E-Loan Online Savings Account Rates

E-Loan is a subsidiary bank of Banco Popular North America, which is a New York chartered bank that has FDIC insurance. It is a very large national bank that holds over $12 billion in assets. E-Loan is the branch of the larger bank that handles most of their online savings accounts and their associated rates. Because of the online nature of their business they have less paperwork for you to fill out and the strictest privacy policy in the banking industry.

When you are looking for the rates on an E-Loan online savings account, you will typically run across two different rates. The first is the rate for the basic online savings account. This account requires a $10,000 minimum balance and had an annual interest yield of 1.1%, as of February 12th 2010.

This rate does fluctuate with the market so the current rate that is being offered could be higher or lower. If the balance falls below the minimum then you may not be eligible to earn interest or there may be fees associated with the account until it is brought back to the minimum balance. There are typically very few fees with E-Loan online savings account, but all of the fees will be disclosed to you before you open the account.

E-Loan also recently began offering an online savings CD account that has a significantly higher interest rate of 5.5%. While this is a very lofty interest rate, you should note that this is typically only offered as an introductory rate that usually drops to around 2.6% annual percentage yield. This is higher than the traditional online savings account and has the same $10,000 minimum balance.

There are also no fees associated with the online CD savings account, even inactivity or low balance fees. However, there are a few drawbacks to the CD account over the savings account. First is that if the balance falls below $500 for more than 90 days the banks reserves the right to close the account.

Also, you typically have less access to your money with this kind of account and may lose the high interest rate for debiting the account too often. Weigh both of these options carefully before deciding which E-Loan online savings account rates is right for you.