bank rates

Dollar Savings 2.65% Savings Account

Dollar Savings Direct continues to offer some of the best deposit rates around.

The online division of Emigrant Bank in New York is now promoting a savings account that pays 2.65% that promises “No hidden costs. No fees. No penalties. No service charges.”

We wish Dollar Savings fared better than one out of five stars in Bankrate’s “Safe & Sound” rating system.

But it’s FDIC insured and you’re earning more than you would with even the best short-term CDs since 6-month CDs are averaging 1.15% and 12-month CDs 1.47%.

When we wrote about Dollar Savings’ money market account last month, readers gave it fairly high marks, although there were a few exceptions. Click here to see those comments on Dollar Savings service.

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Comments (30)
1 Star2 Stars3 Stars4 Stars5 Stars (20 votes, average: 3.75 out of 5)
30 Existing Comments
  1. BloggingBanks said:
    on February 25th at 01:56 pm

    The thing about the savings account is that the yield is fluctuating, whereas CD rates are fixed.. I wonder if the rate on Dollar Savings won’t fall to 1%.. It used to be 4% not too long ago..

  2. Mike M said:
    on February 25th at 03:23 pm

    Their customer service is still bound to be absolutely abysmal.

    They’ll still likely make serious mistakes and try to blame their customers despite GOBS of proof otherwise.

    And they’ll likely still be taking bailout money from the government while employing the House Minority Whip’s wife as a “director” of a branch with **0** customers.

    No thanks.

  3. dealster81 said:
    on February 25th at 05:42 pm

    Good deal, submitted to Bank Fiesta community. Thanks!

  4. Bob said:
    on February 25th at 08:44 pm

    I have an account with them. It has pluses and it has minuses, just like any other online direct account. The good parts include, 1) the money moves quickly between accounts. Transfer money to the account on a Friday, and it exists in DSD on Saturday morning. Withdraw money on a Tuesday, and the funds are available in your target account Wednesday morning. 2) the rate is one of the best, still. 3) they give you a running total month-to-date of interest accruing, but not yest posted.

    The bad, 1) You can only withdrawal to 2 accounts, none of which can be third party. In other words, you cannot make a car payment from the account. You can transfer to your checking acccount quickly, or to another savings account (quickly). so you must move money out to one of those accounts before being able to use the funds. 2) They’ll hold your depostis for a little longer than they should, but that’s not a problem for me.

    All in all, not bad. Still worth the higher rate, the plusses outweigh the minuses.

  5. marketsense said:
    on February 26th at 11:44 am

    Like how we are getting more deals from this site now!

  6. GE said:
    on February 26th at 01:50 pm

    Hey Mike M… You obviously have some personal vendetta against DollarSavings. I have been reading this blog for a while, and all you do is complain about the same thing over and over. I’m sorry DollarSavings didn’t work out for you, but you’ve made your comment MOVE ON! There are a bunch of us who have been with DollarSavings for sometime and have never had a problem. The point of this blog is to inform people of your experience not to try and single handedly take down the bank. Obviously you think people care that YOU probably screwed up, and are trying to use them as your scapegoat. How come no one else has complained about the bank taking an unauthorized withdrawal? And as for the bailout… Every other bank has taken money in the bailout why should Emigrant be any different. Agree with it or not they are only doing what everyone else is. I just hope that they do the right thing and use that money to help their customers benefit. Only time will tell.

    For everyone else reading this. DollarSavings has the same minor problems as every other online bank. Nothing is perfect, but they are FDIC insured, their rate is competitive, and their customer service department will assist you with any problems you have.

  7. Mike M said:
    on February 27th at 01:23 pm


    Deal with it.

    I did NOT screw up. Though their “customer service” rep claimed it was my fault. The conversation went something like this:

    Them:”See where it says frequency:weekly?”

    Me: “You mean where it says frequency:one time?”

    Them: “No, look at the transaction dated xx/xx”

    Me: “There is no transaction dated xx/xx. There is one dated xx/yy, though.”

    Them: “Ok, see where it says frequency:weekly?”

    Me: “Where it says frequency:one time?”

    Them: “(pause). Let me get IT on this”

    Them: “can you send us transaction numbers and screen shots of what you’re seeing”

    Me: “certainly. Can you transfer the money back that you took out without authorization?”

    Them: “for a $30 fee, we can do it and we’ll refund that if it turns out to be our mistake. We’ll let you know by zz/zz”

    Me: “ok”

    I sent them all the evidence and they never responded. They KNOW they had a glitch. If they would have fixed it, then fine. But they did NOTHING. It WAS their fault.

    I used them for ages and was happy. UNTIL they did this to me. No way, no how – people NEED to know the way this organization works. I have NEVER had any problem with any of the dozen plus other banks I work with.

    Their customer service is abysmal and people need to be aware of this before they go in….

  8. Dan Rival said:
    on February 28th at 10:59 am

    GE, This is unbelievable. Mike is everywhere. Been removed from many blogs. Has way to much time on his hands.
    I’ve been a customer for years at both Dollar & Emigrant. Never had any problem with either of them.


  9. Mike M said:
    on February 28th at 03:04 pm

    Dan, you’re confused.

    I have NEVER been removed from any blog.

    Maybe you’re confusing me with someone else?

