The listings featured on this site are from companies from which this site receives compensation. This may influence where, how and in what order such listings appear on this site
BestMoney logo

E*TRADE Review

E*TRADE Premium Savings
Visit Site
Michael Graw
Jan. 08, 2024
3 min read
Michael Graw
E*TRADE Premium Savings Summary
E*TRADE is a brokerage firm founded in 1982 and acquired by Morgan Stanley in 2020. While the platform is best known for its trading products, it also offers a high-interest savings account through Morgan Stanley Private Bank. The account provides a 4.25% annual percentage yield (APY) with no minimum deposit or monthly fees. It’s a solid option for investors who use E*TRADE since you can instantly move money into an E*TRADE investment account.

Pros

  • Earn 4.25% APY with no minimum balance requirement
  • Instant transfers to E*TRADE investment accounts
  • No monthly fee

Cons

  • Limited budgeting and financial planning tools
  • Doesn’t offer access to ATMs

E*TRADE Premium Savings at a glance

9.6
Editorial score

Fees?

No monthly fees
10.0

Security

FDIC-insured with SSL encryption, two-factor authentication, and biometric authentication
10.0

Customer service

24/5 customer support by phone; no dedicated fraud team
8.0

Online experience

User-friendly site with full banking capabilities; transparent rates and fees
10.0

Mobile experience

Mobile app for iOS and Android; includes account balances, online transfers, and digital check deposits
10.0

E*TRADE Premium Savings Summary 

E*TRADE is a brokerage firm founded in 1982 and acquired by Morgan Stanley in 2020. While the platform is best known for its trading products, it also offers a high-interest savings account through Morgan Stanley Private Bank. The account provides a 4.25% annual percentage yield (APY) with no minimum deposit or monthly fees. It’s a solid option for investors who use E*TRADE since you can instantly move money into an E*TRADE investment account.

E*TRADE Premium Savings E*TRADE Premium Savings Visit Site

Advantages Over Regular Banks

E*TRADE’s savings account offers a high 4.25% APY interest rate with no minimum deposit or balance requirements. You’ll earn that interest rate no matter how much money is in your account. In addition, there are no monthly fees or fees for electronic transfers.

Cutting-Edge Banking Services

You can instantly transfer money between your E*TRADE savings account and other E*TRADE accounts, including checking and investment accounts. This functionality is an advantage for E*TRADE investors who want to move money quickly to take advantage of opportunities in the market.

E*TRADE’s savings account has limited additional features. There’s a tool to help you create a rainy day fund within your savings account, but no other budgeting or financial planning tools. You can deposit money into your account via electronic transfer, wire, or mobile check deposits, but you can’t deposit cash.

Traditional Banking Services

E*TRADE offers checking accounts through Morgan Stanley Private Bank that give you more banking features, including the ability to deposit cash at ATMs and pay bills online.

Most E*TRADE services focus on investing. The firm offers individual brokerage accounts, individual retirement accounts (IRAs), and individual 401(k)s. It also offers managed portfolios and access to financial advisers from Morgan Stanley. E*TRADE supports passive investing and active trading with its brokerage accounts.

Interest Rates and Fees

The E*TRADE savings account offers interest at a rate of 4.25% APY on all balances. You won’t pay any fees for your account unless you send a wire transfer, which costs $25 per outgoing wire. There’s no charge for incoming wire transfers.

Interest Rate

Monthly FeeMinimum DepositMinimum Balance
4.25% APYNoneNoneNone

Customer Service and Online Experience

E*TRADE offers customer service by phone from 12 a.m. ET on Monday to 11:59 p.m. ET on Friday (24/5 as opposed to 24/7). 

The firm’s website also has an FAQ page with information about using the savings account, including instructions on depositing checks and transferring money to an E*TRADE investment account.

Signing up for an E*TRADE savings account is simple and fast. If you’re already a customer of E*TRADE’s brokerage products, you can skip entering your personal details and verifying your identity. If you’re new to E*TRADE, you must provide contact information and upload a copy of your driver’s license or passport to verify your identity. The whole process takes about five minutes.

Once your account is open, the online banking interface is streamlined and easy to navigate. You can see your balance, initiate transfers, and view a history of all transactions in your account.

Mobile App

The free E*TRADE mobile app is available for iOS and Android devices. It’s primarily designed for investors, as it displays stock quotes and market analysis prominently. You can manage your savings account from the account page, including initiating transfers and making mobile check deposits. 

The app is handy if you use E*TRADE to invest and keep your cash in an E*TRADE savings account. You can instantly move money from your savings account into your brokerage account using the app.

Security

E*TRADE uses SSL encryption, two-factor authentication, and biometric authentication to protect your account. However, the firm doesn’t have a dedicated fraud team, and you can’t set up alerts to receive notifications about new transactions in your account.

E*TRADE’s Premium Savings Account is insured by the Federal Deposit Insurance Corp. (FDIC) for up to $500,000.

Conclusion

E*TRADE’s savings account is offered through Morgan Stanley Private Bank. It lets you earn an unlimited 4.25% APY with no balance requirements or monthly fees. It’s a good option if you use E*TRADE to invest. You can instantly transfer money between your E*TRADE savings and brokerage accounts, enabling you to quickly take advantage of investment opportunities.

E*TRADE Premium Savings E*TRADE Premium Savings Visit Site

Methodology

This review was created using information from the E*TRADE website.

Michael Graw
Written by
Michael Graw
Michael Graw is a Bellingham, Washington-based writer focusing on finance, tech, and science. His work has been featured in print magazines and high-impact websites. He writes for BestMoney and enjoys helping readers make sense of the options on the market.‎
Top Online Banking
Discover® Bank Cashback Debit Checking
Discover® Bank Cashback Debit Checking
Read Review|Visit Site
Read all reviews

Must Reads

How Banks Are Building Trust with Customers in 2024
Feb. 27, 2024
What Is a Savings Account and How Does it Work?
Feb. 27, 2024
How to Choose the Right Online Bank for You
Feb. 27, 2024
Read all articles