Money Market Account Special at Dime Savings Bank in New York

This is confusing since it doesn't tell how to find and open the account that has the 1.75% on Dime Savings Bank.

I've updated the availability section to try to make it a little clearer. If you don't live near their New York branches, a phone call is the best way to apply.

can't believe this, i just closed the account with them last week.  talk about bad timing!

When dealing with Dime, read the fine print closely and frequently.  Nobody there is going to point out to you that you may be making an error that could cost you money.  I personally will never deal with them again no matter how good their deal is. Nobody should have to contend with overly sharp business practices. 

What does their fine print say?  I have found that in most banks, you don't get to read their disclosures until after you set up the account.  They hand it to you then.

Thanks Ken for all your hard work.  I have been reading your blog for many years now and still find it very interesting.

I just spoke to a CSR via phone.  He confirmed the 1.75% APY.  He told me that the money market account does not allow ACH tranfers in or out.  It is a "passbook account". With that, you have to go into the branch to deposit or withdrawal money from this account and bring your "passbook" with you.  When I pressed him a little more, he said that I could mail in deposits and could mail them a letter stating I want to move funds from that account into another account which allows ACH transfers or bill pay.  I did not get a good feeling about the bank.  Since I don't live near a branch, I decided not to open the account.  Oh, and he said I could not wire funds out unless I came into the branch. 

One thing I can add to what has already been posed.  According to a conversation with Dime today, the promotion began before 7/4.  They said it could end at any time.  Since the promotion has been in effect for a few weeks already, it may end sooner rather than later.

The special 1.75% mm is now only available to ny residence as per my conversation with a csr

Not an easy account to open, especially via phone. Despite living in NYC, I thought it would be more efficient to open by phone than going to one of their (relatively few) branches, but I'm finding obstacles all along the path -- as if they don't really want my money . . .

In addition to the previously mentioned required fax of driver's license and bill  ("within the past 2 months") to confirm address [I used my rent bill] they ALSO wanted something with my Social Security number on it faxed to them.

They don't answer emails, and are slow to respond to phone calls directed/returned to specific representatives. Best to call the general toll-free 800 number each time if you want to speak with someone live, and get prompt answers to your questions.

In addition to the "passbook" surprise previously noted, I just learned that they will not fund my account until they receive "by return mail" the Signature Card they claim to have sent me two days ago. [This is the first time I'm hearing from them of this hassle; there was no mention of signature cards in their confirmation email letting me know that a "test" deposit was being sent to Evantage. Nor did any of their reps tell me about this built-in delay when I asked at the outset what the steps would be to open the account by the end of this week.] And going into a branch to sign a signature card will not speed things up, I was told, since branches are unable to initiate ACH transactions [!?]. So the card would still need to be sent by Dime's inter-office mail from the branch to the central office. Best to use the US postal services, they said.

I'm planning to pull $20K from my Evantage account, whose original 1.75% APY just dropped -- yet again -- from 1.50% down to 1.25%. The trial deposit Dime claims to have sent two days ago has still not hit my Evantage "funding account." So it may be over a week since opening my Dime account by phone until funds are withdrawn and transferred.

The good news is that the Dime's passbook [aka Money Market] account will have a full 6 months of interest, compounded daily from the initial funding day -- though interest is reported at each month's end. Unfortunately, since Evantage retains your accumulated interest if you shutter your account prior to their 3rd Wednesday close, I am stuck -- either losing interest, or keeping Evantage open another month (at 1.25%) -- due to Dime's dilly-dallying.

Dime has a long history, and a high credit rating, but their procedures are amateur and arcane, if not downright incompetent; all the CSRs I've spoken with seem out of the Brooklyn ghetto. I'm planning to withdraw my money (at a branch) right after my 6 months of 1.75% APY are over -- if I can ever get this account finally funded next week. Again, they don't make it easy. If I don't get anything from them by tomorrow, I'm ready to give up on this annoying hassle. Nowadays, a world-class financial player who really wanted your money would have their account opening process streamlined, and wrapped up in a day or two.

Penny-wise, Dime foolish?

 

NYC Doug,  I can confirm your experience.  I am a veteran account opener and have had account with Dime a number of times, but the ball busting they gave me when I tried to do this by phone drove me to tell them  to take a hike.




 I live in NY , so maybe I'll open the account in person, mayb not. And yes, while courteous enough, the 'help'  is not up to banking par.

I've been on vacation for a week and only read about this new MM Account yesterday. Early this morning I called to apply for the MM account. NEW information, MM Account 1.75% has closed! They closed this great rate 7/24, so I missed out.

 

I wanted to alert readers to problems with opening a CD account with Dime Savings Bank. Recently, I opened an account online and specified funding via ACH. The following day a CSR called and wanted me to refax documentation – my driver’s license and a bank statement. I complied and she accepted the faxed bank statement.   However, after faxing a copy of my driver’s license three times, she said it was still not readable so I put a copy in the mail. Four business days later, the CSR calls to say that the bank statement that I faxed was not recent enough and a more current one was needed. Next she tells me that the bank will mail a signature card to me and I would need to complete it and mail it back before the account could be opened, thereby losing 6 to 8 more business days. This was to be funded via ACH to expedite the process!  I estimate that from start to finish the process could take two to three weeks, completely unacceptable.  I decided to bank elsewhere and found that IGO offered the same rate for a 7 year CD and, more importantly, funded the account in 5 business days without a hassle. Stay away from Dime.

