Dedicated to Deposits: Deals, Data, and Discussion

Amboy Direct Increases Rate of 12-Month Add-On CD to 2.10% - Available Nationwide

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Amboy Direct increased the rate of its eSavings CD to 2.10% APY. The rate had been 2.00% APY for the last couple of months. The 2.10% APY requires a balance of at least $10,000.

One nice feature of this CD is that you can open it with just $100. 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 2.10% APY. I confirmed this with an Amboy rep in March. The 2.10% APY isn't the best for a 1-year CD, but it can be a useful hedge against rates staying low. You can always fall back on this 2.10% 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.

Below is a summary of the rates and features as of 10/11/09:
  • 2.10% APY for $10,000 and up
  • 1.00% APY for $100 to under $10,000
  • $100 minimum opening deposit
  • 12 month term
  • Allows additional deposits during first 6 months - up to $100,000 - via account transfer
  • Rates guaranteed through the term
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. When I spoke to the rep in March, I was told that 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 Amboy Direct's eSavings CD Details Page for more information.

When I first reported on this CD in March 2009, Amboy allowed additional deposits during the entire term. Unfortunately, they reduced the time of the allowed add-on deposits to the first 6 months.

Amboy Direct is part of Amboy Bank which has been a FDIC member since 1934 (FDIC Certificate # 6423). Amboy Bank is based in New Jersey with 26 branches. It has $2.7 billion in assets and $2.2 billion in deposits based on 6/30/09 FDIC data.

Amboy Bank's ratings for safety and soundness have fallen since March and are now a little weak: 1 star (lowest) at Bankrate.com and 2 stars (problematic) at BauerFinancial. Both ratings are based on 6/30/09 data.

Other Competitive Certificate of Deposit Rates

For other add-on and liquid CDs refer to this post. I have the latest rates for all types of CDs in the following pages:

  Tags: CD rates

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