Comments on: E*TRADE Bank Lowers Interest Rate, Effective Today

By: Coleman

Coleman — Sat, 27 Feb 2010 17:14:39 +0000

Oops! Forgot it was 2010. Thanks and sorry.

By: Flexo

Flexo — Sat, 27 Feb 2010 16:57:43 +0000

The article you're reading was posted on February 14, 2009, over a year ago. Rates change fairly often, feel free to read newer articles or view this page for the latest rates.

By: Coleman

Coleman — Sat, 27 Feb 2010 16:54:34 +0000

Perhaps I’m missing something, but when I look at E*Trade’s website, their savings rate is 0.5%, not 2.15%. Does E*Trade currently have a 2.15% interest bearing account?

By: Flexo

Flexo — Mon, 16 Feb 2009 16:04:07 +0000

E*TRADE Bank is in fact a real bank, insured by the FDIC. Here's their information from the FDIC.

By: TJJ

TJJ — Mon, 16 Feb 2009 10:56:38 +0000

The way that the banking industry is suppose to work. When the bank has too little cash to honor it’s reserve, it raises the saving rates to attack savers and raises it loan rate to discourage people from asking it to loan out money. When a bank is above its required reserve amount, it lowers its saving rates and lowers the loaning rate. Then again under recent governments, banks no longer are de-facto required to maintain a reserve amount. When they run low, the government will fill their tanks up again. Plus, the government does this with no pre or post conditions.

Therefore, it is either the government faults for the lower saving interest rate. Or maybe, ETRADE bank has never ever needed its welfare check from the government because it has exceeded its reserve amount.

Question for you all, is ETRADE a real bank or is it just a middle person for some other bank.

By: frugalCPA

frugalCPA — Sat, 14 Feb 2009 23:39:07 +0000

Ha. I like it (not the reduction, but your spin on it).

By: York

York — Sat, 14 Feb 2009 21:52:48 +0000

The rates beat Fidelity money market funds which are currently around 1.2%. The question is, how much lower will they end up?

By: thomas

thomas — Sat, 14 Feb 2009 19:32:20 +0000

Funny.

By: Frank

Frank — Sat, 14 Feb 2009 18:32:36 +0000

2.15 is better than what i am getting at my regional bank, but is still ridiculously low. This is a time when everyone (government, banks) should be encouraging saving instead of giving people more of a reason to spend even when they don’t have the money.

By: Nate @ Money Young

Nate @ Money Young — Sat, 14 Feb 2009 17:42:59 +0000

I think the biggest thing about the economy that makes me sad is lowering interest rates by banks. Sigh, but oh well. It makes my decision to invest more in stocks easier to take.

-Nate

By: Scott

Scott — Sat, 14 Feb 2009 16:19:46 +0000

Well, looks like I don’t need to move my money out of ING for a while now. Looks like many of the online banks will be around 2.15.