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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 open the savings account. Once the savings account is opened and you've verified the external linked checking account, you can log into your account and complete an online CD application. I have many more details about this CD in my August 2009 DollarSavingsDirect CD review.

The savings account is paying 1.20% APY as of 6/08/2010. This is a little disappointing since there are several other internet banks paying higher rates. I remember the days back in 2005 when Emigrant Direct (Emigrant's main internet bank before DollarSavingsDirect) offered rates that far exceeded their competition.

News on Emigrant Bank

Another thing that has changed at Emigrant Bank is its financial health. It's not in the best financial shape these days. There is some interesting news on Emigrant Bank in this Crain's NY Business article:

The Milstein family injected another $20 million into Emigrant Savings Bank's parent in the first quarter to shore up their financial institution, which is the nation's largest in private hands and the only major bailed-out bank in the city yet to settle its debt with Uncle Sam.

However, the article noted some recent improvements:

[Emigrant] returned to the black in the first quarter of this year with net income of $11 million

This improvement is also seen in the ratings for safety and soundness at BauerFinancial. It now gives the bank a rating of 2 stars based on 3/31/10 data. It had been rated 0 stars when it was based on 3/31/09 data. Bankrate.com continues to give the bank its lowest rating of 1 star based on 12/31/09 data. We have an overall health score for Emigrant Bank of 2 out of 5 based on 3/31/10 data (see our Emigrant Bank rates and reviews page).

DollarSavingsDirect and EmigrantDirect are divisions of Emigrant Bank which has been a FDIC member since 1934 (FDIC Certificate # 12054). Emigrant Bank is based in New York, NY.

Related Pages: CD rates, DollarSavingsDirect, New York, Emigrant Bank, New York

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