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Updated December 15, 2015
MySavingsDirect continues to drop it’s APY and now is no longer even a top contender for high interest rates.
The MySavingsDirect High Interest Savings account previously used to boast about being “America’s Highest Rate” savings account, but now only offers 1.00% APY. It does have no fees, no minimum balance, and no need to open a new checking account with MySavingsDirect. Instead, it offers the ability to be linked to your current checking account at any other bank.
How To Open An Account
The only requirements to open a MySavingsDirect High Interest Savings account is that you are at least 18 years old, have a valid tax identification number, and have a checking account with a bank located within the United States.
MySavingsDirect offers fewer options to open a savings account than other banks. You can apply by clicking the “Open Now” button on its homepage, or by calling customer service at 1-877-752-1919. Because MySavingsDirect is an online only bank, it does not offer physical locations at which to open accounts. It also does not offer a mailed-in paper application option.
Once your application has been submitted, you will see a confirmation page that gives instructions to login as well as the status of your account. If you have successfully opened the account, the confirmation screen will allow you to log into your account immediately. If you are not given information to login to your account on the confirmation screen, then MySavingsDirect needs more information from you and will contact you within 2-3 business days using the contact information you provided in the application.
Funding Your Account
You can fund your MySavingsDirect Savings account two different ways during the opening process: via electronic transfer or paper check.
The ability to fund your account via electronic transfer will be set up when your account is opened, because linking an existing personal checking account is a requirement to open the account.
To fund your account with a paper check, you must be mailing a checking that is from the bank that you established as your linked funding account on the online application. If you select the option to make the opening deposit with a paper check, instructions will be provided to you that explain who to make the check out to and where to mail it.
After the opening deposit, you can only transfer money electronically from any personal checking account, a process that takes 2-4 business days. MySavingsDirect does not accept mailed checks for deposit aside from the opening deposit.
Fine Print Alerts
The MySavingsDirect High Interest Savings account has no fees and no minimum account balances with a high APY. However, you do sacrifice flexibility for those uncomplicated terms.
The bank only offers the ability to open an account by phone or online – no mailed option. Also, you can make the opening deposit either by electronic transfer or by mailed check, but after the opening deposit, the only way to make deposits is via electronic transfer.
When making deposits, electronic transfers take between 2 and 4 business days to process, which is fairly standard for online accounts. However, for security reasons, electronic transfers have a 5-day hold before they can be withdrawn, and if the initial deposit is made by check, the hold is 10 days before it can be withdrawn.
How It Stacks Up
The MySavingsDirect High Interest Savings account used to be advertised as “America’s Highest Rate” but it no longer claims the title. Many other savings accounts offer higher APY.
If a high APY is your primary concern, CIBC offers 1.10% APY on a $1,000 minimum balance. It also offers the option to make deposits electronically, by mailed paper check, or by wire transfer.