DollarSavingsDirect: A High Yield Version of Emigrant Direct

Dollar Savings Direct Bank is a division of Emigrant Bank, which also owns Emigrant Direct. At $1,000 minimum balance, you can enjoy a 3.50% interest rate with the new online bank.

Update: Check out the Dollar Savings Direct review post for more detailed discussion on Dollar Savings Direct bank and account opening process.

Have you heard of DollarSavingsDirect?

The answer probably is No. But if I ask whether you know Emigrant Direct or not, your answer is likely to be Yes. Looking at the screenshot below, you shouldn’t have difficulty noticing the similarity between DollarSavingsDirect and Emigrant Direct. Well, the similarity didn’t stop just there. It turns out that DollarSavingsDirect is a subsidiary of Emigrant Bank, which is also the parent company of Emigrant Direct!

So what’s the difference between the two banks? The first one, of course, is the interest rate. Emigrant Direct currently pays 3.00% APY, which is almost at the bottom of my interest rate table. The interest rate at DollarSavingsDirect, on the other hand, is much higher. At 3.75% APY (currently 4.00% APY), only EverBank’s 4.76% APY is higher (but that’s an introductory rate good for only the first three months). With a minimum balance of $1,000, you can have one of the highest interest rates for your money (WaMu online savings account also pays 3.75% APY). The second difference is the minimum balance requirement. Though Emigrant Direct has no minimum, the $1,000 required by DollarSavingsDirect is worth it, in my opinion, for the higher yield.

According to DollarSavingsDirect’s FAQ page, the bank also has these features:

• It is FDIC insured for up to $100,000 per depositor;
• Deposit can be made via ACH which a 5-day hold period;
• Up to two external account can be linked to DollarSavingsDirect;
• DollarSavingsDirect’s routing number is 226070403.

Are you interested in DollarSavingsDirect?

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