E-LOAN 3.5% APY savings Archived From: Finance |
Link
Sept 23, 2007: Updated the title to reflect current APY.
Mar 1, 2008: Updated the title again. Thanks for sending in the reminder.
$5,000 initial deposit
Minimum Balance
Quoting directly from their T&Cs:
"You will be expected to maintain a balance of at least $500.00 in your Savings Account. If your balance is less than $500.00 for ninety (90) calendar days or more during any 12-month period, your Account may be closed."
"For security purposes, we will not allow any withdrawals from your E-LOAN account to be made by an outside institution."
* This includes pulls initiated from your linked account. All transfers must be made through E-LOAN.
Interest Rates (APY)
09/26/06 - 5.25% (< $5,000 balance), 5.50% (>= $5,000 balance)
09/28/06 - 5.50% on any balance ($5k initial deposit still holds)
12/06/06 - 5.38% on any balance
01/16/07 - 5.25% on any balance
09/20/07 - 5.00% on any balance
10/02/07 - 4.75%
02/16/08 - 3.50% on any balance
05/08/08 - 3.01% on any balance (3.75% for new customers until 07/31/08)
Hard Inquiry?
No hard inquiry after new account opening
Withdraw limits
Savings account withdrawals are limited to six per calendar month. However, you are free to make unlimited deposits into your online account from your linked account.
ACH Speed
Money credited to the account the same day it's debited from the external account for the initial account opening deposit.
Deposits by ACH?
Although you can only withdraw money via the linked account, you can make deposits into ELOAN via ACH through a non-linked account.
The routing number is 111925359. You will notice when you login to your ELOAN account, that the first 6 digits of your account number are hidden with X's.
You can find your full account number by going to "View Statements" - you should see your account number under the column labeled "Account Number"
Yodlee Users
Yes, E-LOAN is available on Yodlee (v. 6?), but not through BoA (v. 5?)
Quicken / MS Money Transaction Downloading
No (they say it's a "long term goal").
Terms and Conditions
Click here for the complete terms and conditions of this account.
Statements and Interest
Statements are issued at the end of any month in which there is account actitivity. If there is no activity other than interest, statements are issued quarterly. Interest is credited on the monthly anniversary of your account opening. For example, if you opened the account on the 14th, interest will be credited on the 14th of every month. The interest date and the statement date are not the same. So, your first statement may not show any interest having been credited (because it was issued before the first interest payment date).
HELP!!! My deposit shows up as a debit!!!
In the Account History section, all transactions -- both deposits and withdrawals -- show up as a debit at first with a balance of 0.00. One or two business days later, it changes to a credit (if applicable) and the correct balance shows up. We don't know why, it just happens.
HELP!!! They are withholding part of my interest payment.
On your account application, you probably checked the box that said "I am subject to backup withholding." If so, taxes will be withheld from your interest payments. The bank will issue a Form 1099-INT at the beginning of next year showing the withholding. You may claim a credit for the amount withheld when you file your federal Form 1040.
HELP!!! It says my account balance is $0.00
In the Transaction History portion of your Account Details page, when a new transaction is entered, the Balance column next to the new transaction always says $0.00. Don't panic. The 0.00 will be replaced by your actual account balance in one or two business days. The Account Balance at the top of the page and on the summary page should be correct.
5.25% on small balances too...sounds nice!
any promotion codes?
weird, I'm getting all sorts of errors with the savings related pages. best I could find was a FAQ showing 5.5% for balances over 5k. Text
johto said:weird, I'm getting all sorts of errors with the savings related pages. best I could find was a FAQ showing 5.5% for balances over 5k. Text
Maybe it is because they just launched it two hours ago? See WSJ's report:
WSJ Article
but no one in this forum seems to understand the meaning of patience....
this isnt a "hot deal" that is going to expire...
I am not a big fan normally of online savings account. But I think for most people with $5K+ this is a sure hot deal. This blows away anything else around currently. This rate is pretty much same rate that is paid on AAA/AA taxable muni VRDN insured with letters of credit which require between $100-250K min buy ins as they are currently yeilding between 5.33-5.41% rate depending on the state and issue.
So you pretty much getting the institutional cash equivilant rate with a low $5K balance requirement. Remember an issue that resets this week for 5.41% might reset lower next week than issues that reset this week for 5.37%. So I think this account could possible out preform VRDN's if we dont see any more rate icreases. As VRDN reset rates are affected by demand so there rates can drop 20-30 basis in 1 week while this account could maintain a stable rate over the month thus producing an over all higher return.
lovebeta said:johto said:weird, I'm getting all sorts of errors with the savings related pages. best I could find was a FAQ showing 5.5% for balances over 5k. Text
Maybe it is because they just launched it two hours ago? See WSJ's report:
WSJ Article
Please copy/paste the WSJ article.
