Dollar Savings Direct 3% savings rate
-
- Posts: 17
- Joined: Mon Jun 14, 2021 10:13 pm
Dollar Savings Direct 3% savings rate
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!
-
- Posts: 191
- Joined: Sun Nov 18, 2018 2:03 pm
Re: Dollar Savings Direct 3% savings rate
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.
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...
-
- Posts: 17
- Joined: Mon Jun 14, 2021 10:13 pm
Re: Dollar Savings Direct 3% savings rate
Tetris thank you very much for the reply and the info.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.
Re: Dollar Savings Direct 3% savings rate
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.
Re: Dollar Savings Direct 3% savings rate
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.
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.
Re: Dollar Savings Direct 3% savings rate
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.
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
Re: Dollar Savings Direct 3% savings rate
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.
-
- Posts: 191
- Joined: Sun Nov 18, 2018 2:03 pm
Re: Dollar Savings Direct 3% savings rate
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)?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.
For some reason, people that know nothing, seem to know everything...
Re: Dollar Savings Direct 3% savings rate
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.TetrisCollider wrote: ↑Mon Sep 26, 2022 1:27 pmAll 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)?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.
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.
-
- Posts: 191
- Joined: Sun Nov 18, 2018 2:03 pm
Re: Dollar Savings Direct 3% savings rate
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?anoop wrote: ↑Mon Sep 26, 2022 1:33 pmt-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.TetrisCollider wrote: ↑Mon Sep 26, 2022 1:27 pmAll 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)?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.
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.
For some reason, people that know nothing, seem to know everything...
Re: Dollar Savings Direct 3% savings rate
I haven’t done it but it’s doable. You trade/sell it like any security and it settles in 3 days.TetrisCollider wrote: ↑Mon Sep 26, 2022 2:38 pmThanks. 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?anoop wrote: ↑Mon Sep 26, 2022 1:33 pmt-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.TetrisCollider wrote: ↑Mon Sep 26, 2022 1:27 pmAll 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)?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.
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.
Re: Dollar Savings Direct 3% savings rate
Helpful review, thanks.TetrisCollider wrote: ↑Thu Sep 22, 2022 10:05 pmI 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.
Rate went up to 3.50% yesterday. I’m switching from Elements (recent promo 3.25%) to DSDirect.
DSD seems like they’re chasing rates but I see 3 issues in the reviews:
1. They switch the rates up or down without notice and often. So pay attention or the rate you chased may have lowered.
2. Transfer weirdness: actual users doesn’t seem to have problems, but there is some concern by potential users about the terms indicating they can place a 60 day hold on transfers out. Again, doesn’t appear to have been a problem in practice.
3. Adding second account requires a 60 day wait before adding and it take sending a check from the external checking account and filling in a form to complete.
I’m still happy with 3.5% but I’ll keep an eye on the rate changes. If anyone has a good way to get notice of interest rate changes in this account please let us know. Maybe Mint will send a notice somehow?
Re: Dollar Savings Direct 3% savings rate
^ Thanks for that, I was uncertain if there was the same "settlement" period when selling a Tbill as with other securities at a brokerage. Glad to have that confirmed. I'll add, that if one held Tbills in a brokerage account at Fidelity, they could probably enable margin on the account, and be able to spend immediately against the value of the securities even while the transaction is being settled... That said though, adding margin to the account has risks, costs, and despite the interest rate risk on a Tbill being extremely low, there's no guarantee selling before maturity won't be at a (small) loss.anoop wrote: ↑Mon Sep 26, 2022 2:59 pmI haven’t done it but it’s doable. You trade/sell it like any security and it settles in 3 days.TetrisCollider wrote: ↑Mon Sep 26, 2022 2:38 pmThanks. 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?anoop wrote: ↑Mon Sep 26, 2022 1:33 pmt-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.TetrisCollider wrote: ↑Mon Sep 26, 2022 1:27 pmAll 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)?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.
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.
"To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks." - Benjamin Graham