So long Emigrant Direct, it’s been nice.

I began pulling all my money out of Emigrant Direct and Dollar Savings Direct (effectively one in the same).  I rode the eroding interest rates down hill, although their current rates are still slightly better than I can get just about anywhere else.

The real deterrent was the fact that I couldn’t add my new USAA Savings account as an approved funding account without filling out paper work and sending in a voided check.

In my opinion there is no reason for this.  I was able to set up my Bank of America funding account electronically with no hassles other than waiting for verification of the account.  To require paper forms and a voided check for additional accounts seems illogical and unnecessary.

So I’ve pulled all the money out of both accounts and will dump it back into my USAA savings.  From there I may move it around to take advantage of increasing interest rates in the future, or may buy some short term CD’s.

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Dollar Savings Direct has dropped their online interest rate to 3.20% from 3.5%, and I suspect the trend will continue.

Dollar Savings, a spin off from Emigrant Bank much like Emigrant Direct, is still an online leader for interest rates, but for those of us who are trying to maximize the insured return on cash, it is frustrating to watch the interest rate continue to dwindle away.

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I didn’t figure the great rate would last long, but I’m disappointed nonetheless that Dollar Savings Direct has lowered their online savings account interest rate from 4% to 3.5%.

Still a leader in the online savings account game, I can’t be too disappointed; they still beat Emigrant Direct by more than a full point (Emigrant Direct is still sitting at 2.4%), and I pretty much have to pay Bank of America (or is it America’s Bank now?) to hold my money.

I’ll sit and wait for the time being.  My money is FDIC insured, the interest rate is very competitive, and the setup and administration has been trouble free.

Somehow I suspect the rate drops are not done yet, and we’ll continue to see interest rates fall for the next 8 to 12 months.  I hope I’m wrong.

Among the online, high yield savings accounts, there are still a few that pay a respectable rate.

Bank of Internet still has a 3.51% rate with no fees and a $100 minimum deposit.  FDIC insured of course.

Chesapeake Banks Clear Sky Accounts still offers a 3.75% APY, however the interest compounds monthly instead of daily.

Many others are sitting at or below 3%, including HSBC Direct, FNBO Direct, and ING Direct.

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