E*Trade Raises Rates On Online Savings Accounts, CDs

E*Trade increased the rates on a variety of banking products this week in an effort to woo back depositors spooked by their recent troubles. Here’s how they’re looking:

Complete Savings Accounts: 5.05%
6-Month CD: 5.25%
1-Year CD: 5.15%

Those are competitive rates, considering that as of last week, the national average for a 1-year CD was 3.5%, 3.31% for a 6-month, and the rates for the higher of the high-interest online savings accounts is 4.5%.


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  1. DoktorGoku says:

    Solid stuff. Not too much of an increase, but compared to what it’s been… well, I’ve got some extra chump change I can spare for a year or so. :P

  2. Nick says:

    I think Countrywide bank is offering 5.3% APY right now on a savings account. (I’d imagine they’re trying to raise captial, what with their mortgages all foreclosing at a loss.)

  3. etc says:

    Why does their 1-year CD have less of a return than their 6-month?

  4. ColoradoShark says:

    I think it was Will Rogers who said, “I’m not so concerned with the return on my investment but the return *of* my investment”. Be sure you use only FDIC insured banks and stay under the insurance limit especially with these guys that appear to be teetering near the edge.

  5. azntg says:

    @ColoradoShark: ETrade is FDIC insured, but under the insurance limit is always a great idea.

    Funny thing, my friend told me that he’s looking to ditch ETrade and move his assets to another bank… I figure many people are probably taking it the same way!

  6. DallasDMD says:

    @etc: Its to protect the bank from interest rate volatility. The rate one year from could be much less than it is now, so its a gamble to offer a high rate for the long term.

  7. tadowguy says:

    I still wouldn’t trust my money to a failing institution. Although you might not lose your funds, due to the insurance, who’s to say they won’t sell personal information or cut back on information security in order to make ends meet. In addition, I don’t think it’s good policy to reward bad companies, even if they have good deals. Check out your local credit union instead.

  8. alhypo says:

    @etc: DALLASDMD makes a good point, but there might be other reasons as well. It might simply be a supply and demand scenario. If you think of yourself (the CD buyer) as the supplier of capital, and people who get loans from the bank as the consumers of capital, it’s easy to see how longer-term rates can drop below short-term. If there is a greater demand for 6-month loans, the rates for 6-month CDs will tend to rise. It is easy to forget that the interest rate is simply the cost of capital, no different than the price tags you find in the grocery store.

  9. kenblakely says:

    Doesn’t ETrade bank offer one of those RSA security fobs with their bank accounts? I’m at FNBO at 5.05% right now, but the access to the increased security would be a reason to switch….

  10. comrade_snarky says:

    I’ve got an ETrade checking and savings. I wasn’t too concerned since the accounts are FDIC insured. But I just got a letter saying that Complete Savings accounts must get paperless statements. I don’t really care either way on the savings, but it seems that having a Complete Savings account is preventing me from getting paper statements on my checking account. I just spent 30 minutes on the phone w/ an ETrade rep to find out if I have to close the savings account so I can get paper checking account statements again (not how I want to spend Sunday afternoon >: ) The rep didn’t know anything about it (he said I’m the 1st person to ask about it). The ETrade rep is researching this issue and will get back to me. I hate to switch my checking, since it will be a PITA, but maybe that’s the best move at this point?

  11. LilKoko says:

    People, you may want to check out the details on what happens when your accounts are FDIC insured. Yes, your money is insured . . . Not to cause alarm, but you need to remember that the timeframe for paying you back can be a lot longer than you think.

    You need to know, because if you’re looking to pull out your money due to (perceived) bank failure, then most other depositors will be doing the same thing. That is going to affect who gets what when. You just should know and plan accordingly.

    And avoid banks with risky practices.

  12. ironchef says:


    They are one of the few banks that support the SecureID RSA key.
    It’s one of the reasons I stay.

    You can download the PDFs from Etrade. Every statement is on PDF which is proof enough for FDIC and SPIC.

  13. anns says:


    I wish more of my banks would offer paperless. I’m tired of shredding my Chase statement every month.