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E*Trade Financial Raises Savings Rates
By Best Bank Rates | May 6, 2008
After months of lowered CD and savings rates, it appears that the tides may be turning for savers. E*Trade financial has recently raised the savings rate on their complete savings account, with a 3.15% APY. While this is a pretty high rate for a savings account, there are a few higher rates online: WT Direct with 3.31% APY, and Washinton Mutual’s with 3.30% APY.
Their savings account features:
- $1 minimum deposit to open account
- No minimums or account fees
- No hard credit inquiry
- Free online ACH transfer system
- 6 withdrawal limits per month
- $100K per day limit on outgoing and incoming ACH transfers
- ACH transfers complete in one business day
- 9 day hold time for initial deposit (ACH or check)
- No hold for wire transfers
You can also sign up for a checking account that features:
- 3.25% APY on balances over $5,000
- Unlimited ATM fee refunds
- Free online bill pay
- Unlimited check writing
- Online check and deposit images
While average CD rates have been relatively flat in April, a handful of banks offering high-yield CDs - such as Capital One Financial Corp., Advanta Corp.’s Advanta Bank and E*Trade Financial Corp. - have recently bumped up yields on some of their CDs stretching out three to five years.
For the banks, a steepening yield curve - when longer-term rates are higher than short-term rates - makes it easier for them to offer higher rates on longer-term CDs. That’s a sharp contrast from a year ago, when the yield curve was relatively flat or inverted. That meant savers were earning about the same, or even more, to hold money in shorter-term instruments as in longer-term ones.
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Topics: Savings |
May 8th, 2008 at 8:24 pm
Great post! APY wise though, Fidelity’s mySmart Cash Account which you blogged last year still fares better at 3.50% now.
May 16th, 2008 at 6:33 pm
E*Trade is a messed up company. They bougt Brown, which I loved and proved to be absolutely incompetent. Their bank is better than the brokerage side, but that’s not saying anything.