Tuesday, January 15, 2008

e*Trade upside down on Savings Interest

E*Trade is currently paying 5.05% annual percentage rate on Savings. This is nice, but what's interesting about it is that their 6-month CD has an APY of 5 %, which, not to belabor the point, is less. The 1-year and 3-month CDs are at 4.5% and 4.35%, and anything over a year is at 3.75 %.

The longer you commit to their having your money, the less they'll pay you for the privilege. For a regular bank, it goes the other way. E*Trade apparently believes that money will be cheaper the longer they wait. Well, here's hoping.

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