This 12-month CD acts like a savings account

Amboy Direct

You should never settle for an account that barely pays any interest — especially if you’re good about saving money. With a New Jersey-based internet bank, you don’t have to.

At Amboy Direct, savers nationwide who purchase a 12-month eSavings CD can earn 1.65 percent APY. Account holders can continue to add money to their eSavings CDs for up to six months. That’s a unique feature that normally doesn’t apply to certificates of deposit.

You can make extra deposits through a bank-to-bank transfer, up to $250,000.

Word of caution: The barrier to entry isn’t low. You’ll need to deposit at least $10,000.

In return, you’ll earn the nation’s best rate for accounts with comparable minimum deposit requirements. The yield is at least one-tenth of a percentage point higher than what’s offered by Popular Direct and First Internet Bank of Indiana.

Top nationally available 12-month CD rates
Institution APY Minimum deposit
Popular Direct 1.55% $10,000
First Internet Bank of Indiana 1.52% $1,000
EverBank 1.52% $5,000
Northpointe Bank 1.50% $1,000
Sallie Mae Bank 1.50% $2,500
Connexus Credit Union 1.50% $5,000

The minimum initial deposit is just $100. To earn any interest at all, you’ll need to fund your account with at least $300.

Deposits up to $9,999 earn 0.30 percent APY.

Why you’ll want an Amboy Direct eSavings CD

With interest rates on the upswing, locking yourself into a long-term CD may not seem like a savvy investment strategy.

But buying into Amboy Direct’s 1-year CD deal shouldn’t stop you from grabbing something better later. Compare it to other top CD rates. Then calculate how much interest you could earn.

But just because you can put additional funds into your CD doesn’t mean you can withdraw them (at least without penalty). Tapping into your account before it matures will cost you six months’ interest. You could lose part of your principal, too.

How to buy Amboy Direct eSavings CDs

To purchase a 1-year CD, you must fill out an application online. The process usually takes about five minutes. You’ll need a promotional code (601611), which you can find on the bank’s website.

Account holders must:

  • Be at least 18 years old
  • Be a U.S. citizen or resident alien
  • Have a government-issued ID (such as a passport or driver’s license)
  • Have a Social Security number

Amboy Direct will link your new CD to a checking account from an external bank. That’s how you’ll make your first and future deposits.

Your account will be initially funded once the bank confirms that your checking account is valid (by making two test deposits).

According to the terms and conditions, simple interest is paid and credited when the CD matures.

About Amboy Direct

Amboy Direct offers personal and business accounts. It’s the online extension of Amboy Bank, which opened in 1888. Its headquarters are located in Old Bridge, New Jersey.

Deposits are insured by the Federal Deposit Insurance Corp. Amboy Bank earned four out of five stars on Bankrate’s latest Safe & Sound Ratings, which measures the financial health of banks and credit unions throughout the United States.


More From Bankrate

Leave a Reply

Your email address will not be published.

15 − 13 =