Edit

Forums ›
Finance

Q: Opinion on safety of Money Market Accounts from GE and Ford Archived From: Finance

  • tweet this
  • Post to Facebook
  • Text Only
  • Search this Topic »
  • Classic
  • Page :
  • 1
alert mods    
   posted: Aug. 9, 2005 @ 3:46p

Hi,

I would like to get your opinions on the following Money Market Accounts
(technically they are not MMA and not diversified as they invest in one
company only)

1. GE Interest Plus
http://www.geinterestplus.com/interestplus/index.html

2. Ford Interest Advantage
http://www.fordcredit.com/interestadvantage/index.jhtml

I would like to know if they are good vehicles to park money in those
accounts. Under what conditions, can they default ? My feeling is they
are one of the strongest arms (GE Capital and Ford Capital) of their
respective parents.


   posted: Aug. 9, 2005 @ 3:46p

Quick Summary is created and edited by users like you... Add FAQ's, Links and other Relevant Information by clicking the edit button in the lower right hand corner of this message.


alert mods    
   posted: Aug. 9, 2005 @ 3:49p

GMAC is another financing arm paying excellent rates.

http://www.gmacfs.com/notes/demand/main.htm


alert mods    
   posted: Aug. 9, 2005 @ 4:01p

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.


alert mods    
   posted: Aug. 9, 2005 @ 6:06p

I have no strong opinion on GM or Ford's viability but I don't see the sense in taking specific company risk(any company) with money that by definition you are using as a cash reserve/MMA. I would much rather stretch for diversified duration risk with a short term bond fund than put what should be my safest savings at the whims of the market's view of a single company.

Certainly wouldn't do it for a .25-1.0% bump in my rate.


alert mods    
   posted: Aug. 9, 2005 @ 8:18p

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.


 Close

Sign Me In
Nickname: 
Password: 
Remember My Login Information:

Forget your login information?

Not Already A Member?
Sign Up Now!


Disclaimer: By providing links to other sites, FatWallet.com does not guarantee, approve or endorse the information or products available at these sites, nor does a link indicate any association with or endorsement by the linked site to FatWallet.com.


While FatWallet makes every effort to post correct information, offers are subject to change without notice.
Some exclusions may apply based upon merchant policies.
© 1999-2009