E-LOAN Checking Account? Plans to Expand Beyond Savings Accounts and CDs
Jan 14, 2007 - 5:16 PM by Ken Tumin
According to this article, E-LOAN is planning to be an online bank that can be a customer's primary bank which likely means that they'll be coming out with a checking account.
In September, they launched an online savings account and online CDs. Hopefully, before they launch a checking account, they'll do some improving of their savings account. It would be nice if they allowed more than one link per account. Also, I hope they made the fixes to prevent a repeat of that November day in which many customers experienced ACH errors. This caused many to have NSF charges from their linked bank account. Many also lost a significant amount of interest. There were promises of compensation for this loss. A reader mentioned to me that he is still waiting.
But even with the problems, E-LOAN continues to be near the top for savings account rates. The rate did drop on December 6th from 5.50% to 5.38% APY. The CD rates were also very competitive when they first launched. However, unlike the savings account rate, their CD rates have declined to the point where they're no longer near the top. Hopefully, the checking account will be able to maintain competitive rates.
Please refer to my E-LOAN savings account overview post or my E-LOAN savings account opening post for more info.
Thanks to the reader who mentioned this article on E-LOAN.
In September, they launched an online savings account and online CDs. Hopefully, before they launch a checking account, they'll do some improving of their savings account. It would be nice if they allowed more than one link per account. Also, I hope they made the fixes to prevent a repeat of that November day in which many customers experienced ACH errors. This caused many to have NSF charges from their linked bank account. Many also lost a significant amount of interest. There were promises of compensation for this loss. A reader mentioned to me that he is still waiting.
But even with the problems, E-LOAN continues to be near the top for savings account rates. The rate did drop on December 6th from 5.50% to 5.38% APY. The CD rates were also very competitive when they first launched. However, unlike the savings account rate, their CD rates have declined to the point where they're no longer near the top. Hopefully, the checking account will be able to maintain competitive rates.
Please refer to my E-LOAN savings account overview post or my E-LOAN savings account opening post for more info.
Thanks to the reader who mentioned this article on E-LOAN.
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Anonymous - #1, Monday, January 15, 2007 - 9:26 PM
I just opened a second E-Loan savings account 10 days ago (yeah, just to get another ACH link) and a very helpful telephone representative told me that E-Loan had read the complaint on this site about how it sends two test deposits AND withdrawals (thus taxing the limit on 3-withdrawal limit money market accounts). In response, E-Loan changed its policy: now it sends 2 test deposits but NO corresponding withdrawals (so I made 64 cents -- yippee -- when I opened my new, 2nd account). He was right; it worked for me, and I opened my second E-Loan account with no problems. I encouraged him to get a "pending transfer" screen up so I can (when doubt troubles my mind) go back and check on whether I executed a "transfer $1000" as opposed to "transfer $10,000" instruction. As for E-Loan's new checking account, I wonder if it'll be a conventional paper checking deal or the somewhat unusual deal that INGdirect.com that offered me (a longstanding customer) last month (sort of an e-check only based scheme as I recall)?
SVG (anonymous) - #2, Tuesday, January 16, 2007 - 4:46 PM
Indeed. A "pending transfer" screen will be helpful.
Can you transfer within your E-Loan accounts?
It would be simpler if they'll add three "linked" accounts, rather than just one.
- SVG
Banking Guy (anonymous) - #3, Tuesday, January 16, 2007 - 5:17 PM
Thanks anonymous for the update. Glad to read they're making improvements. Hopefully, they'll also allow transfers between your E-LOAN accounts or as SVG mentioned allow more than one linked account.
Anonymous - #4, Wednesday, January 17, 2007 - 1:09 AM
Cue bad impression of Howard Cosell: "And down goes E-Loan! DOWN goes E-LOAN!!" Their Money Market Account rate just dropped from 5.38% APY to 5.25% APY. Also, reports from E-LOAN customers posted in the Finance forum at FatWallet.com suggest that the weird and distressing problems with E-LOAN's software for processing Internet transfers (i.e., ACH transactions) have still not been resolved. I'm tempted to withdraw my funds, but I'm worried that they'll mess up the transfer with duplicate entries again. Danger, danger, step away from the E-LOAN.
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