New Top 12-Month CD Rate at DollarSavingsDirect


DollarSavingsDirect has made a nice change to its CD offering. It has long been offering a 16-month CD, and as I described two weeks ago, the rate has been competitive. The bank just changed the term to a 12 months, and it has also raised the rate to 1.05% APY. Minimum deposit is $1,000.

As I described two weeks ago, DollarSavingsDirect now has its 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 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 2013 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).

How This CD Rate Compares

The only other internet bank offering 1.05% APY for a 12-month term is GE Retail Capital Bank, but this requires a $25,000 minimum deposit. Connexus Credit Union offers 1.10% APY for a 1-year CD, but this requires an active checking account with direct deposit. These rates are accurate as of 6/21/2013.

Searching for the Best CD Rates

To search for nationwide CD rates and CD rates in your state, please refer to the best CD rates section of

Anonymous   |     |   Comment #1

Today, July 24, I completed an app for a one-year CD. However, I was soon diverted to the savings account app. I called and they said that one must apply for the savings account ($1.00 minimum); wait until two test ACH transfers are made; then after five business days, go online and convert most of the amount deposited into a CD.

Any thoughts? The person I spoke with had no idea why the direct CD application would have been mentioned anywhere and the website does not allow you to directly apply for the CD. 




Competitive 16-Month CD Rate at DollarSavingsDirect

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...

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Update on DollarSavingsDirect's 16-Month CD and Emigrant Bank

DollarSavingsDirect continues to offer a 1.65% APY 16-month internet CD. This rate has held since January when the yield was 2.25%. Since January, it has become more competitive as rates at other banks have fallen. This rate isn't listed at DollarSavingsDirect's website. I just called the bank (1-866-395-8693), and verified the rate. They also have a 2.50% APY 5-year CD which has been the same rate since last July. Fortunately, that rate is still not competitive (let's hope it stays that way).

To open a CD at DollarSavingsDirect, you must first...

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2.25% 16-Month CD at DollarSavingsDirect - Available Nationwide

Update 6/08/2010: According to the bank's CSR, the 16-month CD rate is now 1.65% APY. The CSR can be reached at 1-866-395-8693.

Even though DollarSavingsDirect is no longer listing CDs on its front page, it's still offering the 2.25% APY 16-month CD. When I was updating the rates on Saturday, I noticed the CD info was removed. I just called DollarSavingsDirect, and the CSR confirmed that it's still available as of today (8/24/09). He said he hasn't heard of any rate cut, and they typically inform the reps 1 or 2...

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Dollar Savings Direct Cuts Savings Account Rate Again - Options and Issues to Consider
Update 03/17/09: The yield has fallen to 2.05% APY.

DollarSavingsDirect again lowered its savings account rate. It's now only 2.25% APY. This is the fourth rate cut in the last month. Here's the history of the rate cuts since they first cut the rate from 4% to 3.50% in January:

Date of Chg APY
03/17/09: 2.05%
03/07/09: 2.25%
03/03/09: 2.50%
02/21/09: 2.65%
02/12/09: 3.05%
02/05/09: 3.20%
01/23/09: 3.50%

Time to Switch?

I think it's time for Emigrant to remove...

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DollarSavingsDirect Savings Account Yield Falls to 3.50% - Alternatives?
Update 3/3/09: Rate has fallen to 2.50% APY.

DollarSavingsDirect lowered its savings account yield today from 4.00% to 3.50% APY. They had avoided a rate cut longer than any other major online savings account. The yield had been 4.00% since October 8, 2008. Emigrant Bank launched DollarSavingsDirect in early August 2008 with an APY of 3.75%. In addition to the savings account rate cut, the 16-month CD rate also was cut. It's now 3.25% APY (down from 3.50%).

Now the interesting question is what plans does Emigrant Bank have for DollarSavingsDirect? The...

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