Ally Bank Pulls Out the Plastic with Cash Rewards Credit Card
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.
The deal to buy TradeKing would allow the online-only bank to offer wealth-building products to its roughly 1.1 million depositors. The additional low-cost deposits could also help fund loan growth as it looks to expand beyond auto lending and into mortgages and credit cards.April 6
The Detroit company is plowing ahead with its growth strategy at a time when some shareholders are agitating over its sagging share price.February 11
Ally Financial in Detroit reached a truce with Lion Point Capital, as it agreed to appoint an independent director in consultation with the activist investor.March 21
Ally is also expanding into wealth management by acquiring the online brokerage TradeKing for $275 million. That deal was announced in April.