COMPANY OVERVIEW
Emigrant Bank has been around since 1850, so they are likely here to stay. Since they began the online savings accounts, they have consistently been one of the top yielding accounts in terms of APR. The company's website is https://www.emigrantdirect.com/EmigrantDirectWeb/index.jsp


PERSONAL EXPERIENCE
I signed up for Emigrant Bank because of the 4.75% yield (as of 12/1/07). While it is probable that this figure might drop in the future, I expect that they will remain very competitive in this area. I found a $10 sign up bonus through mymoneyblog.com, which is a great website for financial tips and information.

Signing up for the American Dream Savings account was the standard procedure -- give a bunch of personal information and fund it. In order to verify the external bank, Emigrant sent two small deposits to my checking account. I verified these small deposits and then I was all set. I encountered no problems during the account creation process.

Fortunately, I have never had the need to contact customer service. I'm aware that some epinions folks have given them very poor marks in this area. Hopefully I won't have a serious problem and will never need to talk to an Emigrant representative.

In terms of ease-of-use, I find Emigrant is very good. I've transferred money both to and from my brick and mortar account. Transfers aren't exceedingly fast, but for me it is a lot more important to be reliable. Emigrant's FAQ page indicates that it normally takes 2-4 business days. In all, I've probably shuffled around about $1000 and I've yet to run into any issues. It is possible to link several external banks and do ACH push/pull transfers, but a canceled check seems to be required. I don't use this feature except from my main checking account.

If the balance on my non-interest bearing checking account at Wells Fargo gets too high, then I often move a little money to Emigrant. It's an easy way to make a few bucks, and the whole process of ACH pull transfers is pretty simple.

The website's interface is very intuitive and has some enhanced security features. Instead of the traditional username/password single form login, Emigrant uses a two page method and also asks for some basic information such as the year of my birth. Because Emigrant makes it harder for hackers to access my account, I sleep a little better at night.

The account is called "American Dream Savings" and as stated before, currently yields 5.05% as of March 2007. While this APR/APY isn't as great as Apple Bank or other high yielding options, it is still in the upper tier. Interest is compounded daily and credited monthly. As with all FDIC insured savings accounts, there is a limit on 6 external transfers per calendar month.

There are no recurring fees as far as I know. ACH transfers are free. The minimum to open a new account is a mere $1.

The only significant downside for me is that there are no Emigrant Banks in my area. Emigrant is located in New York only, and so if I need to talk to an in-the-flesh person, I will be in trouble.

In terms of rate comparisons with other banks, Emigrant's savings yield is similar to HSBC, not as good as Apple Bank or E-loan, but better than ING or Virtual Bank. Emigrant blows many major players like Wells Fargo or Bank of America out of the water with regard to APR/APY on savings accounts.


CONCLUSION
Emigrant is a really great choice among Internet savings accounts. The savings yield is very competitive, and the lack of fees or minimums make this bank a winner.

You might be interested in reading my other financial product reviews:
E*Trade
Ameritrade
Apple Bank
Wells Fargo
Netbank
Capital One
Sharebuilder

Recommended: Yes