Sunday, October 11, 2009

GE Interest Plus – Just Say No?

Following a link, I was directed to something called GE Interest Plus. From what I can tell, investors are allowed to lend money to GE Capital Corporation on a short-term basis. In return for a whopping 2% interest rate, you get to take on the risk inherent in GE Capital.

Is GE Capital solvent? Probably. I have, however, read reports that indicated GE Capital has been severely hurt by the financial crises.

Bottom Line:     Return – marginally better than available from an insured bank. Zero chance of profiting from an upside move.

        Risk – much higher than an investment in a CD at an online bank.


While not a scam, the risk/reward is out of balance against the investor.

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