In contrast with some banks that offer an extensive selection of accounts, Emigrant Direct has exactly two: the American Dream Savings Account and the "My Way" CD.
Emigrant Direct is the Internet banking division of Emigrant Bank, a mutual savings bank founded in 1850 by Irish emigrants. On December 31, 2009, Emigrant Bank and its affiliates between them had $15.4 billion in assets and $1.2 billion in total equity capital. Eligible deposits accepted by Emigrant Direct are insured in accordance with current FDIC requirements.
The online bank has no money market account or checking account, and does not offer consumer loans. Emigrant Direct links to ForeclosuresNearMe.net for bank-owned "real estate opportunities." The Emigrant Direct MasterCard is issued by Barclays Bank Delaware and pays cash back to Emigrant Direct bank account holders.
Some years ago, this savings account was renowned for the high interest rates that it paid. However, all rates have plummeted since then, and investors should now -- as always -- compare savings rates before deciding where to deposit their money.
The American Dream Savings Account still has many features that may be attractive to savers. It has no service charges or fees, and requires no minimum balances. And, being an online account, it is convenient, allowing savers to manage their accounts directly at any time of any day or night.
A "My Way" CD can only be opened by those who already have an American Dream Savings Account. However, this isn't a serious hurdle, and anyone who wants to should be able to open the two accounts simply. Remember, the savings account has no fees or minimum balance requirements so there's no downside to opening one.
As well as the usual term deposit options, this CD product also has unusually long ones. Indeed, there is even one with a maturity date 10 years hence. And the minimum deposit across the board is lower than that required by some competing certificates of deposit. Of course, as is usual with CDs, early withdrawal of the principal is likely to incur penalties.