I am currently an investor in GMAC demand notes. It acts like a money market- with check writing/wire transfer abilities- and is currently paying 4.25% APY. Only downside is it is not FDIC insured, so there is no protection if the company goes under- but there are much bigger ramifications to the economy if GM folds entirely.

I had been using Ford for some time, but with their recent woes, I've had second thoughts. The premium seems pretty good when you compare different MMA's, but then you have to consider the potential to lose substantially ALL of your investment. Is it really worth the $300 extra per year?

I feel very comfortable using GE and park a substantial amount there. AAA rated companies are not likely to announce a bankruptcy out of the blue. However, companies such as GM & Ford, with junk status credit, net operating losses, and onerous labor agreements, could declare bankruptcy at any time. If Ford were to declare bankruptcy, I believe Ford Capital would be included, but I'm not sure. Certainly not worth the risk for the small premium.