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E*TRADE Raises Complete Savings Account Yield - Start of a New Trend?


E*TRADE Bank has increased the yield of its Complete Savings Account from 3.01% to 3.15% APY. It's not much of an increase, but it could be a sign that rates have bottomed and may be on the way up.

The last time E*TRADE raised its savings account rate was in November 2007 which was after their subprime problems made headlines. I don't see any similar problems this time. Last month, E*TRADE released first quarter earnings that showed its financial situation had stabilized. The first quarter was also good in gaining new accounts. It reported that the number of customer accounts rose by 62,000 in the quarter to 4.8 million, the largest gain since 2005. So this latest rate increase may just be E*TRADE's response to market conditions. Perhaps we'll see other internet banks make similar moves.

There is still a $25 bonus for opening a Complete Savings Account. For information on this offer and details about the Complete Savings Account please refer to my ETRADE post from last week.

  Tags: E*TRADE Bank, savings account

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Comment #1 by ShraZZy (anonymous) posted on
Niceeeeeeeee =]
Goodthing I moved some funds from GrandYield Direct to etrade last week. My Wamu savings is still better though with 3.30%

Comment #2 by Anonymous posted on
What does it matter ,soon you will need a wheel barrel full of dollars to buy a gallon of gas...

Comment #3 by Anonymous posted on
Dont mean to be dissrespectfull to bank guy ,you are doing a fine job,I`m just get so frustrated trying to save a buck while its seems to all be for nothing...

Comment #4 by Jo (anonymous) posted on
Well, the guy who mentioned needing a wheelbarrow full of dollars to purchase gas is spot on.

What is truly amazing is that so many financial institutions are putting out $$$ offers to keep their customer base, or bring in new money. Wachovia and BofA are two that come to mind with their Way2Save and Keep the Change programs.

Comment #5 by Anonymous posted on
Along the same lines of a possible and much welcomed "new trend", I talked with an experienced (and I feel very dependable) National City Bank CSR who said their Money Market Savings rates would very soon move UP from 3.05 to 3.25. Their 48 month CD at 5% will also be extended to 5/24/08. Note that National City has some degree of mortgage exposure - not subprime but "Rust Belt" defaults - so do your due diligence FDIC insurance-wise. I have found them to be quite competent at both the branch and the national call center levels.

Comment #6 by Bozo (anonymous) posted on
To: All
Re: Inflation

Yes, folks, welcome to inflation (4% last I heard tell). With the economy in the pooper-scooper, this almost qualifies as "stagflation", with one big difference. In the Carter era of stagflation, you could earn some pretty hefty yields on CDs (dang, I remember 16%+). If your mortgage was locked at 8% or less, that was a nice "carry". These days, it's upside down. If you can get 4% these days (to just keep even with inflation), you're fortunate.

Welcome to treading water.



Comment #7 by John (anonymous) posted on
Geee... I hope it's a sign E-Trade got the message. After they and others starting whacking their regular savings account rates, I withdrew all my funds with them and moved them to a 6%, FDIC insured rewards checking account at a different institution. Offering 3% on their account doesn't pay for the electricity to keep the lights on!!!!!

Comment #8 by Anonymous posted on
Their complete savings rate used to be more than than Max and it is still less than Max rate.
I move my funds from complete to Max and then to AARP.