Review
Updated
Fact Checked
Eric McWhinnie
E*TRADE offers a no-fee, high-yield savings account through its partnership with Morgan Stanley Private Bank. The account has no minimum requirements, a decent APY, and can insure up to $500,000 in deposits -- double the usual amount offered by banks.
Whether you have an E*TRADE account already, or you're just looking to earn the most interest on your savings, find out what the E*TRADE Premium Savings Account has to offer in this review.
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Ratings Methodology
Rates as
of Apr 29, 2024
Member FDIC.
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.
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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.
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= Best
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= Excellent
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= Fair = Poor- Conveniently transfers money to brokerage account
- Decent APY
- No monthly maintenance fees
- High deposit insurance
- Better APYs at other banks
- No ATM access
- No branch access
- Withdrawal limitations
With no fees, no account minimums, and double the usual FDIC insurance, the E*TRADE Premium Savings Account can be a great add-on to your E*TRADE brokerage account. Its APY is decent, but you can find better interest rates at other banks.
High-yield savings account comparison
We recommend comparing high-yield savings account options to ensure the account you're selecting is the best fit for you. To make your search easier, here's a short list of standout accounts.
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| Account | APY | Promotion | Next Steps |
|---|---|---|---|
Rating image, 4.75 out of 5 stars.
4.75/5
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%
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
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New customers can earn up to a $300 bonus with qualifying direct deposits!
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Rating image, 4.75 out of 5 stars.
4.75/5
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 |
5.05% APY for balances of $5,000 or more
Rate info
5.05% APY for balances of $5,000 or more; otherwise, 0.25% APY
Min. to earn: $100 to open account, $5,000 for max APY
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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 |
4.35%
Min. to earn: $0
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New customers can earn a $200 bonus with a minimum $25,000 qualifying deposit. Terms apply.
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E*TRADE Premium Savings Account interest rate
| Account | APY | Minimum Deposit |
|---|---|---|
| E*TRADE Premium Savings Account | 4.25% | $0.01 |
Data source: E*TRADE.
The APY on the E*TRADE Premium Savings Account isn't the highest one available. But the account's other perks (such as double the FDIC insurance and no minimum balance requirement) could make it worth opening.
Full E*TRADE Premium Savings Account review
Top perks
Immediate transfers to E*TRADE accounts: You get instant transfers from your E*TRADE Premium Savings Account to all other E*TRADE accounts, including checking and brokerage. This makes the savings account a convenient place to store uninvested cash, savings, and emergency funds.
Decent APY: Currently, the E*TRADE Premium Savings Account pays out at a 4.25% APY -- about nine times higher than the national average. That's a good rate for a savings account, though, as we'll discuss below, it's not the highest APY we've seen.
No fees: This is a free savings account with no balance minimums or direct deposit requirements. Although the account doesn't require a minimum opening deposit, you'll need to add some money within the first 30 days for it to remain open.
Get double the FDIC insurance: Most savings accounts will insure your deposits up to $250,000. But the E*TRADE high-yield savings covers up to $500,000 in FDIC insurance, or $1 million for joint accounts.
What could be improved
Not the highest APY: E*TRADE's savings account has a competitive APY. But if you're looking to earn the most interest on your savings, there are better options. To get some perspective, take a peek at our list of best high-yield savings accounts.
Limited access to money: As an online bank, E*TRADE doesn't have physical branches, nor does it give you a deposit card to withdraw money from ATMs. That said, if you pair this with an E*TRADE checking account, you'll get unlimited ATM refunds, which would essentially allow you to withdraw cash without paying a fee.
Monthly cap on your withdrawals and transfers: The E*TRADE Premium Savings Account allows up to six withdrawals or transfers from your account in a calendar month. While this isn't rare for a savings account -- it seems from previous federal regulation -- it's something to consider if you plan to move money frequently between accounts.
How to access your money
Although E*TRADE doesn't have brick-and-mortar branches, it gives you a few ways to access your funds.
Deposit options
E*TRADE doesn't let you deposit cash directly into your account (you can, however, mail checks). If you need to move money into your E*TRADE savings account, you can do so in the following ways:
- Electronic transfer from external bank account
- Wire transfer
- Check deposit or by mail
- Mobile check deposit
Funds deposited by wire transfer are available on the same day, so long as the wire was received before 6 p.m. EST. If you transfer money from an external bank account, your money will be available on the third business day after the day the request was entered, as long as the deposit is received before 4 p.m. EST. So, if you start a transfer on Friday at noon, your money will be available by the following Wednesday. Finally, mobile checks can take up to five business days before they're available for your use.
Withdrawal options
E*TRADE only gives you a few ways to withdraw funds from your savings account:
- External transfer to an external bank account
- Internal transfer to another E*TRADE account
- Wire transfer ($25 per transfer)
E*TRADE Premium Savings Account is right for you if:
- You want an online savings account and don't need in-person support.
- You already have an E*TRADE brokerage account and want to add a high-yield savings account to it.
Keep reading about E*TRADE:
Our savings account methodology
At The Motley Fool Ascent, we rate savings accounts on a five-star scale (1 = poor, 5 = best). We evaluate all savings accounts across four main criteria: annual percentage yield (APY), brand and reputation, fees and minimum requirements, and perks that really make a difference -- think ATM access, linked checking accounts, or even branch access.
Our scores are weighted as:
- APY: 50%
- Brand and reputation: 20%
- Fees and minimums: 15%
- Other perks: 15%
Learn more about how The Motley Fool Ascent rates bank accounts.
FAQs
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No, you can open an E*TRADE savings account on its own.
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If you make more than six withdrawals or transfers from your savings account, E*TRADE could choose to close it, convert it into a checking account, or remove your transfer capacity.
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You can deposit up to $250,000 per day on a mobile check deposit.
Our Banking Experts
Steven is a personal finance writer covering topics from mortgages to credit cards to market news. He has written for The Motley Fool Canada, Ramsey Solutions, Nerdwallet, Clever Real Estate, and other major outlets. Steven launched his writing career at the age of four with his first book, "Revenge of the Bad Guys." He currently lives in Portland, Oregon.
Fact Checked
Eric McWhinnie
Eric McWhinnie has been writing and editing digital content since 2010. He specializes in personal finance and investing. He also holds a bachelor’s degree in Finance.
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