New Online CD Rates at AmTrustDirect, M&T Bank
Apr 21, 2006 - 6:59 PM by Ken Tumin
After 11 days since my first post on the new internet version of AmTrust, AmTrustDirect, the bank has already made increases to their CD rates. Their rates are near the top for internet banks. Like GMAC Bank, the 6-month CD increased from 5.00% to 5.10% APY. All the other CD yields increased by 0.05%. The 12-month CD and all longer terms are at 5.25% APY. The 9-month CD is now at 5.15% APY. All CDs have a minimum deposit of $1K.
AmTrustDirect is currently just offering certificates of deposit online without any savings or money market accounts. Another bank selling only CDs online is M&T Bank, N.A. which is a subsidiary to M&T Bank Corporation (see post). M&T Bank, N.A. has APYs close to AmTrustBank with a 5.06% 6-month CD, 5.11% 9-month CD and a 5.17% 12-month CD. The minimum deposit is $5K.
EmigrantDirect just started offering CDs in March. ING Direct has long offered CDs, but just recently did some extra advertising of them as their Winter Save Up Sale ended. Since it's so easy to transfer out money from an online low-minimum savings account, banks may be looking to CDs as better way to maintain deposits.
Perhaps we'll see more banks competing in online CDs. If the long-term CD rates can make some gains, CDs may become more attractive especially when interest rates start to go back down. With more competition, there should be more CD deals.
AmTrustDirect is currently just offering certificates of deposit online without any savings or money market accounts. Another bank selling only CDs online is M&T Bank, N.A. which is a subsidiary to M&T Bank Corporation (see post). M&T Bank, N.A. has APYs close to AmTrustBank with a 5.06% 6-month CD, 5.11% 9-month CD and a 5.17% 12-month CD. The minimum deposit is $5K.
EmigrantDirect just started offering CDs in March. ING Direct has long offered CDs, but just recently did some extra advertising of them as their Winter Save Up Sale ended. Since it's so easy to transfer out money from an online low-minimum savings account, banks may be looking to CDs as better way to maintain deposits.
Perhaps we'll see more banks competing in online CDs. If the long-term CD rates can make some gains, CDs may become more attractive especially when interest rates start to go back down. With more competition, there should be more CD deals.
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Steve Holt (anonymous) - #1, Saturday, April 22, 2006 - 7:15 AM
AmTrust Direct looks good. Anyone have any prior dealings with them? Any problems? Seems like it would be a very easy CD to set and manage according to their website and FAQs sections.
Banking Guy (anonymous) - #2, Saturday, April 22, 2006 - 2:59 PM
A commenter, scottjm61, had the following note on AmTrust Bank from my last post:
I did a CD last year with AmTrust and was not that happy with them. First they did hard pull and then to close I had to mail a notarized letter
I'm not sure how different AmTrustDirect will be. You still have to mail in the instructions if you want to close a matured CD and then the check will be mailed. It doesn't say if it requires a notary.
Steve Holt (anonymous) - #3, Saturday, April 22, 2006 - 8:26 PM
Ken - thanks for bringing that comment to my attention. I did find it after looking around your blog for comments about AmTrust. I will email them or call them on Monday and ask about specifics on closing a CD and getting the cash back.
Anonymous - #4, Tuesday, May 2, 2006 - 10:38 AM
Good question about AmTrust - I was wondering the exact same thing. I called and they said in order to close the account when the cd matures you need to send them a written letter but it does not have to be notorized.
Anonymous - #5, Thursday, August 10, 2006 - 3:05 AM
The Am Trust website cannot always be accessed. Repeated mails to them return "not all browsers support our site". "Try another browser". My response - "try another bank".
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NBAMarketing (anonymous) - #6, Thursday, August 17, 2006 - 11:12 PM
AmTrust is now offering eMoneyMarket account at 5.15 APY
Anonymous - #7, Tuesday, September 26, 2006 - 11:44 AM
I've starting using Amtrust Direct's new money market account and am reasonably satisfied. They seem to have some problems with account history, but nothing that effects balances. I've been able to move money between the account and another institution's checking account easily and swiftly (~1 day transaction time after one goes through the ~2-4 day setup process). Customer service response time over email is slow, but this is not an account that I expect a lot of service from, just interest.
At this point (having had the account over a month), I have not had much trouble accessing their site.
Anonymous - #8, Tuesday, April 17, 2007 - 2:15 PM
I have had numerous problems with the Amtrust Direct savings account. The bank started making unauthorized transfers from my external account. It has been 2 weeks and the problem is still not resolved. I am having issues closing the account and can not get a supervisor on the phone in less than 30 minutes ever.
Anonymous - #9, Sunday, July 22, 2007 - 10:36 PM
In my opinion, their security is not sound. Here's a snapshot of their MS Sharepoint website which I'm accessing right at this moment:
http://tinyurl.com/ys65wz
CreditUser (anonymous) - #10, Monday, August 27, 2007 - 5:21 AM
I just opened a CD with them. How do I make sure they haven't done a hard pull? I really doubt now, after all these comments.
Banking Guy (anonymous) - #11, Monday, August 27, 2007 - 7:33 AM
You can check your credit reports from all three agencies once a year for free at www.annualcreditreport.com. This will tell you who had done hard pulls
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