E-LOAN Savings Account and CDs One Month Anniversary
Oct 26, 2006 - 5:50 PM by Ken Tumin
Last month E-LOAN launched its new online savings accounts and CDs. The 5.50% APY still holds on the savings account which is 15 basis points over its nearest competitor (BankUnited) on a similar account. Will this hold? A reader mentioned that the rate is based on the LIBOR rate. However, I don't think it's indexed to the LIBOR. I've seen it mentioned that the rate is determined by E-LOAN's corporate needs and current market conditions. So there's no guarantee that E-LOAN's rates will stay on top. At least it has held up well for the last month.
So far I've opened two savings accounts at E-LOAN. One linked to my GMAC Money Market Account and one linked to my HSBC Online Savings Account. The additional savings account allowed me to link to another external account. However, E-LOAN doesn't allow you to transfer between accounts. According to the CSR, this may be allowed in the future. This seems like an easy feature to add. Both accounts are listed in your personal account page.
I opened my first E-LOAN savings account on the first Sunday after the launch. The account was opened by the next Tuesday. I transfered some money out on Wednesday without a problem. The deposit showed up in my GMAC account on Thursday. Transfers in are also fast. The last one I did was initiated on a Monday morning and it was credited to my E-LOAN account on Tuesday.
So far I've been happy with my E-LOAN savings accounts. The savings account lacks some features that you may like in an online bank such as support for Quicken, but E-LOAN has the essential online banking features, and these work well.
E-LOAN Certificate of Deposit Information
E-LOAN's CD rates have also held steady for the last month. For terms over 12 months, the 5.75% APY is above any of its online bank competitors. I haven't opened a CD at E-LOAN, but the process looks very similar to opening a savings account. Unfortunately, having an E-LOAN savings account doesn't seem to speed up this process. You'll still have to go through the entire registration process again. Below are some of the important details of the E-LOAN CD:
These details are based on information from the CSR and from E-LOAN's Savings and CDs Terms and Conditions.
For more information on E-LOAN, please refer to my previous posts:
So far I've opened two savings accounts at E-LOAN. One linked to my GMAC Money Market Account and one linked to my HSBC Online Savings Account. The additional savings account allowed me to link to another external account. However, E-LOAN doesn't allow you to transfer between accounts. According to the CSR, this may be allowed in the future. This seems like an easy feature to add. Both accounts are listed in your personal account page.
I opened my first E-LOAN savings account on the first Sunday after the launch. The account was opened by the next Tuesday. I transfered some money out on Wednesday without a problem. The deposit showed up in my GMAC account on Thursday. Transfers in are also fast. The last one I did was initiated on a Monday morning and it was credited to my E-LOAN account on Tuesday.
So far I've been happy with my E-LOAN savings accounts. The savings account lacks some features that you may like in an online bank such as support for Quicken, but E-LOAN has the essential online banking features, and these work well.
E-LOAN Certificate of Deposit Information
E-LOAN's CD rates have also held steady for the last month. For terms over 12 months, the 5.75% APY is above any of its online bank competitors. I haven't opened a CD at E-LOAN, but the process looks very similar to opening a savings account. Unfortunately, having an E-LOAN savings account doesn't seem to speed up this process. You'll still have to go through the entire registration process again. Below are some of the important details of the E-LOAN CD:
- $10,000 minimum deposit
- Eary withdrawal penalty: 3 months interest for 1 year or shorter term and 6 months for over 1 year term
- Grace period: 10 calendar days
- No interest is paid past the maturity date on accounts closed during the grace period
- Interest is compounded daily and credited monthly (same as savings)
- CD is opened like savings account with one linked checking/savings account which will fund the CD
- Linked account can be your E-LOAN savings account
- Option is available to transfer interest monthly by ACH from CD to linked account
- At maturity, you can instruct E-LOAN via the secure message system to close the CD and transfer money back to your linked account
These details are based on information from the CSR and from E-LOAN's Savings and CDs Terms and Conditions.
For more information on E-LOAN, please refer to my previous posts:
Featured Accounts
Useful Resources
Nationwide Savings Accounts
Anonymous - #1, Thursday, October 26, 2006 - 10:21 PM
Response to email via secure messaging is very slow..Atleast 5 business days..
Anonymous - #2, Saturday, March 31, 2007 - 7:30 PM
Stay away from E-Loan. This is a terrible business. 6 Months ago, when I was shopping for where to put some money for a CD, I read the horror stories about E-Loan, but figured it must be an exception and they surely would have the mess fixed by the time my CD matured.
Wrong.
I told them to move my money at maturity back to an external account. After maturity, they deleted the on-line instruction I gave them and didn't transfer the amount, and so now everyday I working with these crooks I am losing money that I should be making.
Don't go with E-Loan for anything. These guys are the worse of the worse.
Anonymous - #3, Thursday, June 28, 2007 - 10:47 AM
I had this experience with eloan: After opening my CD account, they left my application "incomplete". So I finished it.
The result was 2 accounts! This I had not intended, so I asked them to close the one they accidentally opened and return my money ($50,000!). But instead of treating this as their problem, they treated it as an early account closure and charged me $500!
What a scam!
Probably the reason they have high CD rates is that it is the only way they can attract Capital. I only wish I had found the eloan sucks sites before I did business with them!
Note: eLoan is owned by Banco Popular North America, a New York bank. They must share some of the blame for allowing eLoan to behave in this way.
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