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DollarSavingsDirect Raises Savings Account Yield to 4.00%


Emigrant Bank raised the yield on its online savings account at DollarSavingsDirect from 3.75% to 4.00% APY. With the Fed rate cut today, it's nice to see this rate increase. However, I'm sure it was planned long before today's Fed rate cut, so I'm afraid this and many other online savings account yields may soon start dropping.

Emigrant Bank still has EmigrantDirect, but the yield on that online savings account is only 3% APY. Why does Emigrant Bank have two different online savings accounts? This seems to be a common technique for banks. They can use the new account to bring in money from new customers but they don't have to pay the high interest to existing customers who don't take the time to sign up for the new savings account.

There is one important difference between DollarSavingsDirect and EmigrantDirect. This may be one reason, in addition to the above reason, that DollarSavingsDirect pays higher interest. At DollarSavingsDirect, a minimum balance of $1,000 is required in order to earn the top yield. If the average daily balance falls below $1,000 during a statement period, the yield drops to 1.00% APY. EmigrantDirect has only one yield for all balances.

Besides this one difference, all other banking features appear to be the same. I did a review of DollarSavingsDirect in this August post. Please refer to that post for more details.

Thanks to the reader who emailed me news of this rate change.

Related Pages: DollarSavingsDirect, New York, savings account

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Anonymous   |     |   Comment #1
One other difference: DSD requires online statements.
Navaraj (anonymous)   |     |   Comment #2
how does this compare with amtrust direct's 4% guaranteed for 90 days and lower balance ($1). Anybody have any experience with amtrust direct?
Anonymous   |     |   Comment #3
Stay away from amtrust! They care nothing about customer retention. Check out what happens after the 90 day guarantee is over. I pulled all my money out of amtrust because I got tired of their little games.
Anonymous   |     |   Comment #4
I just opened the Amtrust 4% account last week. I've been a customer for a while with CDs, etc. and never had any problems. Their online savings rates aren't great after promotions are over, but the required balance is low and their online bank-to-bank transfer capability is top-notch. I usually have an Amtrust account open simply for this reason, plus their great promo rates. Phone customer service has always been good though they often don't answer e-mails.
Anonymous   |     |   Comment #5
As a long term customer of Emigrant Direct, I just called to see if they could do the transfer to Dollar Direct internally. No go. Have to transfer funds back to checking, close Emigrant, open Dollar, transfer funds into Dollar.

How short sighted. If I can find another bank with the same 4% rate, or even 3.75%, I'm going to go there. It's always better to keep the happy customer you have than to tick him off, have him tell the world, and then have to spend money to acquire new customers to replace the disaffected who departed.
D (anonymous)   |     |   Comment #6
I agree with the comments about amtrust not caring about customer retention. Open a new account with the 4% interest. After 90 days, you get only 2.5%!

So what if "their required balance is low", "their online bank-to-bank transfer capability is top-notch" and "their phone customer service has always been good"? Sounds like he/she works for amtrust...
Anonymous   |     |   Comment #7
Amtrust plays games with you. After you open an account (and the promotion is over), you log on to their site and they show a big interest rate. However, your interest rate is very small and it is hard to figure out what you are getting (those of us here can find out easy).
Fred B.
Fred B. (anonymous)   |     |   Comment #8
I just opened an account with DollarSavingsDirect. But I did notice in the fine print of the account agreement that they may require 60 days written notice of any withdrawal. That seems longer than I have seen in similar fine print, but maybe that is the current state of affairs for most or all banks.