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Best Online Savings & Money Market Account Rates 2024

Best Online Savings & Money Market Account Rates

Recent Articles


Trump Banks Takes Hit as Casinos Head for Third Bankruptcy

Donald Trump is not just a businessman but a brand. From casinos, to condo developments, to television shows, colognes, and more, Trump has splashes is name across many a business. But what does it say about the name when one of his flagship businesses - casinos - is close to defaulting on its debt and potentially file for bankruptcy for the third time?

Marketwatch is reporting that:

"Facing tough competition and sliding revenue amid the economic meltdown, Trump Entertainment Resorts will have to skip a $53.1 million interest payment scheduled for Monday on its 8.5% senior secured notes due 2015 in order to maintain sufficient liquidity."

Donald Trump has the role of non-executive chairman is the company. He is the largest shareholder but is barred from having any direct business impact on the company because of restrictions placed on him from the company's two previous bankruptcies. So, he can't be directly blamed for Trump Casino;s problems this time.

Trump's businesses are based on massive leverage. He borrows heavily from banks and when times are good is able to use the capital to expand and grow quickly. But when times are tough, the debt load his businesses and businesses bearing his name operate under become to heavy and they suffocate from debt.

On his show The Apprentice, Trump often spoke about the importance of brand and counseled his potential proteges to stay away from anything that would sully brand perception. At what point does the Donald Trump brand suffer from repeated bankruptcies?


AmTrust Direct Receives Cease and Desist Order from OTS

I noticed recently that AmTrust has significantly lowered its rates to the point that it has fallen off most of the rate tables. Then I received word of an email they were sending out. Now, it turns out they are being monitored by the OTS.

For awhile several years ago AmTrust was a leader in savings rates and in certain certificate of deposit terms. But recently, they have fallen off the charts. Two days ago, I was forwarded an email that one of our readers received from AmTrust providing them with an opportunity to redeem their CD. In essence AmTrust was doing a voluntary recall of some of its high yield deposits. It set off warning bells since this is generally not a normal bank business activity. The email read in part:

"A special offer for our AmTrust Direct customers: With the holiday season approaching, AmTrust Direct is offering a limited time opportunity to our customers. Until December 5, 2008, you can close your CD without an early withdrawal penalty."

Then today I saw an article on BankDeals that points out the bank received a cease and desist order from the Office of Thrift Supvervision. The order specifies that AmTrust must raise its capital ratios, not provide certain types of loans, limit golden parachutes, and also "shall not solicit deposits by offering interest rates more than 75 basis points over the local rates in the association's normal market area."

This explains AmTrusts's behavior. The bank is taking steps to comply with the OTS provisions and to raise its ratios and soundness. This includes calling back high yield certificates of deposit and lowering rates on new accounts. For the moment, AmTrust is done competing in the high yield arena, although many would argue it hasn't been a credible competitor for some time. Many customers were turned off by its 3 month bonus rates and the creation of new account types that paid high interest while leaving older accounts to earn less.

One has to wonder though if these actions will precipitate deposit withdrawals and impair its liquidity, the very thing the OTS is trying to prevent.

AmTrust is FDIC insured so if you have an account or money with them, you are covered up to $250,000 until December 31, 2009, at which point FDIC insurance drops back to $100,000 per account per person.

See the best online savings rates here.


E Trade Offering $25 To Open a 3.3% APY Savings Account

Rate information contained on this page may have changed. Please find latest savings rates.

Etrade is offering $25 to open a Max-Rate Savings Account. The account currently pays 3.3% APY which is competitive.

Etrade is offering $25 to open a Max-Rate Savings Account. To get the $25 you only need to fund the account with $1. Payments are made within 30 days of account opening. The offer is good until December 12, 2008. As with these types of offers, if you already have an account with Etrade, you're out of luck. The bonus is for new customers and new money only.

The Max-Rate Savings Account pays 3.3% APY, which is competitive compares to the best savings and money market rates.

The Etrade application is very easy and you can open it electronically and then fund it via their Quick Transfer capability. This is basically a simple process for requesting an ACH transacation to and from other financial institutions.

As a company, Etrade has experienced its share of problems. It's currently trading at $.85, down from a 52-week high of $6.00. It's forays into mortgages ended badly. Bauer Financial gives it two starts (poor) for safety and soundess. Deposits in Etrade are insured by the FDIC.

Thanks to BankDeals for pointing this offer out.

Compare E-Trade with other online brokerages here.