GE Interest Plus

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Topic Author
learningLady
Posts: 68
Joined: Mon Sep 15, 2008 3:07 pm

GE Interest Plus

Post by learningLady »

We have around good amount of cash in our GE interest plus account. My husband works for GE and has lots of faith in GE.

With current financial crisis, is GE interest plus save. It is not FDIC insured.
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hollowcave2
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Location: Sacramento, CA

safety first

Post by hollowcave2 »

If I were in that position, I would liquidate the account to a level where I felt comfortable with the amount of money in it.

In this environment, reaching for yield is far too risky for money that is intended to simply earn interest.

I would put the money into an FDIC insured account even though the interest is less.

Otherwise, you're counting on a corporation to repay you. Again, in this environment, there's no reason to take that risk.

JMHO

Steve
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SoonerSunDevil
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Location: The desert

Re: GE Interest Plus

Post by SoonerSunDevil »

vandanagoel wrote:We have around good amount of cash in our GE interest plus account. My husband works for GE and has lots of faith in GE.

With current financial crisis, is GE interest plus save. It is not FDIC insured.
I think GE Interest Plus is very safe, but IT IS NOT GUARANTEED. Why take chances with money that's supposed to be in safe investments? Your husband works for GE and probably has a lot of GE stock, so you're already at risk if something were to happen to GE. Don't take the risk with your cash; move it to an FDIC Insured bank account.
Easy Rhino
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Location: San Diego

Post by Easy Rhino »

It's basically the same as owning one big uninsured GE bond.

GE is seemingly the last AAA rated nonfinancial company. There is substantial risk.
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Sheepdog
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Location: Indiana, retired 1998 at age 65

Post by Sheepdog »

Easy Rhino wrote:It's basically the same as owning one big uninsured GE bond.

GE is seemingly the last AAA rated nonfinancial company. There is substantial risk.
It may be a nonfinancial company, but a very large percentage of its business is under GE Financial. GE Money provides credit services to more than 130 million customers — like retailers, consumers, auto dealers and mortgage lenders. Also, GE provides loans, operating leases, financing programs, commercial insurance, equipment leasing of every kind, and other services in over 35 countries around the world.
In any case GE may be big and considered safe, it still has risk. Lehman Brothers, Enron, AIG, etc. were considered big and considered safe.
Is it worth the risk holding much of your savings in one company?
Jim
Unless you try to do something beyond what you have already mastered you will never grow. (Ralph Waldo Emerson)
grumel
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Location: Germany

Post by grumel »

Your husbands "faith" is no basis at all for financial decissions.
Valuethinker
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Joined: Fri May 11, 2007 11:07 am

Re: GE Interest Plus

Post by Valuethinker »

vandanagoel wrote:We have around good amount of cash in our GE interest plus account. My husband works for GE and has lots of faith in GE.

With current financial crisis, is GE interest plus save. It is not FDIC insured.
GE is probably safe, but not surely so. These are not normal times-- GE Bank could be swept away due to no fault of its own

I would recommit this money to an FDIC insured account, inside the FDIC limit of $100k.

If you feel bad about this, split it 50/50 between GE and such an account.

This is not about what interest you get, it is about maximum safety for your money.
asamir
Posts: 75
Joined: Thu Feb 22, 2007 7:51 pm

Faith

Post by asamir »

Faith is derived from a sense of emotional attachment to GE. I'm sure they're a great company.

Ask your husband what GE Money's exposure is to credit swap defaults. If he doesn't know: TAKE THE MONEY OUT.

Faith is what people have in place of knowledge.

Anthony
Topic Author
learningLady
Posts: 68
Joined: Mon Sep 15, 2008 3:07 pm

GE Interest PLus

Post by learningLady »

Thanks every body for the response. it is very much appreciated.
skibo
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Joined: Mon Sep 22, 2008 8:13 pm

Post by skibo »

I just pulled a large sum of $ out of GE interestplus (currently paying 3.54% yield) and put it into an FDIC insured money market paying 4.00% yeild.

So, if you are alert to special offers, you can have safety and yield.
dumbmoney
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Joined: Sun Mar 16, 2008 8:58 pm

Post by dumbmoney »

Easy Rhino wrote:GE is seemingly the last AAA rated nonfinancial company. There is substantial risk.
Off topic, but the other AAA nonfinancial US companies are:

Microsoft
Automatic Data Processing
Exxon
Johnson and Johnson
Pfizer
Topic Author
learningLady
Posts: 68
Joined: Mon Sep 15, 2008 3:07 pm

money market yield

Post by learningLady »

skibo could you pls tell us which money market fdic is giving 4.00%
Valuethinker
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Re: money market yield

Post by Valuethinker »

vandanagoel wrote:skibo could you pls tell us which money market fdic is giving 4.00%
Money Market Funds are not FDIC insured. The US Treasury is briefly insuring some of them.

Money Market Accounts are FDIC insured. The name is really a misnomer.

I wouldn't worry so much about the rate (higher rate means higher risk) but getting about the average rate out there, and staying within FDIC limits per account and per institution in all cases.
TheEternalVortex
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Location: San Jose, CA

Re: money market yield

Post by TheEternalVortex »

vandanagoel wrote:skibo could you pls tell us which money market fdic is giving 4.00%
WaMu Online Savings is at 4.00%.
Valuethinker
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Joined: Fri May 11, 2007 11:07 am

Re: money market yield

Post by Valuethinker »

TheEternalVortex wrote:
vandanagoel wrote:skibo could you pls tell us which money market fdic is giving 4.00%
WaMu Online Savings is at 4.00%.
WaMu is almost certain to be the next bank insolvency (or the next big one).

Tread carefully, there. Stay inside FDIC limits and do not put all your eggs in that basket.
skibo
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Joined: Mon Sep 22, 2008 8:13 pm

Post by skibo »

Hi - skibo here - haven't been back since my initial post - sorry.

It was a Money Market Account - FDIC insured - with National City Bank, in Erie, PA. That 4% rate expired last week. Now I'm thinking of moving the $ to a Citizen's Bank 13 month CD for 2.5%.
Randy7633
Posts: 2
Joined: Wed Jun 17, 2009 11:28 am

GE interest plus

Post by Randy7633 »

I've had a GE account for about 5 years and it works fine. I've recently moved most of the money to an FDIC account but I'm thinking that now would be a good time to move it back. Good experience for me.
Anyway, I'm wondering what other companies offer accounts similar to this one. For example there's Ford
its at www dot fordcredit dot com
and of course GE
Do you experts know of other companies?
Thanks,

Randy
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