bank rates

GE Capital Bank Drops Lots Of CD Rates

GE Capital Bank – the wholly owned retail banking unit of the General Electric Co. – slashed CD rates across the board today.

It cut the return on:

  • 1-year CDs from 1.20% to 1.00% APY.
  • 2-year CDs from 1.30% to 1.10% APY.
  • 3-year CDs from 1.45% to 1.25% APY.
  • 5-year CDs from 2.25% to 2.00% APY.

As a result, the bank no longer offers the best nationally available deal on 60-month CDs, a position it shared with two other banks on our CD Rates Leaderboard until today.

Hopefully, this is a one-off event, unique to GE Capital Bank and not a harbinger of rate cuts to come at other leading online banks.

The rate reductions come on the heels of the announcement by parent company General Electric that it plans to exit the financial services business by selling off the remaining assets of its GE Capital division, including GE Capital Bank.

These new, lower CD rates may be part of its strategy to sell the banking unit to a private buyer.

If so, it is in sharp contrast to what has occurred at Synchrony Bank.

This was General Electric’s other online bank and was called GE Capital Retail Bank before the manufacturer began disposing of it through a combination of a public stock sale and spin-off to its shareholders.

Take a look at the Leaderboard, and you’ll see that Synchrony offers the best nationally available returns on 12-, 24-, 36- and 60-month CDs. (Since it generally posts new rates on Mondays, we’ll soon see if it continues to do so.)

Whatever’s going on at GE Capital Bank, though, this particular investor in its certificates of deposit doesn’t like it.

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  1. Gerry B said:
    on April 18th at 04:57 am

    Seems counterintuitive to me. Five years ago Ally Bank, trying to dust off the stigma of its former life as GMAC Bank, offered the best CD rates and terms by far. Today it would seem that GE Capital finds itself in an analogous, if perhaps less draconian, environment, as it prepares to lose the luster of GE. I’d have thought they would want to bring in all the deposits they could while still attached to the valuable GE brand.