MySavingsDirect Savings Account Rate Soars

In somewhat of a surprising move, it appears Emigrant Bank has decided to make MySavingsDirect (MSD) their flagship savings account, having raised the rate on the MySavings Account to 2.25% APY. Meanwhile, DollarSavingsDirect’s (DSD) Dollar Savings Account remains unchanged at 1.80% APY.

With this latest rate increase, DSD and MSD have switched roles: DSD had been offering competitive rates on the Dollar Savings Account since April 2017 (1.25% APY), with the latest increase to 1.80% occurring in February 2018. MSD’s MySavings Account had been decidedly non-competitive, offering an APY of 1.00% or lower since December 2015.

As stated on the FAQ page, opening a MySavings Account “is quick, easy and convenient.”

Just click on the Open Now button on our home page. The only requirements are that you are at least 18 years old, have a valid tax identification number, a legal address and a personal checking account in a US bank. If you still have questions, please call Customer Service at 877-752-1919.

Thanks to DA reader, IvoryMale, for his timely Forum post about the rate increase.

ACH Transfer System

As I noted in a November 2014 blog, MSD’s ACH transfer service has been a deal killer for several DA readers. MSD’s FAQ page contains a great deal of information about the MySavings Account, including:

• No sooner than 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.

After speaking with an MSD CSR and reviewing my earlier blog posts on Emigrant Bank and its various divisions, I was surprised to see that not much has changed. All the ACH details I mentioned in a 2013 blog post are still in effect today. In fact, these attributes are the same that existed when I first wrote about DSD in 2008. And if memory serves me right, I think EmigrantDirect listed the same features when it began in 2005. Rather than doing a rewrite, I’m just going to quote my November 2013 blog post.

They don’t allow ACH withdrawals initiated by another bank. External ACH deposits are allowed (CSR).

Maximum of 2 linked accounts which includes the initial funding account (Q&A).

Establishing second linked account requires mailing in a voided check and form (Q&A).

Maximum amount that can be transferred via ACH (in/out) is $500,000 (CSR).

Linked accounts can only be personal checking accounts (Q&A).

Availability

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.

About eight 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).

Bank Overview

MySavingsDirect (along with EmigrantDirect and DollarSavingsDirect) is an internet division of Emigrant Bank, and operates under Emigrant 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 17.95% (above average), based on June 30, 2018 data. In the past year, the Bank has increased its total non-brokered deposits by $440.66 million, an excellent annual growth rate of 10.28%. 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 founded 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. In support of its “hometown,” the Bank invested substantial funds into the New York City community, underwriting constructions loans for Saint Patrick’s Cathedral and a public works project that later became Central Park. Emigrant Bank is currently New York’s 18^th largest bank with assets in excess of $6.16 billion, and is also the largest privately owned bank in the country.

How the Savings Account Compares

When compared to other person savings accounts tracked by DepositAccounts.com, requiring a similar minimum deposit and available nationally, the MySavings Account currently ranks first.

The above rates are accurate as of 9/6/2018.

To search for the best savings accounts rates, either nationwide or in your state, please refer to the Savings Rates section of DepositAccounts.com.