GE Capital Retail Bank (formerly MetLife Bank) has just recently increased its 5-year CD rate. It’s another bank that has joined the 2% club. Its Jumbo 5-year CD APY was increased from 1.95% to 2.00%. That requires a $100,000 minimum deposit. For a $25,000 minimum deposit, the bank is offering a 1.95% APY, and for a $2,000 minimum deposit, it’s offering a 1.80% APY. These rates are listed on the bank’s CD rates page as of 10/15/2013.
In August the bank came out with a special 1.15% APY 15-month CD. This is still available as of 10/15/2013. Minimum deposit is $2,000. This is an online only offer that requires that you enter the promo code OnlineOffer in the online application. Details of the promotion are listed in the bank’s promotions page.
The bank also offers IRA CDs, but the highest rates are currently 5 basis points lower than the CD rates with the same terms.
The bank’s CD early withdrawal penalties are fair. According to the bank’s disclosure:
For a CD with a term of twelve months or less, the penalty will be an amount equal to 90 days simple interest on the amount withdrawn at the current rate. For a CD with a term of more than twelve months, the penalty will be an amount equal to 180 days simple interest on the amount withdrawn at the current rate.
In January MetLife officially became GE Capital Retail Bank. As I mentioned in January, the products remained the same including the CDs, IRAs and money market accounts. In addition, they are still offering a free identity theft resolution service for deposit customers.
GE Capital Retail Bank’s main office is located in Draper, Utah. The bank has been around for awhile. It was established with FDIC insurance in 1988. However, it has not been in the retail deposit-taking business before the MetLife Bank acquisition. Its business focus has been on providing customized credit programs to retailers and consumers.
The bank has an overall health grade at EpBooks.us of an A+ with a Texas ratio of 5.85% (excellent) based on June 2013 data. Please refer to our financial overview of GE Capital Retail Bank for more details.
GE Capital vs. GE Capital Retail
One thing that’s confusing is that there are two GE Capital banks. The former MetLife Bank is GE Capital Retail Bank which I described above. GE Capital Bank is the other bank. It started offering an online savings account and CDs in May. These are two separate banks, but both are part of the General Electric Company.
GE Capital Bank also offers competitive rates, and unlike GE Capital Retail Bank, you don’t need large deposits to receive the best rates. Its most competitive rates as of 10/15/2013 include a 0.90% APY savings account, a 1.05% APY 1-year CD and a 1.10% APY 18-month CD. Its 5-year CD rate is a little lower than the best rate at GE Capital Retail Bank. It’s 1.90% APY. However, to qualify for 1.90% APY and the other CD rates, only a $500 minimum deposit is required.
How This CD Rate Compares
GE Capital Retail Bank now joins several other banks and credit unions with a 5-year APY of around 2%. Some of the other ones include Barclays, State Farm Bank, EverBank, Salem Five Direct, BBVA Compass and PenFed.
To search for nationwide CD rates and CD rates in your state, please refer to the best CD rates section of EpBooks.us.