Early Withdrawal Penalty: What You Pay for a CD, 401(k) and More
Best Banks for Small Businesses
What Are the Different Types of Annuities?
What Is a Certified Check?Rates Drop at GMAC Bank - Have Rates Peaked?
Post a Comment
POSTED
ON BY Ken Tumin
GMAC Bank lowered the rate on is Money Market Savings account today from 5.10% to 5.00% APY. In addition, there were large drops in CD rates. The largest drop was the 6-month term which fell 0.50% to 5.00% APY. The 3-month CD rate also had a large drop from 5.25% to 5.00% APY. GMAC started to drop long-term CD rates last week. Below shows how the CD rates have changed today:
For more information on opening a GMAC Bank CD, please refer to this post.
One of the experts quoted in this Bankrate.com rate trend article stated that based on history the inverted yield curve won't last, and eventually, short rates will either drop or longer rates will rise. Longer rates overall are trending down at many banks. Today's rate drop at GMAC seems to be a sign that short rates may be next. If the Fed decides to pause next week, perhaps we'll see other banks following GMAC and start lowering short term rates.
GMAC Bank Certificate of Deposit Rates:
Term Old APY New APY Change
3 months 5.25% 5.00% -0.25
6 months 5.50% 5.00% -0.50
9 months 5.50% 5.45% -0.05
12 months 5.50% 5.50%
18 months 5.50% 5.45% -0.05
2 years 5.60% 5.55% -0.05
3 years 5.60% 5.55% -0.05
4 years 5.60% 5.55% -0.05
5 years 5.60% 5.55% -0.05
For more information on opening a GMAC Bank CD, please refer to this post.
One of the experts quoted in this Bankrate.com rate trend article stated that based on history the inverted yield curve won't last, and eventually, short rates will either drop or longer rates will rise. Longer rates overall are trending down at many banks. Today's rate drop at GMAC seems to be a sign that short rates may be next. If the Fed decides to pause next week, perhaps we'll see other banks following GMAC and start lowering short term rates.