Ally Financial has introduced its first credit card, as the online bank continues to add products to complement its staple car loans and online bank.
The $111 billion-asset Detroit company's CashBack Visa credit card pays users a cash reward of 2% on purchases of fuel or groceries, and 1% on other purchases, according to a Thursday news release. Users get an extra 10% if the reward is deposited into an Ally checking, savings or money market account. Toronto-Dominion Bank's TD Bank will issue the credit card.
Ally has indicated in the recent past that it planned to offer credit cards. Ally is trying to stimulate growth by adding products to diversify beyond its online bank, which primarily is a deposit-gathering mechanism, and its legacy auto-loan franchise, which dates to its history as General Motors' financing arm.
Ally is also expanding into wealth management by acquiring the online brokerage TradeKing for $275 million. That deal was announced in April.