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Emmigrant Direct American Dream Savings Account and CDs Review
Emmigrant Direct American Dream savings account review 2024: bank fees, APR/APY interest rates/high yields. New client promotions.
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Emmigrant Direct Savings Account Rates
American Dream Savings Account
Interest rate: 0.50%
APY: 0.50%
Minimum deposit: none
Fees: none
Emmigrant Direct Certificates of Deposit Rates
Certificates of Deposit (16-59 months)
Interest rate: 1.00%
APY: 1.00%
Minimum deposit: $1000
Fees: 180 days interest for early withdrawal
Certificates of Deposit (5-10 years)
Interest rate: 1.50%
APY: 1.50%
Minimum deposit: $1000
Fees: 180 days interest for early withdrawal
Emmigrant Direct Savings Account Review
While this online bank was once known for offering a very high interest rate on savings deposits, Emigrant Direct’s American Dream Savings Account rates have dropped
significantly over the last few years. Now, with interest rates having declined so much, the 0.50% APY on Emigrant Direct’s standard online savings account is well below
the best rate available from other banks.
Emmigrant Direct CDs Review
The CD’s on offer are more competitive, as you are unlikely to find rates for relatively short term deposits (minimum 16 months) much higher than Emigrant’s 1.00% APY.
For longer term CD’s, the 1.50% rate is quite attractive compared to the industry as a whole, though higher rates are still available elsewhere.
Once you have a savings
deposit set up with Emigrant Direct, a CD can be opened with a minimum deposit of $1000 for any number of months between 16 and 120. This provides some attractive customizability
that might not be available everywhere, allowing you to set up very long-term CD ladders, especially if you have a large savings deposit to work with. Also, since their
longest CD term goes out to 10 years, Emigrant Direct is a good option if you need to lock up a savings deposit for an extended period in a very safe financial instrument,
as all of their products are of course FDIC insured up the federally mandated maximum.
Overall, most of Emigrant Direct’s services are completely online accessible, with a minimal paper trail and electronic delivery of statements and tax forms. Security
measures on the website are extensive, with several layers of usernames, passwords, and challenge questions required to access your accounts.
Initial savings account
setup and some CD account paperwork is still handled partly via paper mail, but the instruction to close or roll-over CD accounts can be given online, as long is it
occurs during a relatively brief window around the maturity date.
Closing instructions can only be given within 2-4 weeks of the maturity date, with a 10 day grace period
if you happen to miss the deadline and your CD automatically rolls over. This differs from the more convenient CD systems on offer at other online banks with similar interest
rates, where CD maturity instructions can be updated at any time during the deposit’s term.
CD and other account record-keeping functions on the site could be re-worked, as
empty CDs that are closed persist on the site as apparently active accounts with $0 balances. It seems like it would make more sense to archive them in another index or
record these accounts elsewhere on the site.
Emmigrant Direct Services
Emigrant Direct does not offer any checking services, nor is there an affiliated mortgage broker or investment brokerage associated with their site. They do link out to an
offer for a Visa Rewards card available to savings account holders, as well as a foreclosure search engine, but the services from Emigrant Direct are otherwise limited to
savings and CD accounts.
The site does make it easy for you to open either individual or joint accounts, or designate alternative account beneficiaries on their CD products.
This service would, for example, make it easy to set up a savings account in a family member’s name.
Nonetheless, with the extremely basic offerings and the significant
changes that have occurred in the interest rate landscape, Emigrant Direct’s no-frills approach to savings has quite frankly become less appealing. While the most essential
convenience factors are there, including electronic funding and recurring deposits from an external linked account, there is no longer a compelling reason to park your
deposits here. Especially when the same or better interest rates are available elsewhere at online or brick-and-mortar banks with significantly broader features and more
user-friendly websites, the American Dream Savings Account at Emigrant Direct is probably not your best option. Perhaps if their interest rates rise significantly in the future,
Emigrant Direct’s products will once again become competitive, but for now you might be better off looking elsewhere.
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