4.00% 12-Month CD at GMAC Bank - Nationally Available

Good rate for a 12 month CD, I submitted it to BankFiesta.com to share with others

dealman

It would appear that the Fed Res has granted GMAC 's request to become a Bank Holding Company. That makes GMAC eligible to receive some of the bailout money. Maybe they will stay in business now. I also think GMAC is the best on line bank there is.
Merry Christmas to all

YAY GMAC GOT IT! All the single ladies..put your hands up! Put a ring on it!

Happy holidays to all.
I have had a lot of faith on GMAC from day one. People used to say to me to take my money out of GMAC, but I refuse to do that. I have a very positive feeling about this bank and with the help of the Feds they'll come out a winner. They are one of the best online banks out there. I love em.

Happy holidays.

GMAC Bank - easy setup, no problems so far.

Can someone tell me the maximum $$$ dollar amounts that can be transferred externally in and out of the GMAC Bank account at any given time?
Maximum cycle of six transfers I see.
Thanks for your time.

For the Savings Account transfer, it says "Amount must be less than $100,000.00"

GMAC becoming a bank holding company with access to TARP funds may reduce their need to borrow from public and thus may tempt them to reduce interest rates.

Currently, GMAC Bank offers some of the best rates. I am afraid that these may not last.

Once GMAC gets the Fed funds, kiss goodbye the high rates.

Why borrow from savers at 3.75% plus FDIC insurance on the savings, when they are receiving the money at 0% interest pay back.

I'm not thrilled about GMAC becoming a bank, look what the banks are doing with the money, squandering, throwing it at bad investments, giving it away to speculators, paying heavy bonuses at the top managements, hiding the real books and dealing with make believe accounting.

Good grief, and you are excited about GMAC now being a bank. Get real and smell the roses from different perspective.

I agree with 10:37 AM, December 25, 2008.
WHERE IS ALL THE MONEY THEY RECEIVED SO FAR AND WHAT THEY DID TO IT?

According to Paulson, they do not have to account for it. What a rip off.

I think the US Treasury used TARP funds to buy preferred stock in Banks. They have bought equity in several banks including BofA, Citi, AIG etc.

Buying preferred stock improves the appearance of the bank to its own creditors (e.g. depositors) who now have more faith in the bank that if it goes under their money is safer than before. This prevents run on banks and thus prevents bank from failing due to fearful depositors pulling money out.

As for what the banks are doing with the money, it is just like any other money with them. When they lend (i.e. if they do) money, it doesn't matter whether those were TARP funds or what they have sitting in checking accounts at 0% interest of CDs or savings.

I am NOT an accountant, so whatever I have said may not be correct.

mk, that logic does not applies to banks. Preferred stock is only a piece of paper that says, "I owe you". They do not have to account for anything else and that is where the devil is. If the bank fails even after receiving the funds, no accounting of the money is required.

A creative accounting can make the money disappear overnight, then who is to be blamed: Paulson's ignorance or a smart CEO?

To: mk, very few people run on the banks these days. Everyone heard of FDIC, and if someone is stupid enough to keep more than FDIC limit, then they reserve to lose it.

GMAC will start lowering rates as they do not need to borrow from us anymore.

What would happen to GMAC if GM goes bankrupt?

GMAC has a lot of connections to GM. If GM went under, most likely either GMAC (that is the financial company, not the bank) would probably be shut down and sold to another company.

GMAC bank just reduced interest rates on their savings account from 3.75 to 3.25% and their Money Market account rate from 3.25 to 2.75%. Expect more rate drops as the economy tanks out.

Rates already going down the tubes.

The rates going down is result of Feds giving away free money to anyone who asks for it.
They are trying to help the bad banks and their greedy managements on expense of the savers.

This approach will never work and we will all suffer at the end with hyper inflation and trashed dollar.

Building society by destroying one group of people to help another is pure travesty and unacceptable in any civilized country, but here.

Giving unlimited power to unelected, irresponsible persons leads to the present crisis we are in. GOD bless America.

Yes, Anonymous, it's the end of the world and they're doing it all at your expense. It's too bad everyone can't be a winner every time and all the time. Buy real estate, stocks, bonds, or commodities if bank rates aren't high enough for you. Or better yet, just put it in your mattress!

Went ahead and bought another CD with them. The differential from the savings account is signifcant.

I am kicking myself for not buying a bigger 5% 3 year CD from Penfed in Early Nov though.

Quote:"Yes, Anonymous, it's the end of the world and they're doing it all at your expense. It's too bad everyone can't be a winner every time and all the time. Buy real estate, stocks, bonds, or commodities if bank rates aren't high enough for you. Or better yet, just put it in your mattress!"
By Anonymous, at 8:58 AM, December 26, 2008

I believe you are missing the whole point of why most of us choose CDs. Or your statement is just plain ignorant!

Applied for a few CD's Friday. Should be funded Tuesday at the latest. Of concern is the note at the bottom of the disclosure page which states the APY paid is the yield at the time the funds are received. My account profile still shows the 4% but we shall see.

Quote: "I believe you are missing the whole point of why most of us choose CDs. Or your statement is just plain ignorant!"

No, I'm not ignorant - just the opposite. *I* understand that the world changes, and does so every day. CD Rates change. Inflation rates change. Would one be happier of inflation was at 50%, just to get better rates on CDs? Well, that's ridiculous!

CD rates pretty much track just above the rate of inflation. So, whether inflation is 0, 10, 20, or 100%, CDs will still just about allow you to tread water, BUT NOT GIVE YOU MUCH MORE THAN THAT.

And if inflation actually *IS* zero or negative (deflation), then sorry, but CDs and other forms of cash will have an APY of zero (or something close to that) also.

No one is going to give you free money just to make you happy!

Hey there, Banking Guy! Thanks for the great resource you provide with this blog. Here's wishing you (and the rest of us savers) a good new year.

Unfortunately, GMAC Bank has indeed revised its CD rates downward, as expected:

Term---------Rate-----APY
3 months-----2.27%---2.30%
6 months-----3.10%---3.15%
9 months-----3.05%---3.10%
12 months----3.68%---3.75%
18 months----3.44%---3.50%
2 years-------3.59%---3.65%
3 years-------3.59%---3.65%
4 years-------3.59%---3.65%
5 years-------3.92%---4.00%

Oh, well, too bad the higher rates didn't last longer.

-- ClickClack

I have been a GMAC Bank customer for years but for some reason they delayed opening my CD for two weeks & would not honor the rate. Everyone else that I have dealt with, holds the rate when you apply. They lost my money.

Sorry to read they didn't honor the rate. How did you fund the CD?

I open a CD account the morning of 1/2/09. At 8:30am EST it was posted at GMAC's site at 4% for 12 months. At 8:38am, I transfer funds from another GMAC account and confirmed the transfer with the rep and refreshed my browser showing it had the 4% for 12 months. On the 1/10/09 I received a written confirmation from GMAC in the mail that I was given a rate of 3.75 for 12 months. I lost a couple of heartbeats on that info. I immediately called GMAC and was informed they mistaking had not yet updated their site with the new rates that morning (1/2/09). I was informed that they would honor the original rate of 4% after the rep conferred with her supervisor. HOWEVER, as of /12/09, I am still awaiting that change to reflect the 4% with my online account. Anyone else out there with this oddball situation?