Dedicated to Deposits: Deals, Data, and Discussion

4.25% 6-Month Online CD at AmTrustDirect

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AmTrustDirect
Update 9/28/08: The 6-month CD yield is now up to 4.35% APY.

AmTrustDirect just increased the yield on its 6-month CD to 4.25% APY (was 4.15%). The rates for all the other terms remain the same. The 12 and 18-month CDs remain competitive with yields of 4.30% APY and 4.38% APY. The minimum deposit is $1,000.

AmTrustDirect continues to list a 4% yield on its e-Savings Account page without clearly identifying this as a 90-day promo for new accounts. You'll have to review the small print to see that the 4% applies for the first 90 days. After 90 days, the standard rates apply. Currently, the standard yield is only 2.50% APY for the first $100K. This is low but not as bad as AmTrustDirect's original online savings account, the e-Money Market, which has a yield of only 1.50% APY for the first $25,000 (2.00% APY for over $50,000).

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).
  Tags: AmTrustDirect, CD rates

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Comments
8 comments.
Comment #1 by Anonymous posted on
Anonymous
I have pulled all my money out of amtrust except a few bucks in each account. Started out with e m/m and it is now down to 1.5% . So I opened an e-savings account and now the rate on it has dropped to 2.5 %. And they have started a new savings account at 4%. I guess I am not very smart as I just can't convince myself that a new customer;s money is worth nore than mine is since I have been a customer for some time. Seems to me it should be the oyher way. Anyway there is still a few other banks still standing. Happy bail outs to everyone. Maybe when Obama gets in he will insure my stocks also.

1
Comment #2 by JCE (anonymous) posted on
JCE
I just opened a 6 month CD (4.35% APY) with AmTrust. The process was simple and quick. I signed up on their website and put in my bank routing info for ACH tranfer to fund the CD. I was given instructions that would enable me to login to my account in 2 days. After completing the process I received an email confirmation. The next day I checked my linked account and saw the ACH tranfer was completed, the day after that I was able to login to my AmTrust account and see my money was there. A few days later I received account information in the mail. So far I am impressed as this was the fastest I have ever had an online account opened and funded. If the interest rate is still competitive when the CD matures in 6 months I will probably renew it.

1
Comment #3 by JCE (anonymous) posted on
JCE
I received an email from AmTrust that they have a special offer until 12/12/08 which allows me to close my 6 Month CD (which matures in April 09) early without any early withdrawal penalty. I looked on their website and saw that the 6 month CD rate has plummeted to 2.00% APY. I guess they are hoping people with higher rate CD's close them early so they no longer have to pay the higher rate. It looks like I will be closing this account when my CD matures in April.

1
Comment #4 by Banking Guy (anonymous) posted on
Banking Guy
Thanks for the info. This special offer email and their very low rates may be a sign of problems at AmTrust. I have a recent post on this.

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Comment #5 by Anonymous posted on
Anonymous
Received the same email. If you don't have a deposit account there to use for an outbound ach they just mail you a check. Thinking about taking the offer as the wire transfer is free. Can still get 4+ rates for 6 months now. A week of interest lost due to a check negates the nice rate.

1
Comment #6 by JCE (anonymous) posted on
JCE
I received another email from AmTrust, the offer to close my CD early without any penalty has been extended until 12/19/08. I'm keeping the account until maturity.

1
Comment #7 by Anonymous posted on
Anonymous
Received another email today. Due to OVERWHELMING response they have decided to extend the offer to Dec 31st LOL! When one has demand for something you continue to offer the same terms? I'm holding till April. Amtrust trying to get 4th quarter in line with FDIC.

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Comment #8 by JCE (anonymous) posted on
JCE
I received the same email with the offer extended until 12/31. I'm holding out until maturity unless they come up with some sort of cash incentive.

1