How does this Emigrant Direct Savings account work? It uses the money you have in your current checking account and transfers it over to your Emigrant Direct "American Dream" Savings Account. These accounts are linked where they can do ACH transfers with each other. You must have a checking account at another bank to have an account with Emigrant Direct. This account with Emigrant is similar to a ING Direct account.

Emigrant Direct recently redesigned their website which will include a new state of the art security system. You will be able to link additional accounts, make changes to your Emigrant Direct account profile, and view tax documents on demand. They needed a new site bad but no one complained because their savings rates were so profitable. Now you can have the both of best worlds. The new APY has also increased to 4.05%. You can compare this rate to Citibank ESavings who has been spending top dollar on advertising their new product. Emigrant Direct is still the best and has the backing of Suze Orman and many other great financial gurus and personal finance bloggers.

Below are some advantages to an Emigrant Direct account:

• Barron's and Bankrate show it as "America's Highest Rate" at 3.60% APY
• No Fees. No Minimums.
• No need to change your checking account it just "links" up with one another
• Access your account 24/7 at EmigrantDirect.com
• Open your account online
• Deposits FDIC insured up to $200,000

Apply Now for a money market account

What is the catch if I open an Emigrant Direct account?
I only found two catches with this in the fine print. One was the rate was only guaranteed through December of 2005 which could be a hassle if this is only ran as a promotion and the other is the cancellation policy. You must notify Emigrant Direct by the fifteenth (15th) of the current month to cancel your use of Internet Banking for the following month.

How do I terminate my Emigrant Direct account?
You may terminate your Emigrant Direct by calling Emigrant Savings Bank at 1-800-836-1997 or by writing to EmigrantDirect, Internet Banking Center, New York, NY 10017. You may also send an electronic message to EmigrantDirect via your Internet Banking service or e-mail at EmigrantDirect@emigrant.com.

Note: The Emigrant Direct APY increased from 3.5% to 4.0% on September 21, 2005 following the Federal Reserve rate hike.   3/18/06 Emigrant Direct Increases rate from 4.25% to 4.50%. 7/28/06 Emigrant Direct rate changes from 5.05% to 5.15%.

Other Money Market or high interest accounts:

• Citibank ESavings Account
• Virtual Bank
• Everbank High Interest Checking
• ING Direct

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