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Ken Tumin founded the Bank Deals Blog in 2005 and has been passionately covering the best deposit deals ever since. He is frequently referenced by The New York Times, The Wall Street Journal, and other publications as a top expert, but he is first and foremost a fellow deal seeker and member of the wonderful community of savers that frequents DepositAccounts.

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Money Market Account Special at Dime Savings Bank in New York

POSTED ON BY

Dime Savings Bank

Dime Savings Bank has long been offering a 10-month CD special. The rate has fallen since my last review, but it's still competitive.

A reader just informed me of a new promotion that's not listed on the bank's website. It's a money market account special with a 1.75% APY for up to $250K that's guaranteed to last for 6 months. I just called the bank for additional details. It's available as of 7/16/2011, but the CSR didn't know how long it would last. Update 7/25/11: A reader provided more details of the money market account in this comment.

This money market promotion is similar to the CD special in that it's only available to new checking account customers who open either the Prime Dime Rewards Checking or Dime Rewards Checking account and have either one direct deposit or one online bill payment each month.

Since you have to open a checking account and conduct specific types of transactions, this special is similar to a checking account bonus. If you can invest $100K, you'll make about $875 in 6 months with the guaranteed 1.75% APY. That's $325 more than keeping the $100K in an account paying 1.10% APY.

Thanks to the reader who emailed the news of this promotion.

Checking Account Details

These checking accounts are not high yield reward checking accounts. There is no high yield, but on the plus side, there are no debit card usage requirements. However, both accounts require that direct deposit or use of Dime's online bill payment services be maintained each month. There are also monthly fees if minimum balance requirements are not met.

The Prime Dime Rewards Checking disclosure and the Dime Rewards Checking disclosure have the details of these accounts. Two features shared by both accounts include:

  • Direct deposit of payroll, pension, or government benefits or use of Dime's online bill payment services must be maintained each month to remain eligible for this account type. If this requirement is not maintained, you may be required to close the account upon 30 days written notice.
  • Up to $10 in refunds for transaction charges at non-Dime ATMs each month (if balance requirements are met)

Specific features of the Prime Dime Rewards Checking include:

  • Top interest rate of only 0.30% (as of 7/16/11)
  • $15 monthly maintenance fee if average daily balance is under $5,000

Specific details of the Dime Rewards Checking include:

  • Non-interest bearing checking account
  • $12 monthly maintenance fee if average daily balance is under $2,500

Availability

Update 7/20/2011: Dime Savings Bank has started to limit this promotion to only residents of New York State.

Update 7/25/11: A reader provided more details on applying for this promotion in this comment.

According to the CSR, these accounts and this promotion are available nationwide. Accounts can be opened by phone (800-321-3463). This promotion is also available at all of the branches. In the past I've been told that if you can't make it into a branch, they do require you to mail or fax copies of your driver's license and utility bill.

Competitive CD Rates

The bank also some fairly competitive long-term CD and IRA CD rates. I last reviewed these in this February post. One downside to Dime is that they don't always make it easy to close CDs as I recently described.

Dime Bank Overview

Dime Savings Bank branches are located throughout the Greater New York metro area.

Dime Savings Bank has an overall health score at DepositAccounts.com of 5 stars (out of 5) with a Texas Ratio of 5.85% (excellent) based on March 2011 data. Please refer to our financial overview of Dime Savings Bank for more details. The bank has been a FDIC member since 1943 (FDIC Certificate # 16012).

Searching for the Best Money Market Rates

To find the best nationwide money market rates and the best money market rates in your state, please refer to our money market account rates table.

For similar accounts that can have higher rates, please refer to our savings account rates and checking account rates tables.

Edit: Clarified availability


Related Pages: Dime Savings Bank, New York, money market accounts

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Comments
15 Comments.
Comment #1 by Anonymous posted on
Anonymous
This is confusing since it doesn't tell how to find and open the account that has the 1.75% on Dime Savings Bank.

2
Comment #2 by KenBDG posted on
KenBDG
I've updated the availability section to try to make it a little clearer. If you don't live near their New York branches, a phone call is the best way to apply.

3
Comment #4 by niniss posted on
niniss
can't believe this, i just closed the account with them last week.  talk about bad timing!

1
Comment #5 by Melvin (anonymous) posted on
Melvin
When dealing with Dime, read the fine print closely and frequently.  Nobody there is going to point out to you that you may be making an error that could cost you money.  I personally will never deal with them again no matter how good their deal is. Nobody should have to contend with overly sharp business practices. 

1
Comment #6 by Anonymous posted on
Anonymous
What does their fine print say?  I have found that in most banks, you don't get to read their disclosures until after you set up the account.  They hand it to you then.

1
Comment #7 by Mike H (anonymous) posted on
Mike H
Thanks Ken for all your hard work.  I have been reading your blog for many years now and still find it very interesting.

