GM Right Notes recently raised their rate from 4.5% to 4.75%. They have a $500 minimum. This is really like a money market fund as you can move money at your discretion at any time via electronic funds transfer from your bank account. It’s not a CD or note in that there is no minimum investment term. Interest accrues daily but is paid at the end of the month.
You can move your money back to your bank at any time with no penalty via their online tool. Mellon Bank manages the program.
The rate paid seems to float with the FED treasury target rate as they have been steadily raising the rate paid in step with the FED
I have used this extensively since rates have been rising from near zero without problem, but using it less now because of the availability of treasury bonds near 5%.
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