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5% Money Market Intro Rate

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AmboyDirect increased the 3-month intro rate for its Money Market Maximizer Account to 5.00%. Here are the details:
Receive 5.00% interest for the first three months after first opening an account when you maintain balances between $30,000 and $100,000, then recieve the everyday rate - now 4.00%. Offer good until 01/15/05.

The old money market rate intro bonus was 4.25% with an everyday rate of 3.71% APY.

The good feature of the Money Market Maximizer is that there's no minimum balance requirement or fees. Also, AmboyDirect has an ACH transfer system. So you should be able to easily transfer the money to a higher rate account after the intro period is over. I don't see any mention about closing fees, but since there's no minimum balance requirement, you could just leave $1 in the account. Balances between $5K and $30K only earn 1.01% APY. Balances under $5K earn no interest. So this is not a good account for balances under $30K.

AmboyDirect also offers a $50 signup bonus for its eSavings Account which now earns 3.65% APY on balances over $3K. Balances between $300 and $3K earn only 1%, and no interest is earned for balances under $300. Just like the Money Market Maximizer, there's no minimum balance requirements or monthly fees. As is typical for savings accounts, the eSavings Account doesn't have check writing. The only way to deposit or withdraw funds is online.

Refer to my November and October posts for more info about AmboyDirect.


Comments
Anonymous
Anonymous   |     |   Comment #1
This is misleading. "Introductory 5.00% 3 month bonus is paid on balance between $30,000 and $100,000 and earn a combined 4.28%APY."

So really it's a 3 month 4.28% APY, and then 4% after that. If you have the 30K you're better off at Superior Savings where they have 4.50% APY as their regular rate.

They get away with saying 5% because they're not using the APY calculation. It's comparing apples to oranges.
Banking Guy
Banking Guy (anonymous)   |     |   Comment #2
It is confusing, but I interpreted it as 5% for the first 3 months and then 4% for the next 9 months so the APY for the year would be 4.28%. I could see how it might be 4% for one year and then at the end of the year you get the extra 1% of interest that acrued the first 3 months. So in this case, there would be no way for this to be like a 3-month 5% CD.
Banking Guy
Banking Guy (anonymous)   |     |   Comment #3
I've confirmed the details of this deal with the bank's customer service representative. You do get 5% APY during the first 3 months. During the first 3 months, the interest is credited at the one-month anniversary dates of when you opened the account. After the 3-month intro, the extra 1% bonus rate goes away. Interest is then credited at the end of each calendar month.
Banking Guy
Banking Guy (anonymous)   |     |   Comment #4
As of April 22, 2006, this introductory 5% 3-month bonus doesn't seem to be offered any more. The current APY for balances over $10K is 4.55%.

The eSavings Account still seems to have the $50 sign-up bonus. The current APY is 4.10% for balances over $3K.