Amtrust's Certificates of Deposit Honored by New York Community Bank

Amtrust Bank was a Ohio-based bank that had very strong CD rates in 2007 and 2008. The CD rates often topped the BestCashCow.com CD rate tables for 2 and 3 year CDs. News of its recent seizure by the Office of Thrift Supervision caused me concern as I continue to own CDs with the bank that pay over 4%. New York Community Bank, which acquired Amtrust in secret auction from OTS, has now announced that it will honor the CDs until maturity.

Once again, this proves that purchasing long term CDs, online or in branches, from troubled banks was a good strategy in 2007 and 2008. As long as you remain below FDIC limits, your money is safe and the terms of the CD until maturity are usually honored. I purchased CDs off of the BestCashCow.com listings at IndyMac Bank, at Wachovia, at Corus Bank, at Washington Mutual and at Amtrust. With the exception of Corus, which was not acquired but was closed and where I promptly received payment, all of the CD terms have been honored.

I am aware, however, that there have been instances where brokered CDs were not honored but were terminated by the acquiror.

I just wish that I had purchased long-term CDs back in 2007 and 2008.