Falling Interest Rates- Savings vs Money Market at Etrade

Bank Deals has an update about Etrade Bank rates. The author also notes that Etrade has extended its $25 sign up bonus.

I opened a complete savings account at the end of last year and they did not credit my account $25 within 30 days as promised.

Once I pointed this out, they credited me the next day.

Bank Deals does not cover money market funds in brokerage accounts, but it is interesting to note that Etrade's Brokerage offers "JPMorgan Municipal Money Market Fund" which is tax free. It currently returns 0.64%. It was returning 2.70% as recently as 12/30/07.

I had much of my savings in my brokerage as it gave me over 3% after taxes which was better than my Citibank Savings account. Then I jumped on Etrade's 5% +$25 offer! Well the 5% rate may not have lasted but I am still earning more than what Citibank was paying me in December.

And I'm glad I moved my cash out of my brokerage. Less than 1% interest is terrible.


Anonymous said...

I saw a 5.00% apy on a savings account from Wachovia Bank listed at money-rates.com. The only catch is you have to open a checking account with it too to earn the 5.00%

David Jones said...

I see 2.60% in the JPMorgan Municipal Money Market Fund in my Etrade account.

Is this different from what you see?

I'm currently getting 2.65% in my JPMorgan California Municipal Money Market Fund. Should I open an Etrade Savings account? Won't the rates on that account just drop also?

How do we keep up with the best product the bank is offering.