bank rates

DollarSavingsDirect 4.00% APY Savings

Considering that the Federal Reserve has cut the target federal funds rate to below 0.25%, it is shocking to see that DollarSavingsDirect is still running a 4.00% APY online savings account.

I’m curious how they can afford to pay out such a high interest, and I’m also very wary of the fact that they have a 1 star Bankrate Safe & Sound® rating. But hey, this is a killer rate and it’s FDIC insured, so this could be a nice place to stash some cash.

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Comments (71)
1 Star2 Stars3 Stars4 Stars5 Stars (44 votes, average: 3.02 out of 5)
71 Existing Comments
  1. john said:
    on February 3rd at 02:01 pm

    Read the small print relating FDIC insured deposits . They will insure and will pay but they do have an eight year pay back clause.

  2. RJS said:
    on February 3rd at 05:28 pm

    DollarSavingsDirect back on top, highest rate listed, 3.50.

  3. Vern said:
    on February 3rd at 08:15 pm

    At Dave, that is good information. I already had an account opened two weeks ago so I guess I’m locked in. Even if it is a teaser rate, I have until April to collect 3.75 APY(which is the highest I’ve seen) at which I can just move my money somewhere else.

  4. Subrata said:
    on February 4th at 04:00 pm

    Doller savings decreased their interest rate to 3.5% APY

  5. Tinda said:
    on February 4th at 10:01 pm

    6.01% APY for checking account upto $25,000 Balance. Some requirments for higher APY but still very attractive.

  6. John said:
    on February 5th at 01:32 pm

    Dollar Savings just dropped the interest rate again today from 3.5% to 3.2% APY.

  7. Vern said:
    on February 5th at 05:21 pm

    Dollar Savings Direct decreased their APY to 3.2 today.

  8. Vern said:
    on February 5th at 05:38 pm

    Just found this out after a quick search on the web. Doral Bank Direct, which is of Doral Bank FSB, has a promotional rate of 3.5 APY guaranteed for the next three months. There are a few strings attached: $1000 is the minimum initial deposit, you have to maintain the $1K minimum to earn the yeild and $250 minimum balance must be maintained to avoid a monthly service fee. Also Bankrate has given Doral Bank its highest rating(5 stars). I have not opened an account with them yet but this might be worth a look. Anyone with any more information on this bank?

  9. Chimi said:
    on February 5th at 08:35 pm

    Just dropped again to 3.2%

  10. Peter said:
    on February 8th at 09:11 pm

    The Red Canoe Credit union said they will have a grand opening intrest rate of 4.25 about 2/26/2009. I’m waiting for it.

  11. Dexter said:
    on February 12th at 05:05 pm

    Now down to 3.05% as of today.

  12. Joe said:
    on February 13th at 12:29 pm

    Any recommendations on where to put 50k? i would like to stay away from the markets right now, thank you for any imput

  13. Joe said:
    on February 13th at 12:30 pm

    PETER do you have a link for the red canoe credit union? Thanks

  14. Daryl said:
    on February 14th at 07:48 am

    H&R Block Bank has a 12 month cd at 3.25% fixed and is FDIC insured. I just opened one online and funded it in about 10 minutes or less with no problem. May want to look there Joe.

  15. Mike M said:
    on February 19th at 09:23 pm

    FYI – Dollar Savings has taken bailout funds to the tune of $267 million through their parent company.

    The bigger problem for them might be that they’ve been employing the wife of the House Republican Whip…. as a director of a branch that the employees say has no customers.

  16. Tell me why said:
    on February 22nd at 02:50 pm

    Dollar Savings dropped to merely 2.65% now. Take your money and stuff it under a mattress.

  17. TB said:
    on March 1st at 12:16 pm

    “You people need serious help.”

    Umm no – were just bankaholics…stacking our chips up at the highest rates on the net. haha

    DSD is the best. Fast, easy to use, great service thus far and usually the highest rate!

  18. Billy V said:
    on March 2nd at 03:33 am

    I had trouble opening an account at DSD because of anomalous state laws in WI. I ended up having to call them twice and everything went smoothly. Haven’t had any problems since. Rate is falling lately as expected but it’s still relatively good.

  19. BBT said:
    on March 3rd at 10:04 am

    Dollar Savings dropped again down to 2.50% APY now. Not surpising but disapointing.

  20. David Lewis said:
    on March 8th at 09:38 pm

    Now 2.25%. Time to move money!

  21. John said:
    on March 13th at 08:44 am

    The rate is now 2.25, not worth it.