5.50% Now on All Balances for E-LOAN's Savings Account

E-LOAN's savings account rate is now 5.50% APY for all balances, not just for balances over $5k. When it first launched this week on the 26th, the APY for balances under $5k was listed as 5.25%. This is now 5.50%. The $5,000 initial deposit requirement remains. Also note, based on information I received from an E-LOAN service representative, they may close your account if your balance falls below $500 for 90 days (see post for more details).

You have to wonder why this changed so quickly. The 5.25% APY for balances under $5k was nothing to sneeze at. Perhaps this change makes it easier for them to advertise without having a special note that states it's only 5.25% for smaller balances.

With EmigrantDirect's rate drop today, this E-LOAN savings account may become very popular. E-LOAN now leads Emigrant's rate by 0.45%. It's interesting to note that when EmigrantDirect first launched in January of 2005, it lead ING Direct's savings account rate by 0.65% (3.00% to 2.35%).