|
 Dear
Dr. Don,
I currently have a savings account with EmigrantDirect.com and I am thinking of transferring it over to AmTrustDirect.com instead since their APY rate is higher at 5.36 percent. I need to know if you have heard of them and if that is a safe move to transfer my savings over to them for a higher interest rate.
-- Helen Hops
 Dear
Helen,
Both banks show up in Bankrate's current listing
of 100
Highest Yields, so, yes, I've heard of them.
AmTrustDirect's current APY of
5.36 percent is 0.31 percent higher than EmigrantDirect's
rate with its 5.05 percent APY. AmTrustDirect,
however, carries a two-star rating to EmmigrantDirect's
three-star rating, using Bankrate's Star
ratings where a three-star bank is considered
"performing" and a two-star bank is
considered to be below its peer group in overall
safety.
An insured deposit, whether it is
FDIC-insured or NCUSIF-insured, carries the full
faith and credit guarantee of the U.S. government
behind it, so the safety ratings are a nice security
blanket when comparing the two banks.
If I were you, and shopping high-yield
savings, I'd look at the current ratings leader,
FNBO Direct, with its four-star rating and 6 percent
APY on a high-yield savings account. That 6 percent
APY is a teaser rate that is scheduled to be in
place through September 2007. Fees can reduce
the effective yield. FNBO is the First National
Bank of Omaha.
|
