HomeIn an old-fashioned run on the bank, depositors would actually run away from the bank. Yet, in this new-fangled world of online savings accounts, bailouts and fast money, depositors have reason to go back.
Despite rate cuts, E-Trade has kept the rate on its Complete Savings Account at 4.10% and is handing out $25 bills. Fresh off a management change and a $2.5 billion private equity investment to stem losses from bad loans, E-Trade needs to drum up some new depositors and fast.
With no minimums and no fees, $100 will return $4.10 in a year. That $1000 will earn $41.00. And $1 million begets $41,000. Strike that $1 million idea since the FDIC only insures deposit accounts up to $100,000. Witness Netbank. But either way, E-Trade is trying to stay above the market at 4.10% APY, even as rates elsewhere continue to fall.
And, hey, you don’t have to trade there to bank there.
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