AmTrustDirect Raises e-Money Market Account Rate to 5.26%
Sep 8, 2006 - 11:56 AM by Ken Tumin
AmTrustDirect just raised the rate of its e-Money Market account from 5.15% to 5.26% APY. The APY applies to balances of $1 and higher. There are no minimum balance requirements, however, there is a minimum initial deposit requirement of $1,000. This is a new savings account that I first reported on in an August. It seems to have many nice features such as ACH transfer capability. Some of the drawbacks include no ATM card or check writing. Also, there may be a hard credit pull. Refer to my August post for more information about this account.
There was also a minor CD rate change at AmTrustDirect. The 12-month rate went from 5.68% to 5.60% APY. Other rates remain the same. Their longer term CD rates had already fallen from 5.68% to 5.50% over the last few weeks which was similar to the rate drops seen at many other banks. In July I was told that they ended the practice of pulling hard credit pulls for CD applications. However, a reader just informed me that there was a hard credit pull made on his Equifax credit report after he had opened a CD. So you should probably assume that a hard credit pull will be done. I'm looking into this to see if that is the official policy.
There was also a minor CD rate change at AmTrustDirect. The 12-month rate went from 5.68% to 5.60% APY. Other rates remain the same. Their longer term CD rates had already fallen from 5.68% to 5.50% over the last few weeks which was similar to the rate drops seen at many other banks. In July I was told that they ended the practice of pulling hard credit pulls for CD applications. However, a reader just informed me that there was a hard credit pull made on his Equifax credit report after he had opened a CD. So you should probably assume that a hard credit pull will be done. I'm looking into this to see if that is the official policy.
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Anonymous - #1, Friday, September 8, 2006 - 3:07 PM
I spoke to a CSR. For the e-Money Market account, he mentioned that they use Chex systems and not a hard credit pull. Also, interest is accrued daily and paid monthly.
Anonymous - #2, Friday, September 8, 2006 - 8:41 PM
They do hard pulls and they repeat the hard pull every six months or so. I was with them for
a year and already had two hard pulls.
Anonymous - #3, Saturday, September 9, 2006 - 12:35 AM
Fortunately, I didn't open AmtrustDirect CD. I was tempted a few times to do so because their rates appear competitive.
It's just not worth having your credit report pulled just for opening deposit/non-credit accounts. I mean, it's not as if my money stinks, right? There are many ways to identify me; I don't see why the banks must resort to a hard credit pull (other than to see what products they can sell to you in future, or to create an excuse to raise your interest rates on credit cards in future). I was even told that some banks may raise their introductory 0% APR to the customary APR if they realize you've got too many credit inquiries (it's written in the fine print). And some auto insurance companies may raise your premium if you've got too many inquiries in a short time period.
Does anyone know if GMAC Bank still performs a hard credit pull? I opened some GMAC deposit accounts in May 2006 and got a hit in my Transunion. But I notice it's gone now when I checked my Transunion report recently in August 2006! Can banks drop the hard inquiries that they did a few months ago?
Matthew (anonymous) - #4, Saturday, September 9, 2006 - 5:28 PM
How many linked accounts can you have for bank to bank transfers? Does anyone know how long it takes to move money from one account to another? Thanks!
Anonymous - #5, Tuesday, September 12, 2006 - 1:42 PM
Called today. Soft credit pull only to verify identity.
Banking Guy (anonymous) - #6, Tuesday, September 12, 2006 - 7:00 PM
Matthew, according to the FAQ, you can link up to 6 external accounts (which can include both savings and checking accounts). I'm not sure about the speed of transfers.
Thanks for the info on the soft credit pull. I hope this is the case and it's not a hard pull. Sometimes the CSRs haven't been 100% correct on this issue.
Anonymous - #7, Tuesday, September 12, 2006 - 10:43 PM
I pressed a CSR about the credit checks that are performed. She said they take applications and then hand them off to "another department" for processing. She said they use ChexSystems, and that they "may or may not" do a hard pull. She said it is not up to AmTrust. I said, "So for someone who has a good credit history, would they probably not do this?" She said, "I can't guarantee that they won't."
It didn't sound very promising; I may call again. I definitely recommend that you call before you apply for an account.
traveller (anonymous) - #8, Wednesday, September 13, 2006 - 2:41 PM
HI TO ALL...
I am interested to hear the story on if they do a hard credit pull or what.
Does not seem if any body gets the same answer.
Why is it so hard to get the same answer ?
I do have one of the e-money market accounts and the first time I transferred money to another linked bank they reversed the process and took money from the linked account.
