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New Online Savings Account and CDs - Doral Bank Direct

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Doral Direct
Update 2/15/09: Doral Bank has restricted new accounts to NY, NJ and CT. Refer to this post for more info.

Doral Bank, FSB has recently launched a new online bank called Doral Bank Direct that offers an online savings account and online CDs. The savings account has a yield of 5.00% APY for balances of over $1,000, and it's guaranteed to last for a 3-month intro period (click on the "More Details" button on their front page). Here's a summary of the savings account features from their learn more page and from their FAQ page:
  • $1,000 minimum opening deposit and to earn interest
  • $250 minimum required to avoid monthly service charge
  • Interest compounded daily and credited monthly
  • Typical 6 withdrawals allowed per month
  • Can be opened online or by mail
  • Up to 5 beneficiaries can be specified in the application
  • Trial deposits used to verify your checking account for initial funding

I still have many questions that are not answered in their documentation. I tried calling their toll-free number (877-313-6725), but I was forwarded to voice mail. Even though it was after hours, I expected at least to hear a message system to inform me of their office hours.

For CDs, they currently have some competitive rates. The 6 and 9-month CDs have yields of 5.25% APY. The 12-month CD yield is 5.15% APY and all longer term CDs up to 60 months have a yield of 5.10% APY. Here's a summary of the features listed at their CD page:
  • $1,000 minimum opening deposit
  • Interest compounded daily and credited quarterly
  • Withdraw your credited interest earnings without penalty
  • Up to 5 beneficiaries can be specified in the application

Like the savings account, I still have many questions like what's the early withdrawal penalty. Hopefully, I'll be able to get some answers tomorrow.

Doral Bank Direct is part of Doral Bank, FSB which is FDIC insured (Certificate # 34905). The FDIC page includes the Doral Bank's URL www.doralbankny.com. At that website, there's a link to www.doralbankdirect.com so you know Doral Bank Direct is legitimate.

I've been waiting several months for Doral Bank to launch this internet bank. In July, they released this press release that announced their intention to launch in August. I wonder why they waited as long as they did.

Doral Bank is a division of Doral Financial Corporation. As you can see from this CNN article on their Q3 loses, they've had financial problems and scandals in the past. As you might expect, their rating at Bankrate is low: 1 out of 5 stars (lowest rated) based on 6/30/07 data. However, BauerFinancial rates them as 3 out of 5 stars (adequate) based on 6/30/07 data. I don't know why these two ratings are so different.

Thanks to the reader who emailed me info on this launch.
  Tags: Doral Direct, CD rates, savings account

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Comments
13 comments.
Comment #1 by Anonymous posted on
Anonymous
Having been through the hoops with FNBO Direct, I would be most interested to find out about Doral's "detailed instructions on their verification process."

What happens after I submit my application?
We review your application and verify your identity.
Once your identity has been verified, two (2) small trial deposits will be credited to your checking account.
We will email you at the email address you provide. This email will include detailed instructions on Doral Bank Direct’s verification process and requires action within 30 calendar days of receipt.
Once ownership of the funding account has been verified, your initial deposit will be processed and your account will be opened.

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Comment #2 by Anonymous posted on
Anonymous
I've noticed many cases where the Bauer Financial rating is much higher than the Bankrate rating.

I don't get it either. Clearly their criteria are quite different. I'm surprised that two bank rating services can come up with such different answers.

1
Comment #3 by Anonymous posted on
Anonymous
The website seems to be completely down at this time...it is very strange.

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Comment #4 by Weiwen Ng (anonymous) posted on
Weiwen Ng
I'm a premium subscriber to Morningstar. I can't post the analyst report here, but it does look like Doral has a shot at making it. 2005 and 2006 were disastrous, and the bank was seriously in jeopardy. they did receive an investment from Bear Stearns, which severely diluted existing shareholders, but did give them needed cash. however, the bank's survival is by no means guaranteed, and Morningstar regards it as a speculative investment. I'd stay away from putting my money at the bank.

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Comment #5 by Anonymous posted on
Anonymous
Weiwen Ng, that's what the FDIC is for, as long as you keep your deposits below the allowable limit.

I am a DRL shareholder and while the our shares were severely diluted, the bank is now regaining its footing thanks to a brand new, experienced management team that has cleaned up the act of the former executives and are pointing the bank in the right direction.

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Comment #6 by Anonymous posted on
Anonymous
DBD savings rate 2.25%.

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Comment #7 by Anonymous posted on
Anonymous
Make sure you receive an Application Reference number after you have finished the application, otherwise it means that your session timed out and the application was not submitted.

Also, the phone number in the Contact Us section does not work, so use the number for "Current Customers".

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Comment #8 by Anonymous posted on
Anonymous
I tried to open a savings account with Doral Bank FSB. As I click on the "click to continue" section under Open An Account, this window appears: "Currently offered to the following Tri-State areas only: New York, New Jersey and Connecticut. Being from California, I guess I am unable to get satisfaction :(

1
Comment #9 by Anonymous posted on
Anonymous
First, Chesepeake Bank prohibits more deposits from existing savings account holders. Now, Doral limits deposits for 3 states. Are these moves common given the low interest-rates currently?

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Comment #10 by Anonymous posted on
Anonymous
Yes looks dead for people outside the Tri State area

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Comment #11 by Anonymous posted on
Anonymous
click the "open an account" link.The promotional rate has dropped to 2.25%

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Comment #12 by Anonymous posted on
Anonymous
correction on what I just wrote. It's the "more details" link that shows the lower 2.25% rate.

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Comment #13 by Mike (anonymous) posted on
Mike
Use extreme caution when dealing with this bank! If you have been experiencing the same difficulty as other users with this bank, I suggest promptly filing a complaint with the Office of Thrift Supervision. The complaint form can be found at:

http://www.ots.treas.gov/?p=ConsumerComplaintsInquiries

Select OTS Consumer Complaint Form

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