MySavingsDirect does not offer checking accounts

MySavingsDirect is an online savings bank, not a full-service bank. It offers savings accounts, money market accounts, and certificates of deposit (CDs), but it does not issue checking accounts or debit cards. If you need a checking account, you will have to open one elsewhere.

MySavingsDirect is owned by Emigrant Bank, a New York-based bank that operates primarily through its online division. The company focuses on savings products where it can offer competitive interest rates. Checking accounts require different infrastructure—routing numbers for direct deposit and bill pay, debit card processing, and check-writing capability—that MySavingsDirect has chosen not to build.

This is a common structure among online savings banks. They strip away the expensive parts of banking (branches, checking infrastructure, customer service for payment disputes) and concentrate on one thing: paying you interest on money you deposit. If you need checking, you will need to use a different bank or credit union.

Key Takeaways

  • MySavingsDirect offers only savings accounts, money market accounts, and CDs—no checking accounts or debit cards.
  • You can link a MySavingsDirect savings account to a checking account at another bank and transfer money between them online in one to three business days.
  • If you want both checking and savings in one place, you will need to open a checking account at a different bank or credit union.
  • MySavingsDirect savings accounts allow transfers to external accounts, so you can move money out when you need it for checking or bills.
  • Direct deposit does not work with MySavingsDirect savings accounts because they do not have routing numbers employers recognize.

How to use MySavingsDirect with a checking account at another bank

Many people keep a MySavingsDirect savings account for the interest rate and maintain a checking account elsewhere for everyday spending. You can link the two accounts and move money between them online. This setup lets you earn interest on savings while keeping checking available for bills, direct deposit, and debit card purchases.

To link accounts, you will need the routing number and account number of your external checking account. MySavingsDirect allows you to add external accounts through its online portal and transfer money between them. Transfers typically take one to three business days. You can set up recurring transfers if you want to move a fixed amount to checking on a schedule.

This two-account approach works well if you have a steady paycheck going into checking and want to move a portion to savings automatically. You can also transfer money back from MySavingsDirect to checking whenever you need cash for bills or unexpected expenses.

Where to open a checking account instead

If you need checking and savings together, consider banks that offer both products. Traditional banks like Chase, Bank of America, and Wells Fargo offer checking accounts with debit cards and bill pay. Online banks like Ally, Charles Schwab, and Discover also offer checking accounts, often with no monthly fees and competitive interest rates on savings.

Credit unions in your area may also offer checking accounts, sometimes with lower fees and higher savings rates than national banks. You can search for credit unions near you through the CO-OP Network or Allpoint locator. Some credit unions let you open an account online if you live in their service area.

If you are comparing options, look at whether the bank charges monthly maintenance fees, what the minimum opening deposit is, and whether it offers direct deposit and bill pay. Many online banks waive fees entirely if you maintain a small balance or set up direct deposit.

Transferring money out of MySavingsDirect

If you already have a MySavingsDirect account and want to move money to a checking account elsewhere, you can initiate an external transfer through your MySavingsDirect account. You will need to add the external account first by providing its routing and account numbers. The bank will verify the account with two small deposits, which takes a few business days.

Once verified, you can transfer money out at any time. Standard transfers take one to three business days. MySavingsDirect does not charge fees for outgoing transfers, though your receiving bank may charge a deposit fee (most do not). You can also request a check or wire transfer if you need the money faster, though wires typically cost $15 to $25.

Keep in mind that MySavingsDirect savings accounts are FDIC-insured up to $250,000, so moving money out does not affect that protection—it just moves the insured funds to a different bank.

Why MySavingsDirect does not offer checking

MySavingsDirect's business model is built around offering high interest rates on savings products. Checking accounts require the bank to maintain debit card networks, process checks, handle fraud disputes, and support customer service for payment issues. These services cost money and typically run at a loss for banks, which is why many online banks do not offer them.

By staying focused on savings products, MySavingsDirect can keep overhead low and pass higher interest rates to customers. If you value the interest rate MySavingsDirect offers, keeping your savings there and maintaining a low-cost checking account elsewhere is often the most cost-effective approach.

Frequently Asked Questions

Can I use MySavingsDirect for direct deposit?

No. MySavingsDirect savings accounts do not have routing numbers that employers recognize for direct deposit. You will need a checking account at another bank to receive direct deposit. Once the money arrives in checking, you can transfer it to MySavingsDirect to save it.

Does MySavingsDirect offer a debit card?

No. MySavingsDirect does not issue debit cards. You can only access your money through transfers to an external account, checks (if your account type allows them), or wire transfers. Most customers link a checking account elsewhere for everyday spending.

Can I write checks from a MySavingsDirect account?

No. MySavingsDirect savings accounts do not come with checkbooks. If you need to pay by check, you will need a checking account at another bank. You can transfer money from MySavingsDirect to that checking account and write the check from there.

What if I want high interest rates and checking in one place?

Some online banks offer both checking and savings with competitive rates. Ally Bank, Charles Schwab, and Discover Bank all offer checking accounts with no monthly fees and savings accounts with rates comparable to or better than MySavingsDirect. Compare rates and features to see which combination works best for your needs.