GE Capital Bank: online accounts, community focus
As yet another contender in the growing field of online banks, GE Capital Bank uses a model favored by many of the top institutions in its category: leveraging its modest overhead to offer highly competitive interest rates on savings accounts and certificates of deposit (CDs).
Chartered in Utah and fully insured by the FDIC, GE Capital’s online accounts currently offer some of the most competitive terms available in banking. According to its website, the funds deposited in the bank are reinvested into commercial loans and leases for small to mid-sized customers, and priority is given to those who support community development near the bank’s Utah base.
GE Capital Bank should not be confused with the similarly named GE Capital Retail Bank, which also operates under the GE umbrella but offers a different range of accounts and terms.
Opening a GE Capital Bank account
GE Capital Bank offers both an online savings account and certificates of deposit (CDs), which are available in a variety of terms ranging from six month to six years. All GE Capital Bank accounts can be opened online, and you can fund your account via a check, wire transfer or electronic transfer from an existing bank account.
To open an account with GE Capital, you will need your Social Security number, a valid U.S. address (not a P.O. box) and your date of birth. You will also need your existing bank account number and your bank’s routing number if you’d like to fund your new account via an electronic transfer.
The GE Capital Online Savings account is a strong option for those who need complete liquidity. It has no minimum opening deposit requirement (though GE Capital reserves the right to close any account that goes unfunded for 60 days or more) and no monthly minimum balance requirement. There are also no transaction fees, though federal law limits depositors to six withdrawals per statement cycle on this type of account.
GE Capital CDs are ideal for those who don’t mind locking up their money in exchange for a higher interest rate. These accounts currently require a minimum opening deposit of $500 and come with GE’s 10-day CD rate guarantee, which allows you to get the highest CD rate offered by the bank within 10 days of your account being opened, provided the account has been funded.
Funds cannot be added to a CD outside of its grace period (between its maturity date and the time it rolls over), but new GE Capital CDs can be opened anytime.
GE Capital’s competition
GE Capital's current terms reflect a strong desire to be competitive in the marketplace of online banks, but there are countless other banks vying for supremacy in this category. Still, GE Capital stands as a great option for consumers who seek the high yields and low fees offered by today’s top online banks.