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
INDY
February 22, 2009
I wanted to start saving here. Not sure now. I do not know enough about any of it. I just wanted to move my money out of a regular bank account. Any other suggestions??
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haikujim
February 22, 2009
the fed is printing money like crazy, so enjoy the ride down. once obamitron is finished 'fixing' the economy, inflation will kick in. you will soon have rates as high as 15%! any questions on the price of milk or gas, google Jimmy Carter and his glorious reign
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Goodbye Dollar
February 22, 2009
Were in for a long deflationary spiral where the price of goods collapse, ie. cars, housing. I would love to see some good old fashion inflation just so I could earn a decent safe return again. Stay away from Dollar, when I was with Emigrant the same game played out. Lure you in with a prom rate for three mo. then cut the rates weekly.
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INDY
February 24, 2009
Thanks for the info. My 401k is half gone just trying to protect my savings somewhere. I guess I will be working for a very very long time.
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canoer9322
February 28, 2009
Since January the rates fell from 4% to 2.65%, which sucks. But other than that, it's very easy to link your existing accounts and transfer money around. I have to admit the higher rates other places are tempting me to make a move.
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Ken
March 02, 2009
Not the best rate now, but I like their simple application process. Only drawback is I need send in a void check to link external account.
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BAD BANK
March 04, 2009
These bunch of con artists, the rate of 2.50% is not Americas Highest Rate!
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Rip The Jacker
March 04, 2009
Farging eyes holes!! I really like this bank, but it looks like it's time to think about jumping ship.
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cork soaker
March 04, 2009
No wonder it has one star! This bank is a cork soaker....
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east plainfield
March 05, 2009
Crain's 3/2 - 8, 2009: meet NY's Wobbliest Banks.
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