E*TRADE Savings Account Interest Rates: March 2024

A decent interest rate with more FDIC coverage

Fact checked by Michael Rosenston

E*TRADE Savings Account Rates

The E*TRADE Premium Savings Account from Morgan Stanley Private Bank offers a somewhat high yield on your balance and can be a good option for investors who use the brokerage firm to manage their portfolio. It also offers double the standard FDIC insurance coverage, making it a worthy option for consumers with significant savings.

E*TRADE savings account interest rates are a bit low compared to the top high-yield savings accounts. See the best savings account rates today:

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E*TRADE Savings Accounts: Key Features

E*TRADE‘s Premium Savings account is a high-yield savings account that offers a decent return and no minimum deposit requirement or monthly service fee. Additionally, you don’t have to meet a minimum balance requirement to earn interest or get the highest rate available. 

You can open an individual or joint account. Like other financial institutions, Morgan Stanley limits withdrawals to six per calendar month. The bank won’t charge you a fee for excessive withdrawals, but it may close your account, convert it to a checking account or even remove the account’s transfer and draft capacity.

While most bank accounts offer $250,000 in FDIC insurance coverage per depositor, per account ownership category, E*TRADE offers up to $500,000 in coverage using a sweep program that deposits your money with other banks. For joint accounts, the maximum coverage is $1 million.

About E*TRADE: Other Savings Options

The E*TRADE high-yield savings account is available nationwide, and you don’t have to be an existing E*TRADE or Morgan Stanley customer to get started. While the higher FDIC coverage can be appealing to high-net-worth individuals and investors, E*TRADE’s savings interest rate is lower than some other banks and credit unions.

E*TRADE doesn’t offer any other savings products, including money market accounts or certificates of deposit (CDs). However, it does offer a Max-Rate Checking account, which offers a small yield, plus unlimited domestic ATM fee refunds. Investors can also make use of E*TRADE’s portfolio management program, Core Portfolios.

If you invest with E*TRADE, opening a savings account or checking account with the financial institution can make it easier to transfer money between your investment and bank accounts.

Important

Before you open a bank account, take some time to compare all of your options. When comparing savings accounts, consider APYs, monthly fees, minimum balance requirements, and ease of access to funds.

Compare Savings Account Rates

E*TRADE presents some interesting incentives for investors or anyone with a large amount of money to put into savings. But its rates aren’t the highest available, so it’s worth exploring your options before making a decision. See some other popular high-yield accounts below.

Does E*TRADE Have a High-Yield Savings Account?

Yes, the E*TRADE Premium Savings account is a high-yield savings account that offers an APY that’s much higher than the national average for traditional savings accounts. But it’s not usually the highest—check out the best high-yield savings accounts here to see the highest available rates.

How Often Does E*TRADE Pay Interest on Its Savings Account?

E*TRADE compounds the interest you earn on a daily basis and pays out earned interest monthly.

Do E*TRADE Savings Accounts Have Withdrawal Limits?

You can make up to six withdrawals or transfers from your savings account in any calendar month. If you make excessive withdrawals, your account may be closed or converted to a checking account, or you may lose your ability to make withdrawals.

Are E*TRADE Savings Accounts FDIC-Insured?

Yes, Morgan Stanley Private Bank offers up to $500,000 in FDIC insurance coverage for individual accounts and up to $1 million in coverage for joint accounts. This is more than the typical $250,000, because the Premium Savings Bank Deposits Program allows E*TRADE to sweep funds into deposits at partner banks for extra coverage.

Read the original article on Investopedia.