bank rates

GE Capital Is Buying MetLife’s Online Bank

I want to jump up and down, wave my arms in the air and yell, “Here we are! Here we are!”

General Electric’s finance arm is buying the bank deposits of insurance giant MetLife Inc.


According to the Wall Street Journal, “the deal will speed GE’s new effort to attract more individual savers and further reduce its reliance on potentially volatile financial markets for funds.”

I think I can speak for all savers when I say we stand ready and willing to help GE Capital Financial raise all of the money it could possibly need for all the business loans it makes.

Just offer the best interest rates and we’re there, and it doesn’t take much to do that these days.

Indeed, MetLife Bank built the $7.5 billion in deposits GE is buying by consistently offering some of the best nationally available CD rates.

Taking a look at today’s rankings, it’s currently tied for sixth in:

  • 1-year certificates of deposit, paying 1.00% APY with a minimum deposit of $25,000.
  • 3-month CDs, paying 0.45% APY with a similar minimum deposit.

It wasn’t anything we did that’s pushing MetLife out of the online banking business it launched in 2001.

The insurer, which is well known for using Snoopy in its advertising, is big enough to make it a systemically significant bank holding company as defined by the new Dodd-Frank financial overhaul law.

That means all of MetLife’s operations are being subjected to tough new regulations and more extensive oversight by the Federal Reserve.

It can’t raise dividends or launch a stock buy-back program without the Fed’s approval, for example, and in October the central bank refused to let MetLife do either one.

MetLife’s top execs are determined to do whatever it takes to send the Fed’s bank regulators packing.

So let’s hope GE Capital becomes a consumer friendly, competitive suitor for our money. We could certainly use one.

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Comments (2)
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2 Existing Comments
  1. mara29 said:
    on December 30th at 07:40 am

    Here’s hoping you’re right about GE and they do dangle some better rates.

  2. nashir said:
    on January 2nd at 04:41 am

    Good news.Welcome GE.