Amtrust Direct has raised their CD rates so that they now offer the leading rate on 1 and 2 year CDs.
This is the clearest sign yet that small regional players are raising their CD rates to compete with larger players, such as Bank of America / Countrywide, ELoan, Wachovia and Wamu. The rise in longer term interest rates also allows all of these banks to become more competitive.
Amtrust has, like most regional banks, been hit hard by the recent financial crisis so investors would be well advised to keep all deposits below FDIC insurance limits.
Here are some notes of Amtrust services and ease of use:
The bank has always received positive reviews in the forum section of this website. Contrary to certain messages, no hard pull is performed for opening CDs (a hard pull is still done for opening their savings account). Online application allows for funding by ACH transfer, initiated directly by Amtrust, or check (no wire transfers). Accounts may be opened with up to two beneficiaries, but IRA CDs are not available online.
Users report Amtrust Direct to be among the easiest and quickest accounts with which to open an online CD account. The process can be set up immediately online, without external paperwork to fill out, sign and return, and ACH funding instructions can be entered in order to "pull" the funds from another account. Accounts are ordinarily funded within several days.
Interest disbursements can be done every six months for $2.50 by check or free by ACH transfer. The early withdrawal penalty is 3 months of interest for terms 11 months or less, 6 months for terms of 12 to 23 months, 9 months for terms 24 to 47 months and 12 months for terms of 48 months or more.
When CD matures, you can request closure of the CD by either mail or online by a secure message. Payment may be made by check or wire transfer (both $20 fee) or transfer the money to your AmTrustDirect liquid account (e-Savings or e-Money Market account), not ACH transfer.
Related Articles:
New York Times article on rate chasing by ktexas - Oct 13, 2007
Review of FNBO Direct's New Online CDs and Checking Account by ktexas - Nov 21, 2007
Amtrust Direct by BestCash Admin - Jul 16, 2007.
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