February 22, 2009 Update: DollarSavingsDirect cuts its savings account rate to 2.65% APY. See how this compares to other top savings and money market rates.
In a rather strange move, Emigrant Bank, the parent company of Emigrant Direct has launched another online direct brand, DollarSavingsDirect. DollarSavings differs slightly from Emigrant Direct and currently has a higher savings rate of 3.75% APY, which is competitive with some of the best savings rates offered by other banks. The minimum balance to open the account is $1,000. Emigrant Direct's American Dream Savings Account offers a 3% APY with a $1 minimum balance. At the moment, the difference in rate and minimum balance seem to be all that seperates the two accounts.
The bank is a seperate division of Emigrant Bank although located at the same location as Emigrant Direct. Its FDIC insurance falls under Emigrant Bank, meaning that an account at Emigrant Direct and DollarSavingsDirect both count towards the FDIC limit.
Accounts can be opened online and funded via an ACH transfer from a personal checking account.
Why has Emigrant Direct started a seperate brand? We called Emigrant with this question but didn't receive a reply. My guess is that Emigrant plans to make significant changes to either Emigrant Direct or DollarSavingsDirect over the next couple of months to differentiate their offer and pursue different markets. It will be interesting to see how this develops.
Comments
Rip The Jacker
February 07, 2009
Funny how those falling interest rates just gain momentum once they start going down!
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King
February 10, 2009
How can DSD get away with saying "America's Highest Rate" when they are not?
Can we sue them and make a killing?
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SUE ME
February 10, 2009
Its a shell game my friend, lure them in, then cut and run. Once all the depositors leave they will start a new bank and start all over.
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New Yorker
February 11, 2009
DSD makes a qualified representation regarding "America's Highest Rate":
Highest Nationally Advertised Annual Percentage Yield for day of deposit to day of withdrawal savings accounts with no fees and $1000 minimum. Also I think they exclude comparision with "promotional rates" offered by others.
I haven't found this to be inaccurate.
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King
February 13, 2009
NOW DOWN TO 3.05% and falling!!!!
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Anonymous
February 13, 2009
EmigrantDirect is at 2.40% so one would think thats the near term floor. The whole Dollarsavings Direct was a joke to lure new money. Its was a great ride. What will be the next new bank from this company and what will the promo rate be?
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USADirect
February 13, 2009
EmigrantDirect is at 2.40% so one would think thats the near term floor. The whole Dollarsavings Direct was a joke to lure new money. Its was a great ride. What will be the next new bank from this company and what will the promo rate be?
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Rip The Jacker
February 21, 2009
Well, then we'll all just establish new accounts at the new bank.
That's how the "rate chasing" game is played, Baby!
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Green
February 21, 2009
You may want to update the rate for DSD to 2.65%
I just saw it now. Even the Ad on the top of this page at the moment says 3.05% What's going on? It was 4% like 40 days ago!!!
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Goodbye Dollar
February 22, 2009
Dollar is going to see a run dropping their rates this fast. Just not worth the hassle for so little return. I said goodbye to Emigrant now its goodbye Dollar.
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