Dollar Savings Direct Review
In this review, we’ll cover: How to open a Dollar Savings Account™ How to fund the account How to access your money Why the Dollar Savings Account™ may not be the best choice Competitors to consider The bottom line Opening an account You can open a Dollar Savings Account™ online by providing your basic information, … Continue reading Dollar Savings Direct ReviewThe post Dollar Savings Direct Review appeared first on MagnifyMoney.
Posted — UpdatedDollarSavingsDirect’s Most Popular AccountsAPY
Account Type
Account Name
Compare Rates from Similar Accounts
1.80%
Savings
DollarSavingsDirect Dollar Savings Account
1.85%
Synchrony Bank High Yield Savings
on Synchrony Bank’s secure website
In this review, we’ll cover:
How to open a Dollar Savings Account
How to fund the account
How to access your money
Why the Dollar Savings Account may not be the best choice
Competitors to consider
The bottom line
Opening an account
You can open a Dollar Savings Account online by providing your basic information, like your tax identification number and your address. Customers have to be age 18 or older, and you have to have a personal checking account with a U.S. bank that you can link to your new Dollar Savings Account.If your online application is approved, you will be able to login and see your information immediately. However, if more information is needed, Dollar Savings Direct will contact you in two to three business days, according to its website.
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Funding your account
Your linked checking account can be used to fund your new Dollar Savings Account; however, you can also choose to fund your account with a physical check by mail.When you apply, you must select this option and then you will receive instructions about where to mail your check. Your check must be written from the same linked checking account. Checks are only accepted for your initial deposit. You must make any future deposits or withdrawals via electronic transfer.
There is no minimum deposit required to start your Dollar Savings Account, nor is there a minimum balance required after the account has been established.
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Accessing your money
If you funded your account with a check, there is a 10-business-day hold before you may withdraw your funds. All electronic transfers, or ACH deposits, have a five-business-day hold, no matter if it’s your initial deposit or a future deposit.
After you initiate your withdrawal online, it can take between two and four business days to appear in your connected external checking account. It will also take the same amount of time to transfer money into your Dollar Savings Account.
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Why Dollar Savings Direct may not be the best choice for your savings
Dollar Savings Direct offers the Dollar Savings Account with no minimum deposit required and no fees or service charges. This, combined with “America’s Highest Rate” at 1.80% APY (annual percentage yield) makes it seem like an attractive option to new customers.However, even though a 1.80% APY on your savings account is hard to beat, Emigrant Bank, the parent of Dollar Savings Direct, has a habit of using high interest rates to attract new customers and deposits to its sub-brands before lowering the rates significantly once they’ve achieved their goals.
Source: DepositAccounts.com (DepositAccounts.com, like MagnifyMoney, is owned by LendingTree)Dollar Savings Direct and Emigrant Bank, along with any other bank, are fully within their legal right to change the APY on savings accounts at any time. But, this bait-and-switch tactic is not in the best interest of their customers.
In general, a more stable APY will generate more interest on savings over time.
If you do decide to open a Dollar Savings Account to take advantage of their 1.80% APY, keep an eye on the rate over time. You may want to withdraw your funds and store them elsewhere if rates drop significantly, as they have done historically.
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Competitors to consider
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Bottom line
Again, it’s tough to beat a 1.80% APY on a savings account. However, sticking with an account that offers a slightly lower APY but is more consistent with their rate would make it easier to manage getting the best return on the money you store in a savings account.
If you open a Dollar Savings Account, you’ll want to keep a constant eye on the rate, knowing that it may drop significantly in a few months, based on Emigrant Bank’s past practices. If you don’t transfer your funds out of your Dollar Savings Account when the rate drops, the advantages of opening a high yield savings account will be lost.
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