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Big Jump in GMAC Bank's Long Term CD Rates - New Trend?


GMAC Bank had a large increase in its long term CD rates today. Rates on 2 to 5 year CDs were increased from 5.30% to 5.45% APY. The 18-month CD increased from 5.30% to 5.40% APY. The rate of GMAC's money market savings account remains at 5.30% APY.

We may see similar moves by other banks. As a recent Bloomberg article describes, bond yields have skyrocketed in the last few days. The 10-year Treasury yields have increased to their highest level since May 2002.

Please refer to my GMAC CD post for more info about GMAC CDs. For more info on GMAC's money market account, please see my GMAC Money Market Account review post.

GMAC Bank is FDIC insured (FDIC Certificate # 57803).
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  |     |   Comment #1
Banking Guy,

>>Big Jump in GMAC Bank's Long Term CD Rates - New Trend?

Bonds prices for bonds of various durations - 10yr, 7yr, 3yr have fallen in the recent past. (Perhaps one should keep an eye on the likes of TLT IEF, LQD.) Correspondingly the yields have shot up.

The Yield Curve has gone up a lot. It indeed looks as if the banks/CUs will have to raise the yields on longer terms very soon. I'm sure many more banks/CUs besides GMAC will respond to these developments in bond market very soon ... perhaps as soon as within next 3-4 weeks with higher yields for longer term CDs/Certificates.

  |     |   Comment #2
Gosh, and just two days ago I renewed a GMAC CD for 18 months at the lower rate. Oh well, it's still 5.30 which is pretty good, but I have GMAC CD's renewing every week, so going forward, I'll be enjoying the new higher rate!
  |     |   Comment #3
I tried to open an account with GMAC about 6 months ago. They denied me. My credit score is 800 with no debt. I wanted to put 98K into their bank. They would not give me a reason when I called them. Has anyone else had this problem?
  |     |   Comment #4
I had the same problem opening up a CD with them - even though I had about $15,000 in funds with them already. They said I moved within the last three months and wanted me to mail them proof of my address such as a utility bill etc... I told them that I open up CD's with them every week, so why all of a sudden they want proof of my new address which I've been using for at least 2 months with them? I ended up cancelling the application, but a month later I tried again, and I had no problem. I've been opening up CD's with them ever since.

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