It seems just like yesterday when good savings account rates were barely reaching 3 percent. Now rates are starting to exceed 5 percent.
On the 4th of July, Emigrant Direct announced that they have raised their American Dream Savings Account rate to 5.00% APY. Emigrant Direct’s rates are now competitive with even HSBC, which had recently taken the savings account rate leadership position.
Just two weeks ago, one of my readers, Patrick, noted that HSBC had raised their savings rates to 5.05 percent, which exceeded Emigrant Direct’s 4.8 percent rate at that time. I thought Emigrant Direct’s savings rate might have started to slip in this highly competitive online savings account environment. However, now that Emigrant Direct’s 5.0 percent savings account rate is in place, I feel that Emigrant Direct still maintains a top FDIC insured savings account rate. It will be interesting to see how other banks react.