I have been using their savings account for almost two years and at one time it had all my deposit when their rate was at 5.15% APY (currently 3.00% APY). And they probably have the fastest ACH transfer among all the online banks I have used so far. But Emigrant Direct also appeared to be the only bank that actually dropped their savings rate while newcomers and competitors were trying to catch up or hold their customer basis by offering 5.30+% APY. To me, Emigrant Direct, the same as ING Direct, seems to be a thing of the past. However, Emigrant Direct is not ING, which is much bigger and more successful.
My account was almost empty since late last year and with some many choices out there, I don’t see myself use it again, unless they bump up their rate to 5.40%, which is not going to happen. So I informed Emigrant Direct yesterday that I want to close the account and get the $150 deposit back. Hopefully, the process could complete next week.
Get the most of your money with these High-Yield Savings Accounts:
After the closing of Emigrant Direct, I reduced my online savings accounts to four: ING Direct, HSBC Direct, IGoBanking, and FNBO Direct. I will wait till September to see what to do FNBO Direct when their promotional period ends. If the rate falls back to the pre-promotion rate of 5.24%, there’s no reason for me to continue using it when I can get 5.30% from IGoBanking. One advantage FNBO has over IGoBanking is they have a much larger monthly outbound transfer limit of $500,000. For IGoBanking, I can only move $25,000 out of my account every month.
Terminated two bank accounts: Virtual Bank and Emigrant Direct
Closed one brokerage account: ShareBuilder
Canceled one credit card: American Express Cash Rebate
Still a long way to go to live a simple life, but we will get there.
This article was originally written or modified on . If you enjoyed reading this post, please consider subscribing to my full RSS feed. Or you can also choose to have free daily updates delivered right to your inbox.
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.