AmTrustDirect Raises CD Rates, 12-Month CD Yield is Now 4.15%

AmTrustDirect just increased the rates on many of its online CDs. The 12-month CD yield increased from 4.02% to 4.15% APY. The yield for all the longer terms is now 4.25% APY.

It looks like they've put all of their focus on CD rates rather than their savings accounts. Their original savings account, the e-Money Market account, now has a yield of only 1.50% APY for balances of up to $25,000. Even their newer e-Savings Account has a disappointing yield of 2.50% APY.

Please see my June review of AmTrustDirect CDs for more details about the CDs and AmTrustDirect's financial health. AmTrust has been hit hard by the mortgage crisis. As I recommend with any bank, make sure you stay below the FDIC insurance limits (AmTrust FDIC Certificate # 29776).

One Year Too Long for a CD?

With the recent CD rate hikes in the last month and with inflation continuing to rise, a good question to ask is if a one year term is too long for a CD. Rates may not continue to rise. There have been a few cuts in the top online savings account rates (OneUnited is the latest). And as this Bloomberg article describes, the momentum for a Fed rate hike before the end of the year appears to be slowing.

Tags: AmTrustDirect, CD rates