Amboy Direct Reviews: Savings, CD and Money Market Accounts

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Updated on Thursday, October 1, 2020

Amboy Direct’s savings accounts

eSavings

This account probably earns more than the savings account from the bank down the street, but it’s a far cry from being a great rate.

APY

Minimum Balance Amount to Earn APY

0.30%

$300-$2,999

0.70%

$3,000-$100,000

  • Minimum opening deposit: $100
  • Minimum balance to earn APY: $300
  • Monthly account maintenance fee: None

Since Amboy Direct doesn’t offer any checking accounts, you’ll need to link one up from a different bank to deposit and withdraw money from this account. You can drop your balance as low as you want with this account, but be wary of three limits:

  • If you drop the balance below $300, you won’t earn any interest
  • If your balance drops below $1, you forfeit all interest earned for that month (for example, if you had a balance above $300 for part of the month and are due for an interest payment for these days)
  • If you drop the balance to $0, the account will automatically be closed

You’ll get quarterly online statements with this account. Finally, you can’t keep more than $100,000 in this account.

How to get Amboy Direct’s eSavings account

If you’re at least 18 years old, a U.S. resident and have a Social Security number, you can sign up online in just a few minutes. You’ll need to have your driver’s license and your current checking account information on hand.

If you’re approved, Amboy Direct will make a small test deposit into your account to verify it’s correct. After that, you can make the initial deposit. Heads up: Your money won’t be available for withdrawal again for up to the first 30 days after you open your account.

SEE DETAILS Secured

on Amboy Direct’s secure website

Member FDIC

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How Amboy Direct’s savings account compares

Amboy Direct promises to offer a better rates than most banks due to its online-only model, and indeed it does. Sadly, its rates are actually on the low end of the spectrum for online-only banks. Furthermore, you can only earn interest on up to $100,000 worth of money, which isn’t helpful if you’re looking to park a large amount of cash.

Instead, if banking online doesn’t bother you (and it shouldn’t if you’re already looking at Amboy Direct), consider one of these other online savings accounts instead.

Amboy Direct’s CD rates

eSavings CD

This CD allows you to make additional deposits for the first six months of a 12 month term.

Term

APY

Balance amount to Earn APY

12 months

0.30%

$300-$9,999

12 months

2.05%

$10,000-$250,000

  • Minimum opening deposit: $100
  • Minimum balance amount to earn APY: $300
  • Early withdrawal penalty: Six months’ worth of interest

If you don’t quite have your full deposit amount ready but want to get started earning interest today, this is one good option. You can get started with as little as $100 (although you’ll need at least $300 to earn any interest), and you can make additional deposits into the account for up to six months after opening it.

One of the downsides of this CD is that it’s only available in a 12 month term. In addition, you can only open this account with “new money” from your linked external checking account. You can’t use money that’s already held up in an Amboy Direct savings or money market account to open this CD.

Once this CD matures, it won’t be automatically renewed. Instead, the account will close and convert into an eSavings account, and you’ll be free to withdraw the money — plus interest earned — at any time.

How to get Amboy Direct’s eSavings CD

U.S. residents age 18 and over are eligible for this account. To sign up for an account, you’ll need to provide your external checking account information and Social Security number.

To verify your checking account, Amboy Direct will make a couple of small test deposits that you’ll have to verify. After that, you can make the initial deposit into your CD.

SEE DETAILS Secured

on Amboy Direct’s secure website

Member FDIC

eSavings Index CD

The rate on this CD changes quarterly, and is pegged to the three-month Treasury bond rate plus an extra 0.50%.

Term

APY

2 years

0%

  • Minimum opening deposit: $100
  • Minimum balance amount to earn APY: $25,000
  • Early withdrawal penalty: If you make an early withdrawal, the CD will automatically be closed and converted into an eSavings account. You’ll also have to pay six months’ worth of interest.

It’s no secret that interest rates are rising these days, and if that makes you leery of locking your money up in a CD that doesn’t change, this might be a good option for you. Every three months, Amboy Direct will reassess the interest rate this CD earns: It’ll take the current three-month Treasury bond rate and add on an extra 0.50% for good measure.

