GE Capital Bank Reviews - Is GE Bank Safe?
(GE Capital vs. GE Synchrony Bank)

Overview

There is a potential source of confusion amongst consumers about the differences between the two GE banks.

On the one hand, there is GE Capital Bank, which is directly owned by General Electric.

On the other hand, there is GE Capital Retail Bank, which was also owned by General Electric, but was recently separated to become part of Synchrony, a different stand-alone General Electric entity.

  • GE Capital Bank (Previously GE Money Bank) is an Utah state-chartered industrial bank owned by General Electric Corp.

    An industrial bank is a type of bank that is authorized to accept most types of deposits (other than demand deposits). GE Capital Bank recently reported over $15.3 billion in total assets and is much smaller than GE Capital Retail Bank.

     
  • GE Capital Retail Bank (Now Synchrony) (formerly MetLife Bank) is a federal savings bank headquartered in Draper, Utah and has over $33.4 billion in total assets.

    After the 2007 - 2009 financial crisis, MetLife Corporation decided to exit the banking business and divested its banking unit to GE. That banking unit was renamed GE Capital Retail Bank

Effective June 2, 2014, however, GE Capital Retail Bank was renamed Synchrony Bank and is now part of Synchrony Financial, which is 100% owned by GE. 

As you might be aware, in March of 2014, GE Corporation took a step to further reduce the size of its North American retail finance unit, by announcing that it would spin off its consumer finance business (now renamed Synchrony Financial).

July 18, 2014 - GE Announcement
 
On July 18th, GE announced that it planned to spin off its North American consumer finance business, Synchrony Financial, in an initial public offering. That IPO is scheduled to take place in August of 2014 or earlier (towards the end of July). 
 
In its latest filing with the Securities and Exchange Commission, Generic Electric stated that it plans to sell up to 15% of Synchrony Financial to the public.
 
The 15% equals 125 million shares, which GE plans to sell for around $24.50/share.
 
If GE is able to successfully sell each share (of the 15%) around the $24.50 price range, then Synchrony would have a total (100% of shares) value on its IPO day of around $20 billion.

GE plans to distribute the remaining shares to its shareholders.

GE Capital Retail Bank Review

The other GE bank (GE Capital Bank) will remain under the GE umbrella.

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GE Capital Bank vs. Synchrony Bank Product Comparison (Accounts, CDs, and Online Savings)

Although GE Capital Bank provides free savings accounts, Synchrony Bank has more account options. 

GE Capital Bank Products:

  • High yield interest savings account
  • High yield CDs

Synchrony Bank / GE Capital Retail Bank Products:

Synchrony Bank provides specialized services to both retail customers (individuals like you and me) and to large commercial business clients.

Products for Retail Clients include:

  • High yield savings / money market accounts
  • High yield CDs
  • Credit cards
  • Loan

Products for Commercial Clients include:

  • Equipment leasing and lending
  • Inventory finance
  • Corporate financing
  • Restructuring finance
  • Commercial real estate

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High Yield Savings Rates and CD Rates

GE Capital Bank Rates:

  • Online Savings Account: Earn 0.90% APY on Balances: $1 to $1,000,000
  • CD rates range from an APY of 0.70% (6 months CD) to 2.30% (6 years)

High Yield Interest Savings Account
High Yield Interest Savings Account

GE Capital CD Rates
GE Capital CD Rates
All Rates are accurate as of June 2013

GE Capital Bank Reviews

GE CD Rates Relative to Peers

Synchrony Bank / GE Capital Retail Bank Rates:

Savings Rate - Synchrony Bank / GE Capital Retail Bank Reviews
Synchrony Bank Rates


CD Rates and Terms - Synchrony Bank / GE Capital Retail Bank Reviews
CD Rates and Terms - Synchrony Bank

 

A $100,000 Initial Deposit (5 Yr CD) will Yield: $112,019

A $100,000 Initial Deposit (5 Yr CD) will Yield: $112,019

* Note: All rates / yields shown on this article can be changed at any time without notice. Please review the respective sites for the most updated information.

