[Note – see Ken Tumin’s initial investigative review of GE Capital Bank and its competitive savings accounts and CDs here and here.]
GE Capital Bank is an Internet banking division of GE Financial Services. The bank was formed in 1993 and has since then offered deposit accounts in order to fund its commercial leasing and lending business.
GE Capital Bank offers some competitive rates on its deposit account offerings. An online savings account is available and comes with one of the top interest rates available nationwide. It currently requires no minimum deposit to open, has no transaction fees, and has a maximum deposit amount of 1 million dollars as of September 2013. Certificates of Deposit (CDs) are offered in term lengths ranging from 6 months to 6 years and currently come with a 10-day rate guarantee that ensures the highest APY available within first ten days after opening a CD. CD holders may transfer any interest earned on the CD into a savings account on a monthly basis, or they may have the interest added onto the principal in the CD. The maximum deposit amount for CDs is $1 million.
Since it offers and manages its deposit account products solely online, GE Capital Bank online banking is an easy way for depositors to manage their accounts. The secure digital platform makes it easy to check your account balance and pending transactions, as well as transfer funds between linked bank accounts.
GE Capital Bank was originally established as Everest National Financial in 1993, before finally changing to its current name in 2012. The bank is headquartered in Salt Lake City, Utah, and manages tens of billions of dollars in deposits via its online banking system. The bank is generally able to offer higher interest rates on its products because it does not have the overhead cost associated with operating physical branches. GE Capital Bank is one of the financial services offered by the General Electric Corporation (GE), which is a publicly traded company that offers solutions in energy, health and home, transportation, and finance.
I have a really good credit score and have accounts at several banks. So when I take the time to apply online and get asked to call a customer service rep...I figure it's like the other banks and they just need clarification or want to talk to an actual person to verify information. When I called they basically said they don't have access to the online application and made me waste another hour online giving them everything again so the rep could open my account for me over the phone. Then they said to call back 48 hours later because the system had 2 applications for me and the system doesn't allow that and it requires manual review (it wasn't my choice to apply a 2nd time)...but whatever.
I call back 48 hours later and they say they can't open an account for me at this time because "something" couldn't be validated. They don't tell me what. I ask them what I can fax over or mail as proof of whatever they need but they said they can't tell me what couldn't be validated and that I would receive a letter telling me in very general terms again that an account couldn't be opened for me.
What a crappy bank! I have accounts at many other banks (which I do leave open to avoid messing up my credit score). If they simply said they checked my credit and noticed that I have too many accounts or something I'd say fine...but instead they said they couldn't validate some of my information and couldn't tell me what or how to correct it. They didn't even let me speak to the department that handles the decision making process - stating they wouldn't be able to tell me the reason as well. What a crappy bank.
If you can get an account opened with them - good luck...but just based on the service I received I can tell you this is not a service friendly or transparent bank.
UPDATE - this is an email I received - how informative!!! :)
Thank you for your recent application to open a GE Capital Bank CD accounts. We regret to inform you that, after reviewing your application, we must decline it and will not be able to open your account. We apologize for any inconvenience this causes, and appreciate you considering us for your savings needs. Sincerely, GE Capital Bank Customer Service
Experienced No problems with openning a new savings account (not CD) at GE Capital. Procedure for a joint account with Online banking option is a bit long,repetive and tenious,but is also simple and straight forward. Communications from bank are responsive and setting up an external source went smoothly and were completed in a normal time frame. Website itself seems easy to navigate with simple menus. Seems to be a well organized site,but my experiences have been limited to the savings account area only.
I opened up a Savings account with $10k and everything was easy and straight forward. I established an ACH link with my bank account and then made a few transfers into the savings account. I tried opening a 12 month CD and funded it with money from the savings account. The account was opened but for some reason didn't get funded and it told me to call customer service. I called and without any hold time got a helpful agent who was able to move the money over without issue.
Everything was quick and painless, very positive experience. Now i just have to watch the renewal dates/grace periods for the CD.
I identify with those who reported problems setting up accounts. I also ran into some of the difficulties in registering and setting up a new account. In all, it looks like it will have taken me almost two weeks (12 days) to establish my account and get it funded! Sort of ridiculous in this day and age of electronic transactions.
Like many people, I was attracted by the relatively high (0.90%) interest rate paid with no minimum balance required. And since this rate would be hard to beat, I've stuck with getting my account opened.
First, I tried opening the account online but about 3/4 of the way through the process, I was asked to verify my identity with four questions related to my credit report. I am certain I answered them correctly yet the screen wouldn't either allow me to advance in the process (OR) tell me I answered incorrectly! It just refreshed to the same screen every time I answered the questions and selected the "Next" button. I called their customer service line and went to the technical rep option. He told me they had identified a web-interface issue related to that problem and I would have to call back in a few days to resolve it. (It was over Thanksgiving holiday weekend.) He gave me an application ID number to reference. I didn't call on Monday and on Tuesday, I got an email saying after reviewing my application they would have to decline it!! I tried going to the website and opening my application ID number but it did not recognize it. I called customer service and the rep told me that yes, my application was declined but he did not know the reason. He told me I could go back through the website to reapply and it should work! The phone tree had sounded like they could take my application over the phone so I asked him if he could do that. He answered yes. I'm sure they like to avoid having people do that (too time-consuming) but I didn't want to get the same run-around from their website. We went through the application and when it got to the verification questions, they were the same questions I had been asked before. I answered the same way but this time it was accepted. He gave me my account number so that I could access my account online.
