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GMAC Bank's Money Market Rate Drops - GMAC's Future?


GMAC Bank lowered the yield on its Money Market Savings Account from 5.20% to 5.10% APY. It had been as high as 5.30% APY in November. There were also changes in CD rates. However, all of these changes were rate hikes: 0.05% increase on the 9-month and 12-month CDs and 0.10% increase on all longer term CDs. The highest rate is the 12-month term with an APY of 5.25%. The 3-to-5 year CDs now have an APY of 5.10%.

In late November, GMAC customers received a letter from GMAC informing us that GMAC Bank will transfer all of its consumer deposit accounts to GMAC Automotive Bank, an affiliate Industrial Bank chartered under Utah law (Utah Bank). According to this letter, the change has no impact in anyway to deposit accounts.

Late last year Cerberus Capital Management secured a majority stake in General Motors' financing arm, GMAC (see article).

So high level changes are happening at GMAC. We'll have to wait and see if this will have any effect on rates and service. Hopefully, the rate reduction won't become common.

Even with a rate of 5.10% APY, it's still above the rates at EmigrantDirect and HSBC. It also has the following perks:
  • Able to link multiple bank accounts completely online for ACH transfers
  • Limited check writing (first 50 checks are free)
  • ATM card and rebates of ATM fees up to $6 per month
  • Paper statements
Several have reported that they didn't get a hard credit pull when opening a GMAC account. I recently checked my credit reports, and I can also say I did not get a hard pull when I opened the GMAC account in April. It was only a soft pull by Transunion.

For more info on my experiences opening a GMAC Money Market Savings Account, please refer to this post.

GMAC Bank is FDIC insured.

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