EmigrantDirect Savings Account Now at 4.65%

EmigrantDirect raised the yield on their American Dream Savings Account from 4.50% to 4.65% APY today. The last rate hike by Emigrant was March 15 when they raised the savings account rate from 4.25% to 4.50% APY.

Interesting that this rate hike exactly matches HSBC's rate hike last week. Since EmigrantDirect began in January 2005 with a 3% savings account, they have always raised the yield by at least 25 basis points. This is yet another indication that EmigrantDirect isn't trying to be the leader any more of no-minimum savings accounts. They seem to be more in the mode of keeping customers and deposits rather than gaining new customers.

Savings and money market account rates have leveled off lately. The yield on Corus Bank's money market account actually went down a little this week (post). GMAC Bank hasn't increased the yield on their money market account since April 21. UmbrellaBank's money market has remained at 4.75% since May 11.

With savings account rates failing to increase much, short-term certificates of deposit are starting to become better options. Many banks are now offering 5% 3-month CDs including VirtualBank, UmbrellaBank, Beal Bank and UFB Direct. For those with at least $90K, Stearns Bank has a very good 3-month CD deal with a 5.15% APY 3-month CD. World Savings also has a good 3-month CD deal with their 5.26% APY 3-month CD (post).