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
DT
August 28, 2008
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?
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Kim
September 07, 2008
It's spelled separate. SEPARATE.
Not 'seperate' - please!!
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Anonymous
October 02, 2008
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!
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Jaime
October 02, 2008
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!
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GO
October 10, 2008
I am thinking of withdrawing my money from dollar savings direct, just not sure how reliable this bank is.
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Not sure
October 10, 2008
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.
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^^^^^^^^^^^^^^^^^
October 12, 2008
You don't have a clue what you are talking about.
$135 in fees is YOUR BS.
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New Yorker
October 14, 2008
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!
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Dave
October 16, 2008
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.
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sean
October 17, 2008
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
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