Another handy benefit of this CD is that you can add money to it at any time during the first 30 days after you open the account. That’s good news if you only deposit the minimum into this CD — a mere $100 — because you’ll need at least $25,000 if you actually want to earn any interest. Any interest you earn will be tallied up each quarter and deposited into your eSavings account. This means that the CD does not earn compound interest, but rather simple interest.

Once your CD matures, it’ll automatically renew for another 2 year eSavings Index CD. You will get a notice 30 days before this happens, however, in case you want to give Amboy Direct different instructions, such as closing the CD and depositing the money into a savings or money market account.

How to get Amboy Bank’s eSavings Index CD

If you’re a U.S. resident and at least 18 years old, you’re eligible to open this account. You’ll need to provide your Social Security number and the routing information from your current checking account as a part of the account opening process.

SEE DETAILS Secured

on Amboy Direct’s secure website

Member FDIC

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How Amboy Direct’s CD rates compare

Unfortunately, Amboy Direct’s CD rates are not that high, especially considering that it’s an online-only bank. It’s also unfortunate that there are only two term lengths offered, which isn’t helpful for people looking to earn the highest rates that typically come along with 5 year or longer CDs.

The one bright spot about Amboy Direct’s CDs is that you can deposit money into the account for a period of time after it’s opened. This is a helpful feature if you come across more money later.

In general, however, we suggest checking out these higher-earning CDs instead.

Amboy Direct’s money market accounts

Money Market Max More

You can only open this account if you live in New Jersey.

APY

Minimum Balance Amount to Earn APY

0.20%

$5,000-$29,999

0.70%

$30,000-$250,000

  • Minimum opening deposit: $100
  • Minimum balance to earn APY: $5,000
  • Monthly account maintenance fee: None

This is Amboy Direct’s highest-earning account that still allows you to access your money whenever you want. Since this account doesn’t come with an ATM card or checks, there’s basically nothing distinguishing this account from Amboy Direct’s eSavings account aside from its higher interest rate. You can access the money at any time, but you’re still subject to the six-withdrawal/transfer limit put in place by Federal Reserve Regulation D.

Unfortunately, this account isn’t available to anyone living outside of New Jersey.

If you do live in New Jersey, however, there’s a few other things you should know about this account. If you ever bring the balance down to $0, it’ll automatically trigger the account to close. You’ll get quarterly statements sent to you online. Finally, you can’t keep more than $250,000 in this account.

How to get Amboy Direct’s Money Market Max More account

If you decide you want to open this account, you’ll need to round up the routing information for your checking account. Amboy Direct will make two small deposits into your checking account to verify it’s really you, and then after that, you’re free to deposit and withdraw money from this account via your third-party checking account.

SEE DETAILS Secured

on Amboy Direct’s secure website

Member FDIC

magnifying glass

How Amboy Direct’s money market account compares

It takes a pretty hefty deposit before you’ll actually earn any interest from this account — at least $5,000. At that point, it only earns a small rate, especially for a money market account. You can earn more by keeping at least $30,000 in the account, but even then, it’s still not the best rate out there.

Because this account requires such a steep deposit to earn only mediocre rates, we suggest looking elsewhere. These top money market accounts require less money (some offer interest on all balances as long as you have something in the account), offer much better rates and are open to anyone in the U.S.

Overall review of Amboy Direct’s banking products

Amboy Direct keeps it simple with its bank accounts, offering only a few core products. Unfortunately, those products fall short of the mark when it comes to offering the best rates. Furthermore, options are relatively limited even among these sparse accounts — for example, you can only choose between a 1 year and a 2 year CD. If you want anything else, you’re out of luck.

The bright spot about Amboy Direct’s accounts is that they’re built to avoid fees, since you literally cannot overdraw your account, use ATM cards, exceed six withdrawals/transfers per month out of money market/savings accounts or do any of the other activities that typically incur fees.

And while that is a benefit, it’s not enough to overcome Amboy Direct’s shortcomings. Instead, we suggest still keeping an eye open for other banks.

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