Even though E*TRADE has kept the Complete Savings Account rate competitive, their CD rates have gone way down. The only CD term with a yield above 3% is the 6-month term which has a yield of 3.40% APY. The CDs with terms over one year and under 5 years have a very low yield of 2.50% APY. So if you have E*TRADE CDs that are about to mature, make sure you don't let them automatically renew. You can do much better at many other banks.
New $25 Complete Savings Account Bonus
E*TRADE has a new $25 bonus for opening this Complete Savings Account. This new one is good through 3/31/2008. The terms seem to be the same including the requirement of only a $1 deposit to earn the $25. Here's the important small print:
$25 will be credited to your Complete Savings Account within 30 days of the account being funded with a minimum deposit of $1. Payments will be reported as interest income. Accounts must be opened by 3/31/2008 to quality for the $25 offer. Must be a new account opened with new funds. Offer applies to one new account per customer. Not good with any other offer.
Last year I received this $25 bonus without any problems. However, several commenters have mentioned that they had to call before the bonus was credited. So be sure to record when you sign up, keep a copy of the promo page, and if you don't receive the bonus within 30 days after funding the account, be sure to call.
E*TRADE's Financial Health
There have been many worries about E*TRADE since last November when reports of their subprime problems came out. But according to this Fortune article, things seem to be improving at E*TRADE. They even had success with their Super Bowl ad which was rated as the most-viewed commercial.
Complete Savings Account Review
E*TRADE started the Complete Savings Account in November 2006 (see post). The rate has remained more competitive than the rates at Emigrant Direct and HSBC Direct. The rate is lower than Countrywide Savingslink's rate, but unlike the Savingslink account the yield applies to all balances, not just balances over $10K.
Below is a list of features of the Complete Savings account based on E*TRADE's website, my experience, information from the CSR and from other references.
- $1 minimum deposit to open account
- No minimums or account fees
- No hard credit inquiry (I didn't receive one)
- Free online ACH transfer system (Quick Transfer)
- Typical 6 withdrawal limits per month
- $100K per day limit on outgoing and incoming ACH transfers
- ACH transfers complete in one business day from my experience
- Limits to the number of external links have been reported (see FW thread). The CSR wasn't aware of this.
- 9 day hold time for initial deposit (ACH or check). No hold for wire transfers.
- Holds on additional deposits are lifted on the 5th business day after the deposit
Thanks to the reader who emailed me info on the rate change.