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Another 4% Savings at GMAC Bank


Seems like just yesterday when everyone was shocked when EmigrantDirect's savings account rate was raised to 4%. Now it seems like almost every bank has reached 4% (except of course ING Direct). GMAC Bank is the latest online bank to raise its Money Market Savings account to 4.00% (from 3.75%). HSBC Bank made it to 4% yesterday.

In addition to the interest rate hike of GMAC's Money Market Savings account, GMAC also raised interest rates on its CDs. The new rates for the 6-month and 12-month CDs are 4.35% and 4.70% APY. GMAC also has reached the 5% rate on its certificates of deposit. The 5-year CD is now 5.00% APY. However, with only a 0.30% premium over the 1-year CD, this doesn't make much sense in a rising interest rate environment.

The advantage of GMAC Bank's Money Market Savings Account over savings accounts at EmigrantDirect and ING Direct is that it offers checks. It also has a check card that can be used as an ATM card or a debit card. There's no ATM transaction fees from GMAC Bank and they'll refund up to 4 non-GMAC Bank ATM charges per month.

The only disadvantage of GMAC Bank that I see is their $500 minimum balance requirement. You can open the money market account with only $50, but you'll be charged a monthly fee if the average balance is not over $500. The CDs also have a $500 minimumd deposit requirement. In my opinion, this is a reasonable amount.

I've heard some people voice concerns about GMAC Bank due to its ties to GM. I don't think this is a risk. GMAC Bank seems to be in strong financial shape. It currently has a 4 out of 5 star safe and sound rating from Bankrate.com. Strangely, Bankrate.com shows GMAC with 5 stars in the rate tables. Perhaps GMAC's rating did go down a bit.
pfadvice (anonymous)   |     |   Comment #1
Can I just say I LOVE THIS BANK - not that I do any business there, but I'm seriously thinking about it when I return to the states because they were nice enough to use our saving tips in their "Saving Tip" section which has been sending my main site consistent traffic. Woohoo!!!
Banking Guy
Banking Guy (anonymous)   |     |   Comment #2
Yea, I noticed those links at GMAC. I thought you had arranged some cross advertising deal with them.
pfadvice.com (anonymous)   |     |   Comment #3
nope...came as a total surprise...looking in the logs one day and saw all these people coming from there. Now if more banks would do that I'd be REALY happy ;)