It has been a while since I've reported on Amboy Direct. They used to offer competitive rates, but the rates have been below average in the last year as compared to other internet banks. One thing Amboy Direct continues to offer is a $50 bonus for New Jersey residents who open its eSavings Account and maintain a $3,000 balance for 90 days. The eSavings Account has no minimum balance or monthly fees. This promotion is listed in Amboy's eSavings Account page as of 11/04/2010.
The downside to this promo is keeping $3,000 in the eSavings Account since it currently only offers a 1.00% APY. With rates so low everywhere else, it's not much of a loss. For example, one of the top savings account rate is 1.40% APY at Sallie Mae Bank as of 11/04/2010. By keeping $3K for 3 months at 1.00%, you'll receive $3 less interest as compared to Sallie Mae Bank (assuming the rates stay the same).
Amboy Direct used to have the best rates for its Premium Savings Account. Back in 2006 the yield was 5.15%. However, this now has lower rates than the eSavings Account. Also, it's now a tiered rate with a 1.00% APY for balances of at least $20K and 0.75% APY for balances under $20K. Amboy angered several customers last year when it added a monthly fee of $5 for accounts older than one year which had less than a $100 balance.
One nice thing Amboy introduced last year was its 1-year add-on CD. This used to be a good deal when the rate was over 2.00%. However, the rate is now only 1.10% APY for balances of at least $10K. So there is little reason to open this CD instead of an internet savings account.
One thing that may be a factor in Amboy's low deposit rates is its financial health. It's not in the best shape. Amboy Bank has an overall health score at DepositAccounts.com of 1 out of 5 with a Texas Ratio of 110.03% (poor). Please refer to our financial overview of Amboy Bank for more details. The bank has been a FDIC member since 1934 (FDIC Certificate # 6423).
Other Bank Bonuses
To find other bonus deals at other banks and credit unions, please refer to the bank bonus page which has all of my recent bank bonus blog posts. There are also additional bonuses listed in the checking account deals forum.