New CD Rates at ETrade Bank: 5.40% 6-Month / 5.50% 1-Year

ETrade Bank just came out with new CD rates. The 6-month CD APY increased from 5.21% to 5.40%. The 12-month CD APY increased from 5.30% to 5.50%. The last major CD rate increase at ETrade was on May 3rd. Below is the full list of old and new yields:

Term        Old APY    New APY
3 month     4.75%      4.85%
6 month     5.21%      5.40%
1-3 years   5.30%      5.50%
5 year      5.35%      5.55%

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.

The 6-month CD seems to be the sweet spot. You don't get much of a premium for going longer, and with rates continuing to rise, there's no incentive to lock in rates yet.

Thanks goes to the commenter who mentioned these new rates in the finding deals post.