bank rates

GMAC Bank 2.95% on a 12-month CD

GMAC Bank has one of the best deals on a short-term CD.

It’s 2.95% offer is almost double the national average for 12-month deposits, interest is compounded daily and the minimum deposit is only $500.

The only downside is that you’ll be charged a stiffer than usual six months worth of interest should you have to withdraw funds before the CD matures.

Yes, this is the online banking operation of GMAC Financial Services, which began life as the auto financing arm of General Motors Corp. before branching out into subprime mortgages that just about wrecked the place. But we digress.

The critical thing about GMAC Bank is that it is FDIC insured and earns four out of five stars in Bankrate’s “Safe & Sound” scoring system. You’re not going to lose your money.

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Comments (5)
1 Star2 Stars3 Stars4 Stars5 Stars (20 votes, average: 3.80 out of 5)
5 Existing Comments
  1. Eric said:
    on March 1st at 09:23 pm

    This site has gotten lame. Bring back Wu

    Now it’s just bankrate employees pumping their affiliate bank’s sub-par cd offers

  2. BloggingBanks said:
    on March 2nd at 05:45 am

    You have to be very careful with this offer, and only pu up to $100K in it in case GMAC Bank goes under..

  3. hallmonitor said:
    on March 2nd at 10:25 pm

    Eric, not sure if you are paying much attention to the world outside your computer screen but there aren’t many above-par banking offers out there any more. Par is now lame…face it.
    I still think this site has a good listing of what’s available.
    Better than other sites anyway

  4. Mike said:
    on March 2nd at 11:51 pm

    Besides withdrawing funds prior to the maturity date, what other potential risks will an investor take on with this CD?

  5. mark said:
    on March 3rd at 12:06 pm

    I tried to refinance with a cool mortgage product GMAC had about 6 months ago and the customer service I got from a GMAC direct broker was just horrendous. Blamed it on ‘corporate policy changes’.
    Based on that experience, I think the risk you take on as an investor is that GMAC changes their policies and terms at will and doesn’t give two cents about communicating with its customers.