The Money Mustache Community

Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: Kris on December 27, 2015, 09:47:15 AM

Title: Anyone use MySavingsDirect as their online bank?
Post by: Kris on December 27, 2015, 09:47:15 AM

I have not yet used an online-only bank, and this one looks like a goid choice, but I'm weirdly nervous about taking the plunge.

https://www.mysavingsdirect.com/MySavingsDirectWeb/index.jsp

Title: Re: Anyone use MySavingsDirect as their online bank?
Post by: Another Reader on December 27, 2015, 09:57:25 AM

I would not use this bank.  It's one of a series of on-line banks started by Emigrant Bank.  The MO is to open the bank, offer a high interest rate to start, and then incrementally reduce the rate with little notice to the customer.  I had an Emigrant Direct account, the first of these, a number of years ago, and closed it for this reason.  You can do better with Synchrony or a number of other banks.  For rates and bank health ratings, I use www.depositaccounts.com.

Title: Re: Anyone use MySavingsDirect as their online bank?
Post by: MDM on December 27, 2015, 11:04:15 AM

Timely update at http://www.magnifymoney.com/blog/earning-interest/best-online-savings-accounts275921001: MySavingsDirect has been removed after dropping to 1.00% APY.

Title: Re: Anyone use MySavingsDirect as their online bank?
Post by: Another Reader on December 27, 2015, 12:56:50 PM

Notes copied from the review of Mysavingsdirect.com at depositaccounts.com:

Rate Reduction Notification To 1.00% - 12/14/2015
Rate Reduction Notification To 1.00% - Effective Date:12-14-2015

Rate Reduction Notification To 1.10% - 9/9/2015
Rate cut to 1.10% from 1.25% effective date of rate cut is 09-10-2015

Notice a pattern?  The bank advertised heavily when it raised the savings APY to 1.25 percent. 

Title: Re: Anyone use MySavingsDirect as their online bank?
Post by: Kris on December 27, 2015, 01:37:28 PM

Thanks, you guys, and thanks for the links to help me find a more reputable online bank!