Certificate of deposit rate changes as of 7/18/08:
Term OLD APY NEW APY CHANGE
3 months 3.25% 3.25% 0
6 months 3.70% 3.72% +0.02
9 months 3.75% 3.75% 0
12 months 3.90% 4.05% +0.15
18 months 4.10% 4.10% 0
2 years 4.25% 4.30% +0.05
3 years 4.45% 4.50% +0.05
4 years 4.60% 4.70% +0.10
5 years 5.00% 5.05% +0.05
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 Bank in the News
The Wall Street Journal reported that GMAC has obtained a 10-year extension on its waiver that will allow it to retain GMAC Bank with FDIC insurance for at least 10 years.
I reported on this issue in this April post. Here's a little background. In 2006 the private-equity firm Cerberus Capital Management purchased 51% stake in GMAC Financial Service (the parent of GMAC Bank). Due to the special circumstances of this acquisition and of GMAC Bank's status as a Industrial Loan Company (ILC), the FDIC's approval was necessary, and as part of this approval, there was an agreement that within two years one of the following would be done:
divest control of the bank; terminate the bank's insured status; become a registered bank or thrift holding company; or apply to be subject to the same applicable law and regulation as other similarly situated companies at that time.
The end of those two years is this November. An extension to the waiver was the only good option in this current mortgage and credit crisis. So I'm glad to see the 10-year extension.
I've been a GMAC Bank customer now for over 2 years, and I've been very pleased with the online money market account. The yield has been a little low this year, but it has one of the best ACH transfer systems. It allows easy linking to external bank accounts and provides for fast ACH transfers with minimal restrictions.