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 rate.
Submitted: Aug 27, 2008
Views: 5632
Comments: 36
Likes: 5
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 of $100,000. For instance, consumers who have $60,000 at Emnigrant Direct can only deposit up to another $40,000 at DollarSavings to stay under 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.
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Comments Received:
DT
(Unregistered)
I understand Emigrant to be very strong, but is it not troubling that they are not providing further disclosure that it falls under the same FDIC limit, especially in the current environment where there seems to be a new bank failure every day?
Posted: Aug 27, 2008
Kim
(Unregistered)
It's spelled separate. SEPARATE.
Not 'seperate' - please!!
Posted: Sep 7, 2008
Jaime
(Unregistered)
DollarSavingsDirect. They withhold interest on account if zero balance at end of the month! I had an external link account to an online savings account. You are allowed to have only ONE linked online savings account. The other linked account has to be a checking account. Never to do business with them again!
Posted: Oct 1, 2008
GO
(Unregistered)
I am thinking of withdrawing my money from dollar savings direct, just not sure how reliable this bank is.
Posted: Oct 9, 2008
Not sure
(Unregistered)
I was signing up and noticed they charge $135 in BS fees to verify your account. It's hidden in the fine print at the end of the process. So I didn't do it.
Posted: Oct 9, 2008
^^^^^^^^^^^^^^^^^
(Unregistered)
You don't have a clue what you are talking about.
$135 in fees is YOUR BS.
Posted: Oct 11, 2008
New Yorker
(Unregistered)
I signed up and there is no Fee. Why post false info regarding a non-existent $135 fee? What's great about these blogs is that regular people can help each other. But then someone like "Not Sure" ruins it by posting fake info. What is your problem or is it an agenda?
Speaking BS..thanks for nothing Not Sure!
Posted: Oct 13, 2008
Dave
(Unregistered)
This guy Jaime has posted the same comment on several other bank websites. Not saying he's right or wrong, but he's got a beef.
Posted: Oct 16, 2008
sean
(Unregistered)
I think this is the $135 fee he is referring to:
Costs Associated with Ancillary Services
The following costs incurred for ancillary services apply and will be debited directly from your account:
Balance Confirmation Letter/Verification of Deposit............................$ 30.00
Additional Copies.....................................................................................$ 5.00
Legal Fee (for processing Subpoenas, Levies, etc.)........................$ 100.00
Posted: Oct 17, 2008
Micawber
(Unregistered)
Agree with ad appreciate New Yorker's comment about helping each other. This looks like a decent option for savings above $1,000 and I think I'll open an account. Does anyone out there have any *factual* negative feedback before I do so? Thanks.
Posted: Oct 17, 2008
Smith
(Unregistered)
To Micawbr - Haven't heard anything negative about EmigrantDirect and this is just a version of that bank with a different offer.
Posted: Oct 19, 2008
Norton
(Unregistered)
Do they do a hard pull on your credit? Seems ridiculous to have another inquiry on your report when you just wanted to move funds from ED to Dollar Savings Direct.
Posted: Oct 22, 2008
dq
(Unregistered)
I might have to consider moving some money into this bank. 4% is the highest I've seen without resorting to a CD.
Posted: Oct 22, 2008
Q
(Unregistered)
Dollar was the easiest online account that I have opened to date. Lets just hope that the 4% lasts for a while.
Posted: Oct 22, 2008
New Yorker
(Unregistered)
No Hard Inquiry
Posted: Oct 23, 2008
nalinpalin
(Unregistered)
Dollar Savings Direct interest is compounded daily. Many are monthly, or quarterly.
Posted: Oct 23, 2008
Dave
(Unregistered)
Is there any info telling us how long the 4% is guaranteed for? Could this change to 3% next month for example.
Posted: Oct 24, 2008
Kerry
(Unregistered)
Since they compound interest daily, how can they withhold interest at the end of the month if there is a zero balance like someone above said happened to them?
Posted: Oct 26, 2008
nalinpalin
(Unregistered)
Easy, someone does not know what there talking about.
