EmigrantDirect is an online division of New York-based Emigrant Bank, a bank whose history dates back to its founding as a mutual savings bank by Irish emigrants in 1850. Emigrant Bank launched the online-only EmigrantDirect in mid-2004.

While EmigrantDirect offers very few products—savings accounts and CDs—its APYs are competitive.

This review focuses on EmigrantDirect and its consumer bank account offerings. Account details and annual percentage yields (APYs) are accurate as of Nov. 28, 2021.

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Account Basics

EmigrantDirect is not a full-service bank. You won’t find checking accounts or money market accounts at this bank. It limits its products to savings accounts and CDs. Here’s a look at the bank’s account offerings.

Savings

There’s only one savings account available through EmigrantDirect: the American Dream Savings Account. This savings account earns 0.35% APY on all balances. Like many online savings accounts, it carries no monthly service fee and has very few other fees. There is also no minimum balance requirement—this means you’ll earn money on your account regardless of how much you keep in the account.

Unlike many online savings accounts, the American Dream Savings account doesn’t come with many extra features. For example, there are no automated savings features or ways to create specific savings goals. But if you’re looking for a simple and safe online savings account to keep an emergency fund or set aside money for other savings goals, this account could be a good option. That said, you can likely find other online banks that offer higher rates and more perks.

CDs

EmigrantDirect savings account holders can also open a CD account. To be clear, you can’t open a CD with EmigrantDirect unless you hold an American Dream Savings Account. CDs require a minimum deposit of $1,000. CD terms range from six months to 10 years. The online bank offers fairly competitive APYs on all terms.

Notably, EmigrantDirect offers longer terms than many other banks and credit unions—as long as 10 years. Just keep in mind that a longer CD term from EmigrantDirect doesn’t mean a higher rate. For example, you’ll earn the same rate on a five-year and a 10-year CD, so it doesn’t pay to lock your money up for a longer term. Plus, EmigrantDirect rates don’t beat out some of the best CD rates available now.

Customers can purchase EmigrantDirect CDs with the following terms and rates:

CD Term APY
6 Months 0.35%
16 to 59 Months 0.40%
60 to 120 Months 1.00%

Interest on EmigrantDirects CDs compounds daily and is credited monthly. Customers can withdraw earned interest at any time during the CD term but face a penalty of up to 180 days’ interest for withdrawing principal CD funds before the account reaches maturity. Make sure you can afford to be without the deposited funds long term before opening a CD.

Like most banks, EmigrantDirect will notify you when your CD reaches maturity and is about to renew. At that time, you can choose to open another CD, withdraw or add funds or close the CD account.

Other Accounts and Services

EmigrantDirect used to sell precious metals as part of its banking services. New sales of precious metals have ended, but current customers can still store previous purchases in the bank’s secured vault, sell them or have them shipped to their address on record. Storage fees are based on the value of your holdings and automatically deducted from American Dream Savings Accounts.

Precious metals previously purchased through EmigrantDirect are not FDIC insured, and they can lose value.

Access on the Go

Many online banks offer customers easy access to accounts using the latest technologies. That’s not the case with EmigrantDirect. The bank offers customers basic online access through its somewhat dated website. As with the other Emigrant Bank online banking offshoots, DollarSavingsDirect and MySavingsDirect, EmigrantDirect offers no mobile app.

Customers can sign up for a savings account online. You must link an external checking account to fund the new savings account. Customers can either send a check from the linked account or transfer funds electronically. Checks are only accepted for initial deposits, not ongoing, so make sure you’re comfortable with moving money through electronic transfers before signing up.

EmigrantDirect saving accounts do not come with a debit card and aren’t accessible by ATM. Individuals looking for convenient banking will find EmigrantDirect to be extremely restrictive on how to access funds.

Pros

  • Fairly competitive rates on savings and CD accounts
  • No account fees
  • No minimum balance requirements
  • CD interest is available at any time after it’s earned

Cons

  • No mobile app
  • Must have an American Dream Savings Account to access CD accounts
  • No ATM access
  • No debit card
  • No physical locations

How EmigrantDirect Stacks Up

EmigrantDirect is behind the curve when it comes to modern online and mobile banking conveniences found at many other banks and credit unions. For some, the bank’s high-yield savings and CD offerings may be good enough to deal with the bank’s limitations, but better APYs can be found elsewhere.

With no checking account, no debit card or ATM access and no other services, EmigrantDirect is far from a full-service bank. It’s not a good choice for individuals who like to do all their banking in one place. Accessing funds quickly isn’t an option, and the lack of a mobile app limits where and when you can access your money.

While the bank offers fairly competitive APYs on all of its account offerings, a little searching can lead you to other online banks that may offer even higher rates, but with all of the added modern conveniences that EmigrantDirect is lacking.

Frequently Asked Questions (FAQs)

Is EmigrantDirect FDIC insured?

Yes, as a division of Emigrant Bank, EmigrantDirect is FDIC insured (FDIC# 12054). The federal government protects your money up to $250,000 per depositor, for each account ownership category, in the event of a bank failure. EmigrantDirect also provides a handy chart to help customers maximize their FDIC insurance by taking advantage of each ownership category.

Keep in mind that coverage is split among all accounts at Emigrant Bank and any of its personal banking divisions, including EmigrantDirect, DollarSavingsDirect and MySavingsDirect.

How do I deposit money into an EmigrantDirect savings account?

Your initial deposit can be made by mailing a check or making an electronic transfer from a linked external checking account. After the initial deposit, your only option to add funds is through electronic transfers.

How do I open an account with EmigrantDirect?

You can open an EmigrantDirect account online through the bank’s website. You’ll need to provide personal information, such as a driver’s license, for identification purposes during the application process. Funding your new account requires an external bank account. You’ll be asked for the account number and routing number during the application process.