5.10% 6-Month CD at ETrade Bank

ETrade Bank made a substantial increase on the yield of their 6-month certificate of deposit today. The 6-month CD APY went from 4.92% to 5.10%. The 6-month APY is now higher than the APYs of all other terms except the 5-year term which has an APY just 0.01% higher at 5.11%.

ETrade's CDs require a minimum deposit of $1K. The CD can be funded by ACH transfer, wire transfer or by check. The ACH transfers are limited to $25K per account per day. Incoming wire transfers are free.

Another important detail of ETrade's fixed rate CDs is the penalty for early withdrawal which equals half the interest for the term of the CD. For a 6-month CD, that's only 3-months. However, for the longer term CDs, it's much higher than the typical long-term CD penalty of 6-months interest. An early withdrawal penalty on a 5-year CD would be 2.5 years of interest (earned or unearned).