  10. Bob said:
    on March 1st at 10:25 am

    Mike M – it sounds as if you are computer illiterate. I think that’s where the problem came in. Also, follow up on issues to make sure they get resolved, otherwise things could get lost.

  11. Dan Rival said:
    on March 1st at 10:56 am

    Bob, I moniot you just can’t tell some people anything. I think you hit the nail on the head.

  12. TB said:
    on March 1st at 12:08 pm

    I am a self-proclaimed bankaholic and have opened roughly 6 online accounts in the past year alone…DSD has been my favorite by far – very simple to use, fast, straightforward, great customer service thus far and most importantly: they usually have the highest rate in on the net for a general savings account.

  13. Mike M said:
    on March 1st at 04:12 pm


    I *DID* follow up with them. I called almost 10 times. They always responded with “we’ll call back” and never did.

    And I’m computer illterate, Bob? How the h-e-double hockey sticks do you come up with that? Their customer interface allows you to select a frequency for a transfer that you set up. I selected one-time. Their system somewhere set it as weekly. However, on the customer interface, it continued to properly show one-time.

    If you don’t want to believe me, fine. You and Dan can believe whatever you like. However, juvenile insults with absolutely NO evidence of your claims only makes you look silly. I’ll put my computer skills up against yours any day.

  14. Bob said:
    on March 1st at 09:27 pm

    “I’ll put my computer skills up against yours any day.” LOL. I am a software engineer and have a Master’s degree in Information Technology. I’ve worked on websites before.

    The frequency setting works fine. You are the only one who has commented on the problem. Did you delete cookies from your hard drive? Also, remove temporary Internet files from your hard drive.

  15. Mike M said:
    on March 2nd at 01:52 pm

    Bob –

    The frequency setting does not work fine. It clearly doesn’t. I would have thought the same as you *until* the day it screwed up for me. Can you explain why my screen said on the transfer history that it was a one-time transfer while theirs said weekly? There clearly is a bug in their system.

    Blaming the customer for your bug is unacceptable.

    BTW, it is best not to go around bragging about your Masters when you might just run into a PhD someday. Especially one that might just very well have been developing websites at NCSA before Mosaic 1.0 was superceded.

  16. Bob said:
    on March 2nd at 05:07 pm

    Mike, if customer service thinks you’re a whack job, and several on this message board do too, then that should say something to you.

  17. Mike M said:
    on March 3rd at 07:29 am


    Customer service has never acted like that to me. Their silence when they realized that what they were seeing was not the same as what I was seeing was deafening and telling.

    You know, I haven’t had the BSOD in at least 4 years. That doesn’t mean it doesn’t happen to other people.

    Your behavior is just as pathetic as theirs was. Immediately blame the customer before you know anything.

  18. Dan Rival said:
    on March 3rd at 09:28 am

    Bob, Don’t waste your time. I think it’s pretty clear that he’s looking up terms on the internet to make you think he knows what he’s talking about.

  19. Mike M said:
    on March 3rd at 01:58 pm

    Thanks, Dan…

    I needed a laugh!

  20. Becky said:
    on March 4th at 03:03 pm

    Gentlemen! Gentlemen! Gentlemen!

    There must truly be a positive way for all of you to “play nice” with one another!

    Bob and Dan, quit taunting Mike! And Mike, resolve your issue with DSD today!

    I have to admit that I was just a bit amused by all the “back and forth” dialogue antics.

    After reading ALL the posted comments, I think I have come to the conclusion that I can do business with DSD.

    Thank you gentlemen. Your bantering helped me immensely!

    Remember, play nice!

  21. Mike M said:
    on March 4th at 03:25 pm

    Becky –

    All DSD has to do is to refund the money that they cost me with their unauthorized withdrawal…. pretty darn simple….

  22. Dan Rival said:
    on March 4th at 06:22 pm

    Becky, Good luck with Dollar. I’m sure you’ll not have any problems. Mike leaves himself wide open for remarks when he says something as stupid as “And they’ll likely still be taking bailout money from the government while employing the House Minority Whip’s wife as a “director” of a branch with **0** customers.” This is not the place for his politics. Thinks he’s the Rush Limbaugh of Bankaholic…

  23. Mike M said:
    on March 5th at 06:21 am

    I can’t STAND Rush Limbaugh.

    He’s as full of himself as you are, Dan.

  24. GERALD said:
    on March 5th at 05:56 pm

    MIKE advice you didnt ask for but here it is. If you have a legit grip then, If you havent filed your lawsuit yet, Thats on you. If you have GREAT. I will be waiting on another update with exstream interest. Thats all.

  25. Mo said:
    on March 6th at 04:28 pm

    FYI – I had the very same problem as Mike M had, so, a bug in their system does exist.

  26. Gene said:
    on March 10th at 04:30 pm

    You guys speak of bugs, however as of 3/10 DSD is down to 2.25 will this continue ? I’m starting to look elsewhere

  27. Tom Dermott said:
    on March 17th at 12:14 pm

    2.05% @ 03/17/2009 Happy St Patrick’s Day

  28. BBT said:
    on March 17th at 05:23 pm

    Happy St Patrick’s Day – I’m taking my Green elsewhere.

  29. GERALD said:
    on January 8th at 07:46 pm

    what happened to MIKE????

  30. GERALD said:
    on January 8th at 07:47 pm

    here mikey mikey mikey