8-K

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                       SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC 20549

                                --------------

                                    FORM 8-K

                                 CURRENT REPORT
                     PURSUANT TO SECTION 13 OR 15(d) OF THE

                         SECURITIES EXCHANGE ACT OF 1934



Date of report (Date of earliest event reported)          June 28, 2001
                                                  -----------------------------


                                  Advanta Corp.
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               (Exact Name of Registrant as Specified in Charter)


        Delaware                        0-14120               23-1462070
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(State or Other Jurisdiction            (Commission          (IRS Employer
        of Incorporation)               File Number)         Identification No.)


        Welsh & McKean Roads,
P.O. Box 844, Spring House, Pennsylvania                          19477
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(Address of Principal Executive Offices)                        (Zip Code)


Registrant's telephone number, including area code        (215) 657-4000
                                                    ----------------------------

- --------------------------------------------------------------------------------
          (Former Name or Former Address, if Changed Since Last Report)



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ITEM 5.    OTHER EVENTS.

           This report is being filed solely for the purpose of filing the
press release included as Exhibit 99.1 to this report.


ITEM 7.    FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS.

           (c)    Exhibits.

           99.1   Press Release dated June 28, 2001.



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                                   SIGNATURES

               Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.


                                                   Advanta Corp.
                                                   ----------------------------
                                                   (Registrant)


Date: June 28, 2001
                                            By:  /s/ Elizabeth H. Mai
                                                -------------------------------
                                                Elizabeth H. Mai
                                                Senior Vice President,
                                                Secretary and General Counsel


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                                 EXHIBIT INDEX




Exhibit             Description                                Method of Filing
- -------             -----------                                ----------------
                                                         
99.1                Press Release, dated June 28, 2001         Filed Electronically Herewith

EX-99.1

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                                                                    EXHIBIT 99.1

David Weinstock
Vice President, Investor Relations
(215) 444-5335
dweinstock@advanta.com

Catherine Reid
Vice President, Communications
(215) 444-5073
creid@advanta.com



                                                        FOR IMMEDIATE RELEASE



              ADVANTA REDUCES DEPOSIT LIABILITIES BY $389.7 MILLION

Spring House, PA, June 28, 2001 - Advanta Corporation (NASDAQ: ADVNB; ADVNA),
capitalizing on its large cash position, announced today that its wholly-owned
subsidiary Advanta National Bank has sold $389.7 million of deposit liabilities
to E*TRADE Bank, a wholly-owned subsidiary of E*TRADE Group, Inc. (NYSE: ET).
"Advanta received more than $1 billion in cash from the sale of our mortgage
business in February. Given our large cash position, removing these deposits
from our balance sheet has many benefits," said William Rosoff, President. "Most
importantly, the deposit sale reduces net interest expense and excess
liquidity."

The Company expects that the sale of deposits will reduce net interest expense
related to the Advanta National Bank portfolio by over $7 million. After
recording a $2.9 million pretax loss on the transaction for the second quarter
of 2001, which is an effective acceleration of net interest expense that
otherwise would have been incurred during future quarters, the net savings to
Advanta will be in excess of $4 million.

The deposit sale also furthers Advanta's previously announced and ongoing plan
to reduce debt. After the closing of the deposit sale, the Company has reduced
debt and deposits by approximately $870 million since March 31, 2001.


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Advanta is a highly focused financial services company which has been providing
innovative financial solutions since 1951. Advanta leverages its first-class
direct marketing and information based expertise to develop state-of-the-art
data warehousing and statistical modeling tools that identify potential
customers and new target markets. Over the past five years, it has used these
distinctive capabilities to become one of the nation's largest issuers of
MasterCard business credit cards to small businesses. Learn more about Advanta
at www.advanta.com.

This Press Release contains forward-looking statements that are subject to
certain risks and uncertainties that could cause actual results to differ
materially from those projected. The most significant among these risks and
uncertainties are factors that may impact the Company's net savings due to the
sale of deposits, including: (1) the Company's managed net interest margin; (2)
interest rate fluctuations; (3) the effects of government regulation, including
restrictions and limitations imposed by banking laws, regulators, examinations,
and the agreements between the Company's bank subsidiaries and their regulators;
(4) the amount and cost of financing available to the Company; and (5) the
ratings on the debt of the Company and its subsidiaries. Additional risks that
may affect the Company's future performance are detailed in the Company's
filings with the Securities and Exchange Commission, including its most recent
Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q.