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Pros and Benefits of Banking with GE (GE Capital vs. GE Capital Retail / Synchrony)

GE Capital Bank

  • Highly competitive savings, CDs and money market rates
  • Wide range of CD terms. From 6 months to 6 years
  • You have the option to withdraw (penalty free) any interest credited to your account at any time during the term of the CD
  • Minimum balance required to open a CD is only $500
  • No minimum deposit to open an online savings account
  • No transaction fees for an online savings account
  • Savings account interest yield compounds daily and paid monthly

GE Capital Retail / Synchrony Bank

  • A wide range of financial and banking products are available to you (CDs, Money Market, Savings account, IRA CDs, Credit Cards, etc.)
  • Highly competitive savings, CDs and money market rates
  • Minimum balance required to open a savings account is only $50
  • Minimum balance required to avoid a monthly service fee is only $50
  • The bank’s website is easy to use with quick bill payment setup and automatic transfers
  • Minimum balance required to open a money market account is $0
  • Optimizer+plus Perks program. This program not only rewards you for the balances you keep with Synchrony Bank but also for the length of time you have been a customer with the bank. With this program, customers get up to $5 in ATM fee reimbursements per statement cycle, free first order of checks for money market accounts, and free identity theft resolution services

Cons, Complaints and Negative Reviews

Cons and Consumer Complaints about GE Capital Retail / Synchrony Bank

  • Unlike most banks, Synchrony Bank has only one branch (located in 200 Crossing Blvd, Bridgewater, NJ 08807). Unless you live in New Jersey, you cannot easily visit a Synchrony Bank branch in person.
  • Even if you live in NJ, you might not be able to visit the branch as needed. A lot people get off work after 5pm during the week day. Unfortunately, the NJ branch is only open from 8am to 3pm ET, Monday - Friday.  However, you can easily manage your money through the bank’s online banking portal, or by speaking with one of their Banking Representatives
  • For its Money Market accounts, you are required to maintain a $1,500 minimum balance to avoid a $15 monthly service charge
  • The bank does not currently offer checking account services
  • The bank has earned a few consumer complaints (i.e., poor customer service)

Cons and Consumer Complaints about GE Capital Bank

  • The bank only offers two products (Savings and CDs). No credit cards, no checking accounts, etc.
  • The bank has earned a few consumer complaints (i.e., poor customer service)
  • Some instances of online /connectivity issues
  • GE Capital Bank has no bank branches. It is predominately an online banking firm
  • To deposit checks, you’ll need to mail the check to: GE Capital Bank, PO Box 4571, Carol Stream, IL 60197-4571
  • To send a wire transfer, you’ll need to call the bank at 1-855-730-7283 Monday through Friday, 7am to 11pm CT
  • In most circumstances, the bank will only allow a transfer of funds from your Account at GE Capital Bank to an account you own at another financial institution
  • The bank has earned a few consumer complaints (i.e., poor customer service)

Note: Despite the above cons and complaints, please note that in general, people are more liable to post negative reviews of a product or company than they are to post positive reviews. GE Capital Bank and GE Capital Retail / Synchrony Bank both offer great benefits, and provide high rates and yields that are higher than the national average.

Is GE Capital Bank Safe? What about GE Capital Retail Bank?

MarketConsensus News has received numerous emails from site visitors asking: “Is GE Capital Bank safe?”, "Is GE Capital Retail Bank safe?", "Is GE Bank safe?", "How safe is GE Capital Bank?", etc.

Both these two banks are relatively safe, as they are both members of the FDIC. As such your funds are FDIC insured up to the maximum allowed by law.

In the unlikely event that either of these institutions go under, FDIC insurance covers up to $250,000 per depositor, per insured bank, for each ownership category.

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