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$25 Savings Account or CD Bonus at E-LOAN


E-LOAN has come out with two $25 bonuses for new customers who open either the Savings Plus Account or a 1-year CD. The promotion pages along with the promotion codes are listed below:
Both are scheduled to last through 12/18/2008. I checked with an E-LOAN's CSR, and I was told that these are only available for new E-LOAN customers. Existing deposit customers are not eligible. Also, I was told that new customers can only do one of these two promotions. The minimum CD deposit is $10,000 and the minimum savings account balance is $5,000.

The small print of both promotions state that the $25 bonus will be posted as an interest credit to the account within 90 days of account opening. The savings account must maintain at least the original balance for 60 days to qualify for the promotion. To qualify for the Savings Plus account, you must make regular monthly deposits into the account of at least $100. If this is not done within 60 days, the account is converted into the standard savings account. CD's closed prior to maturity will not receive the bonus.

E-LOAN's CDs require a minimum deposit of $10,000. So for a $10K deposit, a $25 bonus adds 25 basis points to the rate. E-LOAN's current standard 12-month CD yield is 4.36% APY (as of 10/31/08), so the effective yield with this bonus for a $10K deposit would be around 4.61% APY. This exceeds the best nationally available 1-year CD yield (4.45% APY at Corus Bank or VirtualBank).

E-LOAN's Savings Plus Account isn't as competitive as the 1-year CD for balances under $25K. Below are the standard yields and the equivalent yields when the $25 bonus is factored in for the different balance tiers. APY is only for the first 60 days. The APY w/Bonus is only approximate and assumes no change in the standard rates during the first 60 days.

Deposit Savings Plus Savings Plus
Amount APY as of 10/31 APY w/Bonus
5,000 2.76% 5.80%
$10,000 3.35% 4.87%
$25,000 3.51% 4.12%
$50,000 3.75% 4.05%
$100,000 3.85% 4.00%

I've been disappointed with my E-LOAN standard savings account since it now only pays 1% APY on balances under $5,000. Even for larger balances, the standard savings account's yield is low: 2.51% APY for $5K to under $10K and 2.76% APY for balances of $10K and above.

For more details of these accounts, please refer to:
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 and a 2 star rating (below peer group) at Bankrate.com . Both ratings are based on 6/30/08 data.

Credit for this find goes to salilshah who posted it at this FW thread.

Related Pages: CD rates, savings account, E-LOAN.com, New York, Miami, Orlando, Chicago, Los Angeles

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Anonymous   |     |   Comment #1
I just logged into my eloan account to check my interest payment this month - it appears they are not paying me the correct interest rate - I should be getting 3.78% and it is closer to 3.51%.

I have had this problem with Citibank as well and spoke with them three times in the past two months. Can't wait to see this months statement to see if it is all straightened out!!!

Anyone else have these sort of problems? I am getting tired of dealing with this stuff. I should not even have to check the rates - it is such a waste of time.
Jim (anonymous)   |     |   Comment #2
Can you trick them into giving you the savings "plus" status by having an automatic deposit of $100 from a different bank account followed by an automatic withdrawal of $100?

Or does the deposit have to be a paycheck or something?

You'd waste some of your six per month withdrawals, but it would be worth it for the higher rate.