The big cut at GMAC Bank was surprising since it's so much below their competition. For much of last year GMAC Bank had held its money market account yield at 5.30% APY which was near the top of the savings account rate list. Even as the Fed started cutting rates, GMAC wasn't too quick to follow. With this latest cut, it puts GMAC far below the competition. It's a shame since they have one of the best ACH transfer services. It's easy to link external bank accounts, there are no restrictive transfer amount limitations, and the transfers are generally fast. For more info on GMAC's money market account and their rate history, please refer to this post.
Like GMAC, Countrywide also has one of the best ACH transfer services. Their 4.25% APY for balances over $10K remains very competitive, but this cut is the third one this month. At the end of January the rate was 5.00% APY. You have to wonder if they intend to remain near the top as their merger into Bank of America goes through.
Rate Update Summary:
- Countrywide Savingslink: 4.25% APY for $10K+ (was 4.50%)
- GMAC Money Market: 3.00% APY for $500+ (was 3.50%)
Thanks to the readers for the comments/emails on these rate changes.