Dollar Savings Direct 3% savings rate

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Topic Author
Blue Lander
Posts: 17
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: 191
Joined: Sun Nov 18, 2018 2:03 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: 17
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: 222
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: 205
Joined: Fri Feb 06, 2009 3:12 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 12:33 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: 191
Joined: Sun Nov 18, 2018 2:03 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: 3930
Joined: Tue Mar 04, 2014 12:33 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: 191
Joined: Sun Nov 18, 2018 2:03 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: 3930
Joined: Tue Mar 04, 2014 12:33 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.
jbrams
Posts: 22
Joined: Sun Dec 07, 2008 11:48 am
Location: California

Re: Dollar Savings Direct 3% savings rate

Post by jbrams »

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.
Helpful review, thanks.
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?
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JoMoney
Posts: 16260
Joined: Tue Jul 23, 2013 5:31 am

Re: Dollar Savings Direct 3% savings rate

Post by JoMoney »

anoop wrote: Mon Sep 26, 2022 2:59 pm
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.
^ 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.
"To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks." - Benjamin Graham
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