Is GMAC bank safe?

[KTP]

I don't see any obvious problems with GMAC bank savings account, but they are paying way more than other banks so I am looking for a catch.

The rate for a savings account is higher than a rate for a 6 month CD

???

Who would bother tying up money in a CD when you can earn more in the regular savings account?

[sweeps]

Your savings is "safe" if you remain under the FDIC limit. Trying to determine which banks will fold and which ones won't is not a useful exercise IMO.

Buying a CD in this ultra-low rate environment seems ridiculous to me (even more so if the CD rate is BELOW the savings rate!).

[MonkeyMama]

YEah - I have to agree with sweeps. GMAC has always consistently had higher than average interest rates (last few years anyway).

There has certainly been talk of risks, but moving your money out of GMAC to where because of being scared - I don't know - seems silly in this environment. All the banks are pretty troubled if you ask me. It's FDIC insured. & if that concerned than I would spread my money among many different banks.

Their online savings account is a new product they are pushing - could be why it is higher than their CD right now.

[yourtwobits]

GMAC for Loans

I haven't used them for any type of savings account, but I have a loan from them. After 5 years, everything with the loan has gone smoothly. I have no complaints. One time they messed up an additional principal payment by counting it as pre-payment instead, but we had no problem getting them to correct that.

[GrimJack]

I have pointed this out before but I think you should check out your local Credit Union - they are member-owned, offer better rates, and are beginning to compete well with banks.