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
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: