Ally Demand Notes (GMAC)

Q. What can you tell me about Ally Financial Demand Notes?

A. Ally Financial Demand Notes (which were previously named GMAC Demand Notes) are an investment product in which you are basically investing to fund the debt of Ally Financial as it makes its various loans. Demand Notes can only be purchased by employees or immediate family of the Ally Financial group of companies. Ally Demand Notes generally pay a higher rate than other short term investments, but are not FDIC-insured and are thus seen as more risky by many people than products such as CDs or money market funds — but that of course is for you to decide.

See below for information on investing in Ally Financial Demand Notes as well as a few opinions about the wisdom of such an investment:

1. Ally Financial Demand Notes – Overview from the official Ally site on this financial product available only to Ally Financial employees and their immediate families, as well as auto dealers that have an Ally financing relationship. Get a description of exactly what Demand Notes are, then get a prospectus, information on risk and safety (they are not FDIC insured), fees (there are none), how to invest, more. (

2. Frequently Asked Questions About Demand Notes – If you want a one-page overview that answers most of your questions about Ally Demand Notes, go here. (

3. Ally Financial Demand Notes Prospectus – While documents such as this are always boring, you should take the time to read the Ally Financial Demand Notes prospectus before investing — it tells you what you’re buying into, and goes into great detail about risk factors as well as how to invest if you’ve decided Demand Notes are for you. (

4. Ally Financial Demand Notes Login – If you already own Ally Demand Notes, you can go here to log in to your account. (

5. Ally / GMAC Demand Note Rate History – Go here to see historical interest rates for the last few years on Ally / GMAC Demand Notes. (

6. Ally Demand Notes – “Is It Safe?” – December 2011 discussion forum conversation about whether the higher yield of Ally Demand Notes is worth the higher risk, since Demand Notes are not FDIC insured. Opinions vary, and some participants offer suggestions of other investments with decent yields and less risk. (