EmigrantDirect.com is part of the online banking division of Emigrant Bank.
Emigrant Bank itself has a vibrant history. The bank was founded by Irish emigrants as a mutual savings bank way back in 1850. It grew rapidly in the succeeding years, and by 1920, Emigrant Bank was the largest savings bank in the country.
Emigrant Bank has served the financial need of its customers through the years by offering a diverse array of products. One of those products is the EmigrantDirect American Dream Savings Account— the subject of this review.
What Is The EmigrantDirect American Savings Account?
The EmigrantDirect American Dream Savings Account is an online-only savings bank.
The bank’s American Dream Savings Account’s claim to fame is that they offer a higher-than-average annual percentage yield(APY). The national APY is 0.06%, with some of the biggest banks in the country paying 0.01% APY.
The EmigrantDirect American Savings Account, on the other hand, pays an APY of 0.50%. As you may have already noticed, EmigrantDirect American Savings Account pays over eight times the national average APY.
While the EmigrantDirect American Savings Account pays an impressive APY, there are other things you need to assess before opening a savings account with them. For example, will your money be FDIC insured?
Is The EmigrantDirect American Savings Account FDIC Insured?
The short answer is yes. Your EmigrantDirect account is insured to the maximum allowed by law: $250,000 per depositor.
Now, you have to understand that individual and joint accounts are insured separately. What this means is that if you have both types of accounts with Emigrant Bank–individual and joint– your total deposits can be insured for up to $500,000: $250,000 in all of your individual accounts, and an additional $250,000 in all of your joint accounts.
How To Open An EmigrantDirect American Dream Savings Account
The EmigrantDirect American Dream Savings Account is an only-only savings bank. To open an account, you have to visit the bank’s website.
The process is pretty simple and straightforward. As you would with any other bank, you will have to provide a valid Social Security or Tax Identification number. You will also have to provide a legal address and a U.S. based checking account to fund your American Dream Savings Account. You also have to be at least 18 years old to open an account with the bank.
Why EmigrantDirect American Dream Savings Account?
While EmigrantDirect American Dream Savings Account does not offer the best incentives for bank accounts in this category (online-only savings banks), they do offer better incentives than the more traditional brick and mortar banks.
Bank of America, for instance, charges an $8 monthly service fee, and pays at most, only 0.06% APY on their savings account. By contrast, the EmigrantDirect American Dream Savings account charges $0 in monthly service fees and pays 0.50% APY.
Pros Of The EmigrantDirect American Dream Savings Account
- No fees.
- No minimums to open an account
- Relatively high Annual Percentage Yield
Cons Of The EmigrantDirect American Dream Savings Account
- EmigrantDirect’s website does not inspire confidence. The user interface is clunky, and the bank doesn’t appear to have a mobile app. An inadequate online presence can be a turn off considering EmigrantDirect doesn’t have physical branches.
- Though EmigrantDirect’s APY is relatively high, it is far lower than the APY’s from most online-only banks. For example, Ally Bank and Capital One pays APY of up to 1.7%, more than three times EmigrantDirect’s APY.
EmigrantDirect Certificate Of Deposit
For a minimum deposit of $1,000, you can open a certificate of deposit (CD) with EmigrantDirect.
The CD account, which pays up to 1.8% in APY, is open to people who are already customers of the bank.
CD terms range from six months to 120 months.
Highlights Of The EmigrantDirect Certificate Of Deposit
- Only EmigrantDirect account holders are eligible to open a CD.
- Minimum deposit balance of $1,000.
- Interest compounded daily and credited monthly.
- Automatic notification prior to the maturity of your CD.
- FDIC insured CDs to the maximum extent allowed by law.
- There’s a penalty for early withdrawal.
Should You Open An EmigrantDirect American Dream Savings Account?
Though EmigrantDirect American Dream Savings Account is an interesting account, it doesn’t offer anything you can’t get from the competition.
American Express, for instance, which is a more reputable and better know brand, offers a Personal Savings account that provides far more incentives than the EmigrantDirect American Dream Savings Account.
Ally Bank, Capital One Bank, Simple Bank, Marcus by Goldman Sachs, and Barclays Bank are all online-only banks that offer better incentives than the EmigrantDirect American Dream Savings Bank.
There are many more online-only banks that offer better incentives than the EmigrantDirect American Dream Savings Account. If you are looking to the get most return on your money, you will do better with any of the alternative banks listed here.
Related:
Contact Information
By Email:
Toll-Free 800-836-1997, seven days a week, 8:00 AM – 11:30 PM ET
By Email:
CustomerService@EmigrantDirect.com
By Mail:
EmigrantDirect
13 Croton Avenue
Ossining, NY 10562
Summary
EmigrantDirect American Dream Savings account is a practical, no-frills, online-only saving account that pays a decent APY as far as banks go.
However, if you want a top-notch online-only savings account, there are better options than EmigrantDirect American Dream Savings account.
The bank has a less than stellar recommendation because of a poor online user interface. Also, though EmigrantDirect American Savings account offers a decent APY compared to more traditional brick and mortar bank, it has a less than competitive rate when it comes to online-only banks.
Final verdict: EmigrantDirect is not a great bank because it doesn’t compare favorably to the competition. Furthermore, there are multiple reviews online from the bank’s dissatisfied customers.
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