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E*TRADE Bank is an online bank with several deposit accounts, including checking and savings, that mesh well with an E*TRADE brokerage account. The bank is well-known for its great customer service, fast electronic transfers, and out-of-network ATM reimbursements, along with decent APYs on its high-yield savings account. If you know and love E*TRADE as a broker, find out what makes its bank products unique in this expert review.
E*TRADE banking accounts are the perfect add-on to your E*TRADE brokerage account. With good APYs and no (or waivable) fees, they can help your uninvested cash earn extra interest, plus give you a fee-free option to withdraw it from an ATM.
E*TRADE offers one savings account through its partnership with Morgan Stanley Private Bank -- the E*TRADE Premium Savings Account.
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.
Make sure you're getting the best account for you by comparing savings rates and promotions. Here are some of our favorite high-yield savings accounts to consider.
Account | APY | Promotion | Next Steps |
---|---|---|---|
Open Account for SoFi Checking and Savings
On SoFi's Secure Website.
Rating image, 4.50 out of 5 stars.
4.50/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best = Excellent = Good = Fair = Poor |
up to 4.60%²
Rate info
You can earn the maximum APY by having Direct Deposit (no minimum amount required) or by making $5,000 or more in Qualifying Deposits every 30 days. See SoFi Checking and Savings rate sheet at: https://www.sofi.com/legal/banking-rate-sheet.
Min. to earn: $0
|
New customers can earn up to a $300 bonus with qualifying direct deposits!¹
|
Open Account for SoFi Checking and Savings
On SoFi's Secure Website. |
Open Account for Capital One 360 Performance Savings
On Capital One's Secure Website.
Rating image, 4.00 out of 5 stars.
4.00/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best = Excellent = Good = Fair = Poor |
4.25%
Rate info
See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of April 11, 2024. Rates are subject to change at any time before or after account opening.
Min. to earn: $0
|
N/A
|
Open Account for Capital One 360 Performance Savings
On Capital One's Secure Website. |
Open Account for UFB Portfolio Savings Account
On UFB's Secure Website.
Rating image, 4.00 out of 5 stars.
4.00/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best = Excellent = Good = Fair = Poor |
5.15%
Rate info
To ensure you keep getting the highest rate at UFB, you'll need to keep an eye on their rates. Occasionally, the bank launches new accounts with higher rates. Existing accounts need to contact the bank to request being moved to one of these new accounts.
Min. to earn: $0
|
N/A
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Open Account for UFB Portfolio Savings Account
On UFB's Secure Website. |
E*TRADE offers two checking accounts -- and both earn interest. Let's delve deeper into both accounts and see what they offer.
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 reimbursements nationwide.
E*TRADE Checking
E*TRADE Checking is ideal for E*TRADE clients who want a no-frills, free checking account that earns interest. There's no branch access, but you can use your debit card at ATMs with unlimited fee reimbursements.
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 Max-Rate Checking
For those who want to earn more interest on their checking account balance, E*TRADE Max-Rate Checking offers one of the highest APYs we've found. You'll need to keep an average monthly balance of $5,000 to waive the $15 fee, but you'll get fee reimbursements for ATMs worldwide.
We recommend comparing checking accounts to make sure you're getting the best fit for you. Here's a list of our favorite accounts.
Account | APY | Promotion | Next Steps |
---|---|---|---|
Open Account for Discover® Cashback Debit
On Discover Bank's Secure Website.
Rating image, 5.00 out of 5 stars.
5.00/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best = Excellent = Good = Fair = Poor |
0%
Min. to earn: N/A
|
Earn 1% cash back on up to $3,000 in debit card purchases each month (see details when you click 'Open Account')
|
Open Account for Discover® Cashback Debit
On Discover Bank's Secure Website. |
Open Account for Quontic High Interest Checking
On Quontic's Secure Website.
Rating image, 4.00 out of 5 stars.
4.00/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best = Excellent = Good = Fair = Poor |
up to 1.10%
Min. to earn: $1
|
High APY when you complete 10 or more qualifying debit card purchases each month
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Open Account for Quontic High Interest Checking
On Quontic's Secure Website. |
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.
APY = Annual Percentage Yield
Among CD issuers, brokered CDs tend to offer pretty competitive rates. Unfortunately, E*TRADE does not disclose its brokered CD rates on its website to non-members. You'll need to have (or open) an E*TRADE account and navigate to the "Bonds & CD" link under either the "Trading" or "Markets & Ideas" tab to see what rates and terms are on offer at any given time, and to complete your CD purchase. Member FDIC.
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.
Bank & CD Offer | APY | Term | Min. Deposit | Next Steps |
---|---|---|---|---|
Member FDIC.
| APY: 4.60% | Term: 1 Year | Min. Deposit: $2,500 |
Open Account for Discover® Bank CD
On Discover Bank's Secure Website. |
Member FDIC.
| APY: 5.20% | Term: 10 Months | Min. Deposit: $2,500 |
Open Account for
On Secure Website. |
Member FDIC.
| APY: 5.10% | Term: 6 Months | Min. Deposit: $500 |
Open Account for
On Secure Website. |
E*TRADE doesn't have great customer service reviews. In fact, it ranks low on most third-party websites. It currently maintains an F rating with the Better Business Bureau, with 140 unanswered complaints and 34 that weren't resolved. Its Trustpilot account is no better: out of more than 330 reviews, it currently has a 1.4 out of 5 stars rating. Although these ratings represent all of E*TRADE's financial services -- including its brokerage accounts -- it's something to keep in mind if customer service is important to you.
E*TRADE doesn't offer bank relationship benefits. Instead, it offers decently high APYs across all its accounts, from its E*TRADE Max-Rate Checking to its E*TRADE Premium Savings. Often, you'll find relationship benefits -- such as waived account fees or higher APYs when you maintain several account types at the same bank -- at big banks, like Wells Fargo or Chase.
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.
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 reimbursements 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.
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:
Along with its deposit accounts, E*TRADE offers several brokerage accounts, including the following.
Our methodology for scoring banks and credit unions revolves around evaluating key aspects such as annual percentage yield (APY), brand reputation, fees and minimum requirements, and additional perks.
These criteria are weighted differently across various account types, ensuring a comprehensive assessment that reflects the competitive landscape and economic conditions.
We strictly feature products that offer federal insurance and high customer satisfaction, keeping our recommendations unbiased by advertiser influence. This robust evaluation process helps us generate balanced, reliable best-of lists that guide consumers to top financial products.
Learn more about how The Motley Fool Ascent rates bank accounts.
Morgan Stanley Private Bank is the primary bank behind E*TRADE's banking services.
No, you don't need an E*TRADE brokerage account to enjoy its banking services. You can open an account separately.
You can deposit money into your E*TRADE account through an electronic transfer, wire transfer, mobile check deposit, or check deposit by mail. At this time, E*TRADE doesn't accept cash deposits.
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent, a Motley Fool service, does not cover all offers on the market. The Ascent has a dedicated team of editors and analysts focused on personal finance, and they follow the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands.