Dedicated to Deposits: Deals, Data, and Discussion

Higher 5- and 4-Year CD Rates at GE Capital Retail Bank

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GE Capital Retail Bank (formerly MetLife Bank) had another rate increase on its 4-year and 5-year CD and IRA CD rates. Its Jumbo 5-year CD APY was increased from 2.05% to 2.15%, and its Jumbo 4-year CD APY was increased from 1.70% to 1.80%. These require a $100,000 minimum deposit. The rates are 15 basis points lower for a $25,000 minimum deposit. These rates are listed on the bank’s CD rates page as of 2/11/2014.

Last August the bank came out with a special 1.15% APY 15-month CD. This is still available as of 2/11/2014. Minimum deposit is $2,000. This is an online only offer that requires that you enter the promo code BON12 in the online application. Details of the promotion are listed in the bank’s promotions page.

DETAILSINSTITUTIONAPYMINMAXPRODUCT
Synchrony Bank2.30%$25k-60 Month CD
Learn MoreSponsored Note: Synchrony Bank was formerly GE Capital Retail Bank. FDIC Insured.
Synchrony Bank1.75%$25k-48 Month CD
Synchrony Bank1.20%$2k-15 Month CD Special - BON12
Learn MoreSponsored Note: Synchrony Bank was formerly GE Capital Retail Bank. FDIC Insured.
Accounts mentioned in this post. Rates as of August 22, 2014

Early Withdrawals for CDs and IRA CDs

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

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CD with a term of twelve months or less, the penalty will be an amount equal to 90 days simple interest on the amount withdrawn at the current rate.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with a term of more than twelve months, the penalty will be an amount equal to 180 days simple interest on the amount withdrawn at the current rate.

Another important thing to note in this account agreement is the early withdrawal penalties for IRAs. According to the account agreement (I highlighted the important part):

An early withdrawal, without penalty, is allowed only in the event of (a) ….. (b) ….. or (c ) when the account is an IRA and the owner dies, becomes permanently disabled or reaches the age of 59½; or (d) within the grace period.

I called the bank to confirm this and to see if they have any restrictions on this. According to an IRA specialist, they will allow an IRA customer who’s over the 59 ½ to close an IRA CD without penalty and open a new IRA CD with a higher rate.

Other Things to Consider

In my conversation with the IRA specialist, I was told that CDs can be funded with an ACH transfer, and the maximum amount is $500,000.

They do allow POD account beneficiaries for both regular and IRA accounts. I was told their standard form allows for a maximum of four beneficiaries, and the beneficiaries can be both persons and organizations (like charities). You can also open an account in the name of a trust.

New Competitive Savings Account

GE Capital Retail Bank recently made its savings account competitive. It’s called Optimizer+plus High Yield Savings, and it has a rate of 0.90% for all balances (as of 2/11/2014). One potential gotcha that I see is a $5 monthly fee if the balance falls below $50. Another downside is a small ACH transfer limit. I was told by the bank CSR that the maximum daily transfer limit is $50,000.

Bank Overview

In January 2013 MetLife officially became GE Capital Retail Bank. As I mentioned in 2013, 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 7.27% (excellent) based on September 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 2013. These are two separate banks, but both are part of the General Electric Company. They have separate FDIC certificate numbers (27314 for GE Capital Retail bank and 33778 for GE Capital Bank), and deposits in these two banks should be treated separately from a FDIC deposit insurance point of view.

GE Capital Bank also offers competitive rates, and unlike GE Capital Retail Bank, you don’t need large deposits to receive the best rates. These two banks appear to be competing with each other which seems strange since they’re under the same parent company. Nevertheless, this competition is good for us savers. I hope they don’t consolidate these two banks.

How These CD Rates Compare

For nationally available 5-year CDs without restrictions, CIT Bank has the highest rate with a 2.20% APY.

For nationally available 4-year CDs, NASA Federal Credit Union has a special 49-month CD with a 2.00% APY. However, GE Capital Retail Bank’s 1.80% APY is the highest rate for an internet bank. CIT Bank is just behind with a 1.75% APY.

These rates are accurate as of 2/11/2014.

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
17 Comments.
Comment #1 by Donkey (anonymous) posted on
Donkey
Good to see more banks solidifying 5 yr CD's at more than 2%.  CIT bank also raised their 5 yr CD rates today by 20 basis points - now paying 2.20%, and their jumbo 5 yr was increased by 10 basis points to 2.30%.

