Amboy Direct had been offering its new-customer eSavings promotions nationwide, but the promotion is now limited to New Jersey residents. On the plus side, the promotion has improved. The balance cap has been increased from $25K to $50K. There's also another promotion for the money market account which may be more appealing for those with large balances.
Savings Account Promotion
For the eSavings Account, new customers will receive 1.00% APY guaranteed to last one year from account opening. However, this APY is only guaranteed on the first $50,000. The interest rate is only 0.75% for the portion of the balance between $50K and $100K, and this isn't guaranteed to last. This promotion is listed on the left side of the Amboy Direct's eSavings page as of 6/8/2012. To see the details and to apply, click on the "Learn More" link. You then have to enter your email address. Below is the small print of the offer:
*1.00% Annual Percentage Yield (APY) will be paid from $1 to $50,000. Balances between $50,001 and $100,000 earn an interest rate of 0.75% with an APY from 1.00% to 0.88%. APYs over $50,000 may change daily. Maximum deposit $100,000. One offer per new Amboy Direct household. Offer may be modified without notice. Fees may reduce earnings. Not available at Amboy Branches. NJ residents only. Offer code required. Member FDIC.
The standard eSavings account rate is 0.75% (as of 6/7/2012) for balances of $300 to $100,000. The eSavings account has no monthly balance minimums or fees.
Money Market Promotion
For the money market account, new customers who open a Money Market Max Plus account will receive a guaranteed 1.25% APY through the end of 2012 with a minimum balance of $50,000. The APY is guaranteed up to a balance of $250,000. This promotion is listed on the left side of the Money Market Maximizer page as of 6/8/2012. To see the details and to apply, click on the "Learn More" link. You then have to enter your email address. Below is the small print of the offer:
*$100 to open. 1.25% Annual Percentage Yield (APY) will be paid from $50,000 to $250,000. Balances between $5,000 and $49,999 earn an APY of 0.25%. Under $5,000 earns no interest. APY’s are guaranteed thru 12/31/12 and then may change daily. Maximum deposit $250,000. One offer per new Amboy Direct household. Offer may be withdrawn without notice. Fees may reduce earnings. Not available at Amboy Branches. Limited to New Jersey Residents. Offer code required. Member FDIC.
The Money Market Maximizer is a tiered-rate account with a standard top rate of 0.75% for balances of $30K to $250K. The standard rate is 0.40% for balances of $5K to $30K. No interest is paid for balances under $5K. The account has no monthly balance minimums or fees.
Amboy Direct Overview
Amboy Direct had some popularity back in 2006 when it was offering a savings account with a 5.15% APY. In the last couple of years, its rates have been a little low for internet savings accounts. Also, its online banking features are weak compared to Ally, ING Direct and Discover.
Amboy Direct is a division of Amboy Bank, a New Jersey based bank founded in 1888. Amboy Bank isn't in the best financial shape. It has an overall health score at DepositAccounts.com of 2 stars (out of 5) with a Texas ratio of 102.08% (poor) based on March 2012 data. Please refer to our financial overview of Amboy Bank for more details. The bank has been a FDIC member since 1934 (FDIC Certificate # 6423).
How These Promotions Compare
Two other banks offer similar promotions. Flagstar Bank is guaranteeing 1.15% APY for 4 months for balances up to $250K. EverBank is guaranteeing 1.05% APY for 6 months for balances up to $100K (checking) and $50K (money market). I have more details in my EverBank promo review.
You can get a higher rate of 1.25% APY at TIAA Direct, but there's no guarantee about how long this rate will last.