Our experts answer readers’ banking questions and write unbiased product reviews (here’s how we assess banking products). In some cases, we receive a commission from our partners; however, our opinions are our own. Terms apply to offers listed on this page.
MySavingsDirect Savings Account
Annual Percentage Yield (APY)
4.35%
Minimum Deposit Amount
$1
- High interest rate
- Low minimum opening deposit
- No monthly service fees
- Limited access to your account
Product Details
- Interest compounded daily and deposited monthly
- Member FDIC
MySavingsDirect Review
MySavingsDirect is an online branch of Emigrant Bank, a New York-based bank that has been around since 1850. It offers a high-yield savings account and a variety of CD terms.
Since MySavingsDirect is online only, there are no physical locations, so customers cannot seek in-person assistance. It does, however, offer customer service via phone from 8 a.m. to 11:30 p.m. every weekday. You can also contact customer service by email.
MySavingsDirect does not have a mobile app, though you can manage your account online.
Is MySavingsDirect Trustworthy?
Neither MySavingsDirect nor its parent bank — Emigrant Bank — is accredited by the Better Business Bureau, so it’s hard to evaluate their business practices thoroughly.
As for recent public controversies, the company was sued for potentially predatory mortgage lending practices and settled a case with the U.S. Treasury Department for violating sanctions with Iran.
MySavingsDirect Review: Overall Rating
MySavingsDirect Pros and Cons
MySavingsDirect Accounts
MySavingsDirect offers two account options: A high-interest savings account or a certificate of deposit. CDs come in a variety of terms and rate tiers. Here’s how the two measure up.
MySavingsDirect High Interest Savings Account
MySavingsDirect Savings Account
Annual Percentage Yield (APY)
4.35%
Minimum Deposit Amount
$1
- High interest rate
- Low minimum opening deposit
- No monthly service fees
- Limited access to your account
Product Details
- Interest compounded daily and deposited monthly
- Member FDIC
The MySavingsDirect high interest savings account comes with a 4.35% APY — a much higher rate than the average 0.46% most banks are offering, according to the Federal Deposit Insurance Corporation. Interest is compounded daily and credited to your account monthly.
MySavingsDirect’s savings account also has no minimum balance requirements (you need just $1 to open one) and is insured by the FDIC on up to $250,000 in deposits ($500,000 for joint accounts). Keep in mind that the account is online-only, so you’ll need to manage the funds digitally. There are no ATMs or debit cards, but you are required to link a personal checking account. This is what you’ll use when transferring money in and out of your MySavingsDirect savings account.
MySavingsDirect MyTerm CDs
MySavingsDirect 3 Year CD
Annual Percentage Yield (APY)
5.00%
Minimum Deposit Amount
$1,000
- High interest rate
- $1,000 minimum opening deposit
- Have to open a MySavings Account
Product Details
- Online division of Emigrant Bank
- Early withdrawal penalties: 90 days of interest for terms under one year; 180 days of interest for terms of one year or more
- Interest compounded daily and deposited monthly
- FDIC insured
MySavingsDirect also offers CDs, with terms ranging from six months to 10 years. Its CD rates start at 1.50% on six-month CDs and top out at 5.00% on two- and three-year CDs — much higher than the national average but slightly lower than the best CD rates currently on the market.
To open a MySavingsDirect CD, you’ll need a minimum deposit of $1,000. Interest is compounded daily and credited monthly, and you can withdraw interest from your account at any time. If you withdraw from your principal, though, there will be an early withdrawal penalty imposed. Penalties range from 90 days of interest on CD terms under one year to 180 days of interest on terms one year or longer.
How MySavingsDirect Compares
MySavingsDirect vs. Bread Savings
Bread Savings is another option to consider if you’re looking for an online savings account or CD. Its high-interest savings account offers an APY that’s significantly higher than MySavingsDirect, 5.15%, though it does require a $100 minimum opening deposit.
On CDs, it all depends on what term you’re looking for. MySavingsDirect offers slightly higher three-year CD rates, while Bread Savings has higher rates on two- and five-year terms. Bread Savings also offers a one-year and four-year term, which MySavingsDirect does not. It does require a slightly higher minimum deposit, though, at $1,500.
MySavingsDirect vs. Crescent Bank
You might also consider Crescent Bank if you’re looking for a high-paying CD. The regional bank offers one-year, 18-month, two-year, 30-month, three-year, four-year, and five-year CDs, with APYs ranging from 4.70% to 5.50%. On all term options shared with MySavingsDirect, it offers comparable or higher rates, particularly on five-year CDs. Like MySavingsDirect, Crescent Bank requires a minimum $1,000 deposit.
MySavingsDirect Frequently Asked Questions
MySavingsDirect is a legitimate bank. It’s an online branch of Emigrant Bank, a nationwide bank based in New York City.
MySavingsDirect is insured by the Federal Deposit Insurance Corporation for up to $250,000 in deposits per account ($500,000 on joint accounts).
MySavingsDirect’s interest rates are higher than national averages, though not the highest rates currently available on certificates of deposits or savings accounts.
Why You Should Trust Us: How We Reviewed MySavingsDirect
To review MySavingsDirect, we rated its savings account using Personal Finance Insider’s bank account methodologyy and its CDs using Personal Finance Insider’s certificate of deposit methodology.
In general, we look at ethics, customer support, and mobile apps when rating an institution. Interest rates, minimum deposit, and monthly fees also play a role when rating savings accounts, and on CDs, early withdrawal penalties and overall term variety also factor in.
