It has been awhile since I mentioned DollarSavingsDirect. Its savings account rate has been disappointing for the last several years, and with a current rate of 0.55%, it’s still disappointing. However, the bank also has 16-month CD which does have a competitive rate. The 16-month CD has a 1.00% APY as of 6/7/2013. Minimum deposit is $1,000. This rate has held for many months. It’s one of the cases when the rate becomes competitive due to falling rates at other banks. Thanks to the reader who emailed me a reminder on this CD.
My last post on this CD was three years ago. One nice thing that has changed is that they now have this CD listed on its website. In addition, they have an online application, and you no longer need to have the DollarSavingsDirect savings account before you open the CD. More details about the CD are described in the bank’s FAQ page.
DollarSavingsDirect’s parent, Emigrant Bank, first launched the internet bank EmigrantDirect around the start of 2005. It was offering a savings account with a 3.00% APY which was much higher than the other internet banks. As a comparison, ING DIRECT was offering a 2.00% APY savings account at that time. Those rates then rose through 2005 and 2006. EmigrantDirect’s savings account rate peaked at 5.15% APY in 2006. Emigrant Bank launched DollarSavingsDirect in 2008 with a savings account rate slightly higher than EmigrantDirect’s rate, but the savings account requires a $1K minimum balance. Those savings account rates slowly fell and became subpar in the last few years.
Emigrant Bank’s financial health has improved some over the last few years. In my last post on this bank three years ago, it had an overall health score at DepositAccounts.com of 2 stars (out of 5). It now has a health score of 4 stars (out of 5) with a Texas ratio of 36.10% (average) based on March 2012 data. Please refer to our financial overview of Emigrant Bank for more details. The bank has been a FDIC member since 1934 (FDIC Certificate # 12054).