Ally Bank itself gives 2.1% interest rate on an online savings account, and 2.5% on annual CDs. Ally Financial Stocks pay out 68 cents per year on a $31.9 stock. Which is also 2.1%! What investing in the stock gives you, on the other hand, to increase your potential as interest rates start to rise. This isn’t a get rich quick stock, but with a 8.92 forward P/E ratio it’s a pretty good bargain that pays dividends. With Ally’s amazing interest rates for consumers, it’s only a matter of time before others start abandoning the brick and mortar banks which pay a measly 0.1% to 0.4% interest rate on their savings accounts. I bought Ally Financial and hold it as a nice dividend earning investment at $31.90 per share.
Ally Financial is divided into 5 areas:
- Auto Finance
- Home Loans
- Invest – Self directed and managed investment products
- Corporate Finance