DollarSavingsDirect Boosts Dollar Savings Account Rate to 1.25% APY


Deal Summary: Dollar Savings Account, 1.25% APY on all balances, no minimum opening deposit requirement.

Availability: Internet bank

DollarSavingsDirect has raised the rate on its Dollar Savings Account to 1.25% APY - the highest APY for a nationally available savings account. While there used to be a $1k minimum opening deposit for the Dollar Savings Account, that requirement was changed sometime in late 2016. Currently, there is no minimum deposit balance required to either open the account or earn the stated APY; CSR stated the account could be opened with as little as $1.

1.25%--DollarSavingsDirectDollar Savings Account
Accounts mentioned in this post. Rates as of April 29, 2017.

For the past six years, the Dollar Savings Account’s APY has been less than 1.00%, ranging from a high of 0.90% (for four months) to a low of 0.55% (for the past four+ years).

The Dollar Savings Account can be opened with a single beneficiary, with the “address, social security number and the phone number of the beneficiary” required to complete the online application.

DollarSavingsDirect has a FAQs page, which answers a variety of questions from, “How do I open a Dollar Savings Account,” to “What types of precious metals do you offer?”


DollarSavingsDirect is an internet division of Emigrant Bank, which is headquartered in New York City. DollarSavingsDirect offers its product line to individuals who are “at least 18 years old, have a social security number, a legal US address, and a personal checking account in a US bank.”

Opening a Dollar Savings Account must be done online. The initial funding of a new Dollar Savings Account can be done online or by check, but subsequent deposits must be done electronically.

The check must be from the same bank account you established
as your linked funding account on the online application.

Bank Overview

As an internet division of Emigrant Bank( FDIC Certificate # 12054), DollarSavingsDirect operates under Emigrant Bank’s FDIC Certificate and as such, shares its financial history. DollarSavingsDirect/Emigrant Bank has an overall health grade of "B" at, with a Texas Ratio of 20.43% (above average) based on December 31, 2016 data. The Bank has an excellent capitalization level (18.4%), the results of holding $6.41 billion in assets with $1.18 billion in equity. Please refer to our financial overview of DollarSavingsDirect/Emigrant Bank for more details.

Founded as Emigrant Savings Bank in 1850 by members of the Irish Emigrant Society, Emigrant Bank is the oldest savings bank in New York City.

Emigrant Bank established three internet divisions in the past 12 years: EmigrantDirect (2005), DollarSavingsDirect (2009), and MySavingsDirect (2013). EmigrantDirect was the first internet bank to aggressively respond to the Fed’s rate hikes in 2005. That year the Fed raised rates six times, and EmigrantDirect responded with three rate increases.

How the Dollar Savings Account Compares

When compared to the 209 Personal Savings account tracked by that are available nationwide, DollarSavingsDirect’s Dollar Savings Account APY currently shares the top spot with PurePoint Financial’s Online Savings (minimum $10k deposit).

Interest RateAccount NameCredit Union/Bank
1.25% APYDollar Savings Account (no min)DollarSavingsDirect
1.15% APYHigh Rise Savings Account (no min)Popular Direct
1.11% APYIncredible Savings (no min)Incredible Savings

The above rates are accurate as of 4/6/2017.

To look for the best Savings account rates, both nationwide and state specific, please refer to our Savings account rates table or our Rates Map page.

deplorable 1
deplorable 1   |     |   Comment #1
This bank is sneaky. I started out with emigrant direct years ago when they had the top rate and they dropped the rate pretty low. Then they came out with dollar savings direct with a high rate so I called the csr and asked if I could switch my account over to the new one. Nope had to close the old account out and open the new account. Then they dropped that rate and opened another My savings direct which has had the rate now drop. Now is seems that since folks have caught on to these shenanigans instead of opening up a new account name they are increasing the rate on one of the 3 they already have. It's tough out here being a rate chaser.
DCGuy   |     |   Comment #2
Typical NYC bait and switch. They are looking for the "set and forget" type of customers.
pinkterror   |     |   Comment #3
I closed my account maybe 1-2 years ago, giving it up as a lost cause...This incarnation of Emigrant is a bit tougher when it comes to ACHing in and out thatn either emigrant or even the stranger(?) mysavingsdirect....I'm even reluctant to reopen one. sigh...
Bogey   |     |   Comment #4
I know what you mean deplorable 1. Many years ago I funded an account with Emigrant Direct. I eventually withdrew all but ten dollars which in time was turned over to my state's treasury department. Had to file a claim to retrieve my ten bucks. Better in my pocket than to allow the state politicians to squander it.
annnnnon   |     |   Comment #5
That's why I stay with Alliant for liquid cash. I'm certainly a rate chaser to a point, but not for the very last penny. There are others that are a little higher than Alliant, but Alliant has remained "just under" the top rates, without all the dirty tricks, which is good enough for me. If Alliant doesn't stay competitive I'll move the money elsewhere (as I did when Alliant dropped their HSA rates to a paltry 0.65%, and there were much better options elsewhere). But for normal savings accounts, while they're not at the very tip-top, they've consistently had good liquid rates for at least the last year or two -- and have remained that way, with policies that treat the members right, and no dirty tricks.
Att   |     |   Comment #6
Had the same experience. No longer rate chasing savings accounts. Have mine in GS bank formally GE Capital bank. ACH are done in 1 day and they are among the top. Also have a savings account with Synchrony. I'm only rate chasing CDs and only if the account opening process is not time consuming or complicated.
rhutnik   |     |   Comment #7
Are the ACH at GS Bank done in one day both incoming and outgoing? Interested in setting up one or two other Savings accounts, have some money in Ally right now but I might open up a Purepoint account as well. I remember seeing all the ads about how MySavingsDirect was the highest rate in America, and now this division can make that claim. From what I've seen, they'll just drop it again soon, teaser rate maybe. MySavingsDirect, to my knowledge, still proclaims it has "one of the highest rates in America" at 0.85% or so. Up to you if that is a true statement.
maximizer   |     |   Comment #9
My experience with GS Bank has been that ACH out takes only one day. I was very pleasantly surprised.
deplorable 1
deplorable 1   |     |   Comment #8
All America/Redneck bank 1.25% has been very good. $35,000 cap but you can get one for the wife which makes it $70,000. Ally demand notes formerly GMAC demand notes(1.16% APY currently) has had some of the highest interest rates for decades(used to be 6-7%). They are not FDIC insured so I use this as a checking account for paying all my bills online as they don't have the 6 withdrawals per month limit.
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...

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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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