E*TRADE Bank Review [2025]: Big Interest, Free ATMs, but Is It Worth It?

Who is E*TRADE banking right for?

E*TRADE banking is for anyone who wants their money to work for them and earn a high rate of interest. With 3.00% APY on its Max-Rate Checking¹ <p>As of 04/30/2025, the Annual Percentage Yield (APY) of the Max-Rate Checking Account is 3.00%. Your interest rate and APY may change at any time and fees may reduce earnings. Please visit <a href="http://etrade.com/ratesheet">etrade.com/ratesheet</a> for information regarding this account's current interest rate and corresponding APY.</p><br> <p class="">The $15 monthly account fee can be waived when you maintain an average monthly balance of at least $5,000 in the account on or after the end of the second calendar month from opening the account.</p> and 4.00% APY on its Premium Savings account,² <p>As of 04/30/2025, the Annual Percentage Yield (APY) of the Premium Savings Account offered by Morgan Stanley Private Bank, National Association, Member FDIC is 4.00%. Your interest rate and APY may change at any time and fees may reduce earnings. Please visit <a href="http://etrade.com/ratesheet">etrade.com/ratesheet</a> for information regarding this account's current interest rate and corresponding APY.</p> ³ <p>The Premium Savings Account gives Morgan Stanley Private Bank, National Association, Member FDIC the ability to send any amount held on deposit in your Premium Savings Account to other depository accounts at Federal Deposit Insurance Corporation ("FDIC") member banks with the purpose of affording you additional FDIC insurance coverage. It is designed to offer up to $500,000 in FDIC coverage to individual accounts (up to $1 million for joint accounts). Certain conditions must be met. <a href="https://us.etrade.com/l/f/agreement-library/premium-savings-bank-deposit-program">Learn more</a>.</p> E*TRADE offers some of the highest APYs available.

Banking with E*TRADE is also a good choice if you want to avoid paying ATM fees. The company doesn't charge its own ATM fees, and it will reimburse any third-party ATM fees if you have an E*TRADE Checking or Max-Rate Checking account.

Earn 3.00% APY With This Powerful Checking Account

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Max-Rate Checking Benefits

• Earn 3.00% Annual Percentage Yield¹ <p>As of 04/30/2025, the Annual Percentage Yield (APY) of the Max-Rate Checking Account is 3.00%. Your interest rate and APY may change at any time and fees may reduce earnings. Please visit <a href="http://etrade.com/ratesheet">etrade.com/ratesheet</a> for information regarding this account's current interest rate and corresponding APY.</p><br> <p class="">The $15 monthly account fee can be waived when you maintain an average monthly balance of at least $5,000 in the account on or after the end of the second calendar month from opening the account.</p> with Max-Rate Checking
• No transaction fees and ATM fee refunds worldwide⁴ <p>With Max-Rate Checking, Morgan Stanley Private Bank, National Association (“Morgan Stanley Private Bank”) will not charge you a fee for withdrawing funds from any institution’s ATM but the owner/operator of the ATM may charge a fee. In those cases, we will refund ATM fees charged worldwide. For additional information and important details about how the ATM fee refund will be applied, please visit the <a href="https://us.etrade.com/bank/bank-rates">etrade.com/ratesheet</a> for more details.</p> ⁵ <p class="">Morgan Stanley Private Bank may impose a charge equal to 1% of the transaction amount (including credits and reversals) for non-U.S. currency transactions charged depending on your account type.&nbsp; Refer to the <a href="https://us.etrade.com/l/f/agreement-library/bank-rate-fee-schedule?vanity=rateandfee">etrade.com/rateandfee</a> for more details.</p>
• FDIC insured up to applicable limits⁶ <p>Deposits held in checking accounts are FDIC insured up to $250,000. <a href="https://www.fdic.gov/resources/deposit-insurance/financial-products-insured">Learn more</a>.</p>
• Waive the $15 monthly account fee when you maintain an average account balance of $5,000

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Click here to open a Max-Rate Checking account

E*TRADE bank accounts

E*TRADE offers its banking products through Morgan Stanley Private Bank, a subsidiary of its parent company, Morgan Stanley. It offers a Checking account, a Max-Rate Checking account (its high-yield checking option), a high-yield Premium Savings account, and Certificates of Deposit (CDs) with terms of six, 9, 12, 18, 24, 36, and 60 months. As a member of the FDIC, all E*TRADE accounts are FDIC-insured.

