When E-LOAN first launched its internet bank in 2006, its savings account and CD rates were very competitive. It has been a long time since the savings account rate has been competitive. However, every now and then E-LOAN comes out with a few competitive CD rates. The latest ones are a 1.10% APY 1-year CD and a 1.12% APY 18-month CD. Minimum deposit is $10,000. These rates as listed at E-LOAN's interest rates page as of 9/23/2013. Thanks to DA member cumulus for reporting on these in the forum.
Funding and Closing an E-LOAN Bank CD
I opened two E-LOAN Bank long-term CDs back in 2007 when the Fed first started to cut rates. Both have already matured, and I was easily able to withdraw the funds at maturity using E-LOAN’s ACH transfer system. The nice thing about E-LOAN is that both the CD funding and disbursement are done with an ACH transfer to your linked external account. Before my CDs matured, I logged in and specified to close the CD at maturity and have the funds transferred to my linked checking account. That took place without any problems. I was told by an E-LOAN CSR that instructions to close a CD can also be made during the grace period. I have more details on this in my E-LOAN CD review.
Not all readers had this same experience closing an E-LOAN CD. There have been complications. As I mentioned in that E-LOAN CD post, there can be complications if you need to change your linked checking account. One reader posted this in the comments of that post:
They made up rules at the last minute that were not part of the disclosure -- like they would not allow me to change my external account within seven days of maturity -- nothing in the disclosure about that, and you only find out when you try to do it (I tried it five days in advance, after being told on the phone three weeks before that that I could do it right up until the CD matured). And that was only one of several things they threw up to block me from closing and getting my money -- none of it in the disclosure.
All deposit accounts offered through E-LOAN are opened through Banco Popular North America (BPNA), a New York state chartered bank that is the direct parent company of E-LOAN. Thus, your deposits opened at E-LOAN and directly at Banco Popular are combined for purposes of FDIC coverage. BPNA has been a FDIC member since 1999 (FDIC Certificate # 34967).
Banco Popular North America is a sizable bank with $9 billion in assets. It has an overall health score at DepositAccounts.com of B+ with a Texas ratio of 12.67% (above average) based on June 2013 data. Please refer to our financial overview of E-LOAN/BPNA for more details.
How These CD Rates Compare
E-LOAN’s 1.10% is the highest APY of a nationally available 1-year CD that doesn’t have checking requirements. The second highest is 1.06% APY at Nationwide Bank. This requires a $100K minimum deposit. E-LOAN’s 1.12% is also the highest APY of a nationally available 18-month CD. The second highest is 1.10% APY at GE Capital Bank. However, the best deal is a special 15-month CD at First Flight FCU with a 1.25% APY. Also, GE Capital Retail Bank has a special 15-month CD with a 1.15% APY. These rates are accurate as of 9/23/2013.
To search for the best local and nationwide CD rates, please refer to the CD rates section of DepositAccounts.com.