Emigrant Bank's Rating Up from 2 to 4 Stars
Jan 11, 2007 - 7:57 PM by Ken Tumin
Emigrant Bank (the parent of EmigrantDirect) is now rated by Bankrate.com as 4 out of 5 stars (sound). Last July they had been listed as 2 out of 5 stars (below industry average). Here's what Bankrate states in its memorandum:
Six months prior when Emigrant was rated as only 2 stars, Bankrate stated the following:
Things have been quiet over at EmigrantDirect. Perhaps they've been concentrating on their financials rather than new offerings. It has been over 3 months since their last rate change when the savings account rate dropped from 5.15% to 5.05% APY. Their My Way CD yields have remained at 5.20% APY since early September (they had been at 5.35% APY).
EmigrantDirect's American Dream Savings Account remains a decent choice for an online savings account. However, the rate has remained significantly behind the top no-minimum savings accounts (which now pay 5.30% and above). Another major drawback in my opinion is that you can only link to checking accounts and you are required to send in a voided check (up to 4 linked accounts are allowed).
I was hoping we would see something new from EmigrantDirect around its two-year anniversary. EmigrantDirect launched with a poorly designed website around the start of 2005 with the 3% APY online savings account. At that time, ING Direct's Orange Savings Account was only at 2.35% APY. It looks like EmigrantDirect has become another ING Direct: an online bank with a nice website but with rates that are no longer near the top.
EmigrantDirect's parent (Emigrant Bank) is FDIC insured.
Thanks to the reader who mentioned this rating change.
We have come to believe that, as of September 30, 2006, this institution exhibited a sound condition, characterized by very solid overall, sustainable profitability, good asset quality, below standard capitalization, and near normal liquidity.
Six months prior when Emigrant was rated as only 2 stars, Bankrate stated the following:
We have come to believe that, as of March 31, 2006, this institution exhibited a below average condition, characterized by lower than normal overall, sustainable profitability, questionable asset quality, below standard capitalization, and seemingly ample liquidity.
Things have been quiet over at EmigrantDirect. Perhaps they've been concentrating on their financials rather than new offerings. It has been over 3 months since their last rate change when the savings account rate dropped from 5.15% to 5.05% APY. Their My Way CD yields have remained at 5.20% APY since early September (they had been at 5.35% APY).
EmigrantDirect's American Dream Savings Account remains a decent choice for an online savings account. However, the rate has remained significantly behind the top no-minimum savings accounts (which now pay 5.30% and above). Another major drawback in my opinion is that you can only link to checking accounts and you are required to send in a voided check (up to 4 linked accounts are allowed).
I was hoping we would see something new from EmigrantDirect around its two-year anniversary. EmigrantDirect launched with a poorly designed website around the start of 2005 with the 3% APY online savings account. At that time, ING Direct's Orange Savings Account was only at 2.35% APY. It looks like EmigrantDirect has become another ING Direct: an online bank with a nice website but with rates that are no longer near the top.
EmigrantDirect's parent (Emigrant Bank) is FDIC insured.
Thanks to the reader who mentioned this rating change.
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Anonymous - #1, Thursday, January 11, 2007 - 8:48 PM
Don't take the bankrate narratives too seriously. These are simply canned computer-generated sentences driven by the bank's most recent balance sheet. They simply have a program that reads the balance sheet and if statistic number one is between x and y, print out the following canned sentence, if statistic number 2 is between x' and y', print out the following canned sentence, etc.
Anonymous - #2, Thursday, January 11, 2007 - 10:15 PM
I applied to Emigrant Direct when they were doing a lot of advertising in newspapers and magazines. I mailed them a large check and they refused to accept it because the check is entitled as a Trust account. My personal check had never been rejected for any CD or Money Market account. My first and last interest in Emigrant Direct!
shrazzy (anonymous) - #3, Friday, January 12, 2007 - 2:23 AM
ya that external bank via a void bank check sux. Goodthing for my first external bank I didn't have to do that.
Overall the speed of transfers are good
Anonymous - #4, Friday, January 12, 2007 - 4:58 AM
My wife and I had $400,000 in accounts at EmigrantDirect, but moved it all out last fall when their rates failed to continue to be competitive. We were also disappointed at the launching of their new website which was such a fiasco.
Anonymous - #5, Friday, January 12, 2007 - 8:10 AM
Where did you move your $400K?
Anonymous - #6, Friday, January 12, 2007 - 12:08 PM
I have a $400.000 CD that matures 2/2 would be interested in a good spot to place the funds. (hoping that World Savings comes up with an unadvertised special) Please keep up your excellent work at this site.
Anonymous - #7, Friday, January 12, 2007 - 1:04 PM
In response to the question, "Where did you move your $400K?"--I moved it to GMAC Bank and AmTrustDirect Bank. Most of it is now in AmTrustDirect because of their 5.30% rate.
ctgottapee (anonymous) - #8, Tuesday, January 16, 2007 - 4:26 AM
emigrant did launch a visa card as their latest product IIRC
the thing that has disappointed me most about emigrant is that they keep sending out these crappy branded gifts; i've gotten a hat, a uncle sam hat bank, and a coffee cup. i wish they would stop wasting money on this garbage and put it in to the interest rates.
i don't understand why bank rep or ad agency has them convinced that a cheesey emigrantdirect branded hat will draw business
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