E-TRADE Premium Savings Account Review 2024
Written by
Dawn Allcot
Edited by
Melanie Grafil
Commitment to Our Readers
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GOBankingRates Score
E*TRADE
-
APY
4.8
-
Customer Service
4.9
-
Features
4.8
-
Fees
5.0
Pros
- No monthly fee
- No minimum balance requirements
- High APY
- FDIC insurance up to $500,000
Cons
- No debit card
- Six-transfer limit per month for withdrawals
- $15 fee for Bank Checks--the first check per month is free
E-Trade Premium Savings Overview
E-Trade Premium Savings account from Morgan Stanley Private Bank is a no-frills, no-fee, high-yield savings account that connects seamlessly to your E-Trade brokerage account.
Whether you’re building a rainy day fund, or need a place to park your cash while you’re waiting for the perfect investment opportunity, E-Trade Premium Savings offers a APY on all balance tiers. You can transfer funds within minutes from your Premium Savings account to your E-Trade brokerage account to take advantage of investments.
These are some of the elements that make the Premium Savings from Morgan Stanley Private Bank a solid choice for investment-minded individuals.
APY
The high APY of on all balance tiers, with interest compounded daily, is hard to ignore. You can find a higher APY if you look around, but Morgan Stanley’s reputation, the presence of brick-and-mortar branches and integration with the E-Trade brokerage platform also set E-Trade Premium Savings apart.
Customer Service
GOBankingRates previously gave E-Trade Bank a 4.9 out of 5 rating for customer service, citing its phone service and branches. You can reach E-Trade at 800-387-2331.
The bank also offers live chat from 8 a.m. to 8 p.m. EST on weekdays.
Although your E-Trade Premium Savings is an online account, you can take advantage of in-person banking at Morgan Stanley Private Bank branches in states across the U.S.
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As your net worth grows, you’re already part of the Morgan Stanley family and can easily transition to their Wealth Management services.
According to BankLocationMaps.com, Morgan Stanley has 17 brick-and-mortar locations in major cities like Boston, Chicago, Menlo Park, Houston, Columbus, Atlanta and New York.
Features
E-Trade Premium Savings has several advantages that are worth noting and set this savings account apart.
- FDIC insurance: Because E-Trade holds your savings deposits in multiple accounts across different financial institutions, you can qualify for up to $500,000 in FDIC insurance, rather than the standard $250,000 per depositor, per account. Jointly held accounts will receive up to $1 million in FDIC insurance.
- No minimum balance: Your Premium Savings account has no minimum balance requirements and no minimum deposit required to open your account. You will need to fund your account within 30 days after opening it.
- Convenient mobile app: The E-Trade mobile app makes it easy to make investments on the go, set up automatic transfers into your savings account, or make mobile check deposits.
- Free instant transfers to E-Trade brokerage account: If you have an E-Trade brokerage account, you can transfer money instantly from your Premium Savings to fund your brokerage account through the proprietary Transfer Money service. This allows you to take advantage of investment opportunities without waiting for your deposit to clear.
Fees
E-Trade Premium Savings has no monthly maintenance fee and no fee if your account dips below a certain balance. You get one free Bank Check per month, but you will pay a $15 service fee for any additional bank checks.
There is also a $25 wire transfer fee for outgoing wire transfers, but incoming transfers are free.
Your E-Trade brokerage account also has no monthly fees and commission-free trading on stocks, ETFs and other investments. However, some investment types, including options, bonds and futures, have associated fees. You’ll want to be aware of the fee schedule for investments before you begin.
How E-Trade Premium Savings Compares
If you already trade and invest through an E-Trade brokerage account, opening a linked Premium Savings for APY may seem like a no-brainer. But if you’re weighing your options, here are a few other choices to consider.
E-Trade Premium Savings vs. Ally Bank Savings
Ally Bank is an online financial services company with a high-yield savings account offering an APY of on all balance tiers. That’s just slightly lower than E-Trade, but the Ally savings account offers a whole suite of features that make it easy to manage your money.
For instance, you can organize your savings into buckets, allowing you to set goals and work toward them. You can also use what Ally calls “boosters” to ramp up your savings, including:
- Recurring transfers
- Round Ups on debit card purchases
- Surprise Savings, where Ally analyzes your spending accounts and transfers “safe-to-save” money for you
Your Ally savings account links to Ally Invest, too. Ally offers a host of investment options, including commission-free stocks, ETFs, options and mutual funds. Ally Invest has robo-advising and self-directed trading options.
E-Trade Premium Savings vs. Bank of America
If you prefer the security and footprint of a larger bank, Bank of America also offers a savings account that connects to a Merrill Edge investment account. Bank of America’s Advantage Savings offers APYs between and , depending on how much money you have in connected accounts, which includes your Merrill Investment accounts.
Bank of America was rated a Best National Bank for 2024 by GOBankingRates. It provides full-service, relationship banking at roughly 3,900 branches nationwide, and boasts a network of more than 15,000 ATMs, according to a recent GOBankingRates review.
Who E-Trade Premium Savings Is Best For
E-Trade Premium savings is best for those seeking a no-frills, straightforward online savings account with a high APY. Most E-Trade Premium Savings customers will probably open the account because they want a fast and easy way to transfer funds into their E-Trade Brokerage account; the high APY is an added bonus.
If you’re looking for a debit card and ATM network, more flexibility to save money in various buckets, or ways to boost your savings through a round-up program, you might consider other options.
Final Take
With no fees and a straightforward, high APY on all balance transfers, E-Trade Premium Savings from Morgan Stanley provides a safe place to build your savings until the right investment opportunity comes along.
Be sure to check out other top CD accounts and some of the best checking accounts ranked by GOBankingRates Best Banks of 2024 if you’re looking for other banking options.
FAQ
Find out what people are asking about E-Trade.- Is E-Trade premium savings account safe?
- E-Trade premium savings accounts are protected for up to $500,000 per account holder, or up to $1 million for joint accounts, through the Federal Deposit Insurance Corporation.
- Is my money safe with E-Trade?
- E-Trade takes substantial steps to protect the security of its customers' accounts. It offers complete fraud protection with $0 liability. You can also choose to download a Digital Security ID for the mobile app, which keeps your personal information safe through two-factor authentication. Simply download the VIP Access mobile app, which provides a unique, six-digit code each time you login.
- What is the current E-Trade premium savings rate?
- E-Trade currently offers a 4.25% APY on all balance tiers in its Premium Savings account, which is nine times more than the national average.
- Does E-Trade have a high-yield savings account?
- E-Trade offers the Premium Savings account from Morgan Stanley, with a 4.25% APY.
Rates are subject to change; unless otherwise noted, rates are updated periodically. All other information on accounts is accurate as of April 23, 2024.
Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.
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