(Rates may be out-dated. Please see the Current APY Wiki for updates)
Can you believe it? This morning the Fed issued an emergency rate cut down to 1.5% (from 2%). While this is not unexpected – Wall Street has been crying and blubbering about a rate cut for a while now – the reaction of Dollar Savings Direct IS surprising.
Instead of dropping their savings rate, which is what tends to happen following the Fed cut, they RAISED their rate from 3.75 to 4% APY. Here are a few highlights of the account:
- Current rate: 4% APY
- Minimum required: $1,000
- Can link up to 2 external accounts
Dollar Savings Direct is a newly-spawned online savings account from Emigrant Bank. I’m still perplexed as to why Emigrant didn’t just raise the rate on their existing Emigrant Direct site instead of creating a brand new division. Oh wait, I forgot about that whole GREED element. You know, that same greed element that’s currently causing our economy to crater?
I’m on the fence as to whether or not I will take the time to open this account. I admit that I sprung for the Washington Mutual 4% offer a few weeks ago, and we saw what happened there. I was only able to enjoy a brief period of high rates before the bank changed names and dropped the savings rate to 3%.
Still, any rate increases are good right now, and I applaud Dollar Savings Direct for raising their rate despite the Fed’s move to punish those of us who keep a chunk of change in savings accounts. I only hope they manage to keep the rate that high for more than a few days/weeks.