FAQs.
How can I add or withdraw money from my E-loan account?
It's easy. Simply transfer funds in or out of your account through your linked account. Please allow up to 2-3 business days for the transaction to complete. For security purposes, we will not allow any withdrawals from your E-LOAN account to be made by an outside institution.
There's a lot of good info in the FAQs. Have a read through them. Everything seems good except that they supposedly block ACH pulls from another bank.
"For security purposes, we will not allow any withdrawals from your E-LOAN account to be made by an outside institution."
Good to know since I normally have multiple credit cards set up for automatic payments from multiple online savings accounts.
My wife's getting really sick of me opening up new online savings accounts ... oh well, too bad for her. 
site seems to be working fine now. too bad I just threw all my new money into amboy.
Does seem like a good account. Saw E-Loan is a division of BANCO POPULAR NORTH AMERICA, "Bankrate: Founded in 1999, BANCO POPULAR NORTH AMERICA is a state-chartered commercial bank, which, as of March 31, 2006, reported $12.1458 billion."
Bankrate gives them 3*. Anyone know what kind of pull is done? I would think a hard so they can see what loan products they could push on you
Beckles said:My wife's getting really sick of me opening up new online savings accounts ... oh well, too bad for her.
Bet she buys more new shoes than you open new accounts, Why even tell her?
E-Loan to Announce
Savings Account Paying 5.5%
By JANE J. KIM
September 26, 2006; Page D2
The online-savings club is getting crowded as more financial institutions join banks in offering high-yield savings accounts.
In recent years, Internet banks and a handful of major brick-and-mortar banks have rolled out high-yield online savings accounts in an effort to attract deposits. Now, smaller banks and financial-services companies are launching similar products as a way to attract new customers, oftentimes at higher rates.
E-Loan Inc., an online lender owned by the Puerto Rican banking company Popular Inc., is expected to announce today that it is launching an online savings account paying 5.5% and certificates of deposit yielding between 5.6% and 5.75%. The company says it's offering higher rates because it doesn't have the expenses of operating branches.
Jane Kim talks about the recent growth in online savings accounts, including E-Loan's new offering of an account paying 5.5%.Last month, Amboy Direct, the online division of Amboy National Bank of Old Bridge, N.J., and AmTrust Direct, owned by Ohio Savings Bank's AmTrust Bank division, launched high-yield online savings accounts and money-market accounts paying 5.25% and 5.26%, respectively. The Countrywide Bank N.A. unit of mortgage lender Countrywide Financial Corp. launched an online savings account in June that now yields 5.25%.
The moves come at a time when deposit growth is slowing and banks and other financial institutions are casting about for ways -- high yields, cash bonuses and other perks -- to attract new money.
Starting next week, EverBank Financial Corp. will, for the first time, offer a three-month promotional rate of 6.01% on its money-market deposit account. In recent weeks, Amboy Direct started dangling cash bonuses for customers who refer others to the bank, while E*Trade Financial Corp. is offering a $50 bonus to select customers on its money-market account.
Big banks have been treading in more carefully. While they are offering high rates, the accounts usually come with more requirements. Earlier this year, Washington Mutual Inc. began offering a high-yield savings account currently paying 5% -- but only as part of a bundled offering that links it with a free checking account for new customers who open accounts online. Citigroup Inc.'s Citibank's new e-Savings account, which also pays 5%, also requires that customers link a Citibank checking account to the account.
As the bond market continues to rally, driving long-term yields even lower, more banks are offering higher rates on short-term deposits. The 10-year Treasury note, for example, is now paying a yield of about 4.5%.
While E-Loan's rates could force other banks to boost their yields, some industry analysts question how long banks can continue to outdo each other, especially since the Federal Reserve has stopped raising short-term rates and may even begin to cut rates next year. "You can't get much higher right now" without hurting profitability, says Jim Bruene, editor and publisher of the Online Banking Report. Online-only deposit accounts are expected to reach 19% of total core deposits by 2010, up from 2% in 2006, according to a recent report from Celent LLC, a research-and-consulting firm.
For its part, E-Loan says luring savings deposits by paying high yields is still cheaper than borrowing funds from the capital markets to fund its mortgages and other consumer loans, says Joel Bosch, executive vice president of E-Loan's new retail banking business.
Before we all go rate chasing, I would give this a week to see if our normal accounts (emigrant, HSBC etc..) will try to match their rate. It might not be worth the lost interest until we know how others will react.
Does anyone know if they do a hard inquiry when you open your account?
therivler1 said:Before we all go rate chasing, I would give this a week to see if our normal accounts (emigrant, HSBC etc..) will try to match their rate. It might not be worth the lost interest until we know how others will react.
Also wouldn't be surprised to see an ad campaign with a signup promotion.
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