Dedicated to Deposits: Deals, Data, and Discussion

Competitive 16-Month CD Rate at DollarSavingsDirect

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It has been awhile since I mentioned DollarSavingsDirect. Its savings account rate has been disappointing for the last several years, and with a current rate of 0.55%, it’s still disappointing. However, the bank also has 16-month CD which does have a competitive rate. The 16-month CD has a 1.00% APY as of 6/7/2013. Minimum deposit is $1,000. This rate has held for many months. It’s one of the cases when the rate becomes competitive due to falling rates at other banks. Thanks to the reader who emailed me a reminder on this CD.

My last post on this CD was three years ago. One nice thing that has changed is that they now have this CD listed on its website. In addition, they have an online application, and you no longer need to have the DollarSavingsDirect savings account before you open the CD. More details about the CD are described in the bank’s FAQ page.

DollarSavingsDirect’s parent, Emigrant Bank, first launched the internet bank EmigrantDirect around the start of 2005. It was offering a savings account with a 3.00% APY which was much higher than the other internet banks. As a comparison, ING DIRECT was offering a 2.00% APY savings account at that time. Those rates then rose through 2005 and 2006. EmigrantDirect’s savings account rate peaked at 5.15% APY in 2006. Emigrant Bank launched DollarSavingsDirect in 2008 with a savings account rate slightly higher than EmigrantDirect’s rate, but the savings account requires a $1K minimum balance. Those savings account rates slowly fell and became subpar in the last few years.

Emigrant Bank’s financial health has improved some over the last few years. In my last post on this bank three years ago, it had an overall health score at DepositAccounts.com of 2 stars (out of 5). It now has a health score of 4 stars (out of 5) with a Texas ratio of 36.10% (average) based on March 2012 data. Please refer to our financial overview of Emigrant Bank for more details. The bank has been a FDIC member since 1934 (FDIC Certificate # 12054).


  Tags: DollarSavingsDirect, CD rates

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Comments
13 Comments.
Comment #1 by Wil posted on
Wil
When a CD having a term more than one year is considered competitive for having an APY of 1.00% then there's good reason for us all to be depressed. And "depressed" is the right word, because what we're seeing is a "depression" so far as CDs are concerned with respect to be desirable instruments for term savings. Why even bother saving? Makes me want to break out a bottle of some hard liquor and smoke a cigarette. Well, maybe I don't need low deposit rates on my deposit accounts as an incentive to do either!

12
Comment #2 by Anonymous posted on
Anonymous
Hmm!, If I put 100K minus 20% in tax it leaves me $66 per month, I can not even fill the tank in my SUV for $66. All I can have is dinner for 2 at my local restaurant and that’s it.
What a trade off, 100K for one dinner or half a tank of gas, the choices the choices, drive me crazy.

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Comment #3 by stormdog123 posted on
stormdog123
People's United bank is offering 12 month 1.00% CD at the Orangeburg NY branch. This is a grand opening special.  It is located in a Stop&Shop supermarket. The flyer that I picked up does not have the end date.

You must open a checking account.

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Comment #4 by Maecl posted on
Maecl
I saw a 1% sign when I was in a New Milford, CT Stop & Shop today.  I didn't stop to look at the details.  The special may be more than local.

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Comment #5 by Anonymous posted on
Anonymous
Pretty slim offers and promotions over the last several months. Not Ken's fault......but this webpage is not really worth checking anymore.

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Comment #6 by Anonymous posted on
Anonymous
Rates will continue to do nothing but decline. I honestly would not be surprised to see banks starting to charge fees just to keep any type of account.....or charge negative interest rates. But don't be tricked.  The "poor" economy is only an excuse to keep rates low. Really......the communists are trying to bait you into putting money into the market.....and then they will crash it and create a "crisis" so government can have complete control. Look at what Obama is already doing to prepare for it.......spying on good Americans and intimidating them with the IRS.  It's coming.......be prepared!

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Comment #7 by Anonymous posted on
Anonymous
I think someone drank too much of the bad Mylanta.  #6  Didn't you forget your smiley faces?  No one is spying on anyone.  Didn't you listen to Obama's speech yesterday?  We are all safe and all is well with the world. And they call "me" paranoid??

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Comment #8 by Anonymous posted on
Anonymous
Wow, Anonymous - #7, you believe the proven liar on his words, wow again.

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Comment #9 by Anonymous posted on
Anonymous
Wow Anonymous #8  You believe everything you read??  Wow!   That's even funnier. :)

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Comment #10 by Anonymous posted on
Anonymous
This is by far the best site for interest rate information. And blog comments are often hilarious. So I'd say this is one of the best deals on the web!

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Comment #11 by Anonymous posted on
Anonymous
#10  This must be Ken's special way of keeping people interested until interest rates go back up again and we can actually make some money from his hard work.  Thank you for appreciating our blog even in these hard times.

4
Comment #15 by Anonymous posted on
Anonymous
paoli2 - #14, You should never be ashamed to express your true fillings and your opinion about any subject, sarcasm does not bode well on the blogs.

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