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Best Bank Account Interest Rates - Summary For July 7, 2020Big Jump in GMAC Bank's Long Term CD Rates - New Trend?
POSTED
ON BY Ken Tumin
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).
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).
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.
- SVG