When Dollar Savings Direct first appeared, I thought Dollar Savings Direct was an Emigrant Direct clone. I chatted with a CSR and learned that it was once Banco Fortuna, Emigrant Bank’s attempt to market to the Spanish-speaking banking market, and merely rebranded in English. While it wasn’t their intent, the end result is clear: Dollar Savings Direct is a clone of Emigrant Direct (both are subsidiaries of Emigrant Bank, FDIC #12054) but with a $1,000 account minimum and a better interest rate (4.00% APY).
Opening a new Dollar Savings Direct account was quick and easy. I did what any sane person would do, I closed my Emigrant Direct account and opened a new Dollar Savings Direct account. Emigrant Direct has a 3.00% APY rate and Dollar Savings Direct offers a 4.00% APY, which leads most high yield savings accounts rates. My plan is to put all new funds into the Dollar Savings Direct account.
On the fact that their clones of each other. On one hand, I’m a little miffed that Emigrant Direct didn’t just fold Dollar Savings Direct into it and just offer the 4.00% rate. On the other hand, it doesn’t really affect me too much as opening new savings accounts don’t affect your credit score (most of the time) and I didn’t have much in my Emigrant Direct account in the first place so it’s not too much hassle.
Savings account interest rates can change. Remember that savings interest rates are not guaranteed, they can change at any time. It’s pretty easy to lock in a much higher CD rate nowadays if you want to go that route. Surprisingly though, since August 30th, when I first looked at them, their rate increased from 3.75% APY to the current rate of 4.00% APY)