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Yes, Emigrant is safe and reliable. The bank has been an institution in NY since the 1850's.
They're trying to beat ING Direct (also very reputable) at their own game. Emigrant is offering 3.5% until the end of the year, while ING Direct is offering 3.25.
But there's a new contender to the interest wars-- MyBankingDirect.Com is offering 3.75% for its money markets with a minimum balance of $5,000.
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