Tuesday, September 26, 2006

How to Open Your New E-LOAN 5.50% APY Savings Account, Part 1

Author: Nick
Category: Money
Topics: , ,

cracking open one piggy to feed another

My wife: Nick, are you feeling all right?

Me: Of course. Why do you ask?

My wife: It’s just that you haven’t opened a new online savings account in a couple months, and the last time that happened you came down with a mysterious illness that caused you to uncontrollably impersonate 1970s sitcom actors.

Me: What you talkin’ ’bout, Willis?

Yeehaw! It’s that time again. Let’s open yet another online savings account together!

This time, we’ll be doing some banking business with the fine folks at E-LOAN, the internet mortgage lender. As found on the Bank Deals website, they now have a 5.50% APY online savings account similar to those of HSBC (currently 5.05% APY) and Emigrant Direct (currently 5.15% APY). The only caveat with E-LOAN’s savings account is that you need a $5,000 opening balance. Also note that E-LOAN’s rate chart indicates that balances dropping below $5,000 only earn a 5.25% APY–still higher than either HSBC or Emigrant Direct. It appears there are absolutely no fees associated with the E-LOAN savings account.

Enough talk. Let’s get bankin’!

Opening An E-LOAN Savings Account

It’s really, really simple.

  1. Pick your type of account. Go to the application start page. You want a “Savings Account” opened with “5000” (or more). Pick your ownership; I went with individual because there’s an option to add a beneficiary in the next step.
  2. Fill out the application. As usual with internet savings account, you’ll need to fill out an application online that asks for a good amount of personal details. Hopefully you know your name, address, and the like. If not, maybe you should let me hold onto your $5,000.
  3. Supply your other bank account information. Like HSBC and Emigrant Direct, you’ll need an account with another bank that will be linked to your E-LOAN savings account. It’s through that account that you get money to and from your new E-LOAN account. Make sure this account has enough money in it to fund your opening deposit!
  4. Verify that you’ve read the Terms. Just check the first box. Only check the second if the IRS told you to do so.
  5. Double-check and submit! Make sure your information appears correct on the final page. Then hit the big button at the bottom and you’re done with the application!
  6. Verify two small deposits. Also like other internet savings accounts, E-LOAN verifies your external banking account by sending it two small test deposits. After a couple of days, you’ll see those amounts in your external account. Log in to the E-LOAN savings account website with your username, select a security image, provide your password, enter the amounts of those two deposits, and your account is ready for action… well, as much action as money just sitting there gets.

Once my account is open and funded, I’ll write another article detailing anything else that might come up during the account opening process. But so far, this was the easiest time I’ve had opening a savings account online. And at 5.50% APY, E-LOAN has taken the lead from Emigrant Direct in the online savings rate wars.

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