Online banks continue to cut their savings account rates. The cut at E*TRADE Bank was the most disappointing. The rate on their Complete Savings account fell from 4.10% APY to 3.45%. E*TRADE had kept this rate near the top since November 2007 when reports of their subprime problems came out. As I reported last month, E*TRADE's financial health seems to be improving, so perhaps they don't feel the need to offer the highest rates.
Below is the list of the latest cuts. With another expected Fed rate cut on the 18th, I'm afraid we'll likely see more.
- E*TRADE Bank Complete Savings: 3.45% APY (was 4.10%)
- EmigrantDirect Savings: 3.30% APY (was 3.60%)
- BancoFortuna: 3.30% APY (was 3.60%)
- AmboyDirect eSavings: 3.56% APY (was 4.25%)
- AmboyDirect Premium Savings: 3.65% APY (was 3.75%)
- UmbrellaBank's MMA: 3.90% APY (was 4.02%)
E*TRADE Bank is still offering a $25 bonus for opening a Complete Savings Account. With the big rate drop, the account isn't as attractive now, but it remains competitive with some nice features. For more info about this bonus, please refer to this post.