E-Trade Bank Review 2020

Published January 2020 by Mary Wisniewski

AT A GLANCE
3.3
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Bankrate Score

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24/7 Customer Service

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Digital Leader

E-Trade Bank offers a competitive yield on its savings account. It’s especially worth considering if you also invest at E-Trade and want products from the same parent company. If you like to do banking in person, you will want to bank somewhere else.

  • Savings
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    3.7
  • Checking
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    3.3
  • MORE HIGH-YIELD OPTIONS
    MORE HIGH-YIELD OPTIONS
    BMO Harris Bank

    Member FDIC

    MMA

    1.95 % APY

    $ 5,000

    Min. balance for APY

    CIT Bank

    Member FDIC

    Savings account

    1.80 % APY

    $ 100

    Min. balance for APY

    Barclays

    Member FDIC

    Savings account

    1.70 % APY

    $ 0

    Min. balance for APY

    Overall

    3.3

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    Bankrate Score

    E-Trade Bank is the banking unit of E-Trade Financial Corp., a brand best known for its brokerage services. The bank offers a competitive yield on its savings account.

    What we like

    • Offers competitive yield on savings account.

    • Low minimum deposit to open a savings account.

    • No overdraft fees for debit purchases.

    • Customer service representatives are available 24/7.

    What we don't

    • Higher APYs available elsewhere.

    • Requirements to avoid fees are steeper for interest-bearing checking account.

    • Its small branch network doesn’t support money processing abilities.

    • The bank offers a limited number of products.

    Savings accounts

    3.7

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    OTHER SAVINGS OFFERS YOU MAY LIKE
    CIT Bank

    Member FDIC

    Savings account

    1.80 % APY

    $ 100

    Min. balance for APY

    E-Trade Bank offers a yield that's nearly a top-tier APY; however, it’s still 21 times more than the national average. This APY is offered on all five balance tiers, with the lowest starting at $0 and the top tier starting at $500,000-plus. And you need only $1 to open a Premium Savings Account.

    The bank will charge a $10 fee if you don’t keep an average monthly balance of $1,000, but there are ways to avoid the fee. If you keep at least a $5,000 average monthly balance in all of your E-Trade Bank deposits by your second statement cycle, the monthly fee will be waived. You can also have it waived by keeping a combined balance of at least $50,000 in linked E-Trade Securities, E-Trade Bank and employee stock plan accounts.

    What we like

    • APY is nearly in the top tier of available yields.

    • You need only $1 to open an account.

    • Interest is compounded daily.

    What we don't

    • You need to have at least $1,000 — or meet other requirements — to avoid the $10 monthly fee.

    • There are higher APYs available at some other banks.

    Checking accounts

    3.3

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    OTHER CHECKING OFFERS YOU MAY LIKE
    Simple

    Member FDIC

    Checking account

    1.75 % APY

    $ 0

    To open

    $ 0

    To avoid fees

    Max-Rate Checking is an attainable interest-bearing account from E-Trade. The account can be opened online with at least a $100 minimum deposit. Account holders will have to maintain an average balance of at least $5,000 to avoid being hit with the $15 monthly fee. The charge can be waived by making direct deposits of $200 or more per month.

    The other checking product offered is E-Trade Checking. The non-interest-bearing account can be opened with a $100 minimum deposit and does not have a monthly fee.

    What we like

    • Free, unlimited ATM fee refunds with Max-Rate Checking.

    • Balances greater than zero earn interest.

    • No overdraft fees for debit purchases.

    What we don't

    • No ability to accept cash deposits.

    • Interest rates are fairly low.

    • Minimum balance to avoid fees is $5,000.

    Bank experience

    If you are on the hunt for an online bank provider, E-Trade Bank is worth considering. Its mobile app scores high in the App Store and on Google Play.

    The app functionality is standard for banking. You’ll get to deposit checks with your camera, pay your bills and keep tabs on your account balances. The app also works with your bank account and your investments if you have both from E-Trade. A nice touch: You can also chat with customer service within the app.

    You won’t be able to do banking transactions at its small branch network. However, you can reach a representative 24 hours a day, seven days a week to get help.

    About E-Trade Bank

    E-Trade is most known for its brokerage services, but it also offers bank products that are insured by the Federal Deposit Insurance Corp.

    Through its bank subsidiary, E-Trade currently offers checking and high-yield savings accounts nationwide. E-Trade Financial Corp., which was founded in 1982, describes the purpose of operating a bank as “maximizing the value of deposits generated through its brokerage business.”

    Savers seeking a higher interest rate may want to consider E-Trade. You may also want to consider the bank if you use E-Trade as a trading platform and want to benefit from a tight integration between your brokerage account and banking account.

    There are more than two dozen branches, but the physical locations are limited to providing financial consulting, not managing your banking tasks.

    Mary Wisniewski Twitter Created with Sketch. @MARYMWISNIEWSKI

    Mary Wisniewski Twitter Created with Sketch. @MARYMWISNIEWSKI

    At Bankrate, Mary Wisniewski writes on a variety of fintech and banking subjects. Previously, she covered fintech for American Banker and edited op-eds for the publication's BankThink section. She was also a blogger and editor at Bank Innovation and served as a fashion editor for National Jeweler, where she reported on fashion shows and jewelry news. Mary grew up in the Michigan suburbs and now lives in Los Angeles with a maltipoo, a record player and an espresso machine.