Max-Rate Checking

• Monthly account fee: $15 for accounts with average monthly balances under $5,000
• FDIC insurance: Yes, to at least $250,000⁶ <p>Deposits held in checking accounts are FDIC insured up to $250,000. <a href="https://www.fdic.gov/resources/deposit-insurance/financial-products-insured">Learn more</a>.</p>
• APY: 3.00%

E*TRADE's Max-Rate Checking account has perhaps the highest APY offered on any checking account. At 3.00% APY, it is also higher than many high-yield savings accounts. However, you will have to pay the $15 monthly fee to take advantage of this high interest rate unless you have at least $5,000 in your account. Then the fee is waived.

But that monthly fee may be worth it because the Max-Rate Checking account has many other perks. Those perks include waived fees for foreign transactions and insufficient funds, as well as no ATM fees.⁴ <p>With Max-Rate Checking, Morgan Stanley Private Bank, National Association (“Morgan Stanley Private Bank”) will not charge you a fee for withdrawing funds from any institution’s ATM but the owner/operator of the ATM may charge a fee. In those cases, we will refund ATM fees charged worldwide. For additional information and important details about how the ATM fee refund will be applied, please visit the <a href="https://us.etrade.com/bank/bank-rates">etrade.com/ratesheet</a> for more details.</p> You're even reimbursed for third-party ATM fees for transactions worldwide.

Visit Max-Rate Checking

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Max-Rate Checking - 3.00% Annual Percentage Yield¹ <p>As of 04/30/2025, the Annual Percentage Yield (APY) of the Max-Rate Checking Account is 3.00%. Your interest rate and APY may change at any time and fees may reduce earnings. Please visit <a href="http://etrade.com/ratesheet">etrade.com/ratesheet</a> for information regarding this account's current interest rate and corresponding APY.</p><br> <p class="">The $15 monthly account fee can be waived when you maintain an average monthly balance of at least $5,000 in the account on or after the end of the second calendar month from opening the account.</p>

No transaction fees and ATM fee refunds worldwide.⁴ <p>With Max-Rate Checking, Morgan Stanley Private Bank, National Association (“Morgan Stanley Private Bank”) will not charge you a fee for withdrawing funds from any institution’s ATM but the owner/operator of the ATM may charge a fee. In those cases, we will refund ATM fees charged worldwide. For additional information and important details about how the ATM fee refund will be applied, please visit the <a href="https://us.etrade.com/bank/bank-rates">etrade.com/ratesheet</a> for more details.</p> ⁵ <p class="">Morgan Stanley Private Bank may impose a charge equal to 1% of the transaction amount (including credits and reversals) for non-U.S. currency transactions charged depending on your account type.&nbsp; Refer to the <a href="https://us.etrade.com/l/f/agreement-library/bank-rate-fee-schedule?vanity=rateandfee">etrade.com/rateandfee</a> for more details.</p> FDIC insured up to the applicable limits.⁶ <p>Deposits held in checking accounts are FDIC insured up to $250,000. <a href="https://www.fdic.gov/resources/deposit-insurance/financial-products-insured">Learn more</a>.</p> Waive the $15 monthly account fee when you maintain an average account balance of $5,000.

Open Account

Checking

• Monthly account fee: None
• FDIC insurance: Yes, of at least $250,000
• APY: 0.05%

There's nothing really exciting about E*TRADE's checking account. It's nice that it doesn't have monthly fees, transaction fees, or minimum deposit requirements. You also get ATM fees refunded from transactions made throughout the U.S. On the plus side, the account earns a small amount of interest at 0.05%.

All E*TRADE checking accounts come with Coverdraft Protection, which is basically overdraft protection. With Coverdraft, funds are automatically transferred from one of your other bank accounts to cover insufficient transactions. However, you must have another account, like an E*TRADE Premium Savings account, linked for the transfers.

Premium Savings Account

• Monthly account fee: None
• FDIC insurance: Yes, up to $500,000³ <p>The Premium Savings Account gives Morgan Stanley Private Bank, National Association, Member FDIC the ability to send any amount held on deposit in your Premium Savings Account to other depository accounts at Federal Deposit Insurance Corporation ("FDIC") member banks with the purpose of affording you additional FDIC insurance coverage. It is designed to offer up to $500,000 in FDIC coverage to individual accounts (up to $1 million for joint accounts). Certain conditions must be met. <a href="https://us.etrade.com/l/f/agreement-library/premium-savings-bank-deposit-program">Learn more</a>.</p>
• APY: 4.00%

E*TRADE's Premium Savings account earns a competitive 4.00% APY, which is about nine times the national average. There are no monthly account fees and no minimum deposits required. You can also transfer money to and from another E*TRADE account or outside financial institutions at no cost.

