Update on DollarSavingsDirect Account

It has been two weeks since I opened an account at DollarSavingsDirect. Since the account has been verified and it’s up and running. Here are a few updates on the account.

Trail Deposits

I opened the account on Sunday, November 9th. During the application process, I was told that the two small trail deposits will be posted to the external account (Bank of America checking account) I want to link to on the following business day. However, those deposits didn’t show up in my BoA account until November 12th, three business days later. So you can expect some delays in verifying your external accounts. Once the account is verified, I was able to make another deposit.

External Account Link

After linking to my BoA checking account, I also tried to link my savings account at Capital One to it because I have most of my cash with them right now and I’d like to move cash directly between savings accounts in stead of going through my BoA checking. But two days passed without seeing anything happening. Then I noticed this on my DSD account:

Please write your DollarSavingsDirect account number on the memo line of the voided check and mail your voided check along with your completed Account Verification Authorization Form to: DollarSavingsDirect, Attn: Account Fulfillment, 13 Croton Avenue, Ossining, NY 10562.

After we receive your voided check and verify ownership of the requested funding account, two small deposits and matching withdrawals will be made to the new linked account. You are required to verify these amounts as you did for your initial funding account before you can perform any transfers to or from the newly added external funding account.

So basically it says I have to send in a voided check to get my Capital One account linked to DSD. But that’s not the case when I setup my initial external link.

I called the bank later and was told that only the first external bank account can be verified electronically, as they did with my BoA checking account, but after that any external link will have to be verified by paper, as I was told to do above. When I told the CSR I don’t have a check for the second account because it’s a savings account, she reminded me that only checking account (their disclousure) can be linked to DSD, not savings account, not money market account.

What I decided to do is to link to DSD from Capital One, not the other way around, because they don’t have such a restriction and all verifications are done electronically. Now I am still waiting for the trial deposits to show up in my DSD account.

External ACH Transfer Limit

I was trying to find out the ACH transfer limit on DollarSavingsDirect website, but couldn’t. So I asked the CSR and was told that the daily ACH transfer-out limit is $1,000,000, but it has to be done in two transfers, which means each ACH transfer can move a maximum of $500,000 out of the account. There’s no limit on how much you can transfer to DollarSavingsDirect, but the ACH transfers is part of the six monthly withdraws limit.

Are you using DollarSavingsDirect? Share your experience with us :)

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6 Responses to “Update on DollarSavingsDirect Account”

  1. John |  Nov 25, 2008 at 4:35 pm

    I had a problem opening my DSD account. I told them I had an EmigrantDirect account, and even their EmigrantDirect credit card, but apparently it was something to due with the Patriot Act.

    All I had to do was fax my driver’s license, however. No need to go through the voided check business.

    If their ACH rules are the same on DSD that they are on ED, I won’t have a problem.

    Tangent: OneUnited has some strange ACH rules (I closed that account a while ago … something like you can’t transfer more than 20k in one day … why??? very annoying).

  2. Scott |  Feb 12, 2009 at 6:55 am

    DSD does not allow you to link its account to another external account. All transfers must originate from DSD and not the other way around. Sounds fishy to me

  3. Sun |  Feb 12, 2009 at 9:12 am

    Scott: Are you sure? I linked DSD to my BofA account and transferred funds back and forth without any problem. I also linked DSD to my Capital One account and initiated transactions from Capital One. Works very well.

  4. Crystal |  Feb 12, 2009 at 3:07 pm

    Just signed up and wanted to add the following facts:
    1) Works with MINT (although it had some problems initially)
    2) A maximum of two external checking accounts can be linked to the account from DSD. The second link has to be done by mail and a voided paper check. (See below.)
    3) You can have more than one DSD account and can schedule one-time or recurring ACH transfers between them and the external accounts, so this can be a way around the limit.

    “Can I have more than one checking account linked to my Dollar Savings Account?

    At the present time, an individual may have up to two checking accounts linked to DollarSavingsDirect, including the checking account you used for your initial funding deposit. The name on the accounts must be the same as your Dollar Savings Account. We can only accept your personal checking accounts as linked accounts. The Account Verification Authorization Form must be mailed with a voided check in order for us to process your request. Faxes will not be accepted. Upon receipt of the voided check and verification authorization form and successful confirmation of account ownership, two small deposits will be transmitted to the new linked account. You will need to verify these amounts as you did for your initial funding account in order for the new link to be activated.”

  5. Sun |  Feb 13, 2009 at 8:55 am

    Crystal: Thanks for sharing. You are right about the process to link more than one external account to DSD. You have to send a voided check to verify the account ownership. I am not aware that you can have more than one account with DSD though. Not that I will get another one, but it’s good to know.