Dollar Savings Direct 3% savings rate

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Topic Author
Blue Lander
Posts: 16
Joined: Mon Jun 14, 2021 10:13 pm

Dollar Savings Direct 3% savings rate

Post by Blue Lander »

I'm seeing Dollar Savings Direct offering 3.0% APY on savings. They are a division of Emigrant Bank. From what I can tell, it seems to be pretty straight-forward, no fees/no minimums, and FDIC insured. If I just want to use it to park some cash and connect to my main bank checking, does this seem like a good option? Reviews online seem middle of the road. It certainly seems like the highest savings rate anywhere. It is even higher than the likes of Toyota or GM income notes rates - without the risk involved with those of course. Anyone have any experience or advice with them? Thanks!
TetrisCollider
Posts: 110
Joined: Sun Nov 18, 2018 3:03 pm

Re: Dollar Savings Direct 3% savings rate

Post by TetrisCollider »

I use them. I have not had any issues with them over the several years that I've had an account with them. I do move money in and out of their savings account based on the rate situation at other institutions I use (or based on my financial strategy & requirements). I have recently taken advantage of their increase of the savings rate (to 3%).

You can also read the most recent write up on them here:

https://www.depositaccounts.com/banks/d ... ct/offers/

Hopefully this helps.
For some reason, people that know nothing, seem to know everything...
Topic Author
Blue Lander
Posts: 16
Joined: Mon Jun 14, 2021 10:13 pm

Re: Dollar Savings Direct 3% savings rate

Post by Blue Lander »

TetrisCollider wrote: Thu Sep 22, 2022 10:05 pm I use them. I have not had any issues with them over the several years that I've had an account with them. I do move money in and out of their savings account based on the rate situation at other institutions I use (or based on my financial strategy & requirements). I have recently taken advantage of their increase of the savings rate (to 3%).

You can also read the most recent write up on them here:

https://www.depositaccounts.com/banks/d ... ct/offers/

Hopefully this helps.
Tetris thank you very much for the reply and the info.
Ztx
Posts: 160
Joined: Thu Jul 21, 2016 9:54 pm

Re: Dollar Savings Direct 3% savings rate

Post by Ztx »

That's a nice rate! thanks for the info! Hopefully Discover Savings will catchup within few days, otherwise I'll be very tempted to move.
Wabbit
Posts: 185
Joined: Fri Feb 06, 2009 4:12 pm

Re: Dollar Savings Direct 3% savings rate

Post by Wabbit »

If Dollar Saving Direct is still the "rate-competitive" arm of the bank, it sounds like a good move.

Way back, I had an account with Emigrant Direct, and stayed there without realizing the same bank had started up Dollar Savings Direct. DSD had competitive interest rates, and they left Emigrant Direct rates flat to catch folks like me who weren't paying attention. Once I realized what happened, I left them entirely. But if you're paying attention, you won't be fooled if they try that trick again.
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Vulcan
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Joined: Sat Apr 05, 2014 11:43 pm

Re: Dollar Savings Direct 3% savings rate

Post by Vulcan »

Thanks for the heads up, OP!

My old login still works, so looks like I will be emptying out my HMBradley account a few days ahead of schedule.
If you torture the data long enough, it will confess to anything. ~Ronald Coase
anoop
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Joined: Tue Mar 04, 2014 1:33 am

Re: Dollar Savings Direct 3% savings rate

Post by anoop »

The parent Emigrant Bank is one of those bait and switch banks. First they had Emigrant Direct. Then they dropped the rate there and started Dollar Saving Direct. Then they dropped the rate there and started My Savings Direct. I stopped following them after that and I also stopped chasing yields. I found this bait and switch to be true of many online banks. I prefer to just put money in t bills. Right now a 1 year t bill yields more (4%) and isn’t subject to state income tax. Online savings accounts are IMO a waste of time. They drop rates whenever they feel like and so you have to stay on top of things.
TetrisCollider
Posts: 110
Joined: Sun Nov 18, 2018 3:03 pm

Re: Dollar Savings Direct 3% savings rate

Post by TetrisCollider »

anoop wrote: Mon Sep 26, 2022 2:52 am The parent Emigrant Bank is one of those bait and switch banks. First they had Emigrant Direct. Then they dropped the rate there and started Dollar Saving Direct. Then they dropped the rate there and started My Savings Direct. I stopped following them after that and I also stopped chasing yields. I found this bait and switch to be true of many online banks. I prefer to just put money in t bills. Right now a 1 year t bill yields more (4%) and isn’t subject to state income tax. Online savings accounts are IMO a waste of time. They drop rates whenever they feel like and so you have to stay on top of things.
All of this is true. However, if one requires a liquid account vs T-bills, it is a good alternative (as long as you are willing and know how to play their games). Not sure exactly how liquid T-bills are (can you liquidate them easily within 1-3 days)?
For some reason, people that know nothing, seem to know everything...
anoop
Posts: 3262
Joined: Tue Mar 04, 2014 1:33 am

Re: Dollar Savings Direct 3% savings rate

Post by anoop »

