Deal Summary: 12-month eSavings CD, 1.46% APY, $10k min/$100k max deposit, additional deposits allowed in the first six months.
Approximately a month ago, I wrote about Amboy Direct’s rate increase on its 12-month eSavings CD; today, Amboy Direct added another 11 bps, resulting in an impressive 1.46% APY. The minimum deposit is $10k, with a maximum balance cap of $100k.
|1.46*%||$10k||$100k||Amboy Direct||12 Month eSavings CD|
|OTHER TIERS: 0.30% → Up to $10k|
A great feature of the 12-month eSavings CD is the ability to make additional deposits in first six months of the account's term. According to the eSavings CD Account Details,
you can make additional deposits during first 6 months from your current bank account using our Bank to Bank transfer capability. Deposits are made by logging into your Amboy Direct account and initiating a transfer.
Obviously, being able to add funds for six months is always advantageous. It’s also quite useful if you have another CD maturing and you’re looking for somewhere to place that money on a relatively short-term basis. For example,
- You have $75k in a CD that matures in four months.
- You open a 12-month eSavings CD today with a $10k minimum deposit.
- You deposit the $75k in the eSavings CD four months from now.
- The $75k is essentially in an 8-month CD earning 1.46% APY.
The only piece of information I could not find on Amboy Direct’s website was how to receive the funds from a maturing eSavings CD. According to one of the most articulate CSRs I’ve ever spoken with, upon maturing the funds are automatically transferred into a Personal eSavings Account, giving you immediate access to the funds. The Personal eSavings Account will have the same account number as the eSavings CD. That account number also serves as the “Access ID” used to log into the Bank’s online banking platform.
|0.80*%||$3k||$100k||Amboy Direct||Personal eSavings Account|
|OTHER TIERS: 0.30% → $300 - $3k|
According to CSR, the Early Withdrawal Penalty is based on a formula that uses the amount withdrawn and time left until maturity as variables.
Amboy Direct is the internet division of Amboy Bank, a full-service commercial bank headquartered in Old Bridge Township, New Jersey. U.S. Citizens and Resident Aliens (18 years or older) can open an account with Amboy Direct either online or by mail.
CRS stressed that the money that will be used to fund the eSavings CD should be available in the personal account that will be linked, as funding will take place immediately following the verification process.
Amboy Direct’s More Product Information page explains how the online funding process is initiated.
Account must be opened with an initial deposit from your personal account with check writing privileges.
Amboy Direct will send two small deposits to your personal checking account that must be verified. To verify, review your transaction history at the bank where your checking account resides and identify the two deposits. After reviewing, you will need to confirm the amounts by logging in to Amboy Direct and entering the amounts on a verification page. These deposits are sent as a fraud protection measure.
You must validate the 2 small deposits in your linked account no later than 50 days from the date the first deposit was made. If you do not validate the link within 50 days, Amboy Direct may return the initial deposit to the linked account and close the Savings account.
Transfer capabilities will be available immediately after "Verification process" is complete.
As the internet division of Amboy Bank, Amboy Direct operates under Amboy Bank’s FDIC Certificate # 6423. Amboy Direct/Amboy Bank has an overall health grade of "B+" at DepositAccounts.com, with Texas Ratio of 13.81% (above average), based on December 31, 2016 data. In the past year, the Bank has increased its total non-brokered deposits by $78.12 million, an excellent annual growth rate of 4.66%. Please refer to our financial overview of Amboy Direct/Amboy Bank for more details.
Amboy Direct’s parent company, Amboy Bank, was founded in 1888 and has grown into a multi-billion dollar institution, with over 20 branches across central New Jersey. Amboy Direct was established as a division of the Bank in 1995, and became an internet banking service in 2003.
How the eSavings CD Compares
When compared to the 2012 similar length-of-term CDs tracked by DepositAccounts.com that are available nationally, Amboy Direct's 12-month eSavings CD APY currently ranks second, regardless of minimum deposit. The option to make additional deposits within the first six months only increases its intrinsic value.
|Interest Rate||CD Length of Term||Credit Union/Bank|
|1.50% APY||12-Month Certificate ($5k min)||Connexus Credit Union|
|1.46% APY||12-Month eSavings CD ($10k min/$100k max)||Amboy Direct|
|1.45% APY||12-Month CD ($10k min)||CD Bank|
The above rates are accurate as of 5/12/2017.