3
Comment #2 by Donkey (anonymous) posted on
Donkey
Clarification: the above increase by CIT is only for funds held in an IRA account.

2
Comment #3 by Anonymous posted on
Anonymous
From now on, most CDs in 3-7 years will be around 2-3%. The national dent is so huge, that any increase above 3% will bring downfall of this nation. After paying the interest on such debt, there will be no money left for the entitlements and other government programs.
The down spiral will start and nobody can stop it. Printing money at that point will mean total destruction of everything we own and demise of the dollar.

21
Comment #4 by Anonymous posted on
Anonymous
Agree, the congress is preparing to add another 2,1 trillions next week. The democrats want unlimited ceiling, well, we are almost there and there is no point of return to being responsible with the money. November is our last chance to stop the insanity of the politicians.

20
Comment #5 by paoli2 posted on
paoli2
#4  I totally agree with you.  Here's hoping Americans will wake up and do a lot of house cleaning in November!  "Wishing WON't make it so!"

7
Comment #6 by Anonymous posted on
Anonymous
It isn't going to happen. 

1
Comment #7 by Anonymous posted on
Anonymous
#6, you are a democrat and are part of the problem in this country. You will sober one of these days, but it will be to late for you too.

17
Comment #8 by Anonymous posted on
Anonymous
And #7, you appear to be in denial.  Wake up and face reality

By the way, from your comment, I know you know absolutely nothing about me.  I am an Independent.  I make my own decisions.  I vote for the who ever I think is most qualified, not which political party he/she belongs to. Quit thinking what's best for the "Party" and pay attention to what's best for our "Country".   Although it is way too late for that.  It's "Game Over", "Lights Out"!

3
Comment #9 by Anonymous posted on
Anonymous
#8, you just admitted that you are all over the board, without decisiveness and clear vision and are part of the economic problem by voting in the democrats.
Just explain to us, was Obama most qualified as per your assessment as you said it above?

15
Comment #10 by Anonymous posted on
Anonymous
#8, being independent does not mean anything, if you vote for a democrat, you are a democrat, by association. And your choices says a lot about you. Unless you see the problem this nation faces from a real independent point of view, you will repeat the same mistake again. People who vote just to prove a point, always vote for the wrong person. Obama is a fraud, yet you voted for him, case in point.

14
Comment #11 by Nobama (anonymous) posted on
Nobama
#8 is a LIV (Low Information Voter). Or to keep in line with what he professes to be, a LIIV (Low Information Independent Voter).

5
Comment #12 by Anonymous posted on
Anonymous
Our two-party system makes it difficult for someone (me, at least) to identify with the one that I align with fiscally while ignoring social positions that I find repugnant. The Left is smart enough to embrace people like me, rather than labeling us. We "LIIV's" and "RINO's" have more power than you care to believe.

1
Comment #13 by Anonymous posted on
Anonymous
#12, you are a democrat pretending to be independent.
You are a part of the problem in this country. You need to be persuade by someone to vote differently. Now you know why people are ignoring you or criticizing you, you are to weak to make your own direction and stick to it.

9
Comment #14 by Anonymous posted on
Anonymous
Yes, #13, you have me figured out. My votes for Bush and Romney didn't fool you one bit.

1
Comment #15 by Anonymous posted on
Anonymous
#14, make up your mind, either you are conservative or liberal, there is nothing in between. Be decisive and pick a side, it is not complicated. Voting for Bush, Romney or other candidates for president is not the make or break decision, what counts is what kinds of representative you sent to congress. You may vote for republican president, but if you send democrats in congress, you just defeated the purpose of splitting the votes and neutralized your vote by sending opposite candidates and created a deadlock congress that nothing can be passed.

7
Comment #16 by Anonymous posted on
Anonymous
The democrats are detroying this country and most of you are still defending them.
Something is wrong here, could it be that you want this country to fail by blindly voting in the democrats in congress or could it be that you are idiots and have no idea who is doing the wrongs in this country. Either way, you are one sided biased persons that are defending the destroyers of this country.

6
Comment #17 by Anonymous posted on
Anonymous
I agree with you, as long as you are talking about fiscal policy and financial issues. But it is not the Dems who are trying to take away women's rights, privatize SS, deny equal rights to same-**** couples. Many in the United States care about things other than money, and vote accordingly. Some of us might even have a little bit of money.

2