percentage Yield lets you know how much interest you could earn in one year. Since it is variable, it can go up or down at any time based on market fluctuations.

Variable rate

A rate of growth that changes periodically. Like many institutions, our rates are adjusted based on the market and competition.  

When you need more than six per cycle

When you need more than six-per-cycle, try our Interest Checking Account. You'll get unlimited transactions, free bill pay and a free debit card. Again, we always look for ways to help you save. So we thought earning interest on your balance—big or small—is necessary for checking too. Plus, we found a way to do all of this without monthly fees.

Why only 6 transactions per statement cycle?

We'd give you more if we could. The limit is actually set by federal law for electronic and telephone transactions from all U.S. savings and money market accounts. Remember deposits are unlimited.