E*TRADE Savings Account Interest Rates: July 2024

The E*TRADE Premium Savings Account from Morgan Stanley Private Bank offers a somewhat high yield on your savings account balance of 4.25%. That 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 to consider for consumers with significant savings.

Compare E*Trade 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.

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, E*TRADE limits withdrawals to six per calendar month. It 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.

Pros and Cons of E*TRADE Savings Accounts

Pros

• Good interest rate: E*TRADE Savings Account interest rates are very high—usually not the highest available from the best high-yield savings accounts, but higher than many. 
• Double FDIC coverage: Morgan Stanley stores your cash in money market accounts at various banks to help you maintain FDIC coverage on up to $500,000 of your deposits in this account. That may be an important feature for many high-dollar investors. 
• Fast access to E*TRADE funds: If you use the E*TRADE securities platform to invest, you may be able to transfer cash to and from your investing account instantly, rather than waiting a few days for the funds to be transferred between your E*TRADE brokerage account and an outside bank.
• No minimum balance requirements: You can open this account and maintain the balance with whatever amount of money you want without worrying about fees or interest rate tiers. You may earn the same APY on the entire balance, although this may not always be the case. 

Cons

• Strict withdrawal limits: You're limited to just six withdrawals per month—a former federal limit that was removed in 2020 but one that E*TRADE still enforces by closing your account or converting it into a checking account if you exceed this limit.
• 30-day funding timeline: You need to add funds to your account within the first 30 days after opening it. If you don’t, E*TRADE may close your account before you even get started.
• Poor customer satisfaction rating: E*TRADE was rated below average in a 2024 independent survey of customer satisfaction by J.D. Power.
• Many exclusions to expanded FDIC coverage: Morgan Stanley contracts with some of the largest banks in the country to offer expanded FDIC coverage, including Chase Bank, Wells Fargo, and Citizens Bank. If you have large deposits with one these banks and Morgan Stanley keeps some of your funds with that bank as well, your money may not be covered in full.
  

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.

Alternatives to E*TRADE Savings Accounts

The E*TRADE Savings Account is a strong choice if you’re already using E*TRADE’s brokerage services to invest. If not, one of these options might work better for you:

• High-yield savings account: E*TRADE Savings Account interest rates are good, but the best high-yield savings accounts typically offer even higher rates. Many come with no minimum deposit or monthly fee, as well.
• Treasury security: T-bills, notes, and bonds may offer a similar level of safety as FDIC-insured funds in a bank account and at times have offered rates that rival those of many savings accounts.
• Certificates of deposit (CDs): These timed deposit accounts offer some of the highest rates for FDIC-insured deposits as long as you’re able to leave your money in the account for several months or years. Certificates of deposit usually have withdrawal penalties for taking the money out prior to maturity.
  
• High-yield checking account: Some checking accounts offer rates nearly as high as savings accounts, but you’ll typically need to meet extra requirements. 
• Fintech investing banks: Some fintech micro-investment platforms like Acorns offer checking accounts that round up each purchase you make, depositing the difference into specific investments that you set up ahead of time. 
  

Frequently Asked Questions (FAQs)

Your Guide to Savings Accounts

• What Is a Savings Account and How Does It Work?
• What Is a High-Yield Savings Account?
• How to Open a High-Yield Savings Account
• How to Close a Savings Account
• Besides a Savings Account, Where Is the Safest Place to Keep My Money?
• How Many Savings Accounts Should I Have?
• How Savings Account Interest Rates Are Determined
• How Interest Works on Savings Accounts
• How Is a Savings Account Taxed?
• Money Market Fund vs. MMA vs. Savings Account: What’s the Difference?
• Certificates of Deposit (CDs) vs. Savings Accounts: Which Is Better for You?
• 4 Savings Accounts for Investors
• Best High-Yield Savings Accounts
• Best Free Savings Accounts
• Best Savings Accounts for Kids and Teens