E-Trade is running a decent promotion for anyone looking to sign up for a new IRA account. Currently, new IRA account holders are earning up to $600 after opening a new account or transfering an existing retirement account over to them.
Break down of bonus money:
- Transfer between $25,000 and $99,999 in assets and receive $100.
- Transfer between $100,000 and $249,999 in assets and receive $300.
- Transfer $250,00 or more and receive $600.
While this is a respectable offer, you may want to compare the cash bonuses associated with new IRA accounts from various other brokerages as well. (Comparison chart below.)
The “free” money may sound nice but when you look at the amount(s) required to earn it, it’s a pretty tiny percentage. We would recommend finding the brokerage with the right tools, and services tailored to your individual needs. What do you fill your IRA with – stocks, bonds, mutual funds, bank CDs? Figure out what you need your account to do and which brokerages provide the best solution for you. You can then sign-up with that particular institution’s promotional offer since most put at least some incentive on the table for new clients.
One of the biggest pluses I’ve found with an E-Trade retirement account is the ability to purchase U.S Treasury bonds for free. The only other brokerage houses I know of that offers this are Charles Schwab and Fidelity. The rest of the major online brokerage firms impose transaction fees of between $5.99 and $15 (typically). And since BankVibe.com is all about helping our readers find lucrative yet conservative, income-based investments, this feature was very appealing.
About E-Trade’s Ira Account:
We’ve all seen the commercials featuring the comical babies giving financial advice via their webcam, but it’s nice to see E-Trade giving back to their customers with their monster marketing budget rather than simply pumping out more and more commercials.
As far as customer service and website usability goes, we think E-Trade and their retirement account interface is on par with some of the other major online banks and brokerages. Their email based customer service is probably the largest negative aspect of the account. It takes quite a while to get a response – very rarely within the 24 hour window they estimate.
Signing-up is easy, here’s what you need:
- 10-12 minutes to complete the application
- U.S. Permanent Residential Address
- Date of Birth
- Social Security number or Tax ID number
- Employer name and address
Compare New IRA Account Promotions and Bonuses Currently Available:
Bonuses and Promotions Available
Go To Offer
|Traditional IRA, Roth IRA, SEP IRA||Trade Free for 60 Days plus get up to $600 in cash||No fees for transferring or setting up IRA. $9.99 fee per trade after 60 day promotional period.|
|Any new IRA account or 401k||$395 in free trades||Lowest brokerage fee on the market at $3.95 per trade. Zero maintenance, set-up or annual fees.|
|Traditional IRA, Roth IRA, SEP IRA||Between $100 – $600 in bonuses depending on IRA value.||$7.99 per trade. Zero maintenance, set-up or annual fees.|
|Traditional IRA, Roth IRA, SEP IRA||No cash bonuses. Average annual earnings for members at 9.64%.||Peer-to-Peer banking with over $400 million in loans and savings. Average returns of 9.50% APY with 28% tax rate.||LendingClub.com|
|Traditional IRA, Roth IRA, SEP IRA||Between $100 – $600 in bonuses depending on IRA value. 150 free trades||$8.95 per trade after 150 free trades are up. No maintenance or annual fees.||Schwab.com|
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