I had proof that I did it correctly.
Thye say now that the glitch is corrected.
I have not tried it again.
Will wait and see how it goes.
Hope we can get a firm answer as to if they do hard credit pull.
Thanks
Anonymous - #9, Friday, September 15, 2006 - 2:58 PM
I def. had a hard pull done under "Ohio Savings Bank".
One good note, billpay seems to work with it (although they debit your account as soon as you process the billpay, not when the check is cashed).
Anonymous - #10, Saturday, September 16, 2006 - 6:12 AM
They seem to be unable to link to external accounts with 13 digits. All of my Wachovia accounts have 13 digits. When I try to set up the external link, the test deposits do not occur (over a week now) and the account number on the linked account menu is missing the last digit. I called and reported this several days ago, but nothing has changed. The CSR said they had to refer it to the IT department. Strangely, the account was initially funded from a 13 digit account at Wachovia without a problem (they did not use trial deposit verification or user id/password verification either - just grabbed the money).
scott (anonymous) - #11, Monday, September 18, 2006 - 6:24 AM
Some say pull, some say no. I did do a CD with them last year and had the pull and now would like to open the e-Money Market. I have called about the pull and never seem to get a straight answer so I asked for a manager. I was told they may or they may not and that is why they ask for permission on the application. I am staying away because of a such a bogus answer that they "reserve the right too" To bad because the account seems good and I have $100k I need to get out of WFB
Banking Guy (anonymous) - #12, Monday, September 18, 2006 - 8:41 AM
About AmTrustDirect hard credit pulls for CDs, I've confirmed that this is no longer their policy.
A reader who opened a CD in August had reported a hard credit pull. AmTrustDirect admited that this was a mistake and have said that they will remove this from his credit report.
scott (anonymous) - #13, Sunday, September 24, 2006 - 7:44 AM
Well this account just seemed to good to pass up and I had to find a new home for money I had sitting in WFB making 4.60%. So I took a chance and has now been 4 days since my initial funding has been pulled so account must be open and still no pull showing on my report.
Banking Guy (anonymous) - #14, Sunday, September 24, 2006 - 5:20 PM
I'm afraid the issue of hard pull with the savings account is still uncertain.
Just with the CD, my contact at the bank says categorically there is no more hard pulls.
It'll be interesting to see if you do get a hard pull.
scott (anonymous) - #15, Tuesday, September 26, 2006 - 6:31 AM
Am very impressed with this account. I applied on 9/19 and funds were pulled on 9/21 but they started paying me interest on 9/19. First time I have received overlapping interest funding an account this way. Received my opening letter on 9/25 with all the info I needed to log on and start linking some more accounts.
Also pulled my 3 reports this morning and can confirm no hard pull was done
scott (anonymous) - #16, Wednesday, September 27, 2006 - 1:04 PM
AmTrustDirect has increased to 5.30%
Anonymous - #17, Friday, September 29, 2006 - 2:10 AM
How do I find out if i got a hard pull?
Anonymous - #18, Thursday, February 15, 2007 - 2:04 PM
I just spoke with a CSR and he confirmed with his supervisor that they do a hard pull on your credit report when opening the e-Money Market Account. Also, they have a five business day hold on all incoming ACH transfers.
Banking Guy (anonymous) - #19, Thursday, February 15, 2007 - 6:46 PM
Thanks for the info.
Anonymous - #20, Saturday, June 23, 2007 - 10:52 AM
I opened two $10000 CD's this year, one in Feb. and one in April at Amtrust. It was the easiest tranaction I ever performed. The interest started the day I submitted the App. Just checked my credit report at Experian and there was no hard or soft pull from Amtrust.
Anonymous - #21, Thursday, October 25, 2007 - 10:57 PM
Amtrust does do a hard pull on any type of checking account if it is the first account you are opening. If you open a CD account, there is no hard pull done. Chexsystems is definately contacted on all new customers except for someone calling in to open a CD account. Hope that helps. The reason for the credit pull on a new customer opening a checking or savings account is to minimize the risk for the bank which in turn keeps fees lower and rates higher.
Anonymous - #22, Thursday, October 25, 2007 - 10:58 PM
Amtrust does do a hard pull on any type of checking account if it is the first account you are opening. If you open a CD account, there is no hard pull done. Chexsystems is definately contacted on all new customers except for someone calling in to open a CD account. Hope that helps. The reason for the credit pull on a new customer opening a checking or savings account is to minimize the risk for the bank which in turn keeps fees lower and rates higher.
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