Below you’ll find my unofficial summary of the product. I won’t quote rates because they constantly change. You should visit Emigrant Direct’s site and read all the fine print if you’re thinking of using their services.
The Offer
Emigrant Direct American Dream Savings Account is like a lot of other online savings accounts. The main attraction is the APY (Annual Percentage Yield). You can typically earn more than brick-and-mortar banks. Furthermore, there are no fees for the service or minimum balance requirements. You can literally open an account with $1.
Emigrant Direct, you keep your existing checking account and link it to your American Dream Savings Account. To move money back and forth, you login to your Emigrant Direct account and request a transfer (transfers are free on the Emigrant side, however you should check with your bank to make sure they won’t assess a charge).
The Details
Emigrant Direct compounds interest daily and credits the interest monthly. This makes for a pretty good deal.
You can have up to 2 linked accounts with Emigrant Direct. This makes it easy to get money anywhere you need it. I’d prefer to see them offer more linked accounts, but 2 is enough to get your money from point A to point B.
You can also set up automatic deposits to your Emigrant Direct American Dream Savings Account (as well as direct deposit from your employer or other income source).
The Process
Opening an account is a matter of filling out an online application and verifying your identity. Emigrant will mail you a letter with the final details. They do this for security – if the letter makes it to your home then they know where to find you (and it indicates that you’re probably giving truthful information).
Service
Because I haven’t worked with Emigrant Direct, I don’t know what the service is like. They do provide a toll-free number if you want to speak with a representative. If you can contribute an Emigrant Direct Online Savings Account review, please post your experiences in the banking forum.
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