Update: The CD rate has fallen to 1.10% APY.
Amboy Direct continues to offer an add-on CD called the eSavings Time Deposit. I first reported on this CD in March. The rate has gone down a bit and the add-on feature isn't as flexible as it was in March, but it's still a good deal compared to what others are offering.
Below is a summary of the rates and features as of 6/25/09:
- 2.35% APY for $10,000 and up
- 1.00% APY for $100 to under $10,000
- $100 minimum opening deposit
- 12 month term
- Additional deposits allowed during first 6 months (maximum balance is $100,000)
- Rates guaranteed through the term
- Requires new money not currently on deposit at Amboy Direct
You can apply online from their CD page. Existing Amboy Direct customers will still need to go through the full application. The initial deposit and add-on deposits can only be done via an electronic transfer (ACH) from a checking account at another bank. The external account is verified using the trial deposit method. According to the Amoby rep, the rate generally locks at the time the application is submitted.
At maturity, the CD will be converted into an eSavings account unless you contact them and ask to renew.
The penalty for early withdrawal is 3 months of interest. Partial withdrawals are not allowed. The entire balance is subject to the penalty.
Refer to the "Details" tab of the Amboy Direct CD page for more information.
One nice feature of this CD is that you can open it with just $100. Later during the first 6 months, you can add to it and bring the balance above $10,000. The rate will then increase from 1% to 2.35% APY. The 2.35% APY isn't that great for a 1-year CD, but it can be a useful hedge against further rate cuts. You can always fall back on this 2.35% CD for at least $100,000. If rates go up, you don't have to add to it. You'll just be earning 1% on $100, which isn't much of a loss.
Amboy Direct is part of Amboy Bank which has been a FDIC member since 1934 (FDIC Certificate # 6423). Its financial ratings for soundness have dropped in the last year. Its rating at Bankrate.com fell from 4 stars based on 9/30/09 data to 1 star (lowest) based on 12/31/08 data. At BauerFinancial it continues to have 2 stars (problematic). This is now based on 3/31/09 data.
Thanks to the reader who emailed me news of this latest update.
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