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
Micawber
October 18, 2008
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.
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Smith
October 20, 2008
To Micawbr - Haven't heard anything negative about EmigrantDirect and this is just a version of that bank with a different offer.
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Norton
October 23, 2008
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.
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dq
October 23, 2008
I might have to consider moving some money into this bank. 4% is the highest I've seen without resorting to a CD.
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Q
October 23, 2008
Dollar was the easiest online account that I have opened to date. Lets just hope that the 4% lasts for a while.
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New Yorker
October 24, 2008
No Hard Inquiry
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nalinpalin
October 24, 2008
Dollar Savings Direct interest is compounded daily. Many are monthly, or quarterly.
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Dave
October 25, 2008
Is there any info telling us how long the 4% is guaranteed for? Could this change to 3% next month for example.
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Kerry
October 26, 2008
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?
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nalinpalin
October 27, 2008
Easy, someone does not know what there talking about.
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