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ON BY Ken Tumin
GMAC Bank increased some of its CD rates today. The 60-month CD yield increased from 4.80% to 5.00% APY. Other banks that reached 5% this week include E-LOAN, Capital One and M&T Bank, NA.
GMAC Bank's FAQ page does a pretty good job describing the CD details. Please refer to my GMAC CD review post for a summary of GMAC's CD features.
GMAC Bank also has a nice online money market account with a great ACH transfer service. The yield has been a little low in the last few months (currently 3% APY), but it does have a history of competitive rates (see my GMAC money market review).
GMAC in the News
GMAC Bank is part of GMAC Financial Services (GMAC) which has been having financial problems in this housing slump. As a recent Bloomberg article reported, GMAC's mortgage unit, Residential Capital LLC (ResCap), has lost $5.3 billion in the past six quarters. However, GMAC and ResCap have been able to receive a large restructuring package from JPMorgan Chase and Citigroup which should buy them some time. ResCap isn't GMAC's only problem. As this WSJ article reports, GMAC's auto financing has been hit hard by the declining sales of pickups and SUVs.
As I recommend with any bank, it's wise to stay under the FDIC limits. Even with the latest news, GMAC Bank appears to have solid financial numbers: 4 star rating (sound) at Bankrate.com based on 12/31/07 data and a 4 star rating (excellent) at BauerFinancial based on 3/31/07 data. More financial details on GMAC Bank can be viewed at this FDIC page.
GMAC Bank CD rate changes as of 6/27/08:
Term OLD APY NEW APY CHANGE
3 months 3.35% 3.25% -0.10
6 months 3.50% 3.60% +0.10
9 months 3.60% 3.65% +0.05
12 months 3.80% 3.90% +0.10
18 months 4.00% 4.00% -
2 years 4.15% 4.15% -
3 years 4.35% 4.45% +0.10
4 years 4.60% 4.60% -
5 years 4.80% 5.00% +0.20
GMAC Bank's FAQ page does a pretty good job describing the CD details. Please refer to my GMAC CD review post for a summary of GMAC's CD features.
GMAC Bank also has a nice online money market account with a great ACH transfer service. The yield has been a little low in the last few months (currently 3% APY), but it does have a history of competitive rates (see my GMAC money market review).
GMAC in the News
GMAC Bank is part of GMAC Financial Services (GMAC) which has been having financial problems in this housing slump. As a recent Bloomberg article reported, GMAC's mortgage unit, Residential Capital LLC (ResCap), has lost $5.3 billion in the past six quarters. However, GMAC and ResCap have been able to receive a large restructuring package from JPMorgan Chase and Citigroup which should buy them some time. ResCap isn't GMAC's only problem. As this WSJ article reports, GMAC's auto financing has been hit hard by the declining sales of pickups and SUVs.
As I recommend with any bank, it's wise to stay under the FDIC limits. Even with the latest news, GMAC Bank appears to have solid financial numbers: 4 star rating (sound) at Bankrate.com based on 12/31/07 data and a 4 star rating (excellent) at BauerFinancial based on 3/31/07 data. More financial details on GMAC Bank can be viewed at this FDIC page.
