Yesterday, the Federal Reserve granted GMAC bank status.  What does this mean for GMAC now?  With a “bank status”", they are now entitled to tap into the $700 billion federal bailout package.

Read the full story on Bloomberg.com.

I’ve been a big fan of GMAC bank for a few years now and I personally bank with them and have nothing but good things to say. 

Here are GMAC CD and Savings Rates as of 12/25/2008 –

3 month - 2.50% APY

6 month - 3.50% APY

12 month - 4.00% APY

2 / 3 / 4 year - 4.05% APY

5 year - 4.35% APY

Savings account - 3.75% APY

Money market - 3.25% APY

The savings account in my opinion is one of the best on the market.  All of GMAC’s products are FDIC insured and only require a $500 minimum initial investment.

For more information on GMAC, visit GMACBank.com.

I often get e-mails asking me about banks that are rated high and I can understand with today’s economy condition and with the 23rd bank failing in the past week, you probably want to know the bank’s star rating.

At gotalkmoney.com, we use Bankrate.com’s star rating system.  Their safe and sound system assesses the financial condition of the banks.  The star system ranges from “NR” to a 5 star, meaning it has a superior rating.  To get more information on these star definitions, visit Bankrate’s star rating defintion page.

For the week of 12/7/08, here are the banks with a 5 star superior rating –

Capital One Banking ($5,000 min.) 

Discover Bank ($2,500 min.)

Unfortunately, if you’re were looking for more than 2 banks, you’re going to have to look at other banks that have a rating less than a five.  There are plenty of banks that have a four star rating and are just as good.  To get more information on Capital One’s CD rates, visit their website at CapitalOne.com/directbanking and for more information on Discovers CD rates, visit them at DiscoverBank.com.

Yesterday (12/5/2008) marked another bank failure in the United States.  This marks the 23rd bank failure in 2008.  First Georgia Community Bank is located in Jackson, Georgia and had only 4 branches with $237.5 million dollars in assets, as well as $197.4 in deposits.

United Bank will be acquiring the failed bank, First Georgia Community Bank.  To get more information on United Bank, visit their website at AccessUnited.com.

For those who are wondering, here is the complete list of failed banks for the year of 2008 –

• First Georgia Community Bank, Jackson, GA
• PFF Bank and Trust, Pomona, CA
• Downey Savings and Loan, Newport Beach, CA
• The Community Bank, Loganville, GA
• Security Pacific Bank, Los Angeles, CA
• Franklin Bank, SSB, Houston, TX
• Freedom Bank, Bradenton, FL
• Alpha Bank & Trust, Alpharetta, GA
• Meridian Bank, Eldred, IL
• Main Street Bank, Northville, MI
• Washington Mutual Bank, Henderson, NV and Washington Mutual Bank FSB, Park City, UT
• Ameribank, Northfork, WV
• Silver State Bank, Henderson, NV
• Integrity Bank, Alpharetta, GA
• The Columbian Bank and Trust, Topeka, KS
• First Priority Bank, Bradenton, FL
• First Heritage Bank, NA, Newport Beach, CA
• First National Bank of Nevada, Reno, NV
• IndyMac Bank, Pasadena, CA
• First Integrity Bank, NA, Staples, MN
• ANB Financial, NA, Bentonville, AR
• Hume Bank, Hume, MO
• Douglass National Bank, Kansas City, MO

We have now implemented a new feature on our website that’s quite simple, yet very informative.  The new bank rating system is based around BankRate.com’s star system.  This star system will give you a good idea on how safe the bank really is.  Keep in mind that all bank’s on our website are FDIC insured. 

Follow this link for information on the star system and what each star means.

Many often wonder that when they see a CD rate that seems too high compared to industry standards, they just assume it’s a scam or too good to be true.  While sometimes this can be the truth, it necessarily isn’t always true.  When it comes to higher CD rates, there are a few things you should look out for before you submit your application.

Check the terms and conditions

Every legit bank online or in person will have a set of terms and conditions when it comes down to the CD you want to apply for.  If the rate sounds too good to be true, there are a few things you’re going to have to note.

Does the bank require that you do something each month?

In order to make money on your CD, the bank may require that you sign up for direct deposit or a debit card and make at least x amount of purchases each month to keep that rate in tack.  If you don’t keep these minimum requirements, they will drop you down to the default rate.  Keep in mind that the banks rarely give you a warning; instead they just drop you without further notice, so it’s important that you remember to make those minimum requirements each month.

How do I know it’s legit?

In order to make sure it’s legit, make sure you check for the FDIC insurance logo and also check the FDIC’s main website at fdic.gov.  If the bank is listed, the bank is legit.  If it isn’t, I would highly suggest you stay way or invest at your own risk.  If the bank isn’t FDIC insured and the bank goes under, you’re out of luck!  If the bank is insured, go back to step one and see what the requirements are.

Sometimes the banks will offer a nice promotional rate with no strings attached just to draw in new customers or receive a hefty set of money for other ventures.  Even though it sounds too good to be true, it isn’t!  The next time you see an unbelievable rate, jump on it, it may be the last time you see it!