E-LOAN just introduced a 3-month CD, and it has made it very competitive with a yield of 5.55% APY. The minimum deposit is $10,000. E-LOAN has offered CDs since it started its online savings account last September, but the shortest term was 6 months. They're still offering a competitive 5.55% APY 5-year CD. It's a little strange that the two best CD rates now are on their shortest and longest terms.
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 certificate of deposit:
- Individual, Joint and Living Trust Accounts can be opened.
- Beneficiary can be added in the application
- $10,000 minimum deposit
- No early withdrawal permitted during the first 90 days
- 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 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.
A few readers have reported problems with E-LOAN CDs. One said that E-LOAN had ignored his instructions to close the CD at maturity and transfer the money back into the external account. So make sure you verify that they properly execute your instructions at maturity. You have 10 days before you'll be hit with the early withdrawal penalty. Another reader reported a problem in the application that resulted in two accounts instead of one. Instead of treating this as their mistake, E-LOAN considered this an early withdrawal and charged the reader with the penalty. If you've had good or bad experiences with E-LOAN's CDs, please leave a comment.
E-LOAN's savings account has been a little disappointing. It launched with a 5.50% APY, and it seemed likely that this would continue at least until a change in the Fed policy. Unfortunately, within about two months, they dropped the yield to 5.38% APY, and then in another 6 weeks it went down to 5.25% APY where it has remained. I'm also disappointed that E-LOAN hasn't done many improvements to the savings account features such as allowing additional external links. The only minor improvement was to allow more frequent changes to the external link (see post). Nevertheless, E-LOAN's 5.25% APY is still more competitive than what Emigrant Direct and HSBC Direct have offered.
What's next for E-LOAN. There had been rumors that E-LOAN would be launching an online checking account. I don't know if they're still planning this or not.
Please refer to my E-LOAN savings account overview post or my E-LOAN savings account opening post for more info.
E-LOAN is a subsidiary of Banco Popular North America (BPNA), a New York state chartered bank insured by the FDIC (FDIC Certificate # 34967).