MySavingsDirect.com legit?

[kev374]

https://www.mysavingsdirect.com

They have the highest savings rate right now at 1.25%, I plan to open an account and transfer $200,000 into it. I checked FDIC and found their number register as a division of Emigrant bank. Just want to do a final check here to see if everything with this institution is in order.

[poorgradstudent]

I used to have an online savings account with Emigrant. I had no problems with them.

[bearishgurl]

Synchrony Bank (NJ) also has a 1.25% CD for 12 months (higher for 24 – 60 months). THEY are completely legit and their customer service (located in the US) is excellent!

https://www.synchronybank.com/banking/products/cd/index.htm?UISCode=0000000

About 18 months ago, Synchrony Bank bought GE Capital (who ran their own Visa brand), Care Credit and JCP Credit. They’re now a huge US bank.

Don’t know anything about Emigrant Bank. Never heard of them.

[teaboy]

kev,
Emigrant is legit. I have used them to chase the highest savings rate for my $200k deposit while waiting to buy.
The thing to be aware of is that the 1.25% may not last too long nor still be competitive in 6 months.
If you have a 6 month horizon, it might be better to try everbank, as they seem to have an into rate of 1.6% for 6 months.
http://www.bankrate.com/funnel/savings/savings-results.aspx?local=false&IRA=false&prods=33&ic_id=CR_searchMMASavingsRates_checking_SeeallMMASavingsproducts

I put my $200k into dollarsavingsdirect.com (another Emigrant bank) about 6-7 years ago and remember their rates being uncompetitive fairly soon thereafter.

Back then I had plenty of spare time at work and didnt mind all the hassle and effort required to open a new bank account and transfer the funds. I moved it again a couple more times, again chasing an extra .25%.

It’s worth remembering that an extra .25% on $200k works out to something like an extra measly $30 per month after tax. It wouldn’t be worth the hassle for me these days.

tb

[spdrun]

Emigrant Bank is a local bank in NYC. Very legit.

[CA renter]

Just catching up on posts and clicked the link. They are now offering only 1.1% on this savings account.

This was my experience over many years of chasing yields. If you want to keep your money liquid, there’s a good chance that the “intro” rate will drop rather quickly once you open the account, and you’re right back to where you were.

Wish there was a better answer. The 1.1% is still better than most savings accounts, but be prepared to be frustrated when the rate keeps dropping. 🙁

[Author]

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