They have a fairly easy set-up process that is done on-line. Funds can be transferred electronically via ACH (same system that on-line bill pay systems use), through a wire transfer (typically the sending bank charges $15 to $25), or a check sent through the mail. For smaller amounts the ACH is probably the best because usually there aren’t any fees charged. Every dollar spent on fees reduces your overall interest rate earnings on your CD.

GMAC Bank is FDIC insured. Remember all banks that we highlight in our posts are FDIC insured. At times we highlight credit unions with high CD interest rates, as well. We only feature NCUA insured credit unions.

You can verify a bank is federally insured by visiting the FDIC website at http://www2.fdic.gov/idasp/index.asp. GMAC Bank is actually new to the scene, being established in 2004, but GM opened them up with a large amount of assets to begin with and they are already pushing $32 Billion. Banks this size are actually beginning to scare me, because if they do fail, the quickly bring down the reserves the FDIC holds.

GMAC Bank lost about $112 Million dollars last year, compared with a $282 Million dollar profit the year before. They like many other large banks made some bad bets when it comes to loans and investment bets that they made.

Their other CD Interest Rates can be viewed on their site.

Alliant Credit Union, IL — 3.40% APY, 1-year CD — $25 membership fees — $25,000 minimum

4.00% APY, 3-year CD — Click here


Capital One Bank, VA — 4.00% APY, 7-year CD — $5,000 minimum
Note: Capital One has two banks so you can get double the insurance. — Click here


GMAC Bank, PA — 3.00% APY, 1-year and 18-month CD — $500 minimum — Click here

So there are a few rates to help you with your Bank CD Rate comparison. Remember don’t be afraid of credit unions.

And totally un-related to banking, but very much related to those trying to earn an income from blogging. Check out Mark Mason’s free backlinks offer.

Here is an interesting blog, My Recession Survival Guide.