Update on ETrade Bank and the Transfer of Customers' Savings Accounts
Not all of ETrade Bank's Complete Savings Account customers are being moved to Discover Bank. As I mentioned on February 9th, I and many others received an email from ETrade Bank informing us that our Complete Savings Accounts will be transferred to Discover Bank's Online Savings Accounts on March 7, 2010. I only have the Complete Savings Account, but many readers who also have ETrade's brokerage accounts have reported not being notified of this move. This Chicago Tribune article confirms that ETrade is "selling only accounts that have no ongoing brokerage relationship with the company." I just called ETrade Bank, and the CSR confirmed this. Only some Complete Savings Accounts are being transferred, and all Max-Rate Checking Accounts will remain at ETrade Bank.
As we've seen with ETrade Bank's very low deposit rates, ETrade Bank has been implementing a strategy to reduce its deposits. I just hope customers who have CDs at ETrade Bank don't let them automatically renew. A customer who lets his 1-year CD automatically renew may end up with a 1-year CD paying 0.10% (that's one-tenth of one percent).
I was just going to let my ETrade Complete Savings Account be transferred on March 7th. However, after seeing Jim's post at Bargaineering about how to close an ETrade account, I think I'll just close it before then. I plan to transfer out the remaining balance at ETrade Bank, and then send a secure message instructing them to close the Complete Savings Account.
For me there's no sense in having ETrade Bank transfer the little bit of money that I have in the account to Discover Bank. I don't need a new account there. I just recently opened the Discover Bank online savings account so that I could review Discover's new online banking center. Those who plan to let their accounts be transferred should be relatively happy about Discover Bank. From what I could see, Discover's new account center has all the functionality of ETrade's. The only downside appears to be slower ACH transfers.
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