Dedicated to Deposits: Deals, Data, and Discussion

3.50% 11-Month CD & 3.50% Savings Account For 3 Months at Doral Bank Direct

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Doral Direct
Update 2/21/09: The 11-month CD special and the 3.50% savings account special appear to have ended. Current rates: 2.50% APY for 12-month CD and 2.25% APY for the savings account. Application continues to show the popup restricting accounts to NY, NJ and CT.

Update 2/15/09: A new popup in the application states: Currently offered to the following Tri-State areas only: New York, New Jersey and Connecticut.

Doral Bank Direct is offering two attractive specials: a 3.50% APY 11-month CD and a savings account with an intro rate of 3.50% APY guaranteed for the first 3 months. These specials are listed in the bank's home page as of 2/01/2009.

Details of these specials are described in the bank's promo page (pdf). Here are the details of the savings account promotion:
A minimum daily balance of $1,000 must be maintained in the savings account in order to obtain the promotional rate, which is guaranteed for three months. After the three month introductory period, the savings account will earn interest based on account balance and the prevailing rate offered by Doral Bank.

Before the promo, this savings account had a rate of 2.25% APY. So it's likely the rate will fall to this rate or lower when the intro period ends. Doral Bank had been more competitive last year with a rate of 3.55% APY for much of the last half of 2008.

My last Doral Bank post was in December 2007 when Doral Bank first launched these online accounts. The savings account appears to be the same as it was when I first posted on it. I was never able to get additional details over what was listed in their learn more page and in their FAQ page. Here's an overview of the important features:
  • $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
  • You can electronically make transfers to and from linked accounts

Doral Direct CDs can also be opened online and funded electronically. The 11-month CD special is one of the choices in the application. Some important CD details include:
  • $1,000 minimum opening deposit
  • Interest compounded daily and credited quarterly
  • Guaranteed rate for the entire CD term
  • Interest compounded daily and credited quarterly
The first FAQ gives an overview of the bank:
Doral Bank Direct is an online banking product provided by Doral Bank, FSB (Doral Bank). Doral Bank is a wholly owned subsidiary of Doral Financial Corporation (NYSE:DRL), a diversified financial holding company with banking operations in the United States and Puerto Rico.

Doral Bank, FSB is FDIC insured (FDIC Certificate # 34905).

As I mentioned in my previous post, Doral Financial Corporation had some financial problems in the past. However, Doral Bank, FSB has some strong ratings for soundness: 5 stars (superior) at Bankrate.com and 3.5 stars (good) at BauerFinancial. Both ratings are based on 9/30/08 data.
  Tags: New York, Doral Direct, CD rates, New Jersey, savings account, Connecticut

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Comments
5 comments.
Comment #1 by Anonymous posted on
Anonymous
I e-mailed a CSR about their 3.50% savings account, response was quick, some details;

Rate is Guaranteed for 3-months from account opening.

You can only link the initial funding checking account, others must be mailed in with voided check and instructions.

No withdrawal fees or limit on the amount of withdrawal, just 6 per month.

During the first 30 days from account opening, any deposit will be held for 30 days, after that you can close account anytime.

1
Comment #2 by Anonymous posted on
Anonymous
3 montbs doesn't cut it for me. It would only make a difference if I was going to deposit millions intot he account. Anything less is not significant. I want a year guarantee at a minimum.

1
Comment #3 by Art (anonymous) posted on
Art
I opened a CD account on line & they were to send 2 mini-deposits to my account to verify ownership prior to ACH withdrawal. They sent me an email but never the deposits. I have emailed them many times and called waiting on hold for 45 mins. twice & then just left a voice message. NO return call. Called their HQ in PR & never got a live person. Are they a real bank or just fishing for personal information?

1
Comment #4 by Anonymous posted on
Anonymous
I am having the same issue as the previous poster. Has anyone actually had success with this bank? I have been waiting over a week and am yet to have the trial deposits in my bank account. I called to check on the status of my CD application and have been on hold for 45 minutes and counting...

1
Comment #5 by nph0119 (anonymous) posted on
nph0119
On 2-6 I got an e-mail saying my application for the 11 month 3.5% CD was submitted. On 2-11 I got an e-mail saying 2 small deposits would be made to my checking account. On 2-12 the 2 small deposits were made. On 2-12 I got an e-mail saying my application was approved and I would be getting some info in the mail. On 2-13 my deposit was withdrawn from my checking account.

1