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Ally Bank — We Hide Nothing?

Have you ever heard of Ally Bank? Probably not, but it is being advertised very heavily these days.

What is your bank trying to sneak by you?, they ask. Fine print? Asterisks? Not Ally. They promise “no sneaky disclaimers ever.”

But who is Ally Bank? Clicking “the Ally Story” link on their website, reveals who they really are:

*MOUSE PRINT:

“We are Ally Bank. Built on the foundation of GMAC Financial Services”

When asked to explain that somewhat flowery language, Ally’s customer service department responded, in part:

Ally Bank was formally known as GMAC Bank. The launch of our new name was on 5/15/2009.

Ally Bank is a separate company from General Motors (GM). Ally Bank is a part of GMAC Financial Services, which became an independent company in late 2006. GM holds an equity stake in GMAC, but is reducing its ownership equity due to the federal requirements of GMAC becoming a Bank Holding Company. GMAC provides financing to automotive dealers and customers, but they do not directly finance GM. The companies have separate banking relationships.

So this is really GMAC Bank with a new name. So why did they change their name away from GMAC Bank?

” — We do not own gmac.com, and we do not own the “GMAC” name as it is leased from GM.

— We decided to invest in building a new brand, since we are going to increase our marketing of the Bank to raise retail deposits.

— Our research showed that GMAC brand recognition was largely limited to existing and past customers. We wanted a bank brand name that would have potential for eventual global growth.

— Perhaps most importantly, to launch a unique online bank with a unique customer offering, we felt that it was important to create a truly unique brand – one with a name that means something to the customer and speaks to our business philosophy of working with customers to make money, not against them.” –Manager, Global Marketing Communications

Or, just maybe people were reluctant to deposit money with what was better known as an auto finance company with the name “General Motors” in its title?

In any event, they have savings products that pay higher rates of interest than almost anybody. Their savings account currently pays 2.05% (down from 2.25% just last week), and they have a money market checking account paying 1.90% (limit six checks/withdrawals a month). The latter account also comes with an ATM card, and they will reimburse other banks’ ATM fees for the first four transactions a month, up to $6 a month. And, of course, individual accounts are insured by the FDIC for up to $250,000.

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Travelocity Price Guarantee: Don’t Expect a Refund

For nearly a year, Orbitz has been advertising “Orbitz Price Assurance” that guarantees airline ticket purchasers an automatic refund if someone else books the exact same flights on Orbitz as you did, but for less money.

Not to be outdone, Travelocity has just introduced “Travelocity PriceGuardian” which applies to airfare and hotel packages, not just to airfare as the Orbitz plan originally did. [Since Travelocity added air/hotel packages, Orbitz added hotels to its guarantee.] The Travelocity plan promises to refund the difference if another Travelocity customer books the same package at a lower price.

travelocityguarantee

On the face of it, you might say what a good idea. But stop and think about it (and read the terms and conditions).

*MOUSE PRINT:

If another Travelocity.com customer books the same Flight+Hotel Vacation Package that you booked, meaning their Vacation Package contains the same flight and hotel combination (the same dates/times of travel, on the same airline/s, with the same flight numbers, for the same passenger type, itinerary, cabin, and subject to the same fare refundability, or other restrictions, and the same hotel and room type), and the price they pay is at least $10 lower than the price you booked, then Travelocity will refund the difference to you, up to a maximum of $500 per package.

What are the odds that ANYONE will book the exact same flights as you in both directions (same dates, same class) using Travelocity, and stay at the exact same hotel as you in the same priced room for the same number of nights? Slim and none.

Of course, the benefit is free, and should someone else meet these requirements and pay less (but not by using a coupon or other special offer), then you will automatically get a refund to your credit card.

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The Secret Date When Airfares Skyrocket

With many people cutting back on vacation plans this year due to the economy, you should know that there is an almost magical date before which you can save a bundle, and after which you could get soaked on airfares.

Here is part of an advertisement for Alitalia (and hats off to them for being possibly the only airline to advertise complete fares with all taxes and airport fees included).  Note the dramatic jump in prices:

alitalia2

Summer rates are nearly $500 higher than spring airfares. What is the magical date when fares turn from rockbottom to ridiculous? The valuable answer is buried in the mouse print:

*MOUSE PRINT:

alitalia3

May 25 this year for some airlines is the last day to fly before higher summer rates begin, particularly for international flights.

On other airlines, for example, fares between NYC and Madrid are nearly $400 more expensive on May 26 than they are on May 25:

alitaliaco1

Of course, there are dates when the fare comes down again, but generally not to the level they were in the spring.

If you can’t plan your trip to end by May 25, you might be able to still save some money by starting the trip before May 26 and ending it in June.  A friend who was flying Continental from New York to Madrid, and then returning from London could have lowered the price of his June trip from $715 to $490 merely by starting it on May 25 — two weeks earlier than planned.

How much could you save by being flexible in your travel dates? Use Kayak.com’s new fare calendar to see at a glance what the lowest airfare is between point A and point B on any day in any month.