I didn't have any problem logging in, setting up user names or passwords, or entering the "linked" bank account information so that I could transfer money.
The next step was to wait on them to "verify" my bank accounts by making two small deposits into each. I would need to verify each account by entering the correct amount of each deposit. I waited and waited for three days and nothing happened. I emailed customer service because I knew I had been warned in the fine print that if I didn't fund the account promptly that it could be closed. I was assured that they would not close the account while I was waiting to verify my bank. They said they make the deposits the next business day but it can take "up to 5 business days" for MY bank to enter those deposits, depending on their procedures. In reality, it probably took AT LEAST five days for any of my banks to post the deposits! However, they finally did appear. "Verifying" them with GE Capital Bank was simple and worked smoothly.
Next, I went to FUND my new account. I entered a one-time transfer. I was dismayed when I saw that the "effective date" would be yet ANOTHER two days away!! That should happen tomorrow.
I will try to come back and update my review later to let you know how this all turned out. I'm hoping that my initial "growing pains" getting the account open and funded won't be indicative of my overall experience.
I do trust my deposit to be safe and that it will grow at the rate I was promised. However, after this experience (regardless of how smoothly it goes from here), I imagine I will give myself a LARGE pad of time in withdrawing funds to make sure they have time to complete 'processing'.
GE Capital Bank has got to be the worst online bank. I tried to open an account only to be given an application ID and told to call in 48 hrs. I call after 48 hours and am told my application was not approved because "some piece of information" could not be validated. They won't even tell me what. If they would have told
me what information they needed I am certain that I could have provided them anything they needed. I have an 840 credit score, have 2 online accounts and have never been turned down for any loan, credit card, etc. For crying out loud, I am trying to give them money. Their customer service reps were useless. They would not/could not provide any useful information or offer a solution to allow me to provide whatever "could not be validated".
Would not deal with this bank after my experience. I would recommend going elsewhere for online banking needs.
The Texas Ratio is an indicator of how much funds a bank has available compared to the total value of loans considered at risk. As of September 30, 2013 GE Capital Bank had $31.59 million in non-current loans and owned real-estate with $2.87 billion in equity and loan loss allowances on hand to cover it. This gives GE Capital Bank a Texas Ratio of 1.10% which is excellent. Any bank with a Texas Ratio near or greater than 100% is considered at risk.
The Texas Ratio for GE Capital Bank decreased dramatically from 3.62% as of September 30, 2012 to 1.10% as of September 30, 2013, resulting in a positive change of 69.60%.This indicates that the balance sheet and financial strength for GE Capital Bank has improved dramatically in recent periods.
In the past year, GE Capital Bank has increased its total deposits by $1.26 billion, resulting in 10.62% growth for the year. A strong track record of growth is an indicator of consumer confidence and the bank's ability to strengthen its balance sheet. The growth GE Capital Bank has shown is excellent.
Both FDIC and NCUA consider capitalization levels of banks and credit unions to be of high importance. Higher capitalization allows for a greater buffer when cover loans that may fail in the future. GE Capital Bank has $16.78 billion in assets with $2.87 billion in equity, resulting in a capitalization level of 17.10%, which is excellent.
|FDIC Certificate #||33778|
|Assets and Liabilities|
|Equity Capital||$2.80 billion|
|Loan Loss Allowance||$65.24 million|
|Unbacked Noncurrent Loans||$31.59 million|
|Real Estate Owned||$0|
|Historic Data - September 2012|
|Equity Capital||$2.43 billion|
|Loan Loss Allowance||$58.37 million|
|Unbacked Noncurrent Loans||$31.59 million|
|Real Estate Owned||$0|
|Profit Margin - Quarterly|
|Net Interest Margin||3.84%|
|Return on Assets||1.48%|
|Return on Equity||8.41%|
|Interest Income||$564.86 million|
Always verify rates and promotions with the bank or credit union. We are not GE Capital Bank, we are a rate comparison website and can not provide official rates or promotions.
|2.05%||$500||-||6 Year CD|
|2.01%||$500||-||5 Year CD|
|1.51%||$500||-||4 Year CD|
|1.30%||$500||-||3 Year CD|
|1.15%||$500||-||24 Month CD|
|1.15%||$500||-||30 Month CD|
|1.05%||$500||-||18 Month CD|
|1.00%||$500||-||12 Month CD|
|0.70%||$500||-||6 Month CD|
|0.70%||$500||-||9 Month CD|
|GE Capital Bank Locations|
|Ge Capital Bank||6510 Millrock Drive, Suite #200||Salt Lake City, UT 84121|