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Emigrant Direct Lowers Savings Account Rate - Spanish Version Remains at 5.05%

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Emigrant Direct lowered the yield on its online savings account from 4.75% to 4.65% APY. They had been offering 4.75% since late September.

Emigrant Bank's online bank targeting the Hispanic market, BancoFortuna, is still offering 5.05% APY. This is the same rate that EmigrantDirect had been offering for over a year before the Fed started cutting rates.

I first reported on BancoFortuna in May after this CNN article. As the article stated, Emigrant is targeting the Hispanic market. Perhaps it hasn't been as successful as they had planned so they're keeping the high yield.

BancoFortuna also provides an English equivalent page. I suppose this savings account is open to anyone in the US just like the savings account at EmigrantDirect. So if you're going to open an account at Emigrant Direct, I don't see any reason not to sign up here instead.

Thanks to Shrazzy who mentioned this latest rate cut in the finding-the-best-deals post.
  Tags: savings account

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Comments
4 comments.
Comment #1 by EQUALITY FOR ALL (anonymous) posted on
EQUALITY FOR ALL
I don't see any reason to deal with them at all, if they want to deal with me they will have both accounts at the same rate. I opened my account with them 01/2005 I also have there credit card, as soon as my savings account shows my cash rewards credit, I will close my credit card and savings accounts and move on.

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Comment #2 by Anonymous posted on
Anonymous
I just opened a Zions MM Acct last month. Funded it with some money from my Emigrant Acct which was opened a couple of years ago. It now looks like Emigrant would prefer people with a Spanish ancestry rather than me, I will be closing out my acct with them all together. And I have always kept a substantial amount with them.

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Comment #3 by Anonymous posted on
Anonymous
When the month ends and interest is posted - I'm gone also. Had account over 1.5 years and they never responded to my email:

Emigrant Bank
10/20/2007 6:15 AM
Hello: After reading a CNN article that BancoFortuna is (Emigrant Bank's Spanish Equivalent) and learning that this bank is paying 5.05% on Money Market - I want to move my present account to BancoFortuna or wish to open another account at BancoFortuna. Either way I am looking to earn the 5.05% on my money.
Sincerely, XXXXXXXXX

PS. Could you explain to me why after being a good customer for over a year now, why you would offer 5.05% to a certain segment of the population and not all your customers?

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Comment #4 by jonesnco (anonymous) posted on
jonesnco
I received the following from them:

"Thank you for contacting EmigrantDirect. We truly appreciate this opportunity to assist you. BancoFortuna and EmigrantDirect are both online banking divisions of Emigrant Bank. They are run as two separate divisions of the same bank. At times, they may offer different rates or products. Currently, BancoFortuna does offer a higher interest rate than EmigrantDirect, however, please keep in mind that our savings rate is variable and it may change at any time. If you would like to open an account with BancoFortuna, please transfer your funds from your American Dream savings account back to your linked external account, then you may visit BancoFortuna.com to apply and fill out an application. If you have any questions, please do not hesitate to contact us at 1-800-836-1997. We are here to assist our customers seven days a week from 8:00am to 11:30pm Eastern Time. Once again, thank you for contacting EmigrantDirect. Sincerely, Tonya"

I expected as much in the response and doubt it would have been any different had I translated my original message into Spanish with Babelfish.

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