Banks need deposits and in this environment often need them quickly.

So far, in 2009 alone, we have seen a couple of banks quickly raise large amounts of deposits with promotional savings rates. Cheasapeake Bank launched ClearSkies, an online banking arm, to offer depositors a 3 month lock on a 3.75% earlier this year. The promotion was so successful that the bank quickly lowered its rate because it got more deposits than it needed. East Boston Savings Bank recently followed suit with a 4 month lock on a 2.82% rate, which it recently lowered for the same reason. Currently, Acacia Federal Savings Bank is offering a 4 month lock on a 2.25% rate.

Promotional savings rates, especially those where the bank commits to locking a certain rate for a certain period - are a win-win situation. With the distribution on the internet, and site such as BestCashCow.com, the information on these rates gets out quickly and enables banks to quickly raise the funds that they need. Depositors wind up with a rate that is well in excess of comparable-length CDs. Additionally, depositors can rest assured that the banks usually will need to remain competitive after the guarantee date.

Everbank raised the promo rate on its yield pledge money market account from 2.55% to 3.01%. This reverses six months of rate cuts and may be another sign that we are reaching the bottom in savings and money market rates.

Everbank's 1 year APY has increased from 1.87% to 2%. What we've always found interesting about Everbank's offer is that the three month promo is a guaranteed rate for three months. That means, in essence you get an account equivalent to a 3-month CD that is paying 3.01% APY and that is totally liquid. The best 3-month CD rate according go the BestCashCow rate tables is 1.70% APY.

At times like this, when rates seem to have bottomed and are increasing on the longer-term CDs, parking money for a short-term in a higher yielding account like Everbank may make a lot of sense.

Everbank has always had a competitive promo rate. Starting last fall it began to drop, along with savings and money market rates in general. This increase reverses the trend of six months of rate cuts and may be another indicator, along with a leveling of the decline we've seen, that savings and money market rates have bottomed and will start trending up.

GMAC today issued a statement commenting on the filing of its once parent corporation General Motors. The statement shows that while the financing company does have exposure to GM, bankruptcy will hopefully minimize the losses.

Ally Bank, a bank that has been in the news quite a bit over the last week due to its high rates on savings and certificates of deposit is a subsidiary of GMAC. Ally Bank was formerly known as GMAC Direct.

The statement on the GMAC site says:

DETROIT (June 1, 2009) -- GMAC Financial Services is a creditor of General Motors Corp. (GM) and as such is taking the appropriate steps to protect GMAC's interests during GM's restructuring.

GM has submitted a motion to the U.S. Bankruptcy Court that, pending approval, would allow its direct business with GMAC to continue in the ordinary course during GM's restructuring. In addition, GMAC has been advised by GM that GM will take appropriate steps in the bankruptcy court to authorize a purchaser of the assets to comply with all of the contracts with GMAC, including all payment obligations.

GMAC continues to provide automotive financing products and services to GM and Chrysler dealers and customers, including retail auto originations, wholesale financing, insurance products, and servicing of customer loans. The company's non-automotive activities also continue uninterrupted.

GMAC is a bank holding company with a newly appointed board of directors and a diversified ownership structure. GMAC has not filed for bankruptcy, nor does it intend to, and the company continues to meet all of its obligations.

The wording of this couldn't be more ambigious business-speak. GMAC is a creditor to GM, meaning that it does have exposure. I'm guessing that the majority of the exposure comes from loans to dealers to purchase cars from the automaker (wholesale financing). At the same time, the statement implies that the bankruptcy filing will ensure that GMAC is made whole for these transactions and will keep the financing relationship in place : "In addition, GMAC has been advised by GM that GM will take appropriate steps in the bankruptcy court to authorize a purchaser of the assets to comply with all of the contracts with GMAC, including all payment obligations."

So, for depositors of Ally Bank, this looks like a non-event for now. GMAC Finance issued a statement earlier today on an unrelated matter stating that the company was financially sound and had aqequate capital.

I've contacted GMAC and will post any further information that I receive.