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Emigrant’s New Internet Bank: MySavingsDirect


Emigrant Bank has again launched a new internet bank. This new one is called MySavingsDirect, and it’s website is at mysavingsdirect.com. Those who had an account at Apple Bank’s Grand Yield Direct should have been notified that their accounts are being transferred to MySavingsDirect. I used to have a GYD account, and in addition to the notification, I received a MySavingsDirect baseball cap. I remember receiving an EmigrantDirect cap eight years ago.

MySavingsDirect isn’t just news for GYD customers. The new internet bank’s online savings account, called MySavings Account, can be opened by anyone, and it currently has a very competitive APY of 1.00%. It has no monthly fees and no minimum balance. The question that savers are probably asking is how long will this rate last? Emigrant’s history can provide some insights.

3.90%--MySavingsDirectMySavings Account
Rates as of December 4, 2022.

About nine years ago Emigrant Bank first launched the internet bank, EmigrantDirect, with a very competitive online savings account. Rates fell and the savings account eventually became uncompetitive. About five years ago Emigrant Bank launched another internet bank, DollarSavingsDirect, with a very competitive online savings account. Just like EmigrantDirect, DollarSavingsDirect’s savings account rate didn’t remain competitive. It now has a low 0.55% rate.

How long did DollarSavingsDirect’s savings account rate remain competitive?

Over the last ten years, I have found it useful to use ING DIRECT (now Capital One 360) to judge the competitiveness of an online savings account. ING DIRECT rarely had top savings account rates, but it always had respectable rates.

DollarSavingsDirect remained competitive for over 2 yrs

When DollarSavingsDirect (DSD) launched in August 2008, it had a 3.75% APY. At that time ING DIRECT’s savings account had a 3.00% APY. DSD’s savings account kept the rate lead until April 2011. At that time DSD’s rate fell to 0.90% while ING DIRECT was holding at 1.00%. So if you define a competitive savings account rate as a rate higher than what ING DIRECT offers, DSD’s savings account remained competitive for 2 years and 8 months.

So based on the history, the rate may stay competitive for a year or more. So would opening a MySavingsDirect account be worth it? In addition to judging the rate, you’ll want to review the account features. In this case, the features are the same as EmigrantDirect’s features. I just called and confirmed this.

It has been so long since I reviewed EmigrantDirect and DollarSavingsDirect account features, I had to refresh my memory. Below is a summary of some of its important online banking features:

  • 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)

Another issue to consider is the health of the bank. Emigrant bank’s health has been weak for several years. Currently, it has an overall health grade at DepositAccounts.com of a C+ with a Texas ratio of 30.69% (below average) based on June 2013 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).

How Does This Savings Account Compare

We currently have only four institutions with non-promo rates at or above 1.00%. Three of those four are the new iGObanking.com money market account, the SmartyPig savings account and Palladian Private Bank savings account. All of these now offer a 1.00% APY. The highest rate continues to be at Connexus Y.E.S. Money Market Account which has a top-tier APY of 1.15% for a $100K minimum balance. An important downside of this account is that it requires an active checking account and direct deposit.

To search for the best rates on savings and money market accounts in your state or that are available nationwide, please refer to our savings account rate table and our money market account rate table.

Related Pages: MySavingsDirect, savings account

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  |     |   Comment #1
My test deposits and withdrawals from my checking went though last week. I can start making deposits on 11/23. The process was quick & efficient.
  |     |   Comment #6
How is it thus far?
  |     |   Comment #2
The block on ACH transfers out of the bank initiated by an external bank is a big deal breaker.  Having all accounts registered with an external hub bank/CU makes transfers in/out of any of your accounts a 1 banking day event, initiated 24/7 online.  Requiring telephonic contact with a CSR for transfers out of MySavingsDirect accounts opens the door for transfers that may take extra days or a week.  The advertised yield does not compensate for the possible exposure to a restricted access to your own money.
  |     |   Comment #3
The ACH is the deal killer for me, I'll pass.
  |     |   Comment #4
Just be aware that Emigrant Bank (parent of the internet banks) sold most of their branches in the NYC area.  They have only two branches left. 
  |     |   Comment #5
I switched from ING to Emigrant then to DSD. The switch from Emigrant to DSD was a hassle. Even though they were a part of Emigrant, I had to close my Emigrant account to open a DSD account. I eventually closed my DSD account after their rate dropped like a rock. I now have an Amex account which is paying 0.85%. An additional 0.15% plus giving up the option to do an external ACH is not worth it to me.

A hooked fish
  |     |   Comment #7
A lousy bank run by & owned by lousy people. They get you hooked & then they don't raised interest rates to keep up with the competition--they wiil just open another "bank" to hook more unsuspecting suckers!!!

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