Dedicated to Deposits: Deals, Data, and Discussion

E-LOAN's New CD Rates and New CD Promotion

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E-LOAN.com
E-LOAN raised its CD rates today, and it also has started a new CD promotion. E-LOAN's 6-month CD is now over 4% (4.02% APY). The 12-month CD yield was raised to 4.35% APY which puts it close to WaMu's 4.50%.

E-LOAN has also started a new CD promotion. You can earn an extra $500 on a 5-year CD and an extra $250 on an 18-month CD. Both require a minimum deposit of $50,000, and both expire on 9/30/08. Here's part of the small print for the 5-year CD bonus:
The $500 bonus offering is applied in the form of a 0.20% interest increase applied to the rate in effect on the date a 5 year Certificate of Deposit (CD) is opened. $500 is the minimum additional interest that can be earned when this additional interest is applied throughout the term of the 5 year CD

The 18-month CD bonus small print is the same except that the bonus is $250 and the extra interest is 0.34%. It apppears that if you deposit $100K instead of $50K, you'll receive twice the bonus. I'll need to verify this with E-LOAN's CSR. Please comment if you're able to confirm this.

With these extra bonus interest, this gives the 18-month and 5-year CDs a very competitive yield: approximately 4.70% APY for the 18-month term and 5.30% APY for the 5-year term.

Below is the full list of E-LOAN's new CD yields and the old ones so you can see how rates have been changing.

New and old certificate of deposit yields as of 8/22/08

CD TERM OLD APY NEW APY CHANGE
8/12/08 8/22/08
3 month 3.41% 3.50% +0.09
6 month 3.77% 4.02% +0.25
9 month 3.95% 4.06% +0.11
12 month 4.26% 4.35% +0.09
18 month 4.20% 4.36% +0.16
24 month 4.36% 4.42% +0.06
36 month 4.66% 4.71% +0.05
48 month 4.82% 4.97% +0.15
60 month 5.10% 5.10% -
72 month 5.10% 5.10% -

For more details about E-LOAN's CDs, please refer to my April 30th E-LOAN CD post.

E-LOAN also has 1 and 2-month CDs, but I don't know why anyone would want these. The yields are lower than the savings account yield.

For more details about E-LOAN's savings account, please refer to this post.

E-LOAN is a subsidiary of Banco Popular North America (BPNA), a New York state chartered bank. E-LOAN's deposit products are insured by the FDIC through BPNA (FDIC Certificate # 34967). BPNA has a 3 star rating (adequate) at BauerFinancial based on 3/31/08 data.
  Tags: CD rates, E-LOAN.com

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Comments
3 comments.
Comment #1 by scott (anonymous) posted on
scott
I just called and you would earn an extra $500 on $100k. They are making it more confusing the way they are stating this promo. CSR told me it's because some people like seeing the extra money they will make. But really it's just a .34% bump on the 18 month. 18 months is about 549 days and if you do the math that .34% comes out to about $500

1
Comment #2 by Strabo (anonymous) posted on
Strabo
While closing a maturing CD at WaMu, I learned that they'll have a 13-month 5% APY CD special starting tomorrow for at least 1 week.

Not sure if this is for online as well, but it's going to be at all branches (in NY anyway).

1
Comment #3 by JCE (anonymous) posted on
JCE
I recently opened a 1 year CD using the special promotion code which was good until 12/18/08. (4.36% APY + $25 bonus) I signed up online, the process was pretty simple and standard, I put in my bank routing number for ACH transfer. I received an email confirmation right away. As per the instructions, within two days 2 small deposits and the initial funding transfer took place, I then logged in to my account and verified the 2 small deposits.
I am always a little wary of locking money up for a year but I believe that interest rates may be decreasing in the near future. I still have the bulk of my savings with DollarSavingsDirect which has been holding at 4.00 % APY.

1