 

 So it seems the Dime's phone center people are professional ball busters.

 I think management should be made aware.

 

Update:

Brother, can yu spare a Dime?

Two weeks after initially speaking with a CSR to get the process started, money has still to be pulled via ACH to fund both my no-interest Reward Checking Account and my 1.75% APY (for 6 months) "Passbook" Money Market account. The funds (thankfuly) remain with Evantge, where they are at least earning 1.25% APY . . .  though, curiously, the balance on the Dime no-interest checking account already indicates a deposit of my requested (minimum) $2,500.

Adding injury to incompetance, Dime has socked my Money Market with a $10 low-balance fee, after, on good faith, I went to a branch to personally deposit $500 late last week. They let me do that at the branch (twice, in fact, with an additional deposit made on Saturday), gave me 12-cents interest, and then slapped me with the unconsionable $10 low-balance fee -- after only two days! [ That's what you get for end-of-the-month accounting . . . ] And it was only after making the initial cash deposit that I was warned -- for the FIRST time (after close to 2 weeks of back-and-forth with CSR phone reps) -- that this Money Market account had a $5,000 miniumum balance. But, with the $20K funding coming in via ACH, that would be no worry, I was assured.

 . . . And continually reassured, by phone reps, whom, the pattern would seem, though genial enough, tell you what you want to hear -- without actually checking the details. This disconnect is, to say the least, most frustrating. Add to that their lack of responding to emails, and making false promises [about "funds will post after noon today" and "K. will calll you back; she's at lunch now; I'll tell her, first thing" etc.], and you have a major recipe for distrust.

The distrust would seem to be mutual. I surmise that, because they still have not sent out my passbook, they are waiting for the SECOND set of signature cards to arrive -- because the first set had a typo in my mother's maiden name [their fault]  . . . which I corrected on the first set of signature cards I returned to them by US mail (and which, to their way of thinking, I'm guessing, may have invalidated the initial set returned to them.)

Meanwhile, the 6-month clock on my 1.75% account already began mid-last week, with an official "account opening" on the 27th (without any cash actually deposited there!). In addiiton to having the unconsionable $10 low-balance fee refunded (and my account properly funded, per my initial application) I am requesting that they either reset the clock, or credit me the interest I would have accrued if their delays had not been forced upon me.

Complicating things even more, the already funded $2,500 checking account still has a "lock" on it -- and so Dime has rejected my attempts to link my Chase and Fidelity accounts to them for externally initiated ACH pushes and pulls. (Chase, in fact, will not allow me to retry -- after rejection they've permanently disallowed any future attempts to create a link to this currently locked account -- and could only suggest that I change my checking account number at the Dime, in order to have another chance at setting up an ACH relationship!)

In sum, Dime seems to have an arcane way of doing business, fraught with obstacles for the consumer. It is apparently a dysfucntional -- if not downright decpetive/devious -- bank at its core, with a disconnected staff of genial CSRs floating naively, and fronting for them unwittingly, on the surface.  [Dime = Dumb?]

One of the CSRs just left a vague message (no content, and no name) to call her back "about my account" . . . Maybe someone's been reading my internal messages to them via online feedback?  I'd really like to have their promises this time around in writing -- if only in email

Wish me luck

 . . . and Caveat Emptor!

 

For the record:

Two (2) weeks after my initial contact with Dime CSR, both Reward Checking and Passbook Money Market accounts are finally fuly funded, per my application, with ACH debits dated yesterday showing up in my Evantage funding account.

I have yet to receive a Passbook that would permit me transactions on their promotional 1.75% APY 6-month Money Market account, but in the interim a kindly local branch manager is allowing me to make [cash] deposits.

The checking account remains locked. I cannot establish any external or internal ACH links to outside financial institutions, for push/pulls or the requisite one-bill-pay-per-month (to avoid fees). I was just told that they are still awaiting receipt of the corrected signature cards I mailed back to them 3 days ago. [Apparently my signatures on the original ones, with their mistake, were not valid -- even provisionally].

This was the only written response I have received from them so far to several inquiries made via their online customer email system, beginnning at least 5 days ago.

The good news is that the $10 low-balance fee on the Money Market was refunded, so my profitable interest of 12-cents from last month is now free and clear. Unclear is the exact date when the 6-month promotional period ends; their website shows a start date of "n/a"  . . . and, disconcertingly , instead of the 1.73% rate [1.75% APY] the website shows .45% (granted, an increase from .20% shown last week). I was told that what counts is the paperwork they sent me; the promotional rate is not dispayed.

Also not displayed is any daily accrual (as with Evantage); instead, though interest is cummulated daily, it is posted only monthly.

I suppose I will have to wait until Spetember 1st for definitive clarity on this, and see if any further grievances are worth pursuing.

Meanwhile, I would definitely NOT recommend playing Dime's game, unless you have access to a nearby branch. I plan to pull out as soon as my 6-month promo rate ends -- to the exact date (if that can ever be determined) -- after which their rate on the promotional Money Market is certain to plummet. Let's hope our economy is in better shape by then, with better options for us all!