Yesterday, I heard that Emigrant Direct is to lower its savings rate. It was kind of surprise because I also have an account with Emigrant Direct and I didn’t get any notice about their rate change. Last night when I logged into my account in preparation of this month’s balance sheet, the savings rate was still shown at 5.15%, the same as the past four months. However, when I checked again this morning, the rate dropped to 5.05%, matching the offer from HSBC.
Currently, a large chunk of my cash is in the savings account at Emigrant Direct. Though the rate is not attractive as it used to be, it’s still one of the highest rates out there with a low minimum balance requirement. There are other banks offering higher rates, but they all require a much higher minimum balance, from $5000 to $25000, which is too high to justify the extra 20 basis points rate.
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EverBank Money Market Account 1.25%: Open an EverBank Money Market Account with a minimum balance of $1,500 and earn 1.25% bonus rate for the first six months. The first year APY is 1.01% for account balance up to $50,000. Find out more about this offer.