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Another GE Internet Bank with Competitive Savings Account and CDs

POSTED ON BY

I just learned of a new internet bank that’s offering competitive rates on an online savings account and online CDs. The name is confusing. It’s GE Capital Bank, and it should not be confused with GE Capital Retail Bank. Thanks to the readers who mentioned this bank in the comments.

I called GE Capital Bank this morning, and I was told that they just started offering the online savings account and CDs in the last month. I also asked how they are related to GE Capital Retail Bank. I was told they are two separate banks that are both part of the General Electric Company.

In January of this year GE Capital Retail Bank finalized the acquisition of MetLife Bank’s online deposits business. So from the consumer internet side, GE Capital Retail Bank is essentially the old MetLife Bank. Before the acquisition of MetLife Bank, GE Capital Retail Bank had not been in the retail deposit-taking business. It was established with FDIC insurance in 1988 (FDIC Certificate # 27314), and it has been focused on providing customized credit programs to retailers and consumers. It’s primary federal regulator is the OCC.

GE Capital Bank was established with FDIC insurance in 1993 (FDIC Certificate # 33778), and its primary federal regulator is the FDIC. In 2012 the bank changed its name from GE Capital Financial Inc. to GE Capital Bank. According to GE Capital Bank’s About page, they are a “Utah state-chartered industrial bank owned by General Electric Capital Corporation” and they “act as a multi-product commercial finance bank, and use deposit accounts to fund [their] commercial loans and leases.”

GE Capital Bank must have determined that internet retail deposits would be useful for their funding needs. It seems strange that GE Capital would operate two separate internet banks that compete against each other. You have to wonder how long this will continue before there is a merger. When Capital One acquired ING DIRECT, it didn’t take long for Capital One to consolidate its old internet bank into the new ING DIRECT division (now called Capital One 360).

You may remember a GE internet bank called GE Money Savings. I had posted on this bank and its internet savings account in 2006. The rates didn’t hold up, and I stopped reporting on it after 2006. I don’t know what became of this bank and how it might have evolved into the above banks.

GE Capital Bank’s Online Savings Account Review

The most noteworthy aspect of GE Capital Bank is its online savings account which has a competitive rate of 0.90% APY for all balances (from $1 to $1 million) as of 6/21/13. There is no monthly service fee. It’s a variable rate with no guarantee about future rates.

They do have a decent ACH external transfer service. Here’s a summary of its features:

  • micro deposits (also called trial deposits) used in the link setup process (per CSR)
  • outgoing transfer limit of $125,000 per online transaction (per FAQ)
  • Allows up to 4 linked accounts (per CSR)

Refer to the bank’s website for more savings account details.

GE Capital Bank’s Online CDs

The online CD rates are competitive, but currently there aren’t any exceptional rates. The terms range from 6 months to 6 years. Minimum deposit is $500, maximum deposit is $1 million.

The early withdrawal penalty is 90 days of interest on the amount withdrawn for terms under one year. The penalty is 270 days of interest for terms from 12 to 60 months, and 365 days of interest for terms over 60 months.

You can choose to have interest added back to your CD or paid out monthly. You can also choose to withdraw interest penalty-free that has been credited to the CD at any time.

Like Ally Bank, they offer a 10-day rate guarantee which guarantees that you get the highest APY in the 10 days from your CD application as long as they receive the CD deposit within those 10 days.

As of 6/21/2013, the most competitive rates include a 1.00% APY 18-month CD, 1.25% APY 3-year CD and a 1.60% APY 5-year CD.

Financial Overview

GE Capital Bank is sizable with $14.7 billion in assets. It has an overall health score at DepositAccounts.com of 5 stars (out of 5) with a Texas ratio of 1.88% (excellent) based on March 2013 data. Please refer to our financial overview of GE Capital Bank for more details. The bank has been a FDIC member since 1993 (FDIC Certificate # 33778).

  Tags: GE Capital Bank, savings account, CD rates

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Comments
7 comments.
Comment #1 by Anonymous posted on
Anonymous
GE MONEY is no longer in business since 2008! Alert: Stay away from GE BANK. They are a bunch of scams. This also includes credit cards from Home Depot, lowes, sears, old navy, and etc.

4
Comment #2 by futuresynthpop posted on
futuresynthpop
I just open up an account here.  So far very smooth and easy.  I will keep you posted about the ACH process times, once I do a few test over the next couple weeks. I've been happy with AMEX Bank (just went live on a new interface), CIT Bank, Ally Bank & Discover Bank.  Thanks to this site!  I'm not a big fan of any bank as majority brought down the economy and housing back in 2008.  I was one of the few investors that was putting down 30% on my loans (since 2001) and then prices skyrocket never realizing that everyone else was putting zero down (which caused home prices to sore).  

6
Comment #3 by Anonymous posted on
Anonymous
Opened account with G E CAPITAL ALL WENT VERY WELL until i was informed that no  proof of deposit will be sent out  . i cant deposit money without paper work . rep stated that is how they do business . i cant transfer funds without any PAPER proof of deposit . Can you comment on how to handle this . i feel a e/m is not sufficent proof . HELP!!!!!!!!!!

 

2
Comment #4 by KenBDG posted on
KenBDG
It is common that internet banks lack paper documentation.

Here's one of GE Capital Bank's FAQs regarding a CD:

You will not receive a certificate for your CD. However, we will send you a confirmation letter ten days after we have received your opening deposit. This confirmation is your official record, so please save it for your reference.

As for the  savings account, you should receive monthly statements that will document deposits. Online banking allows you to monitor deposits and withdrawals on a daily basis.

2
Comment #5 by Never_again_GE (anonymous) posted on
Never_again_GE
What a waste of time. Do not try this excuse of a savings account service from GE for a few percentage points. Their internet site is pathetic, dull and cryptic. They even have the gall to reject application without any proper explanation! Just shows what kind of awful service you can expect from them once your account is up and running!! For me the experience was so bad, it left a bad impression of GE brand as a whole. So, I would not even buy a GE appliance in the furture.

3
Comment #6 by Anonymous posted on
Anonymous
GE Capital (Industrial) Bank has been advertising in the local papers recently about its 0.9% rate.  GE Capital (Retail) Bank, formerly MetLife Bank, used to advertise in the local paper, but have not seen their ads for quite a while (0.85% rate).  There trying to attract more business from the local area and stressing the link of the bank to the company.

1
Comment #7 by Anonymous posted on
Anonymous
I was also just rejected without reason by GE Capital (as seems to be happening to a lot of applicants like me, with excellent credit, large assets, and a history of carrying high/stable balances in both B&M and internet savings - see the recent review & comments at http://www.consumerismcommentary.com/ge-capital-bank-online-savings-account.  I agree with the others here who view GE's web experience as poorly designed and amateurish (they have - for example - selected a default text font that is studiously avoided by most web-designers, and even deprecated by Microsoft as difficult to read - and it's their font!).  The look of the site gave me pause, but I was drawn in by the high advertized interest and a whole slew of print and internet advertizing, and internet "savings account reviews" - all of which seem to focus only on information provided by the banks, and take no account of customer-satisfaction levels.  After seeing the weird Namibian-royal-family style rejection form, I got curious enough to start trolling deeper for customer-service issues with this bank, as well as its corporate history.  Like others, I think I dodged a bullet by being rejected.  (The fact that this company has had any ties at all with a greedy, slimy outfit like MetLife is reason enough to avoid them like the plague.)  I think this whole 0.09% interest rate thing is just red-herring...  GE Capital smells funny, though it may take a few years for people to figure out exactly what they're up to. 

1