E-Trade is a pioneer in online trading. But it also offers one savings account and two checking accounts through Morgan Stanley Private Bank which is an institution insured by FIDC or Federal Insurance Deposit Corp. Get to know more about E-Trade savings account here.
E-Trade was founded in 1982. Before Morgan Stanley acquired it, it had USD360 billion in assets. Morgan Stanley bought E-Trade in 2020 for about USD13 billion. Then, Morgan Stanley reported USD1.16 trillion in assets in September 2022, including over USD338 billion in deposits.
Is E-Trade The Best Place To Open A Savings Account?
E-Trade is a brokerage firm, it joined a partnership with Morgan Stanley Private Bank and now offers a Premium savings account and a checking account. The savings account of E-Trade has strong rates. The Max-Rate Checking Account offers interest and ATM refunds.
However, those who don’t meet the bank’s minimum requirements will have to pay a monthly fee. if you have an investment account with E-Trade, it is possible to view all E-Trade accounts in one place. E-Trade savings accounts are perfect for customers looking for strong rates.
If you are looking for a checking account that offers an ATM refund feature, this E-Trade account is also the right one. The account will also be perfect for those who can meet the minimum requirements so that there will be no monthly checking fees.
And if you want to have a brokerage account and a bank account in one place, E-Trade will make it easy.
Key Features of E-Trade Savings Account
Some key features of the savings account of E-Trade include a 4.25% annual percentage year, 6 withdrawal limit per month, no monthly service fee, and no minimum deposit. However, each customer must dig deeper to understand more about those key features.
Premium Savings Account by E-Trade is a high-yield savings account. It offers a decent return. Customers don’t need to meet the minimum balance requirement just to get the highest rate or earn an interest rate. Everyone can open a joint or individual account.
Like many other financial institutions, E-Trade also limits withdrawals to only six withdrawals per calendar month. This bank is not going to charge a fee if you withdraw more than 6 times in a month. However, the bank may close the savings account and convert it to a checking account.
Details About Premium Savings Account by E-Trade
Before opening a Premium Savings account at Morgan Stanley Bank, you may want to know extra details about the account. Below are some deeper details about the key features of the E-Trade Premium savings account.
1. Annual percentage yield
Said that the annual percentage yield offered by E-Trade bank savings account reaches 4.25%, is it true? As of October 15, 2023, the Premium Savings Account offered this APY for different balances:
| Balances (USD) | APY (%) |
| 5,000 | 4.25 |
| Between 5,000 and 49,999 | 4.25 |
| 50,000 to 99,999 | 4.25 |
| Between 100,000 and 499,999 | 4.25 |
| 500,000 or more | 4.25 |
This means no matter how much your balance is, the annual percentage yield offered by Morgan Stanley Private Bank will never change. However, rates may change daily. Also, fees may reduce your earnings. But there’s no requirement for the initial deposit to open your account.
After opening an E-Trade savings account, you need to fund your savings account within 30 days so that Morgan Stanley Private Bank won’t close the account.
2. Money Transfer
The bank will process money transfer transactions between existing accounts immediately. But if you deposit funds to accounts via Money Transfer from external accounts, the funds will be available for withdrawal or investment on the third business day after the deposit date.
3. Withdrawal limits
Withdrawal limits apply to the E-Trade Premium Savings account. Account holders can withdraw or transfer up to 6 times a month. This means you can also use Transfer Money only for 6 times in a calendar month. But inbound Money Transfer transactions aren’t subject to any limits.
If you exceed transaction limitations, the bank may close the savings account and then convert the account to a checking account. Or, the bank may also remove your account’s draft and transfer capacity. You can transfer your funds to another bank account over the Internet.
The fund transfer transaction to another bank account can also be done by telephone request through one of the bank’s personnel, electronic funds transfer, or by written request that will then be signed by the account holder.
Pros and Cons of E-Trade Savings Account
Knowing both the pros and cons of this Premium Savings account is going to let you compare this savings account with savings accounts from other banks. This way, you will be able to figure out the right savings account that meets your needs.
| Cons | Pros |
| No branch access | ATM fee rebates |
| To avoid fees, minimum balance requirements are too high. | No minimum opening deposits. |
| Though avoidable, the monthly fees are on checking | Competitive savings accounts rate. |
| No savings account monthly fees. | |
| Some checking accounts won’t have overdraft fees. |
You may also want to compare the savings account by E-Trade with the bank’s checking account. Then, choose the right account that fits your style.
E-Trade Checking Accounts
Compared to the Premium Savings account, it has a lower annual percentage year. If the savings account offers 4.25% APY, the APY for the checking account is only 0.05%. If you open a checking account, there will be a USD15 monthly fee.
You can waive the monthly fee with a USD 5,000 minimum balance or direct deposit. This checking account will receive a qualifying monthly direct deposit of USD 200 or more. The checking account offers unlimited ATM refunds nationwide.
It means, that when the bank charges you for withdrawing cash, the bank will credit the cash back to the checking account you hold.
E-Trade offers a basic checking account as well, that checking account doesn’t come with a monthly fee or minimum deposit. But it doesn’t offer ATM refunds or earn interest.
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It is considered one of the best options for people looking for a savings account and a brokerage account. This savings account allows you to get a high annual percentage yield. You will also earn some other benefits from this extraordinary savings account by E-Trade.