Over the weekend, MySavingsDirect (MSD) added 115 bps to its 6-month CD, raising the rate to 2.15% APY. Of the three CDs offered by MSD, the 6-month is clearly the most competitive. The minimum deposit is $1k, with no stated balance cap.
|2.15%||$1k||-||MySavingsDirect||6 Month My Term CD|
|1.65%||$1k||-||MySavingsDirect||60 - 120 Month My Term CD|
|1.30%||$1k||-||MySavingsDirect||30 Month My Term CD|
As stated in the Account Disclosures brochure, the Early Withdrawal Penalty reads as follows:
For an account with a term of less than one year, the penalty will be an amount equal to 90 days interest (whether earned or not) and calculated at the contract rate on the principal amount.
Funding a CD can be done through your MySavings Account or a linked external checking account. There is a 10-day grace period and funds in a maturing CD can be transferred to your MySavings Account or to the linked account via ACH.
A MySavings Account is required to open a CD with MSD. This 6-month CD is finally a reason to open a MySavings Account. MSD’s sister bank, DollarSavingsDirect, has been offering the competitive internet savings account since April 2017. The MySavings Account has been decidedly non-competitive, offering 1.00% APY since June 2017.
As stated on the FAQ page, opening a CD “is easy.”
If you have a MySavings Account, simply log on and click on the Open Account tab. If you do not have a MySavings Account, click on the Open Now button on our home page and complete an online application. Once your account is opened, you can log on and open your CD through the Open Account function.
ACH Transfer System
As I noted in a November 2014 blog, MySavingsDirect’s ACH transfer service has been a deal killer for several DA readers. MySavingsDirect’s FAQ page contains a great deal of information about the MySavings Account, including:
- 60 days after the MySavings Account is established, a second checking account may be linked to MySavingsDirect.
- Account Verification Authorization Form must accompany the voided check in order for us to process your request. Faxes will not be accepted.
- Opening deposit can be made by check, but must be from the linked funding account listed on the online application.
- Only external ACH deposits are allowed following the opening deposit.
- A single beneficiary (Social Security number required) can be added, using the online application.
Although not listed on the FAQ page, CSR has stated that ACH withdrawals initiated by another bank are not allowed, and the maximum amount that can be transferred by ACH (incoming or outgoing) is $500k.
As an online division of New York City's Emigrant Bank, MySavingsDirect has no brick-and-mortar branches and any account with MySavingsDirect must be opened online.
More than five years ago, Emigrant Bank, which is owned by the Milstein Family, sold 30 of its 32 branches to Apple Bank for Savings. The remaining two branches are located in New York City and Ossining (Westchester County).
Along with EmigrantDirect and DollarSavingsDirect, MySavingsDirect is an internet division of Emigrant Bank, and operates under the Bank’s FDIC Certificate and shares its financial history.
MySavingsDirect/Emigrant Bank has an overall health rating of "B+" at DepositAccounts.com, with a Texas Ratio of 18.22% (above average), based on March 31, 2018 data. In the past year, the Bank has increased its total non-brokered deposits by $638.54 million, an excellent annual growth rate of 15.13%. Please refer to our financial overview of MySavingsDirect/Emigrant Bank (FDIC Certificate # 12054) for more details.
As MySavingsDirect, EmigrantDirect, and DollarSavingsDirect are all online banking divisions of Emigrant Bank,
any deposits you have at Emigrant Bank, EmigrantDirect, DollarSavingsDirect or MySavingsDirect are aggregated and FDIC insured up to $250,000 per depositor. Keep in mind that individual and joint accounts are insured separately, so if you have both types of accounts with us, your total deposits can be insured up to $500,000; that's up to $250,000 in all of your individual accounts, and up to an additional $250,000 in all of your joint accounts.
MSD’s website provides a chart, which shows how to maximize the FDIC coverage
Launched in November 2013, MySavingsDirect is the third online banking division created by Emigrant Bank. Emigrant Bank was found by 18 members of the Irish Emigrant Society in 1850 as a mutual savings bank. By the 1920s, it had grown to become the largest savings bank in the nation. Today, Emigrant Bank is New York’s 18th largest bank with assets in excess of $6.2 billion, and is the largest privately owned bank in the country.
How the CD Compares
When compared to the similar length-of-term CDs tracked by DepositAccounts.com that require a similar minimum deposit and are available nationwide, MySavingsDirect’s 6-month My Term CD APY currently ranks first.
|Interest Rate||CD Length of Term||Credit Union/Bank|
|2.15% APY||6-Month My Term CD||MySavingsDirect|
|2.12% APY||9-Month CD||USALLIANCE Financial|
|2.05% APY||6-Month CD||Limelight Bank|
The above rates are accurate as of 6/11/2018.
To look for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.