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Sunday, April 30, 2006

Amboy's New No-Min Online Savings Account at 4.75%

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Amboy Direct has just started a new Premium Online Savings Account that currently has an APY of 4.75%. This is different than their old eSavings Account or their Money Market Maximizer account. This new Premium Online Savings Account is now the top no-minimum savings account. It seems like a typical online savings account like that of ING Direct or EmigrantDirect. Here are some of the main features that are listed at their FAQ page:
  • The minimum initial deposit is $1. There are no monthly balance requirements.
  • Account must be opened with an initial deposit from your personal account with check writing privileges (seems like a money market account should be okay)
  • The typical trial deposit method is used to verify ownership of linked account.
  • Accounts with Internet or phone service are automatically linked to the checking account used to open the account (doesn't seem to require redoing the link as HSBC requires)
  • Electronic deposits made to your account will begin to accrue interest 2 business days after the deposit is made and will be available for withdrawal after 5 business days.
  • Electronic transfers to your non Amboy checking will generally be at your bank within 2-3 business days
  • Wire transfers, mail in deposits and issues of bank checks are not available with this account.
  • The account balance limit is $250,000 per client.

Credit for this find goes to this Fatwallet thread. Several on this thread have confirmed with Amboy's CSRs the following features:
  • Amboy doesn't do a hard credit inquiry (use the typical Chex System)
  • The account can only be linked to one outside account

Amboy Direct has long offered a $50 signup bonus for their eSavings Account (see post). There's no indication yet of a similar sign-up bonus for this new account.

posted by Banking Guy at 4/30/2006 12:59:00 PM

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15 Comments: Post a Comment

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  • Quarterly statements are sent electronically and secured with your personal password.

    This statement disturbs me a bit. I'd rather have my money at the end of each month.

    Say they no longer become competative and you move all but $1 out of your account. They close your account before quarter ends. Are they obligated to pay you the interest? I remember Emigrant/ING closed account for ppl below $1 and those people lost their interest.

    By Anonymous Anonymous, at 1:38 PM, April 30, 2006  

  • That is a good point. We'll have to see if they have small print which stipulates that money withdrawn before the end of the quarter won't earn interest.

    The new OneUnited Online bank had this issue (post)

    This may be a new way that online banks will try to reduce rate chasing.

    By Blogger Banking Guy, at 2:54 PM, April 30, 2006  

  • What are you talking about??? The statement says that they will send you your bank statement on a quarterly basis... it doesn't say they will issue your interest payment on a quarterly basis.

    By Anonymous Anonymous, at 11:56 AM, May 11, 2006  

  • I just called them... interest is compounded daily and posted monthly. Therefore, you will lose the interest for the current month if you close the account before the month close.

    That sounds pretty fair to me...

    By Anonymous Anonymous, at 12:15 PM, May 11, 2006  

  • Thanks for checking on this. Sounds like they use the typical approach. Just be careful not to go under $1 in your balance. Other no-min banks like Emigrant have closed accounts when the balance has dropped below $1.

    By Blogger Banking Guy, at 3:47 PM, May 11, 2006  

  • ime, their ACH transfers are as fast as Emigrant's, clearing the next business day after they're requested.

    By Anonymous Weiwen, at 6:50 PM, May 13, 2006  

  • weiwen, thanks for the info. Glad to see they don't take after HSBC.

    By Blogger Banking Guy, at 9:44 AM, May 14, 2006  

  • I opened an account at AmboyDirect, and everything was done online. Then I tried BankUnited. It required snailmail, so I abandoned the application.

    My question: Are there other outfits like Amboy?

    By Anonymous Anonymous, at 7:34 AM, May 30, 2006  

  • By requiring snail mail, do you mean just the signature card? Did it also require sending the application and check?

    Glad to see Amboy's process is all-online and easy.

    I didn't have to snail mail to open savings accounts at ING, VirtualBank, EmigrantDirect or HSBC although ED and HSBC had several hoops to jump through.

    By Blogger Banking Guy, at 4:18 PM, May 30, 2006  

  • BankUnited wanted me to: 1) mail in some documents such as utility bills to prove my residence and 2) print out a signature-card form and notorize it and mail it in and 3) include a check if I wanted immediate funding. An email was sent to me and I told them that I'd abandon the application unless they could make it all online like Amboy.

    At the end of Presidential's application, I said I could not print the signature-card form. So an email said that a form would be mailed to me for my signature. I'm still waiting after three or four days.

    We need to encourage more outfits to follow Amboy's procedure.

    By Anonymous Anonymous, at 7:42 AM, June 02, 2006  

  • BankUnited's process does seem extreme. Thanks for the info.

    You're right that we need to push for easier online processes from the banks and credit unions.

    By Blogger Banking Guy, at 3:47 PM, June 02, 2006  

  • AmboyDirect doesn't support Mac OSX browsers, luckily it works on my Dell at work. As long as I keep working, I'm OK!

    Martin S.

    By Anonymous Anonymous, at 7:28 PM, June 11, 2006  

  • 1st Constitution Bank Super Savings, 10k min, 4.75%

    609-750-0200

    By Blogger Bank Bob, at 6:05 PM, June 26, 2006  

  • I have seen my E-mail being hit with spam after I have Opened their account.

    Looks like they have shared my E-mail address. Have to call up CSR tommorrow and ask those people not to share.

    I for sure, did not like their user interface. I also kind of observed somewhere on their web site that the high yielding APY only applies to balances above 20000 dollars.

    Got to find out whether their advertised APY applies to balances less than $ 20000

    By Anonymous Anonymous, at 7:50 PM, October 02, 2006  

  • The email issue seems similar to what happened to EmigrantDirect. It may not be that they shared your address. But it does make sense to report it to the bank.

    I've asked about that $20k balance issue. That is only for an example and does not imply that you only earn 5.25% for that balance.

    By Blogger Banking Guy, at 6:08 AM, October 03, 2006  

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