DollarSavingsDirect 4.00% APY Savings

Considering that the Federal Reserve has cut the target federal funds rate to below 0.25%, it is shocking to see that DollarSavingsDirect is still running a 4.00% APY online savings account.

I’m curious how they can afford to pay out such a high interest, and I’m also very wary of the fact that they have a 1 star Bankrate Safe & Sound® rating. But hey, this is a killer rate and it’s FDIC insured, so this could be a nice place to stash some cash.