This savings account is also FDIC-insured for up to $500,000, twice the amount of the standard deposit insurance amount of $250,000. This may be attractive for those who have significant savings.

Visit Premium Savings

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Premium Savings - 4.00% Annual Percentage Yield² <p>As of 04/30/2025, the Annual Percentage Yield (APY) of the Premium Savings Account offered by Morgan Stanley Private Bank, National Association, Member FDIC is 4.00%. Your interest rate and APY may change at any time and fees may reduce earnings. Please visit <a href="http://etrade.com/ratesheet">etrade.com/ratesheet</a> for information regarding this account's current interest rate and corresponding APY.</p>

For a limited time, earn a cash bonus up to $750. Terms Apply.⁸ <p class="">To be eligible for this offer, you must apply promo code SAVE25 at the time of account opening.&nbsp; This promotional code is intended for single use only and is non-transferable.</p><br> <p class="">This offer is only valid for a new Premium Savings Account.&nbsp; This offer is not valid for Checking, Max-Rate Checking or line of credit, or other accounts that we or our affiliates offer.&nbsp; IRA and non-IRA accounts are ineligible.&nbsp; This offer is only eligible to one new opened and funded Premium Savings Account (PSA) within 30 days.&nbsp; Excludes non-U.S. residents, and residents of any jurisdiction where this offer is not valid.</p><br> <p class="">Customers may only be enrolled in one offer at a time.&nbsp; Cannot be combined with any other offers.&nbsp; Each customer is limited to a lifetime maximum of two new Premium Savings Account offers.</p><br> <p class="">Other restrictions may apply. Offer may be removed at any time.</p> FDIC insured up to $500,000³ <p>The Premium Savings Account gives Morgan Stanley Private Bank, National Association, Member FDIC the ability to send any amount held on deposit in your Premium Savings Account to other depository accounts at Federal Deposit Insurance Corporation ("FDIC") member banks with the purpose of affording you additional FDIC insurance coverage. It is designed to offer up to $500,000 in FDIC coverage to individual accounts (up to $1 million for joint accounts). Certain conditions must be met. <a href="https://us.etrade.com/l/f/agreement-library/premium-savings-bank-deposit-program">Learn more</a>.</p> once certain conditions have been satisfied. No minimum initial deposit,⁹ <p class="">No minimum initial deposit is required to open an account.&nbsp; However, account must be funded within 30 days to remain open.</p> and no monthly account fees.

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Certificates of Deposit

• Monthly account fee: None
• FDIC insurance: Yes, up to $250,000
• APY: Up to 4.15%

With an E*TRADE Certificate of Deposit (CD), you can earn as much as a 4.15% APY without having to leave your money out of reach for over a year. You can get this rate on CDs for six months, 9 months, or a year. The rates decrease slightly for CDs with terms over a year.

There are no monthly fees, and interest compounds daily on E*TRADE CDs. There are also no minimum deposit requirements for an E*TRADE CD, and they are FDIC-insured.

Is E*TRADE a good bank?

E*TRADE offers impressive APYs on essential products, and it's a well-established company. The company does fall below average for overall customer satisfaction on the J.D. Power 2025 U.S. Direct Banking Satisfaction Study, though. It scored 676 on a 1,000-point scale, where the average score was 692.

In reviews, customers have noted a decline in customer service after E*TRADE was purchased by Morgan Stanley in 2020. This likely won't affect you if you primarily bank online, though.

Overall, if I had a brokerage account with E*TRADE or kept enough in checking to get the fee waived on the Max-Rate account, I'd definitely consider it. And all accounts are FDIC-insured.

Alternatives to E*TRADE

SoFi Checking and Savings

As a fintech company, SoFi has features that are common for online financial companies, such as no monthly fees,¹⁰ <p>We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Checking & Savings Fee Sheet for details at <a href="http://sofi.com/legal/banking-fees/">sofi.com/legal/banking-fees/</a></p> high APYs, and the ability to get paid up to two days early with direct deposit.¹¹ <p>Early access to direct deposit funds is based on the timing in which we receive notice of impending payment from the Federal Reserve, which is typically up to two days before the scheduled payment date, but may vary.</p>

