Friday, October 31, 2008

Opened a Dollar Savings Direct Account With 4% APY

I love my ING Savings Account. But on 10/9/08, ING decreased its APY from 3.0% to 2.75%. It's still much better than the 0.1% interest rate I'm getting from my bricks-and-mortar banks (I'm talkin' about you, Wells Fargo and Bank of America!), but it's not as good as the 3.5% APY I'm getting from Citibank's Ultimate Savings Account.

I recently learned that Dollar Savings Direct is offering a 4.0% APY with a $1,000 minimum balance.

Dollar Savings Direct is the online banking division of Emigrant Bank. In a time where banks are dropping like flies, I checked the soundness of Emigrant Bank and found that it was either rated 2-stars or 3-stars.

Not the resounding endorsement that I was hoping for, but it appears that the bank is stable and capitalized well enough for me to try it out. And hey, since I'm depositing less than $250,000, my money will be FDIC insured.

I expect completing the whole process will likely take about a couple of weeks since I've opted to mail in my initial deposit of $1,000. In order to do so, I'll have to transfer money from my ING account (about 3 business days), snail mail my check (about 2 business days) and probably another 2 business days for processing. Pretty ironic that setting up an online bank account takes longer than opening an account at a bricks-and-mortar institution. :-P

On a related topic, this article provides tips on how to speed up money transfers with online banks.

Anyhow, have a Happy Halloween everyone!!


Moving on up! said...

I'll have to check out the article on how to speed along online banking. It's soooooooo slow.
Happy Halloween!

Sharon Rose said...

Hi there-Hope you had a good halloween and a great weekend! Its paying to be eagle eyed with these rates, especially when they lower them at a moments notice-keep up the good work!