Summary: By issuing corporate notes, companies can borrow capital directly from investors at a fairly low cost, while providing investors with benefits such as:

Higher rates of interest than other cash alternatives like FDIC-insured savings accounts, short-term CDs, and money market mutual funds

Investments that are fully redeemable at any time

Convenient banking-type features like check writing, free electronic transfers between linked checking accounts, and the ability to wire funds

Corporate notes are a direct, unsecured investment in the debt of a corporation, and so are not FDIC-insured. Unlike short-term bond funds or money market mutual funds, they are not diversified pools of investments. Because they are a form of unsecured credit, you would be treated as an unsecured creditor in the event of a default. That’s why it is critical for you to evaluate the financial strength of the company you choose to invest in.

The Strength of GE Interest Plus Corporate Notes

GE Interest Plus is a direct investment in GE Capital. GE Capital is rated AA+ by Standard and Poor’s Corporation (S&P) and Aa2 by Moody’s Investors Service (Moody’s). S&P and Moody’s are nationally recognized statistical rating organizations, each approved by the United States Securities and Exchange Commission to measure the safety of securities. By reviewing the credit rating, you can determine if you are investing in a company that is financially sound.

Other Sources: Checkings And Money Market Accounts

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