I just spoke to a CSR via phone.  He confirmed the 1.75% APY.  He told me that the money market account does not allow ACH tranfers in or out.  It is a "passbook account". With that, you have to go into the branch to deposit or withdrawal money from this account and bring your "passbook" with you.  When I pressed him a little more, he said that I could mail in deposits and could mail them a letter stating I want to move funds from that account into another account which allows ACH transfers or bill pay.  I did not get a good feeling about the bank.  Since I don't live near a branch, I decided not to open the account.  Oh, and he said I could not wire funds out unless I came into the branch. 

2
Comment #8 by jcb194 (anonymous) posted on
jcb194
One thing I can add to what has already been posed.  According to a conversation with Dime today, the promotion began before 7/4.  They said it could end at any time.  Since the promotion has been in effect for a few weeks already, it may end sooner rather than later.

2
Comment #9 by Anonymous posted on
Anonymous
The special 1.75% mm is now only available to ny residence as per my conversation with a csr

1
Comment #10 by NYC Doug (anonymous) posted on
NYC Doug
Not an easy account to open, especially via phone. Despite living in NYC, I thought it would be more efficient to open by phone than going to one of their (relatively few) branches, but I'm finding obstacles all along the path -- as if they don't really want my money . . .

In addition to the previously mentioned required fax of driver's license and bill  ("within the past 2 months") to confirm address [I used my rent bill] they ALSO wanted something with my Social Security number on it faxed to them.

They don't answer emails, and are slow to respond to phone calls directed/returned to specific representatives. Best to call the general toll-free 800 number each time if you want to speak with someone live, and get prompt answers to your questions.

In addition to the "passbook" surprise previously noted, I just learned that they will not fund my account until they receive "by return mail" the Signature Card they claim to have sent me two days ago. [This is the first time I'm hearing from them of this hassle; there was no mention of signature cards in their confirmation email letting me know that a "test" deposit was being sent to Evantage. Nor did any of their reps tell me about this built-in delay when I asked at the outset what the steps would be to open the account by the end of this week.] And going into a branch to sign a signature card will not speed things up, I was told, since branches are unable to initiate ACH transactions [!?]. So the card would still need to be sent by Dime's inter-office mail from the branch to the central office. Best to use the US postal services, they said.

I'm planning to pull $20K from my Evantage account, whose original 1.75% APY just dropped -- yet again -- from 1.50% down to 1.25%. The trial deposit Dime claims to have sent two days ago has still not hit my Evantage "funding account." So it may be over a week since opening my Dime account by phone until funds are withdrawn and transferred.

The good news is that the Dime's passbook [aka Money Market] account will have a full 6 months of interest, compounded daily from the initial funding day -- though interest is reported at each month's end. Unfortunately, since Evantage retains your accumulated interest if you shutter your account prior to their 3rd Wednesday close, I am stuck -- either losing interest, or keeping Evantage open another month (at 1.25%) -- due to Dime's dilly-dallying.

Dime has a long history, and a high credit rating, but their procedures are amateur and arcane, if not downright incompetent; all the CSRs I've spoken with seem out of the Brooklyn ghetto. I'm planning to withdraw my money (at a branch) right after my 6 months of 1.75% APY are over -- if I can ever get this account finally funded next week. Again, they don't make it easy. If I don't get anything from them by tomorrow, I'm ready to give up on this annoying hassle. Nowadays, a world-class financial player who really wanted your money would have their account opening process streamlined, and wrapped up in a day or two.

Penny-wise, Dime foolish?

 

1
Comment #11 by Jim Davis (anonymous) posted on
Jim Davis
NYC Doug,  I can confirm your experience.  I am a veteran account opener and have had account with Dime a number of times, but the ball busting they gave me when I tried to do this by phone drove me to tell them  to take a hike.




 I live in NY , so maybe I'll open the account in person, mayb not. And yes, while courteous enough, the 'help'  is not up to banking par.

1
Comment #12 by pattyb53 posted on
pattyb53
I've been on vacation for a week and only read about this new MM Account yesterday. Early this morning I called to apply for the MM account. NEW information, MM Account 1.75% has closed! They closed this great rate 7/24, so I missed out.

2
Comment #13 by Anonymous posted on
Anonymous
 

I wanted to alert readers to problems with opening a CD account with Dime Savings Bank. Recently, I opened an account online and specified funding via ACH. The following day a CSR called and wanted me to refax documentation – my driver’s license and a bank statement. I complied and she accepted the faxed bank statement.   However, after faxing a copy of my driver’s license three times, she said it was still not readable so I put a copy in the mail. Four business days later, the CSR calls to say that the bank statement that I faxed was not recent enough and a more current one was needed. Next she tells me that the bank will mail a signature card to me and I would need to complete it and mail it back before the account could be opened, thereby losing 6 to 8 more business days. This was to be funded via ACH to expedite the process!  I estimate that from start to finish the process could take two to three weeks, completely unacceptable.  I decided to bank elsewhere and found that IGO offered the same rate for a 7 year CD and, more importantly, funded the account in 5 business days without a hassle. Stay away from Dime.

 

1
Comment #14 by Jim Davis (anonymous) posted on
Jim Davis
 So it seems the Dime's phone center people are professional ball busters.

 I think management should be made aware.

