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Synchrony Bank2.30%$25k-60 Month CD
Learn MoreSponsored Note: Synchrony Bank was formerly GE Capital Retail Bank. FDIC Insured.
Accounts mentioned in this post. Rates as of August 19, 2014

Higher 5-Year CD Rate at GE Capital Retail Bank

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GE Capital Retail Bank (formerly MetLife Bank) has just recently increased its 5-year CD rate. It’s another bank that has joined the 2% club. Its Jumbo 5-year CD APY was increased from 1.95% to 2.00%. That requires a $100,000 minimum deposit. For a $25,000 minimum deposit, the bank is offering a 1.95% APY, and for a $2,000 minimum deposit, it’s offering a 1.80% APY. These rates are listed on the bank’s CD rates page as of 10/15/2013.

In August the bank came out with a special 1.15% APY 15-month CD. This is still available as of 10/15/2013. Minimum deposit is $2,000. This is an online only offer that requires that you enter the promo code OnlineOffer in the online application. Details of the promotion are listed in the bank’s promotions page.

The bank also offers IRA CDs, but the highest rates are currently 5 basis points lower than the CD rates with the same terms.

The bank’s CD early withdrawal penalties are fair. According to the bank’s disclosure:

For a CD with a term of twelve months or less, the penalty will be an amount equal to 90 days simple interest on the amount withdrawn at the current rate. For a CD with a term of more than twelve months, the penalty will be an amount equal to 180 days simple interest on the amount withdrawn at the current rate.

In January MetLife officially became GE Capital Retail Bank. As I mentioned in January, the products remained the same including the CDs, IRAs and money market accounts. In addition, they are still offering a free identity theft resolution service for deposit customers.

GE Capital Retail Bank’s main office is located in Draper, Utah. The bank has been around for awhile. It was established with FDIC insurance in 1988. However, it has not been in the retail deposit-taking business before the MetLife Bank acquisition. Its business focus has been on providing customized credit programs to retailers and consumers.

The bank has an overall health grade at DepositAccounts.com of an A+ with a Texas ratio of 5.85% (excellent) based on June 2013 data. Please refer to our financial overview of GE Capital Retail Bank for more details.

GE Capital vs. GE Capital Retail

One thing that’s confusing is that there are two GE Capital banks. The former MetLife Bank is GE Capital Retail Bank which I described above. GE Capital Bank is the other bank. It started offering an online savings account and CDs in May. These are two separate banks, but both are part of the General Electric Company.

GE Capital Bank also offers competitive rates, and unlike GE Capital Retail Bank, you don’t need large deposits to receive the best rates. Its most competitive rates as of 10/15/2013 include a 0.90% APY savings account, a 1.05% APY 1-year CD and a 1.10% APY 18-month CD. Its 5-year CD rate is a little lower than the best rate at GE Capital Retail Bank. It’s 1.90% APY. However, to qualify for 1.90% APY and the other CD rates, only a $500 minimum deposit is required.

How This CD Rate Compares

GE Capital Retail Bank now joins several other banks and credit unions with a 5-year APY of around 2%. Some of the other ones include Barclays, State Farm Bank, EverBank, Salem Five Direct, BBVA Compass and PenFed.

To search for nationwide CD rates and CD rates in your state, please refer to the best CD rates section of DepositAccounts.com.


  Tags: CD rates, IRA rates

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Comments
11 Comments.
Comment #1 by Hoody posted on
Hoody
hard to figure why NFCU hasn't joined that club by now.

1
Comment #2 by Anonymous posted on
Anonymous
Fidelity Brokerage is offering a cd from ge capital retail for 6 years at 2.35%.

7
Comment #3 by CapitalClimate (anonymous) posted on
CapitalClimate
If you're willing to commit to 10 years (with all of the caveats of brokered CD's as previously posted), they're offering 3.30% call-protected.  CIT Bank is also offering 3.35% call-protected and 3.40% non-protected for 10 years.

3
Comment #4 by Anonymous posted on
Anonymous
The 3.30 and 3.35 are certainly tempting, but I just can't convince myself to go for the ten years.   

5
Comment #5 by Anonymous posted on
Anonymous
#4 I thought the same thing when 10-year CDs were well over 5% and boy was I wrong! I bought 5-year CDs instead and when these renewed everything was below 2% no matter how long the term. Now all the experts are saying "we're in a rising rate environment". How long do you wait?  I saw a cartoon that showed two skeletons dressed in womens clothes sitting on a park bench with the caption "Waiting for a good man" and I thought the caption should also read "or 5% CDs".

6
Comment #6 by Anonymous posted on
Anonymous
lol on the park bench. I suppose one of the reasons I hesitate on the ten year brokered CD's, is the haunting memory of 6-month money market rates of 22%, or more, and 30-year UST bond rates in excess of 14%. Although that may not happen again, at least anytime soon, I do know that if/when rates rise, it can happen relatively quickly and I simply do not want to be caught on the long end of a 10 year CD. In the meantime, I have adjusted my standard of living to the 2% level and can only hope it doesn't get any worse.

6
Comment #7 by paoli2 posted on
paoli2
People we need to face reality.  Our government is disfuntional and the days of 5% CDs are behind us.  There is no way our country can handle 5% CDs and continue to function.  It is going to take a complete turn around of what is going on in Washington and getting the deficit down before our economy can handle higher interest rates.  We still have to survive more years of Obama and the "children" battling each other in the Senate and the House.  When we vote some mature, intelligent adults in, then, maybe we can hope for interest rates to slowly rise a bit.  As long as Obama is President, the War in the White House will continue and so will our low rates.

1
Comment #8 by need2know (anonymous) posted on
need2know
Since GE Capital Bank and GE Capital Retail Bank are within GE, for FDIC coverage purposes, do I need to limit my deposits in both banks to $250,000 (total $250,000), or can I have deposits in each bank up to $250,000 (total $500,000)?

1
Comment #9 by paoli2 posted on
paoli2
#8  GE Capital Bank has FDIC #33778 and GE Capital Retail Bank has FDIC #27314.  I would take it that they are seperately insured or they would be under the same FDIC number.  You can check this out for yourself you you want on "FDIC Bank Find".  I always list the FDIC certificate numbers for all my banks on my paperwork just to reassure myself each one is not connected to another in any way.  Hope this helps.

1
Comment #10 by Anonymous posted on
Anonymous
I went for the 15 month IRA CD and instead went for the 50 month at 2%. I was told that because it is an IRA I can take the money out at any time and still get the benefit of 2% over 1.15%, so I went for it. I was told this was only something that GE Capital does, where  you are allowed to take money out of your cd.

1
Comment #11 by lou posted on
lou
#10, you can take the money out without EWP? Is this for people over 59.5 or for any age?

1