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EmigrantDirect is an online division of New York-based Emigrant Bank, a bank with a history dating back to its founding as a mutual savings bank by Irish emigrants in 1850. Emigrant Bank launched EmigrantDirect online only at the mid-2004.
While EmigrantDirect offers very few products (savings accounts and CDs), its APYs are competitive.
This review focuses on EmigrantDirect and its consumer bank account offerings. Account details and Annual Percentage Returns (APY) are correct as of November 28, 2021.
Account Basics
EmigrantDirect is not a full service bank. You will not find any checking or money market accounts at this bank. It limits its products to savings accounts and CDs. Here is an overview of the bank’s account offerings.
Savings
There is only one savings account available through EmigrantDirect: the American Dream savings account. This savings account earns 0.35% APY on all balances. Like many online savings accounts, it comes with no monthly service fees and very few other fees. There is also no minimum balance requirement, which means that you will earn money in your account no matter how much you keep in the account.
Unlike many online savings accounts, the American Dream Savings account does not offer many additional features. For example, there are no automated savings features or ways to create specific savings goals. But if you’re looking for a simple and secure online savings account to hold an emergency fund or put money aside for other savings purposes, this account might be a good option. Having said that, you can probably find other banks online that offer higher rates and more benefits.
CD
Holders of an EmigrantDirect savings account can also open a CD account. To be clear, you cannot open a CD with EmigrantDirect unless you have an American Dream savings account. CDs require a minimum deposit of $ 1,000. The duration of the CD varies from six months to 10 years. Online banking offers fairly competitive APYs in all respects.
Notably, EmigrantDirect offers longer terms than many other banks and credit unions, up to 10 years. Just keep in mind that a longer CD duration from EmigrantDirect does not mean a higher rate. For example, you will earn the same rate on a five-year CD and a 10-year CD, so it is not profitable to lock in your money in the longer term. In addition, EmigrantDirect pricing does not exceed some of the best CD pricing available today.
Customers can purchase EmigrantDirect CDs at the following conditions and prices:
Interest on EmigrantDirects CDs is compounded daily and credited monthly. Customers can withdraw the interest earned at any time during the term of the CD, but may incur a penalty of up to 180 days of interest for withdrawing the main funds from the CD before the account reaches the CD. deadline. Make sure you can afford to go without long-term deposited funds before opening a CD.
Like most banks, EmigrantDirect will notify you when your CD is about to expire and is about to renew. At this time, you can choose to open another CD, withdraw or add funds, or close the CD account.
Other accounts and services
EmigrantDirect sold precious metals as part of its banking services. New sales of precious metals have ended, but current customers can still store their past purchases in the bank’s secure safe, sell them, or have them shipped to their registered address. Storage fees are based on the value of your holdings and automatically deducted from American Dream savings accounts.
Precious metals previously purchased through EmigrantDirect are not FDIC insured and may lose value.
Access on the move
Many online banks provide customers with easy access to accounts using the latest technology. This is not the case with EmigrantDirect. The bank offers customers basic online access through its somewhat dated website. As with the other branches of the online banking Emigrant Bank, DollarSavingsDirect and MySavingsDirect, EmigrantDirect does not offer any mobile applications.
Customers can open a savings account online. You need to link an external checking account to fund the new savings account. Customers can either send a check from the linked account or transfer funds electronically. Checks are only accepted for initial deposits, not current, so make sure you’re comfortable with wire transfer money before signing up.
EmigrantDirect savings accounts do not come with a debit card and cannot be accessed through an ATM. Those looking for convenient banking services will find EmigrantDirect extremely restrictive on how to access funds.
Advantages
- Fairly competitive rates on savings accounts and CDs
- No account fees
- No minimum balance requirement
- CD interest is available any time after being earned
The inconvenients
- No mobile app
- Must have an American Dream savings account to access CD accounts
- No ATM access
- No debit card
- No physical location
How EmigrantDirect Stacks Up
EmigrantDirect lags behind in modern online and mobile banking amenities found in many other banks and credit unions. For some, the bank’s high yield savings and CD offers may be good enough to deal with bank limits, but better APYs can be found elsewhere.
Without a current account, debit card, ATM access and other services, EmigrantDirect is far from a full-service bank. This is not a good choice for people who like to do all of their banking in one place. Quick access to funds is not an option, and the lack of a mobile app limits where and when you can access your money.
While the bank offers fairly competitive APYs on all of its account offerings, a little research can lead you to other online banks that may offer even higher rates, but with all of the additional modern conveniences that EmigrantDirect lacks.
Frequently Asked Questions (FAQ)
Is EmigrantDirect FDIC insured?
Yes, as a division of Emigrant Bank, EmigrantDirect is FDIC insured (FDIC # 12054). The federal government protects your money up to $ 250,000 per depositor, for each category of account holder, in the event of bank failure. EmigrantDirect also provides a handy chart to help clients maximize their FDIC insurance coverage by leveraging each category of property.
Keep in mind that coverage is split across all Emigrant Bank accounts and one of its personal banking divisions, including EmigrantDirect, DollarSavingsDirect, and MySavingsDirect.
How do I deposit money into an EmigrantDirect savings account?
Your initial deposit can be made by sending a check or by making an electronic transfer from a linked external checking account. After the initial deposit, your only option to add funds is to make wire transfers.
How to open an account with EmigrantDirect?
You can open an EmigrantDirect account online through the bank’s website. You will need to provide personal information, such as a driver’s license, for identification purposes during the application process. Funding your new account requires an external bank account. You will be asked for the account number and routing number during the application process.