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
Norton
December 23, 2008
Not sure Tom. I was thinking the same. Although I think they've been 1 star since 9/30/08. Anyone got any advice? I might need the $ in that acct in the next few months, should I move it in case it goes under and the FDIC isn't quick?
Is this review helpful? Yes:0 / No: 0
GO
December 25, 2008
As long as my money is safe and the return rate is good. I see no issues with this bank. All good.
Is this review helpful? Yes:0 / No: 0
Anonymous
December 25, 2008
There has not been a bank failure yet where you did not have immediate access to your funds within fdic limits. So why worry! This bank has never had a great rating. However, Wamu, Wachovia, Countrywide, etc. had good ratings and look where they are today.
My money is at Dollar and will stay unless a better deal comes along.
Happy Holidays!
Is this review helpful? Yes:0 / No: 0
Dollar Bills
December 25, 2008
There has not been a bank failure yet where you did not have immediate access to your funds within fdic limits. So why worry! This bank has never had a great rating. However, Wamu, Wachovia, Countrywide, etc. had good ratings and look where they are today.
My money is at Dollar and will stay unless a better deal comes along.
Happy Holidays!
Is this review helpful? Yes:0 / No: 0
new at this
December 31, 2008
I have a question because I am fairly new at this saving thing as I am a recent graduate and didn't have much extra money to save prior to this time. Anyway from reading the prior postings and comments I see that some people are talking about moving their money as if it can be done with ease. That confuses me because I see that the 4% APY is offered on the 16 month CD savings account and I thought that once you open a CD if you take your money out before the time of the CD's expiration (in this case 16 months) then you will pay a penalty. Is that not true? There is obviously something I am missing or misunderstanding. If anyone can help me out I would really appreciate it!
Is this review helpful? Yes:0 / No: 0
Rip The Jacker
December 31, 2008
Yes, if you buy a CD your money is locked up for the term of the CD.
On the plus side, your rate can not drop below that.
They also pay 4% on their savings account. Money in that account can be moved after a five day hold (Which seems to be the standard)
I have had my Savings Direct account for a couple of months. No complaints at all. Did not have to pay any fees or any of that.
The thing I like best is that they show you how much interest you have earned every day and pay it every month.
Is this review helpful? Yes:0 / No: 0
Dan
January 06, 2009
There rate is pretty solid, especially since ING Direct and HSBC direct both lowered their rates today by almost .25%.
www.bankvibe.com
Is this review helpful? Yes:0 / No: 0
cash
January 06, 2009
My account is going on 4 months at 4%, I think the end is near at this rate.
Is this review helpful? Yes:0 / No: 0
Interest
January 08, 2009
I've had an account at Emigrant Direct for several years and am surprised to learn that they have a new offshoot bank offering a much better rate. I will most likely transfer to the new bank but there's a part of me that wants to dump them because of this. But, money rules in this case.
I noticed that the the Dollars Savings Direct web layout is exactly like Emigrant Direct with only a change of the photo used. If the rest of it is the same, it will be easy to use, as is Emigrant Direct.
Is this review helpful? Yes:0 / No: 0
mojorisin
January 08, 2009
have been pleased with ease of opening the account & transferring funds. have called customer service 3 times & each time got right through with no wait & they were very helpful. so far so good. seemed to be a pain to have to mail in a verification & voided check to link a second funding account so just left one funding account, which is working well so far.
googled Emigrant Bank & seemed strong & in existence for a long time. you can go to the FDIC website research more like what what type of investments they are involved in. I like 'em a penny saved is a penny earned...BF love it
Is this review helpful? Yes:0 / No: 0
Add your Comment
or use your BestCashCow account