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New Ways Emigrant Direct is Trying to Grow

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There had been some rumors in the last couple months that Emigrant Direct may bump up their savings account rate. I thought there could have been a chance this week after HSBC's 6% promo ended. Don't hold your breath for Emigrant's next rate promo. They've decided to grow in another way. They just launched a clone of Emigrant Direct at BancoFortuna.com which targets Spanish speaking people in the US. As this CNN article explains, growth at Emigrant Direct and in the online savings account market has slowed, so Emigrant is looking for other growth opportunities.

It only took Emigrant Direct one year in 2005 to reach $5 billion in online deposits which surpassed those at Emigrant Savings Bank. Emigrant Direct started in January 2005 with a savings account rate of 3% APY. That may not sound like much now, but back then it much higher than others. As interest rates rose in 2005, Emigrant Direct made another big rate jump from 3.5% to 4.0% in September of 2005. This again gave Emigrant Direct the distinction as the savings account rate leader. After that, however, the rates stagnated, and by 2006 many other online banks came out with higher rates. Emigrant Direct expanded their offerings with CDs, cash back credit card, and a new website but neither of these were anything to get excited about. The last rate change at Emgirant Direct was in late September 2006 when the APY fell from 5.15% to 5.05%. For most of 2006 and 2007, they've remained in the middle of the pack in savings account rates (see my latest rates summary).

So instead of coming out with exciting new rates, like what FNBO Direct just recently did (see post), they're just trying to market the same old thing to new people. The rate at BancoFortuna.com is 5.05% APY, just like Emigrant Direct.
  Tags: savings account

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Comments
5 comments.
Comment #1 by Anonymous posted on
Anonymous
Of course growth has slowed at Emigrant. They REFUSE to compete with the likes of igobanking.com in the 5.30% APY range and people are finally catching on.

I only wish the same would happen with ING Direct, but if you check out the MSN Your Money message board, they are plenty of idiots telling other morons to get an Orange Savings Account at 4.50% APY when there are good and MUCH better options out there!

1
Comment #2 by ShraZZy (anonymous) posted on
ShraZZy
In my ED account there is like 10bux since Etrade had the same rate. It is easier for me to manage my money at Etrade because I have a checking account and CD's with them for the same rate.

To answer the post above, ING for some people would be the samething as me. Sometimes you can forgo a couple of interest for having your money in one place.

1
Comment #3 by Anonymous posted on
Anonymous
They probably don't require proper ID, either. You know, like BankAmerica. When these banks cater to illegals I RUN in the other direction. **** 'em all, and in particular their filthy, avaricious, un-American upper management. It'll be a cool day in hell before I ever give them my business. This is the United States of America - speak ENGLISH!!

1
Comment #4 by Anonymous posted on
Anonymous
Why go with BancoFortuna.com?
Immigrant Direct might be better suited......

1
Comment #5 by Anonymous posted on
Anonymous
Immigrant Direct? LOL... thats a good one...

1