Posted: Oct 26, 2008
YW
(Unregistered)
To Kerry,
From the account disclosure:
"Interest will be compounded on a daily basis and credited to your Account on the last day of the month provided the account balance is greater than $0.00. "
Posted: Nov 2, 2008
David
(Unregistered)
I've had the Emigrant 'dream' account for several years...everything ok with it but now I'm going to go for the higher rate with dollar saving direct.
Posted: Nov 2, 2008
Flory
(Unregistered)
Re: no interest paid if balance zero--
An obvious point, but some may not know:
It's common not to pay interest if an account is withdrawn to zero, and usually good practice to consider leaving 5 cents in your account after any withdrawal until all interest collected--
of course if there is a minimum balance requirement you may have to leave enough in the account to avoid a low balance charge or leave enough to pay the low balance charge to get your interest, or sometimes you just have to say good-bye to your last month's interest as a cost of doing business.
Posted: Nov 2, 2008
Ant viewer
(Unregistered)
Is the FDIC limits for this DSDirect up to $250K now?
Posted: Nov 3, 2008
Ant viewer
(Unregistered)
Found it. Yes, they do.
Posted: Nov 3, 2008
Robert
(Unregistered)
I have opened about 5 or 6 on-line savings accounts this past month, and I found Dollar Savings Direct to be the easiest and fastest by far to set up. Their web site is clear and easy to navigate. I've made several transfers from my local bank to them, and everything went smoothly. Thus, very happy with them. Various aggravation with those other on-line banks.
Posted: Nov 8, 2008
cash
(Unregistered)
Same here Robert, lets just hope the rate remains at 4% for a while. The DOLLAR Rules!
Posted: Nov 8, 2008
Old Bud
(Unregistered)
I've had EmigrantDirect account for a while with their charge card. The credit card is 1.40% back on purchases. I never had a problem with withdrawing funds or communicating with the bank. I love the APY that DollarDirect offers and will apply there too.
Posted: Nov 9, 2008
Kris
(Unregistered)
The minimum amount for starting a savings account is $1,000, please change that, it wasted my time.
Posted: Nov 20, 2008
Kris
(Unregistered)
BTW, here's a site I like to use, it refreshes every few seconds as well...
http://www.money-rates.com/savings.htm
Posted: Nov 20, 2008
your site sucks.com
(Unregistered)
Sorry pal, that site is always slow to update. Just look at money market where it shows b of a dow at 3.93. This changed almost three weeks ago.
Posted: Nov 20, 2008
gudway
(Unregistered)
I opened an acct.with "Dollar " and transferred money
back & forth between other accts several times.
No problems whatsoever and the people were nice
and knowledgeable,no "hang on" time out to ask someone else for info.
Posted: Nov 20, 2008
gudway
(Unregistered)
WONDER WHY DOLLAR SAVINGS GETS ONLY 3 STARS ?
Posted: Nov 20, 2008
Maria
(Unregistered)
So far no problems, it is a little slow to transfer funds, but hey, at 4% interest, I can deal with it, why does it has only 3 stars? that almost scared me, but I went for it anyway.
Posted: Nov 23, 2008
Saver
(Unregistered)
Opened an account - quick and painless. Reps answered the phones and questions - good service - good security. BIG PROBLEM for me however is that unlike many other competitor banks (HSBC, ZIONs..) this outfit will not link to my Vanguard MM account. That's a showstopper for me. As depositor I need access to money on my terms - so unfortunately, I closed the account as in these times I am leary of any banks that will not play ball. I am sure there are work arounds but the juice is not worth the squeeze.
Posted: Nov 26, 2008
Disappointed
(Unregistered)
The rate is great, but there are a lot of limitations:
1) You can only transfer in and out of your linked checking account i.e. you cannot make electronic transfers to pay your credit card bills, to contribute to your investment accounts at another institution, etc.
2) You can only have two linked accounts, and to link the second one you need to mail in a check
3) By their own admission, transfers take 2 to 4 business days, which is slower than average.
For me at least, it's not worth it.
Posted: Nov 29, 2008
YOUR NUTS PAL!
(Unregistered)
You can do overnight ACH transfers in. There paying 4% compounded daily and your complaining about what? BTW, which bank do you work for?
Posted: Dec 1, 2008
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