Online Banks Offer Highest Savings Rates

Includes: BPOP, C, CFC, ETFC, WMIH
by: David Jackson

Excerpt from our One Page Annotated Wall Street Journal Summary (please note that Seeking Alpha is not affiliated with The Wall St. Journal):

E-Loan to Announce Savings Account Paying 5.5%

Summary: E-Loan, owned by Popular Inc. (NASDAQ:BPOP), will today announce an online savings account paying 5.5%. That compares to savings rates of 5.25% for Amboy Direct, 5.26% for AmTrust Direct, and 5.25% for Countrywide Bank -- owned by Countrywide Financial Corp (CFC). EverBank Financial will offer a 3-month promotional rate of 6.01% starting next week, and E*Trade Financial (NYSE:ET) is offering a $50 bonus to select customers. Traditional banks Washington Mutual (NYSE:WM) and Citigroup (NYSE:C) also offer high rates for online savings accounts but require linkage to checking accounts. Research firm Celent LLC predicts that 19% of total core deposits will be in online savings accounts by 2010, versus 2% this year.
Related links: Full WSJ article • E-Loan's websiteOnline Brokerages Taking Share from Banks, Despite Price CutsInternet Competition Hits the Regional Banks • Conference call transcripts: E*Trade's July 19th Earnings CallE-LOAN Discusses Marketing and Home Equity Loans (E-Loan 2Q05 conf call quotes, before E-Loan's acquisition by Popular).

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