Amboy Direct is offering an add-on eSavings CD in which the APY is based on how much is deposited into the CD. What's unique is that you can make deposits after you have opened the CD. Like a CD, an eSavings Time Deposit offers a higher rate of interest for a guaranteed period of time. In addition, with Amboy's eSavings Time Deposit, you can make additional deposits during first 6 months.
Rates are as follows:
$100-9,999: 1.00% APY
$10,000 - $100,000: 2.10% APY
2.10% APY is not the best 12-month cd rate but it's competitive. Here's how it can be used. By placing a $100 in the account at 1%, you gain the option to invest an additional 999,900 at 2.1% APY. Since rates are still headed down, that option may become valuable in the future. And if you decided not invest, all you have committed at 1% is $100.
Opening the CD can be done online and the rate locks when the application is submitted. Funding can only be done online, with the funding mechanism verified via a trial deposit into an online checking account that will serve the the funding source.
Safety and Soundess
Amboy Direct is part of Amboy Bank. Amboy Bank is based in New Jersey. It has 26 branches and $2.7 billion in assets. Bauer Financial gives Amboy Direct 2 out of 5 stars (Problematic) for its safety and soundness. The bank is FDIC insured.
Comments
interesting, but a pass
October 14, 2009
It is an option, but this offer is only good to $100,000. Odd that they wouldn't at least take it up to FDIC limits. Difficult to see what the bank gains with this program - other than new leads.
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Rich
October 15, 2009
They're probably trying to control the amount of money they bring in. If rates continue to drop they don't want to be stuck having to pay out at a higher CD rate. Limiting it to $100,000 minimizes interest rate risk.
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