Dedicated to Deposits: Deals, Data, and Discussion

Update on TIAA Direct and Its Online Savings Accounts

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TIAA Direct

Many DA readers who had opened an account at TIAA Direct have been waiting for TIAA Direct to allow beneficiaries. Last month I was told by my TIAA Direct contact that they are still working on it. Yesterday, a reader forwarded me a reply she recently received from a TIAA Direct CSR regarding this issue (hat tip to the reader). According to the CSR, they will start allowing beneficiaries in December 2012. Below is an excerpt of this reply:

We recognize the importance of allowing our customers to designate beneficiaries for their TIAA Direct deposit accounts, and this is one of our current top-priority items. We are working with our production team to ensure that all processes are in place and functioning properly before we make this capability available to our customers. We expect that you will be able to add one or more beneficiaries to your TIAA Direct deposit accounts December 2012 and we can contact you as soon as this functionality becomes available.

I'm not sure why this is taking so long. Customers have been waiting for this since February.

At first TIAA Direct accounts were limited to TIAA-CREF employees, but before the end of February 2012, TIAA Direct was allowing anyone in the nation to apply.

In July TIAA Direct stopped accepting new customers for its bank accounts. This continues to be the case as of today (10/8/2012). They continue to claim that this was just a pilot of TIAA Direct, and before moving on to the next phase, they "will be making enhancements to the customer experience." I wonder if this next phase may take place in December.

Even though new customers can't apply, there were no changes for existing customers. TIAA Direct's savings and money market accounts still have a 1.25% APY as of 10/8/2012. Except for the beneficiary issue, DA readers have reported being happy with their TIAA Direct accounts. One reader wrote the following comment in September:

Loving my TIAA Direct savings account. Web site works well, so does online check deposit; transfers and deposits are very quickly credited and available (like, next working day).

Hopefully, TIAA Direct customers will soon be able to add beneficiaries, and new customers will be able to apply. Until that time, you can find savings and money market accounts with top rates that are available now in our savings account table and money market account table. Most internet banks allow customers to designate beneficiaries. One of the rare exceptions is ING DIRECT which still doesn't allow customers to designate beneficiaries.

  Tags: TIAA Direct, savings account, money market accounts

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Comments
5 comments.
Comment #1 by CapitalClimate (anonymous) posted on
CapitalClimate
They have also promised to add trust accounts, but no date has been announced.

7
Comment #2 by Interested Party (anonymous) posted on
Interested Party
I'm interested to see the newer changes that are coming. I hope they fix a cosmetic flaw on the website that can be found when transfering money. The flaw is that the menu bar at the top gets a little wonky once you are in the transfer money section, but other than that, I'm satisfied with the service. I really hope that they do not reduce the interest rate come the next big upgrade. I'm running out of places to stash some of my cash. ;)

1
Comment #3 by Anonymous posted on
Anonymous
They keep snail-mailing me monthly statements. Do you know of a way to opt out?

1
Comment #5 by Dalo (anonymous) posted on
Dalo
 1.00% APY as of 1/11/2013

1