Attractive interest rates > 3.0 %, but it is not FDIC insured. I sure would like to put some spare cash there, but what is the financial condition of Ford? If they file chapter 11 or something, could I lose my money? In the past, I would have thought that there would be no way a company like Ford could go under, but after Enron and United and Kmart, I am cautious.
i don't think you have to worry about them going bankrupt since they have been overhauling their company. They had large pension defecit which made them reorganize some areas and to close some plants down and cut jobs. I think you'll be safe.
Aceshigh
Happy Member
posted: Jun. 29, 2003 @ 2:56p
Wow, that looks like an excellent Money Market account. I'm not worried at all about Ford's financial well being. Of course I hate their cars, but I think they are a good bet to stick around.
BBallfan2003
Member
posted: Jun. 29, 2003 @ 3:29p
Thats interesting. While its not technically risk free, its very nearly so. At least for those who dont ignore public events for weeks on end.
In fact, I may swap some of my ING funds there.
Wish they had a bonus.
Do any of the bond experts out there have an opinion on this ?
HOW SAFE IS MY INVESTMENT?
Ford Money Market Account is a direct obligation of Ford Motor Credit Company, a wholly owned subsidiary of Ford Motor Company.
WHERE DOES MY MONEY GO?
Your funds are used to purchase Demand Notes issued by Ford Motor Credit
Zon
Senior Member
posted: Jun. 29, 2003 @ 3:29p
See this thread for past discussion on Ford and GMAC Demand Note accounts. Both are at 3%.
BBallfan2003
Member
posted: Jun. 29, 2003 @ 3:39p
I disagree with the characterization on the other thread that it is a "junk bond".
Its NOT subject to value changes like a bond would be.
A small investor could easily take his money out if he sees Ford Motor Stock go down a certain amount.
In short, I seriously doubt there is any real risk. I just dont see them defaulting on a small investors money when they have a marketcap of $20 BILLION !
I would say invest in it, and then watch the stock. If it falls in half, to $5.50, consider pulling out.
It DOES offer advantage over junk bonds in that you can ACH money in and out and write checks.
Say Ford has tough times ahead and fall to a mere $5 BILLION company, chances are they wont default on such small fry money. Small fries who are also car buyers.
Crazytree
Senior Member - 7K
posted: Jun. 29, 2003 @ 3:45p
BBallfan2003 said:
<< HOW SAFE IS MY INVESTMENT?
Ford Money Market Account is a direct obligation of Ford Motor Credit Company, a wholly owned subsidiary of Ford Motor Company. >>
<< Say Ford has tough times ahead and fall to a mere $5 BILLION company, chances are they wont default on such small fry money. Small fries who are also car buyers. >>
If I'm not mistaken... Ford Motors could technically fold it's Ford Motor Credit Company and be wholly shielded from creditors, correct?
boden11
Senior Member
posted: Jun. 29, 2003 @ 4:01p
ummm earth to mr optimist...ford also has over 150 BILLION DOLLARS in long term debt. notice how their market cap is at 20 billion while their cash on hand is just under that amount!! this company is being valued at just face value because of their high risk and enormous debt load
http://biz.yahoo.com/p/f/f.html
BBallfan2003 said:
<< In short, I seriously doubt there is any real risk. I just dont see them defaulting on a small investors money when they have a marketcap of $20 BILLION ! >>
RJSachs
Senior Member
posted: Jun. 29, 2003 @ 4:42p
Aceshigh said:
<< I'm not worried at all about Ford's financial well being. >>
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lovetoshop
Member
posted: Sep. 22, 2003 @ 3:02a
Hi all,
Any experiences from people who have put money in this money market account. I heard this is open to public since 2/3 years only before this was only open to employees.
They are currently paying 2.84% for $50000.00 and more in money market ofcourse without FDIC insurance.
chiefw
Senior Member
posted: Sep. 22, 2003 @ 3:11a
The question is, what are you really buying?
Are you buying Ford's debt?
Or are you buying the debt of Ford Credit, which finances all those car purchases?
I think it may be the latter... in which case, you're basically investing in people's car loans. If this is the case, the financial state of Ford the company won't matter as much,
Zon
Senior Member
posted: Sep. 22, 2003 @ 12:05p
lovetoshop said:
<< Hi all,
Any experiences from people who have put money in this money market account. >>
I use GMAC Demand Notes and they are basically the same thing. Same bank (Northern Trust), customer service, and similar websites. Ford is slightly different in that you can signup and pay for bill pay. They also have the tiered interest rates. One time I received a fax from GMAC and the fax machine even said Ford Money Market. I see little risk in both of them and have no problem recommending them to others. One thing I like about GMAC is that I can wire out money for free. I don't know if Ford has the same.
Edited to add: I think it was Kiplingers (might have been Smart Money) that had a blurb about Ford and GMAC accounts, and they recommended them.
LittleHulk
Senior Member
posted: Sep. 22, 2003 @ 1:32p
Not worth it. You take on extraordinary risk for a mere 0.5% in extra yield. Netbank, ING, and some others offer 2.0% with FDIC insurance. Guys like Vanguard offer money market accounts that are not FDIC insured, too, but their investments are diversified and consist primarily of Treasury bills and commercial paper from many high quality companies. Ford is just one company and its financial strength is suspect.
For Week Beginning September 22, 2003 Amount Invested Ford Money Market Account
Rate Yield Up to $14,999 2.50% 2.53% $15,000 to $49,999 2.65% 2.68% $50,000 and Above 2.80% 2.84%
Q:How safe is my investment? A: Ford Money Market Account is a direct obligation of Ford Motor Credit Company, a wholly owned subsidiary of Ford Motor Company. It is not a diversified investment and is not FDIC insured. Text
Bry
Charter Member
posted: Sep. 22, 2003 @ 5:34p
I don't understand, aren't you a lot better off buying government I-bonds which currently give a 4% or better return? I think the gains are tax deductible too?
SeattleNative
Senior Member - 1K
posted: Sep. 22, 2003 @ 9:02p
Ford's Money Market account is not a Money Market Mutual Fund. Unlike a MMMF, your investment is not diversified through investments in different companies' short-term bonds and notes, Federal, state and local short-term debt issues, jumbo CDs and similar money market instruments. Your investment is only used by Ford and its captive finance subsidiaries.
There are some FDIC-insured savings products offering yields up around 2.0%. Those are a safer bet than the Ford Money Market, but the choice is yours.
cak144
Senior Member
posted: Sep. 22, 2003 @ 9:14p
Anyone interested in opening a mmf earning 2.2% FDIC insured and with a $20 account opening bonus, pm me.
I'm sorry to be ignorant. But can anyone tell me how can a consumer buy the government I-bonds? Can I withdraw my investment at any time? Is it possible that I could lose my principles? How much is the transaction charges?
>>I don't understand, aren't you a lot better off buying government I-bonds which currently give a 4% or better return? I think the gains are tax deductible too?
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