 

1
Comment #15 by NYCDoug posted on
NYCDoug
Update:

Brother, can yu spare a Dime?

Two weeks after initially speaking with a CSR to get the process started, money has still to be pulled via ACH to fund both my no-interest Reward Checking Account and my 1.75% APY (for 6 months) "Passbook" Money Market account. The funds (thankfuly) remain with Evantge, where they are at least earning 1.25% APY . . .  though, curiously, the balance on the Dime no-interest checking account already indicates a deposit of my requested (minimum) $2,500.

Adding injury to incompetance, Dime has socked my Money Market with a $10 low-balance fee, after, on good faith, I went to a branch to personally deposit $500 late last week. They let me do that at the branch (twice, in fact, with an additional deposit made on Saturday), gave me 12-cents interest, and then slapped me with the unconsionable $10 low-balance fee -- after only two days! [ That's what you get for end-of-the-month accounting . . . ] And it was only after making the initial cash deposit that I was warned -- for the FIRST time (after close to 2 weeks of back-and-forth with CSR phone reps) -- that this Money Market account had a $5,000 miniumum balance. But, with the $20K funding coming in via ACH, that would be no worry, I was assured.

 . . . And continually reassured, by phone reps, whom, the pattern would seem, though genial enough, tell you what you want to hear -- without actually checking the details. This disconnect is, to say the least, most frustrating. Add to that their lack of responding to emails, and making false promises [about "funds will post after noon today" and "K. will calll you back; she's at lunch now; I'll tell her, first thing" etc.], and you have a major recipe for distrust.

The distrust would seem to be mutual. I surmise that, because they still have not sent out my passbook, they are waiting for the SECOND set of signature cards to arrive -- because the first set had a typo in my mother's maiden name [their fault]  . . . which I corrected on the first set of signature cards I returned to them by US mail (and which, to their way of thinking, I'm guessing, may have invalidated the initial set returned to them.)

Meanwhile, the 6-month clock on my 1.75% account already began mid-last week, with an official "account opening" on the 27th (without any cash actually deposited there!). In addiiton to having the unconsionable $10 low-balance fee refunded (and my account properly funded, per my initial application) I am requesting that they either reset the clock, or credit me the interest I would have accrued if their delays had not been forced upon me.

Complicating things even more, the already funded $2,500 checking account still has a "lock" on it -- and so Dime has rejected my attempts to link my Chase and Fidelity accounts to them for externally initiated ACH pushes and pulls. (Chase, in fact, will not allow me to retry -- after rejection they've permanently disallowed any future attempts to create a link to this currently locked account -- and could only suggest that I change my checking account number at the Dime, in order to have another chance at setting up an ACH relationship!)

In sum, Dime seems to have an arcane way of doing business, fraught with obstacles for the consumer. It is apparently a dysfucntional -- if not downright decpetive/devious -- bank at its core, with a disconnected staff of genial CSRs floating naively, and fronting for them unwittingly, on the surface.  [Dime = Dumb?]

One of the CSRs just left a vague message (no content, and no name) to call her back "about my account" . . . Maybe someone's been reading my internal messages to them via online feedback?  I'd really like to have their promises this time around in writing -- if only in email

Wish me luck

 . . . and Caveat Emptor!

 

1
Comment #16 by NYCDoug posted on
NYCDoug
For the record:

Two (2) weeks after my initial contact with Dime CSR, both Reward Checking and Passbook Money Market accounts are finally fuly funded, per my application, with ACH debits dated yesterday showing up in my Evantage funding account.

I have yet to receive a Passbook that would permit me transactions on their promotional 1.75% APY 6-month Money Market account, but in the interim a kindly local branch manager is allowing me to make [cash] deposits.

The checking account remains locked. I cannot establish any external or internal ACH links to outside financial institutions, for push/pulls or the requisite one-bill-pay-per-month (to avoid fees). I was just told that they are still awaiting receipt of the corrected signature cards I mailed back to them 3 days ago. [Apparently my signatures on the original ones, with their mistake, were not valid -- even provisionally].

This was the only written response I have received from them so far to several inquiries made via their online customer email system, beginnning at least 5 days ago.

The good news is that the $10 low-balance fee on the Money Market was refunded, so my profitable interest of 12-cents from last month is now free and clear. Unclear is the exact date when the 6-month promotional period ends; their website shows a start date of "n/a"  . . . and, disconcertingly , instead of the 1.73% rate [1.75% APY] the website shows .45% (granted, an increase from .20% shown last week). I was told that what counts is the paperwork they sent me; the promotional rate is not dispayed.

Also not displayed is any daily accrual (as with Evantage); instead, though interest is cummulated daily, it is posted only monthly.

I suppose I will have to wait until Spetember 1st for definitive clarity on this, and see if any further grievances are worth pursuing.

Meanwhile, I would definitely NOT recommend playing Dime's game, unless you have access to a nearby branch. I plan to pull out as soon as my 6-month promo rate ends -- to the exact date (if that can ever be determined) -- after which their rate on the promotional Money Market is certain to plummet. Let's hope our economy is in better shape by then, with better options for us all!

 

1