E*TRADE Bank Review | The Motley Fool (2024)

E*TRADE offers one savings account through its partnership with Morgan Stanley Private Bank -- the E*TRADE Premium Savings Account.

E*TRADE Premium Savings

The E*TRADE Premium Savings is a high-yield savings account with a 4.50% APY. It has no monthly maintenance fees, no minimum requirements, and can offer up to $500,000 in FDIC insurance -- compared to the standard $250,000 most accounts offer. You can transfer money instantly from your E*TRADE Premium Savings to all other E*TRADE accounts, including checking and brokerage, but it will take a few days to transfer money to an external account.

Unlike other savings accounts, this one doesn't come with an ATM or debit card. What's worse is that E*TRADE limits your withdrawals and transfers to six per month. Any beyond that and E*TRADE could close your account, convert it into a checking account, or remove your transfer capacity. That said, if you want to withdraw cash from an ATM, you could pair it with an E*TRADE checking account for instant transfers.

E*TRADE offers two checking accounts -- and both earn interest. Let's delve deeper into both accounts and see what they offer.

E*TRADE Checking

The E*TRADE Checking is a free checking account with no monthly minimums and very few of the traditional fees associated with checking accounts, such as wire transfers (incoming) and stop payments. Better yet, this free checking account earns a 0.05% APY, which is pretty decent for a free checking account. The account comes with a debit card, which you can use at ATMs, plus you'll get unlimited ATM reimbursem*nts nationwide.

E*TRADE Max-Rate Checking

E*TRADE Max-Rate Checking is a high-yield checking account that earns a competitive 3.00% APY. The account will reimburse ATM fees worldwide -- a rare perk for a checking account. The account does have a $15 monthly maintenance fee, which you can waive by maintaining a monthly average balance of $5,000.

E*TRADE CD accounts

While E*TRADE doesn't issue its own CDs, it does offer E*TRADE brokered CDs. These are CDs that E*TRADE buys in bulk from numerous banks and packages together with its own terms and APYs. Like other brokered CDs, you can buy and sell E*TRADE CDs on a secondary market -- which could result in a profit or loss -- as well as purchase them new. You'll need an E*TRADE brokerage account to view and purchase current CD offerings.

Brokered CDs often have higher APYs than bank CDs, though there is a catch: Unlike bank CDs, brokered CDs have simple interest, meaning you'll earn interest on your principal only, not on any interest you've already accumulated. Finally, brokered CDs come with up to $250,000 in FDIC insurance per depositor, per insured bank. That means, if you bought four CDs from four different banks, you could have up to $1 million in FDIC insurance.

Compare CD rates

E*TRADE doesn't display its CD rates publicly. Instead, you have to log into your E*TRADE account to view them. But to give you an idea of what a competitive CD rate looks like, here are some of today's top offerings.

E*TRADE Bank has a decent selection of deposit accounts, but it might not have everything you're looking for. If it's not a good fit for you, here are a few other banks worth considering.

Charles Schwab Bank

Like E*TRADE, Charles Schwab Bank offers a full suite of brokerage, banking, and financial services. As a bank, it offers a variety of no-fee checking and savings accounts, some with reimbursem*nts on ATM fees incurred worldwide. Its APYs aren't as strong as E*TRADE, although it does have interest-bearing checking accounts and a great selection of brokered CDs.

Chase

For a large branch network and a full range of deposit accounts, look no further than Chase. As the largest bank in the U.S., Chase has plenty of offers, from checking to savings to CDs to credit cards and mortgages and personal loans. Its APYs are nothing to get excited about -- indeed, some rank among the lowest -- but if in-person service is what you're after, you might be happy with one of its 4,700 branches. It also offers lucrative relationship benefits if you qualify for Chase Sapphire membership.

E*TRADE might be right for you if:

• You have an E*TRADE brokerage account and want to complement it with a high-yield deposit account.
• You want to earn one of the best APYs for a checking account.
• You don't want to bank in person and don't mind waiting a few business days for cash to hit your external account.

Along with its deposit accounts, E*TRADE offers several brokerage accounts, including the following.

E*TRADE brokerage

• Brokerage Account
• Coverdell ESA
• Custodial Account

E*TRADE retirement

• Rollover IRA
• Roth IRA
• Traditional IRA
• Beneficiary IRA
• E*TRADE Complete™ IRA
• IRA for Minors

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