Dollar Savings Direct Account Review

December 17, 2008


I recently opened up a Dollar Savings Direct account solely because of the high 4.00% interest rate on it, which is the highest I’ve seen lately. This was created by the same guys that created Emigrant Direct (which I wrote a scathing post about why I was cancelling).

However, I’m still willing to give them another chance, especially for such a high interest rate. It actually makes business sense to create a whole new online brand rather than raising the rates on the old Emigrant Direct. Why? Because they can now attract new customers with the higher interest rate and not have to pay the old customers the new rate. Not good for consumers, but it’s relatively easy enough to just open another account.


The opening process was easy and completely online (unlike the old Emigrant Direct). All you have to do is enter your information, link a checking account with a routing and account number, deposit at least $1,000 and submit! The process was very simple and quick. My account was opened in two business days with my initial deposit! They used trial deposits to verify the account (beware, they do withdraw them).

The layout is very similar to Emigrant Direct. It has tabs on top like Accounts, Transfers, Profile, Statements, etc. The account screen shows the current balance, interest rate (currently at 4%), year-to-date interest, and interest earned this month (this was actually a request of mine from the old Emigrant Direct). Interest accrues daily and posts monthly.

Emigrant Bank is an old bank established in 1850 with over $14 billion in assets and this account is fully insured to the FDIC maximum (currently $250,000). The $1,000 minimum opening deposit is a bit high compared to other online accounts but there is no minimum to earn interest so you can have less than the $1,000 and still earn interest. There is a five business day hold on new deposits.

I would definitely recommend this online savings account as it currently has the highest rate out there with no fees and no minimums to earn interest (although there is a $1,000 minimum to open). It’s a great place to park that emergency fund! It looks like they have improved upon Emigrant Direct and have a truly online savings account with no mailing involved. There is room for second chances, after all!

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9 Responses to “Dollar Savings Direct Account Review”

  1. Yeah, I think I will go for Emigrant Direct’s online savings account. I was infact searching for a good one and Emigrant Direct’s offer is satisfactory.


  2. MD Says:

    a few enterprising souls contacted the FDIC regarding Dollar Savings. Their answer is not promising

  3. Al Coholic Says:

    aren’t they about to go under?

    • I haven’t heard anything about it. It doesn’t matter anyway. Your money is FDIC insured up to $250,000 until the end of this year (when it will return to the regular $100,000 insurance limit).

  4. Jon Says:

    I just opened this account linked to my Wells Fargo checking account and everything worked just as they promised. The money deposited immediately started accruing interest. They are FDIC insured! I am impressed with the online security measures taken too. I had a WaMu account at 4% but when JPMorgan Chase bought them, the online rate went way down to 1.5%.

  5. jdl Says:

    dollar savings direct rate dropped to 3.5% as of 1/24/2009

  6. checking accounts are very convenient for business transactions that is why i have it”*”

  7. Harold T Says:

    I opened an account with Dollar Savings Direct, because it advertised a very competitive interest rate at the time. When rates started to fall, DSD lowered theirs more than their internet banking competition. Now in 2013 it is easy to find higher interest rates elsewhere. I never liked the limitation that you could not link another savings account for funds transfer; you can only link a checking account. There are competitors who do not have this limitation. I also didn’t realize that in the small print of the account disclosure, they say that they pay zero interest in any month that your balance is zero. I made the mistake of transferring all of my balance out of the account near the end of the month. I should have left a penny in the account, because they refused to pay any interest for that month. Rest assured, they lost this customer for good!

  8. Lauren Says:

    I got this web site from my friend who informed me concerning this site and at the moment this time I am browsing this web page and reading very
    informative articles at this place.

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