Dedicated to Deposits: Deals, Data, and Discussion

EmigrantDirect Savings Now 4.00%


Update: EmigrantDirect Savings Account rate as of 9/10/09 is 1.30% APY. A higher rate is available at Emigrant Bank's other internet bank, DollarSavingsDirect (see post).

EmigrantDirect increased the APY on its AmericanDream Savings Account from 3.5% to 4.0% today. It comes on the same day that the Fed raised the funds rate a quarter-percent to 3.75%.

I had thought ED might make the big jump from 3.5% to 4.0%. Early in the year its 3.0% rate was way ahead of most other banks for several months. At the time, ING Direct's savings rate was only 2.35%. This allowed ED to gain the reputation as America's highest rate. However, for the last few months, it started to lag many other banks like HSBC which also had a savings account without a minimum balance requirement.

As can be seen from this chart, ED has made fewer rate increases this year compared to ING or HSBC. Instead of incrementally increasing the rate, it just made a quarter-percent increase in March and in July. So I would guess it's likely ED will stick with this 4.0% rate for the rest of the year.

Now the question is how will the other banks respond? My guess is that ING Direct will raise its rate this week to 3.5%. I don't know about HSBC. During most of this year, HSBC has lagged ED. So I don't think HSBC feels compelled to be even or ahead of ED. Its no-minimum 3.75% is still very competitive.

Information on EmigrantDirect

Here are some of my EmigrantDirect related posts which may be useful if you're deciding whether to join.

Comment #1 by NICKELnDIMED (anonymous) posted on
i got an email from E.D. stating a
new credit card? looks interesting.

Additionally, we are also pleased to announce the upcoming launch of a no-fee credit card from EmigrantDirect offering the highest cash back rebate in the country on all your purchases – from the first dollar spent on your card to the very last. This revolutionary credit card featuring platinum-level benefits will be offered only to EmigrantDirect customers and be available before yearend. Cash back amounts will be deposited into your American Dream Savings Account automatically not once, but twice a year for added convenience. If you would like to be sent a priority invitation to apply for the card once it becomes available, please send a quick email with your name and email address to We hope that you will become a cardholder and discover yet another way that EmigrantDirect serves and rewards its customers with outstanding value

Comment #2 by Banking Guy (anonymous) posted on
Banking Guy
Thanks for the info. I also got the email. I wonder how much the rebate will be.

Comment #3 by Joe (anonymous) posted on
Emigrant CD rates went down to 5.10% (for all terms).

Comment #4 by Anonymous posted on
Just got an email from Emigrant. They're offering 3.75% APR on their Dollar Savings Direct acount

Comment #5 by Anonymous posted on
That email from Emigrant was actually for an account at and the account is not really connected to current Emigrant accounts. One cannot get to the account from Emigrant sessions nor will the account accept Emigrant credentials.

Comment #6 by ichaelm (anonymous) posted on
rate drop to 1.80