4.75% Intro Rate and $50 Bonus for ETrade Money Market Account

Etrade just increased its 3-month promotional rate on its money market account from 4.40% to 4.75% APY. The rate is good for 90 days from the date the account is opened and funded. Accounts must be opened by March 31, 2006. Also, there is a $50 sign-up bonus. Here's the link to the promotional page.

On my last report on this deal back in early February, the offer's expiration date was February 28th. This has been extended to March 31st. Some of the important small print is below:

A $100 minimum deposit is required to open a new E*TRADE Money Market Account and account holders must maintain a minimum average monthly balance of $1,000, or $5,000 in total E*TRADE Bank deposits, by the end of their second statement cycle to avoid a $10 monthly fee. This fee is waived for customers who maintain a combined balance of $50,000 or more in linked E*TRADE Securities and E*TRADE Bank accounts or execute at least 30 stock or options trades during a calendar quarter. A $10 early closeout fee will be assessed if account is closed within 120 days of opening.

After the 90-day introductory period, the rates fall substantially. For balances under $5K, the current APY is 0.30%. Balances between $5K and $50K, the current APY is 2.75%.

Although ETrade's money market account doesn't have competitive rates after the intro period, ETrade has consistently had competitive CD rates with only a $1K minimum. Currently, the 6-month CD pays 4.92% APY. This could be a reason to keep the money market account after the 120 days. If the CD is at least $5K, you could avoid the $10 monthly fee without keeping the $1K balance in the money market account.