Even though its parent Emigrant Bank has been around since 1850, you may not have heard of MySavingsDirect, its online-only banking division. This offshoot of the New York City-based financial institution offers a somewhat limited array of financial products, namely: personal savings, CDs and precious-metal investing. For the purposes of this review we’ll focus on the online bank’s savings account and CD options.
When put to the test, MySavingsDirect’s offerings were generally solid, offering high interest rates (for certain products) paired with consumer-friendly policies.
Compare Rates from Similar Accounts
MySavingsDirect MySavings Account
Barclays Online Savings Account
on Barclays’s secure website
MySavingsDirect’s savings account
High-interest savings account
|APY||Minimum Balance to Earn APY|
- Minimum opening deposit: $1
- Minimum balance to earn APY: $0.01
- Monthly account maintenance fee: None
- Other fees: None
If you’re looking for a beginner-friendly way to start saving money, MySavingsDirect’s online-only savings account is a great option. Once you have an account and make your first deposit, funds won’t be available for transfer or withdrawal for five business days. (You can also make your initial deposit by check, but that can take up to 10 days to credit to your account.) It usually takes between two and four business days to have your money transferred into your associated checking account, via ACH. Those time-buffers can be useful if you’ve found yourself dipping into savings on a whim in the past, but less so if you’re looking for quick access to your cash in an emergency. Interest is compounded daily and credited to your account monthly. This account limits you up to six certain transfers and withdrawals per month, as per Federal Regulation D. If you exceed that limit, your account may be closed. All of those features, plus the recurring transfer option, make this a solid set-it-and-forget-it account for new savers.
How to get MySavingsDirect savings account
To apply for and get a MySavingsDirect savings account, you must be at least 18 years old and have a valid tax identification number, a legal address and a checking account at a U.S. bank.
How MySavingsDirect’s savings account compares
This bank’s account is on par with the top savings accounts out there. Its combination of a high APR, low minimum deposit and lack of fees make it a great option for those who want to continually grow their savings — provided you don’t need the quick access often available to a savings account that’s directly linked to your checking account through the same bank. The MySavingsDirect savings account also doesn’t come with ATM access — so if you’re a fan of the convenience of brick-and-mortar banking, you should look elsewhere.
MySavingsDirect’s CD rates
|60 to 120 months||1.65%|
- Minimum opening deposit: $1,000, regardless of term length
- Minimum balance amount to earn APY: $1,000
- Early withdrawal penalty for accounts under a year: up to 90 days of interest (whether earned or not)
- Early withdrawal penalty for accounts equal to or more than one year: up to 180 days of interest (whether earned or not)
MyTerm CDs run the gambit from six-month sprints to 10-year marathons, with the APY falling into a few time-dependent buckets. Should you choose one of these CDs, you’ll first need to have a MySavingsDirect savings account. After that, you’re able to get a CD from which you can withdraw accrued interest at any time via your MySavingsDirect savings account. You’ll be notified at least 14 days before your CD matures. Upon maturation, there’s a 10-calendar-day grace period during which you can close your account without penalty; otherwise, the CD will automatically renew.
It’s probably best to go for the 6-month term — even if you’re looking for a hands-off investing option — since that will give you the highest APR. Plus, you’ll preserve the option to have access to your funds at shorter intervals than you would with a longer-term CD, should you need to use your initial deposit for something else.
How to get a MySavingsDirect CD
If you already have a MySavingsDirect savings account, you only need to click the “open account” tab to get the bank’s CD. Otherwise, you’ll first need to apply for a savings account, which carries its own requirements and may take a few days for approval, as detailed above.
How MySavingsDirect’s CD rates compare
Unlike many CDs, MySavingsDirect offers the best APY for its shortest term account option. This makes it ideal for people who can spare $1,000 for the immediate future, but also want the flexibility of being able to access their cash at shorter intervals. However, this CD also has fewer interest-rate options than many banks with similar terms. And if you’re willing to wait longer than six months at a time, there are higher-rate CD options out there — some of which have even lower minimum deposit requirements.
Overall review of MySavingsDirect’s banking products
MySavingsDirect doesn’t break the mold as far as its product features are concerned. But for new and digitally-savvy investors, its policies do provide a balance of structure and flexibility that can be hard to find.
If you’re looking to start saving beyond an emergency fund, the savings account is a great option. And although their CD options are a bit limited — and come with a higher bar to entry than other CDs — they could be a good option for those who already have a MySavingsDirect savings account.