I recently switched to SoFi to get away from all the fees my credit union was charging and earn higher interest on my money. At the time, I was attracted by the high up to 3.80% APY on savings and 0.50% (as of 01/24/25) APY on checking.¹² <p>SoFi members who enroll in SoFi Plus with Eligible Direct Deposit or by paying the SoFi Plus Subscription Fee every 30 days or SoFi members with $5,000 or more in Qualifying Deposits during the 30-Day Evaluation Period can earn 3.80% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. Members without either SoFi Plus or Qualifying Deposits, during the 30-Day Evaluation Period will earn 1.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of 1/24/25. There is no minimum balance requirement. If you have satisfied Eligible Direct Deposit requirements for our highest APY but do not see 3.80% APY on your APY Details page the day after your Eligible Direct Deposit arrives, please contact us at 855-456-7634. Additional information can be found at <a href="http://www.sofi.com/legal/banking-rate-sheet">http://www.sofi.com/legal/banking-rate-sheet</a>. See the SoFi Plus Terms and Conditions at <a href="https://www.sofi.com/terms-of-use/#plus">https://www.sofi.com/terms-of-use/#plus</a>.</p> However, to be eligible for the high yield on its savings account, you have to set up direct deposit or pay $10 per month for SoFi Plus.

As a freelancer, I don't earn a regular paycheck, so I'd have to pay the monthly fee, which I'm not sure is worth it. That's why E*TRADE sounds like an attractive alternative for me. SoFi also doesn't reimburse for third-party ATM fees.

Visit SoFi's Checking and Savings account | Read our SoFi review

Discover Cashback Debit

Discover's Cashback Debit checking account doesn't earn interest, but you can earn 1.00% cash back on debit card purchases up to $3,000 per month.¹³ <p>Earn 1% cash back on up to $3,000 in debit card purchases each month. See Deposit Account Agreement for details on transaction eligibility, limitations and terms. Deposit Account Agreement can be found at <a href="https://www.discover.com/content/dam/dfs/online-banking/documents/NationalDepositAccountAgreement.pdf">https://www.discover.com/content/dam/dfs/online-banking/documents/NationalDepositAccountAgreement.pdf</a>.</p> That's potentially an extra $30 in your pocket each month, which is better than nothing. Discover also provides a high-yield savings account that earns 3.60% APY., but it doesn't reimburse third-party ATM fees.

Visit Discover's Cashback Debit account | Read our Discover review

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2025 award winner Best Checking and Savings Combo

SoFi Checking & Savings - Earn Up to $300 When You Set Up Direct Deposit

Earn up to 3.80% APY¹² <p>SoFi members who enroll in SoFi Plus with Eligible Direct Deposit or by paying the SoFi Plus Subscription Fee every 30 days or SoFi members with $5,000 or more in Qualifying Deposits during the 30-Day Evaluation Period can earn 3.80% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Eligible Direct Deposit amount required to qualify for the stated interest rate. Members without either SoFi Plus or Qualifying Deposits, during the 30-Day Evaluation Period will earn 1.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of 1/24/25. There is no minimum balance requirement. If you have satisfied Eligible Direct Deposit requirements for our highest APY but do not see 3.80% APY on your APY Details page the day after your Eligible Direct Deposit arrives, please contact us at 855-456-7634. Additional information can be found at <a href="http://www.sofi.com/legal/banking-rate-sheet">http://www.sofi.com/legal/banking-rate-sheet</a>. See the SoFi Plus Terms and Conditions at <a href="https://www.sofi.com/terms-of-use/#plus">https://www.sofi.com/terms-of-use/#plus</a>.</p> and collect up to a $300 cash bonus with direct deposit or $5,000 or more in qualifying deposits.¹⁴ <p>New and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus of either $50 (with at least $1,000 total Eligible Direct Deposits received during the Direct Deposit Bonus Period) OR $300 (with at least $5,000 total Eligible Direct Deposits received during the Direct Deposit Bonus Period). Cash bonus will be based on the total amount of Eligible Direct Deposit. If you have satisfied the Eligible Direct Deposit requirements but have not received a cash bonus in your Checking account, please contact us at 855-456-7634 with the details of your Eligible Direct Deposit. Direct Deposit Promotion begins on 12/7/2023 and will be available through 1/31/2026. Full terms at <a href="https://www.sofi.com/banking/">sofi.com/banking</a>. SoFi Checking and Savings is offered through SoFi Bank, N.A., Member FDIC.</p><p>SoFi members with Eligible Direct Deposit can earn 3.80% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Eligible Direct Deposit amount required to qualify for the 3.80% APY for savings (including Vaults). Members without Eligible Direct Deposit will earn 1.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of 1/24/25. There is no minimum balance requirement.&nbsp;Additional information can be found at <a href="http://www.sofi.com/legal/banking-rate-sheet" >http://www.sofi.com/legal/banking-rate-sheet</a>.</p> Limited-Time Offer: +0.20% Boost on Savings APY for 6 months on new accounts with Direct Deposit. Terms Apply.¹⁵ <p>Earn up to 4.00% Annual Percentage Yield (APY) on SoFi Savings with a 0.20% APY Boost (added to the 3.80% APY as of 6/10/25) for up to 6 months. Open a new SoFi Checking &amp; Savings account and enroll in SoFi Plus by 6/24/25. Rates variable, subject to change. Terms apply at <a href="https://www.sofi.com/banking/#2">sofi.com/banking#2</a>. SoFi Bank, N.A. Member&nbsp;FDIC.</p> FDIC Insured.¹⁶ <p><b style="font-family: Rubik, -apple-system, BlinkMacSystemFont, &quot;Segoe UI&quot;, Roboto, &quot;Helvetica Neue&quot;, Arial, sans-serif;">SoFi Bank is a member FDIC and does not provide more than $250,000 of FDIC insurance per depositor per legal category of account ownership, as described in the FDIC’s regulations.&nbsp;Any additional FDIC insurance is provided by the SoFi Insured Deposit Program. Deposits may be insured up to $3M through participation in the program. See full terms at&nbsp;<a href="http://sofi.com/banking/fdic/sidpterms">SoFi.com/banking/fdic/sidpterms</a>. See list of participating banks at <a href="http://sofi.com/banking/fdic/participatingbanks">SoFi.com/banking/fdic/participatingbanks</a>.</b></p>

