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E-LOAN Updates Policy on External Link Changes

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E-LOAN.com
I just received an email from E-LOAN with the following message:
Good news!

At E-LOAN we are constantly striving to improve your internet banking experience. That is why we have increased the number of times you may change your external linked account.

Before this enhancement, you could only change your external linked account four (4) times a year. Now, you may change it once every thirty (30) days. This allows you to change your external account up to twelve (12) times a year. We hope this feature makes your banking experience with E-LOAN even more convenient!

Please take a moment to review this change to the Savings & CDs: Terms and Conditions, available here: www.eloan.com/s/show/deposits_terms.

This a slight improvement, but now you'll have to wait 30 days between link changes. This could make things worse in some situations. Seems like there's a lot more they could do if they're serious about constantly striving to improve our internet banking experience. First of all, why not allow more than one external link? It would also be nice if they allowed ACH withdrawals initiated from an outside account. Although, I know a few people who prefer this restriction for security reasons.

Looking back at E-LOAN's history, it has been somewhat of a disappointment. I think I prefer what FNBO Direct did by giving us an end-date for the promotional rate. There's no false hopes. When E-LOAN came out with their 5.50% yield (9/26/06), there was hope that this could last for the long term. Instead, it dropped to 5.38% in just over 2 months (12/06/06). Then it dropped again in a little over a month (1/16/07) to its current yield of 5.25%.

For more info on E-LOAN's savings account, please see my E-LOAN savings account review.
  Tags: savings account, E-LOAN.com

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Comments
6 comments.
Comment #1 by SVG (anonymous) posted on
SVG
 
Banking Guy,

>>Looking back at E-LOAN's history, it has been somewhat of a disappointment. I think I prefer what FNBO Direct did by giving us an end-date for the promotional rate. There's no false hopes.<<

Err ... did E-Loan give you any false hopes ? I believe that their disclosure is crystal clear: Savings Accounts are "variable-rate Accounts"---the interest rates and annual percentage yields may change as often as daily at our discretion.


>>When E-LOAN came out with their 5.50% yield (9/26/06), there was hope that this could last for the long term.<<

Well ... one can always hope for the best ... however E-Loan definitely did nothing to cause these hopes (false or otherwise). They disclosed that the APY may change daily.

- SVG
 

1
Comment #2 by HustlerMoney (anonymous) posted on
HustlerMoney
**** E-Loan. They are the strippers of the banking world with their rate teaser.

1
Comment #3 by Weiwen Ng (anonymous) posted on
Weiwen Ng
Banco Popular Puerto Rico, which is E-Loan's parent, is not exactly doing great. It managed to divest its subprime lending operations before things hit the fan, but they've also been pressured by rising rates, which has pushed their net interest margins down very low.

In addition, Banco Popular North America, which is their US branch, is not as efficiently run. I don't think E-Loan is part of BPNA (E-loan was traded on the NASDAQ, but was acquired by Popular), but I still imagine they're trying to cut costs as much as they can - they are a business, after all.

And so, they cut the rates they pay customers. They are still paying fairly good rates - 5.25% beats HSBC. Banco Popular is actually a decent bank, and I'm pretty sure they will recover, but it will take time.

1
Comment #4 by SVG (anonymous) posted on
SVG
 
HustlerMoney,

>>They are the strippers of the banking world with their rate teaser. <<

Why shouldn't we just enjoy the 'show' while it lasts ? *smile* After one show ends, we can move on to another 'show'.


>>They are the strippers of the banking world with their rate teaser. <<

If they are that, then who are we ? Committed-for-life customers ? ... Nope ... I think not ! They want our money to do their business. We want their 'teaser' rate to fill our coffers.

- SVG
 

1
Comment #5 by Anonymous posted on
Anonymous
GMAC and HSBC, and many other banks, don't limit the number of external accounts that can be linked. Banks like E-LOAN, FNBO and Emigrant that restrict the number of accounts, frequency of change, etc. shouldn't be surprised if their customer satisfaction scores plummet after the rate party is over.

1
Comment #6 by Anonymous posted on
Anonymous
thanks for the head up.

1