TetrisCollider wrote: Mon Sep 26, 2022 1:27 pm
anoop wrote: Mon Sep 26, 2022 2:52 am The parent Emigrant Bank is one of those bait and switch banks. First they had Emigrant Direct. Then they dropped the rate there and started Dollar Saving Direct. Then they dropped the rate there and started My Savings Direct. I stopped following them after that and I also stopped chasing yields. I found this bait and switch to be true of many online banks. I prefer to just put money in t bills. Right now a 1 year t bill yields more (4%) and isn’t subject to state income tax. Online savings accounts are IMO a waste of time. They drop rates whenever they feel like and so you have to stay on top of things.
All of this is true. However, if one requires a liquid account vs T-bills, it is a good alternative (as long as you are willing and know how to play their games). Not sure exactly how liquid T-bills are (can you liquidate them easily within 1-3 days)?
t-bills are super liquid. I wouldn't worry about access to money. Maybe stay with 30-day or 90-day t-bills to minimize risk of rapidly rising rates if you know you will need access to the money in that time. Money market funds at the brokerage are not that shabby right now either.

Bottomline, if you want to deal with DSD (or almost any other online high yield savings account), treat it as a short term yield chasing activity, watch the yields closely, and be prepared to move when they fall because Emigrant decided to pivot to providing their highest rate at a different subsidiary. Don't think of it as a long term solution.
TetrisCollider
Posts: 110
Joined: Sun Nov 18, 2018 3:03 pm

Re: Dollar Savings Direct 3% savings rate

Post by TetrisCollider »

anoop wrote: Mon Sep 26, 2022 1:33 pm
TetrisCollider wrote: Mon Sep 26, 2022 1:27 pm
anoop wrote: Mon Sep 26, 2022 2:52 am The parent Emigrant Bank is one of those bait and switch banks. First they had Emigrant Direct. Then they dropped the rate there and started Dollar Saving Direct. Then they dropped the rate there and started My Savings Direct. I stopped following them after that and I also stopped chasing yields. I found this bait and switch to be true of many online banks. I prefer to just put money in t bills. Right now a 1 year t bill yields more (4%) and isn’t subject to state income tax. Online savings accounts are IMO a waste of time. They drop rates whenever they feel like and so you have to stay on top of things.
All of this is true. However, if one requires a liquid account vs T-bills, it is a good alternative (as long as you are willing and know how to play their games). Not sure exactly how liquid T-bills are (can you liquidate them easily within 1-3 days)?
t-bills are super liquid. I wouldn't worry about access to money. Maybe stay with 30-day or 90-day t-bills to minimize risk of rapidly rising rates if you know you will need access to the money in that time. Money market funds at the brokerage are not that shabby right now either.

Bottomline, if you want to deal with DSD (or almost any other online high yield savings account), treat it as a short term yield chasing activity, watch the yields closely, and be prepared to move when they fall because Emigrant decided to pivot to providing their highest rate at a different subsidiary. Don't think of it as a long term solution.
Thanks. I know what I am doing with "HYS" accounts. The specific question that I posed is: can a T-Bill be easily liquidated in 1-3 days (as I have never attempted to do this). So, have you done this via a brokerage account?
For some reason, people that know nothing, seem to know everything...
anoop
Posts: 3262
Joined: Tue Mar 04, 2014 1:33 am

Re: Dollar Savings Direct 3% savings rate

Post by anoop »

TetrisCollider wrote: Mon Sep 26, 2022 2:38 pm
anoop wrote: Mon Sep 26, 2022 1:33 pm
TetrisCollider wrote: Mon Sep 26, 2022 1:27 pm
anoop wrote: Mon Sep 26, 2022 2:52 am The parent Emigrant Bank is one of those bait and switch banks. First they had Emigrant Direct. Then they dropped the rate there and started Dollar Saving Direct. Then they dropped the rate there and started My Savings Direct. I stopped following them after that and I also stopped chasing yields. I found this bait and switch to be true of many online banks. I prefer to just put money in t bills. Right now a 1 year t bill yields more (4%) and isn’t subject to state income tax. Online savings accounts are IMO a waste of time. They drop rates whenever they feel like and so you have to stay on top of things.
All of this is true. However, if one requires a liquid account vs T-bills, it is a good alternative (as long as you are willing and know how to play their games). Not sure exactly how liquid T-bills are (can you liquidate them easily within 1-3 days)?
t-bills are super liquid. I wouldn't worry about access to money. Maybe stay with 30-day or 90-day t-bills to minimize risk of rapidly rising rates if you know you will need access to the money in that time. Money market funds at the brokerage are not that shabby right now either.

Bottomline, if you want to deal with DSD (or almost any other online high yield savings account), treat it as a short term yield chasing activity, watch the yields closely, and be prepared to move when they fall because Emigrant decided to pivot to providing their highest rate at a different subsidiary. Don't think of it as a long term solution.
Thanks. I know what I am doing with "HYS" accounts. The specific question that I posed is: can a T-Bill be easily liquidated in 1-3 days (as I have never attempted to do this). So, have you done this via a brokerage account?
I haven’t done it but it’s doable. You trade/sell it like any security and it settles in 3 days.
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