Update on E-LOAN's 5.50% Online Savings Account
Sep 27, 2006 - 6:54 PM by Ken Tumin
I received some additional information from the E-LOAN customer service rep today regarding their new online savings account. Some of these points are just a confirmation to what a commenter had mentioned in my previous post. These include:
The account closure for 90 days of a balance below $500 is something to note. This shouldn't be a big deal. It may make rate chasing a little harder if they start lagging. Many EmigrantDirect or ING Direct customers just keep $1 in their accounts waiting for the next rate hike or promo. You won't be able to do that at E-LOAN. But even if they fall 50 basis points behind, you'll only lose $2.5 per year with the lower interest rate for a $500 balance.
The next thing to investigate is how long the ACH transfers take. Hopefully, it'll be quicker than HSBC's Online Savings Account and without any days of lost interest.
For more info on this savings account, refer to my previous E-LOAN post. I've updated it with this new info. Also, you may be interested in a detailed description of the account opening process that Nick provided at Punny Money. It seems to be one of the easiest online accounts to open.
- No hard credit inquiry. The CSR said that they only use Experian to check for identity.
- Only one link to an external account can be set up. This can be changed up to 4 times a year
- No fees for ACH withdrawals - 6 per month allowed. No limit on deposits.
- No inactivity fee or small balance fees.
- If balance falls below $500 for 90 days, they may close your account
- No IRA accounts for savings or CDs
- No sign-up bonus
The account closure for 90 days of a balance below $500 is something to note. This shouldn't be a big deal. It may make rate chasing a little harder if they start lagging. Many EmigrantDirect or ING Direct customers just keep $1 in their accounts waiting for the next rate hike or promo. You won't be able to do that at E-LOAN. But even if they fall 50 basis points behind, you'll only lose $2.5 per year with the lower interest rate for a $500 balance.
The next thing to investigate is how long the ACH transfers take. Hopefully, it'll be quicker than HSBC's Online Savings Account and without any days of lost interest.
For more info on this savings account, refer to my previous E-LOAN post. I've updated it with this new info. Also, you may be interested in a detailed description of the account opening process that Nick provided at Punny Money. It seems to be one of the easiest online accounts to open.
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rub1232000 (anonymous) - #1, Thursday, September 28, 2006 - 11:28 AM
Just had my initial deposit hit for $5000 (the min balance needed for the 5.50% rate). However, my account indicates I am earning a 5.25% rate. Spoke with cust service rep and let them know about the prob ... he said it was a glitch and I am earning 5.50%. They are working on the website as it is still a relatively new offering. We shall see if this gets fixed!!!
Anonymous - #2, Thursday, September 28, 2006 - 3:55 PM
I had an initial deposit of $10,000 pulled by E-loan from my checking account. The rate remained at 5.25%. I too called the CSR and was told that the rate will remain at 5.25% untill the funds clear. At that point the rate will change to 5.5%. CSR did not mention any issues with the system.
DS (anonymous) - #3, Thursday, September 28, 2006 - 11:58 PM
how the transfer time in and out ?
scott (anonymous) - #4, Friday, September 29, 2006 - 6:12 AM
Will know soon, those of us who opened the first day just now have our money available and would not be worth trying a transfer just before the weekend. Will do one Monday just to test speed. Will update then. Seems they fixed the rate glitch and now showing 5.50% APY, Funny thing is even below $5k is now showing as 5.50% on rate page
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