eTrade CDs are available online through E*TRADE Bank at fixed and variable interest rates. The bank is a subsidiary of E*TRADE Financial Corporation. The business magazine, Smart Money, from The Wall Street Journal, rated the banking services of the company as the best in 2009 for innovative products and competitive interest rates.
eTrade CDs: Interest Rates
According to data published in September 2009, the annual percentage yield (APY) for E*TRADE CDs of different terms are:
|
Term
|
APY
|
|
3-months
|
0.10%
|
|
6-months
|
0.10%
|
|
1-year
|
0.45%
|
|
1.5-years
|
0.55%
|
|
2-years
|
0.65%
|
|
3-years
|
0.75%
|
|
5-years
|
1.40%
|
Special benefits of E*TRADE CDs include:
- High interest rates for fixed CDs
- Daily compounding of the interest rates
- Flexible interest rate option, where the accountholder can reinvest or revise the term of deposit to get better interest rate.
- Auto renewal policy under which the bank renews an E*TRADE CD for another similar term unless specifically notified by the accountholder.
eTrade CDs: Advanced Features
E*TRADE CDs come with the following advanced features for customer convenience:
- Free online bill payment services
- Flexibility to make deposits and withdrawals from anywhere anytime through the Internet.
- Online check deposits
- Email and mobile alerts to provide up to date account information
- 24x7 access to the account through the Internet
- Free transfer of assets to and from other financial institutions. This service lets the accountholder make quick reinvestments, benefiting from the profit-earning opportunities in the dynamic market.
- ATM withdrawal fees refund from all the banks across the US.
- Online monthly account statements in the form of secured electronic documents.
- Digital security ID service to prevent unauthorized access.
eTrade CDs: Essential Considerations for a New Account
E*TRADE CDs require an individual to open an online account with the bank. The online application form is available at the company’s website. However, individuals subjected to backup withholding with the IRS (Internal Revenue Service, US) have to apply in paper for opening the account. E*TRADE requires the following documents as address and identity proof:
- Proof of residential address
- Proof of date of birth
- Social security number
- Driver's license, state-issued ID or military ID
All the money deposits with E*TRADE are insured by the Federal Deposit Insurance Corporation (FDIC), an independent agency created by Congressional law to secure public money.