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While ING Direct and Washington Mutual are dropping the interest rates on their online savings accounts, the Dollar Savings Direct account from Emigrant is going up (via Interesting Money).

The account now has a 4.00% APY (up from 3.75%), putting it at the top of highest online savings accounts.

When we first heard about Dollar Saving Direct, we wondered why Emigrant Bank was introducing a new account to compete with its own EmigrantDirect.

Bank Deals has a theory behind why Emigrant offers both:

Why does Emigrant Bank have two different online savings accounts? This seems to be a common technique for banks. They can use the new account to bring in money from new customers but they don't have to pay the high interest to existing customers who don't take the time to sign up for the new savings account.

It's always a good idea to keep your eyes on the best available rates. In addition to Dollar Savings Direct, check out FNBO Direct (3.50% APY), WT Direct (3.26% APY) HSBC Direct (3.25% APY), or ING Direct (2.75% APY).