Emigrant scumbags

[hx009]

I know alot of you guys have EmigrantDirect because of the higher rate than ING. However, what is your rate currently? Did I miss something? Is there small print somewhere that says "3.92% is as a good as 4.0% so therefore we're not falsely advertising"? That is what the rate is shown as on the American Dreams account that I just signed up for. I know it's only .08%, but I'm still pissed. 4.0% means 4.0%, and they sure as hell make a big deal out of it. This seems like false advertising and bait and switch if I ever saw it.

 

[Lord Evermore]

I've never even heard of this company and this took me 30 seconds to find:

With an American Dream Savings Account?, you will earn a variable 4.00% Annual Percentage Yield on your savings.

The keyword is variable.

They do however in their FAQ mention that they are "committed" to the 4% rate until 12/31/05. That is not technically a guarantee though, and so they don't have to rush to change it if the rate does change.

It's unlikely that there's anything "false" about their advertising, just what normal people would call shady or unethical, but not illegal. They probably blame that 0.08% difference on your personal credit history.

 

[hx009]

I've never even heard of this company and this took me 30 seconds to find

Then you don't watch savings account rates. Everytime ING is mentioned on here, so is Emigrant, and vice versa.

They probably blame that 0.08% difference on your personal credit history.

I doubt it... unless they like to screw with people that have A+ credit.

 

[Lord Evermore]

I didn't say it was actually valid to blame it on your history, just that's how they'd account for it. And they don't really have to tell you why they consider you .08% less worthy.

 

[drnickriviera]

4% is the APY. APY is the effective rate after compounding

Take 3.92% divide by 12. Interest is compounded monthly. 3.92/12 = .32666% per month. 1.0032666^12-1 = .03991 or 3.99%

 

[Pepsi90919]

RACIST

 

[hx009]

Originally posted by: Pepsi90919
RACIST

Thanks for that enlightening and yet somehow totally worthless post.

 

[hx009]

Originally posted by: drnickriviera
4% is the APY. APY is the effective rate after compounding

Take 3.92% divide by 12. Interest is compounded monthly. 3.92/12 = .32666% per month. 1.0032666^12-1 = .03991 or 3.99%

That makes sense... I think

 

[alm4rr]

fly off the handle much?
call them scumbags for something you A) don't understand B) didnt try to understand before calling them names?

 

[white]

there's a difference between the annual percentage yield and the annual percentage rate. the APR is lower than the APY because the APY takes into account the compounding effect. they advertise a 4.0% APY and that's what they deliver. if you take the APR and do the compounding calculation on it, you'll see that you're getting 4.0% APY.

 

[AccruedExpenditure]

Originally posted by: hx009

Originally posted by: drnickriviera
4% is the APY. APY is the effective rate after compounding

Take 3.92% divide by 12. Interest is compounded monthly. 3.92/12 = .32666% per month. 1.0032666^12-1 = .03991 or 3.99%

That makes sense... I think

They actually compound every day

so take .0392 divide by 365 = 0.0107397260% per day

1.0010739726027397260273972602739726 ^ 365 - 1 = .0399762695623045658882445373347 which is close to 4.

Finance, FTW