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2025 award winner Best Online Checking Account

Discover® Cashback Checking

Earn 1% cash back on up to $3,000 in debit card purchases each month.¹⁷ <p>See website for details.</p> No minimum deposit or balance. FDIC Insured.

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FAQs

Bottom line

E*TRADE offers standout interest rates, zero ATM fees (with reimbursements), and no minimum balance requirements, making it a compelling option for those who want more from their banking experience. The Premium Savings account, with its 4.00% APY and $500,000 in FDIC insurance, is especially appealing if you're looking to grow your money safely. Its Max-Rate Checking offers one of the highest APYs available for a consumer checking account.

However, is it worth dealing with E*TRADE's less-than-stellar customer service reputation and the $15 monthly fee on the Max-Rate Checking account for balances under $5,000? If you value high returns and rarely need to call customer support, the benefits may outweigh the drawbacks.

Before you decide, take a close look at your own banking habits and needs. If high-yield accounts and ATM freedom are top priorities, then it may be worth giving E*TRADE banking a try. But if personalized customer service or fee-free flexibility without balance requirements matter most to you, you may want to go with a different option.

Learn More

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Earn 3.00% Annual Percentage Yield¹ <p>As of 04/30/2025, the Annual Percentage Yield (APY) of the Max-Rate Checking Account is 3.00%. Your interest rate and APY may change at any time and fees may reduce earnings. Please visit <a href="http://etrade.com/ratesheet">etrade.com/ratesheet</a> for information regarding this account's current interest rate and corresponding APY.</p><br> <p class="">The $15 monthly account fee can be waived when you maintain an average monthly balance of at least $5,000 in the account on or after the end of the second calendar month from opening the account.</p> with Max-Rate Checking

No transaction fees and ATM fee refunds worldwide⁴ <p>With Max-Rate Checking, Morgan Stanley Private Bank, National Association (“Morgan Stanley Private Bank”) will not charge you a fee for withdrawing funds from any institution’s ATM but the owner/operator of the ATM may charge a fee. In those cases, we will refund ATM fees charged worldwide. For additional information and important details about how the ATM fee refund will be applied, please visit the <a href="https://us.etrade.com/bank/bank-rates">etrade.com/ratesheet</a> for more details.</p> ⁵ <p class="">Morgan Stanley Private Bank may impose a charge equal to 1% of the transaction amount (including credits and reversals) for non-U.S. currency transactions charged depending on your account type.&nbsp; Refer to the <a href="https://us.etrade.com/l/f/agreement-library/bank-rate-fee-schedule?vanity=rateandfee">etrade.com/rateandfee</a> for more details.</p>

FDIC insured up to applicable limits⁶ <p>Deposits held in checking accounts are FDIC insured up to $250,000. <a href="https://www.fdic.gov/resources/deposit-insurance/financial-products-insured">Learn more</a>.</p>

Waive the $15 monthly account fee when you maintain an average account balance of $5,000