ETrade Bank Raises CD Rates to New Highs
Jun 23, 2006 - 7:44 PM by Ken Tumin
ETrade Bank continues to aggressively raise its CD rates. The 6-month CD now has an APY of 5.46% which matches the APY of most of the top 1-year CDs from other banks. The 1-year CD now has an APY of 5.56%. ETrade had just increased CD rates last week so I didn't expect another rate increase so soon. Below is the full list of terms and yields along with the previous yields:
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. Refer to this post for information on their early withdrawal penalities.
ETrade also has a nice money market account promotion which could go along well with one of these CDs. However, some have reported problems with this promotion (see post).
[Edit 6/23: The $25k ACH limit applies to money market and checking accounts. There is no ACH limit for the initial funding of CD accounts. (per comments)]
Term Old APY New APY Change
3 month 4.85% 5.00% +0.15
6 month 5.40% 5.46% +0.06
1-3 years 5.50% 5.56% +0.06
5 year 5.55% 5.61% +0.06
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. Refer to this post for information on their early withdrawal penalities.
ETrade also has a nice money market account promotion which could go along well with one of these CDs. However, some have reported problems with this promotion (see post).
[Edit 6/23: The $25k ACH limit applies to money market and checking accounts. There is no ACH limit for the initial funding of CD accounts. (per comments)]
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Anonymous - #1, Wednesday, June 21, 2006 - 10:49 AM
Superior Savings of NE has a money market paying 5%.
Why don't you mention it?
Banking Guy (anonymous) - #2, Wednesday, June 21, 2006 - 12:47 PM
Is that their Incredible Money Market Account? I posted on it when it first came out here. It has a $100K minimum balance to receive 5%. I also include it in my weekly summary under "High Rates with Conditions - Open to All" category.
Anonymous - #3, Wednesday, June 21, 2006 - 2:26 PM
Ya, that's the one. I didn't realize it needed the $100K. I have more than that in it . . .
Anonymous - #4, Friday, June 23, 2006 - 5:23 PM
Just to clarify, the $25k ACH limit applies to money market and checking accounts. There is no ACH limit for the initial funding of CD accounts.
Banking Guy (anonymous) - #5, Friday, June 23, 2006 - 7:44 PM
Thanks for the clarification. I've updated the post with this info.
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