MySavings Direct is one of several online divisions of Emigrant Bank – the largest savings bank in New York City since 1920.
If you’re looking for an online-only bank featuring a respectable APY on certificates of deposit and/or an online savings account, then you may want to consider MySavings Direct. Although their products have held more competitive rates in the past, the APYs still beat the national average by decent margins.
Currently, they offer a 30 month CD featuring an APY of 0.55% and an online savings account featuring an APY of 0.45% on deposits of just $1,000 and $0.01, respectively.
To put these offers in perspective, the average APY for savings accounts and 12 month CDs sit at just 0.07% and 0.22% APY, respectively.
We should also note that MySavings Direct has an interesting differentiator to its many online banking competitors in that they offer the ability to trade and hold precious metals.
Their “Precious Metals Direct” account allows consumers to buy and hold gold coins and bullion bars. These holdings can be stored in their secured vault or delivered.
Over half of MySavings Direct’s FAQ section is dedicated to precious metal trading, but for the purposes of this review we’ll stick to FDIC insured deposits and savings accounts offered by MySavings Direct.
MySavings Direct “MyTerm” Certificate of Deposit
The MyTerm CDs offered by MySavings Direct come with varying maturity dates and APY.
Here’s the full list of offerings of CDs available to purchase from MySavings Direct.
| CD Term | APY | Min Deposit |
| 6 month | 0.50% | $1,000 |
| 30 month | 0.55% | $1,000 |
| 60 – 120 months | 0.70% | $1,000 |
You’ll want to note that early withdrawal penalties apply if you need your funds prior to the CD maturity date.
Early withdrawal penalties are structured as follows:
- For an account with a term of less than one year, the penalty will be an amount equal to 90 days interest (whether earned or not) and calculated at the contract rate on the principal amount.
- For an account with a term of one year or more, the penalty will be an amount equal to 180 days interest (whether earned or not) and calculated at the contract rate on the principal amount.
As you can see from the rate table above, MySavings Direct’s longer durations CDs are currently featuring better rates than their short term 6 month deposit. Although it may sound intuitive that longer duration CDs carry higher interest payouts than shorter ones, the current inverted yield curve environment we’re in makes the difference between short term yields and long term yields significantly smaller (if not inverted).
The reason for this is that during periods of inverted yield curves interest rates flip on U.S. Treasuries with short-term bonds paying more than long-term bonds. This phenomena is generally mirrored, albeit not instantaneously and not to the same degree, with CD rates at retail banks.
MySavings Direct “MySavings Account”
MySavings Direct offers a high yield online savings account called the “MySavings Account.” It currently features an APY of 0.45%.
| Balance | APY |
| $0 | 0.45% |
The nice thing about their online savings account is that, unlike their certificate of deposits, this account comes with no minimum deposit requirements.
The main downside is that the rate is variable and can change at any time without notice.
The MySavings Account is federally insured by the FDIC up to $250,000 in case of bank insolvency and can only be opened online.
MySavings Account Fee Schedule
Although the account comes with zero maintenance fees and no minimum balance requirements there are certain services and functions offered by MySavings Direct that have fees associated with them. Below is the complete fee schedule:
| Type | Fee |
| Monthly Maintenance | $0 |
| Excessive Transactions (above 6 per month) | $0 |
| Balance Confirmation Letter | $30 plus $5 for each additional copy |
| Verification of Deposit Letter | $30 plus $5 for each additional copy |
| Legal Documents | $100 |
| Incoming Wire | $0 |
| Outgoing Wire | $0 |
It’s worth mentioning that if you need to wire money regularly (either receive or send) then this bank may be a solid option for you. Paying $0 on wires is not normal for most banks. Typical wire fees hover around $30 per.
How to Open A MySavings Account + Funding Your Account
As with most online banks, a MySavings account from MySavings Direct can be opened in as little as five minutes.
You can start by clicking the green “open now” button on their homepage.
To proceed you will need:
- a valid tax identification number,
- at least be 18 years old and have a driver’s license
- have a legal address
MySavings Direct will accept a physical check to initially fund your account, but after that you will need to have hooked up a checking account from another bank for further funding. This can be set up with any US bank.
How to Fund your MySavings Account
- Physical Check (one-time only if needed to initially fund your account)
- Mobile Deposit from external checking account
- Wire Transfer from external checking account
About MySavings Direct
MySavings Direct is one of several online divisions of Emigrant Bank.
Emigrant Bank’s origins came long before the internet – in 1850 – when a group of 18 Irish Emigrants founded the institution in New York City.
Today, Emigrant Bank is the largest savings bank in New York City and 9th largest privately owned bank in the US with nearly $6 billion in assets. They have three online-only divisions that specialize in high yield savings accounts and CDs. These are Emigrant Direct, Dollar Savings Direct and their most recent offering, MySavings Direct.
You won’t notice much differentiation between these three subsidiaries though. In fact their websites and product offerings all look strikingly similar.
Through these online-only subsidiaries Emigrant Bank is able to keep the focus on consumer savings, featuring rates that are consistently above the national average and that regularly top brick and mortar institutions.
Final Thoughts
MySavings Direct is a very simple and straightforward FDIC-insured, online-only bank.
Their accounts come with no physical branches, no frills and no perks other than a decent APY.
On the flip side though, the account also comes with very limited hassles such as zero monthly maintenance fees, no service charges, no hidden penalties, no paper statement fees and only one minimum balance requirement – which is a manageable $1,000 for CDs.
If all you’re after is a respectable APY on a CD or savings account then MySavings Direct may satisfy your needs, although higher rates can be found elsewhere online.