E*TRADE from Morgan Stanley
ETRADE Bank is a subsidiary of ETRADE Financial Group, which is a publicly traded (NASDAQ:ETFC) institution, and offers a narrow selection of depository products and loans. The bank offers an Internet-driven approach to depository banking, but also has retail centers in metropolitan areas across the United States. The ETRADE name is widely known as an active stock and bond trading platform accessible to everyday consumers and investors, and therefore positions its checking account offering as a tool to use moving funds back and forth to trading accounts. The bank offers free quick money transfers between accounts to facilitate this operation.
There are no savings, money market, or CD accounts offered by the bank, but on its lending side there is access to mortgage and refinance loans. The sole checking account offer could also be used by itself as a way for consumers to conveniently bank online. It comes with a free Visa debit card, free Bill Pay services, and free ATM refunds on any ATM used to withdrawal money from the account. There is no monthly service fee on this checking account as long as customers obey minimum account balance requirements, which tend to be higher than average.
ETRADE Bank online banking offers consumers a sophisticated platform on which customers can manage their accounts. Free fund transfers, bill pay, account management, and access to investing opportunities are all features of the bank’s web-based system. ETRADE also gives complete protection guarantee that prevents customers from being financially responsible for any unauthorized use of their accounts. ETRADE’s mobile banking apps offer comprehensive features unlike many other apps in the banking world. Barcode scanning allows investors to instantly turn their material receipts into company research; educational videos, including CNBC video on demand, are available for learning purposes; performance charts offer investors tangible metrics right on their smartphones. In addition to these trading functions, the mobile apps offer easy account management, Bill Pay, and fund transfers for banking customers.
ETRADE Bank was originally established in 1933 as the Metropolitan Federal Savings and Loan Association. In 1989 it changed its organization type to a stock savings bank and changed its name to the Metropolitan Bank for Savings. In 2001 the bank changed its name for the last time to ETRADE. Its headquarters are in Arlington, Virginia, where it was originally established.
Long Time Customer
I have been a satisfied E*trade customer for over 10 years. A few years back I moved my ROTH over from Vanguard. With this I received contact from a Financial Consultant, who to this day remains a personal contact if I have any issues whatsoever. I appreciate the decent savings rate and availably of a free checking account as well. I consider this one of the better online trading platforms out there.
Pretty Good, Poised To Improve
This is one of the best trading platforms, and if you're a retail investor in the options market, depending upon your focus, it might be the best.
As a bank, it's better than many alternatives for me because the people in customer support, when you can reach them, are actually financial professionals. There are also a handful of bricks and mortar locations near me because I live in a megalopolis.
What looms is the further integration of E*TRADE with parent company Morgan Stanley, which is arguably the best bank in America. It's very bank.
I honestly am losing interest in trading options, the market is getting gamed in ways that are frustrating and not justifiable on valuations, and am looking for other brokerage features. But I am very enthusiastic about the MS merger and wouldn't have taken as close a look at the company had it not happened that they bought my very good brokerage firm. Morgan Stanley is an excellent company.
Worst Banking Experience Ever
I opened both checking and savings accounts with ETrade Bank (Morgan Stanley Private Bank) and initially funded the accounts via ACH transfer from Alliant Credit Union on 6/24/24. I then attempted to transfer additional funds into my Etrade account via the same transfer facility that I used to open the account. ETrade Bank reversed this transfer without explanation and put a hold on my account. I attempted this multiple times to no avail. When I called to find out what was going on they told me that a hold was on the account. They had no explanation for why. Since I had also transferred my mortgage and car payments over for direct draft payment from this new account, this hold caused both of those payments to be rejected, which cost me almost $200 in reversed payment fees and interest.
After working with them, they said they removed the hold. Then I attempted to transfer money again, which was reversed again. I also attempted to deposit checks via mobile deposit which failed so I Fedexed the checks to them and they returned them without depositing.
After all of this, I called to close the accounts and have my money wired back to my original bank. They refused. They said there was a hold on the account but they wouldn't tell me why. They refuse to give me access to my money or return it or close the account. They told me that they are "investigating" but that I won't get a response for 7 to 10 business days. This is literally fraud. They have thousands of dollars of my money, they refuse to give me access to it, and they refuse to give it back.
Roach Motel Bank
E*TRADE's eagerness to accept deposits is matched only by their reluctance to release them. In my experience, they only seem to perform Know Your Customer (KYC) checks when a customer wants to withdraw a significant amount of money. This can be incredibly frustrating, as it can lead to unnecessary delays in getting your money back.
When I attempted to withdraw some money to an external bank, E*TRADE locked my account and demanded that I upload various documents, including my driver's license, social security card, and linked bank statements. I asked if redacted statements would be sufficient, and they said yes.
Despite this, E*TRADE never unlocked my account. Instead, closed my account and accused me of doctoring financial statements, referring to the redactions that they had previously approved. They then refused to refund my balance through traditional methods like ACH, check, or wire transfer. Instead, they demanded that I file Regulation E ACH disputes with every bank I had made deposits with. Otherwise, E*TRADE would hold onto my funds indefinitely. This was an incredibly frustrating experience, and despite providing ample evidence to prove my innocence, they still found me guilty of fraud.
This experience is concerning for anyone considering using E*TRADE. The company has a high false positive rate for fraud, and is unwilling to reconsider their decision, even when presented with mountains of evidence to the contrary. Even if they do reconsider, it will take them weeks to review the documentation you submit. Meanwhile, money important to you will be locked up by E*TRADE.
Moreover, their customer support has deteriorated significantly due to the pandemic, meme stock clients, and the Morgan Stanley acquisition. E*TRADE is now extremely understaffed and poorly trained, which only adds to the frustration of dealing with them.
For those who want to bank and invest with a single institution, Schwab and Fidelity are both better options than E*TRADE. In every way I have been able to observe, these two institutions are more reliable, efficient, and customer-friendly than E*TRADE. I would highly recommend avoiding E*TRADE altogether.
Remote Check Deposit NOT AVAILABLE
Long time Etrade customer and can no longer deposit paper checks that I occasionally receive. This is a necessary tool and feature on the etrade app but it doesn't work. Etrade needs to fix the app so it will upgrade and work on your mobile device to allow depositing of checks. The latest etrade app upgrade does not work. Fix it ASAP!
Data as of Q1 2025
Health Grade Components
| Overall | |
|---|---|
| FDIC Certificate # | 34221 |
| Year Established | 1996 |
| Employees | 1359 |
| Primary Regulator | OCC |
| Profit Margin | |
|---|---|
| Return on Assets - YTD | 1.02% |
| Return on Equity - YTD | 13.05% |
| Annual Interest Income | $2.31B |
| Assets and Liabilities | ||
|---|---|---|
| Assets | Q1 2025vs Q1 2024 | $223.8B$202.8B |
| Loans | Q1 2025vs Q1 2024 | $149.6B$134.5B |
| Deposits | Q1 2025vs Q1 2024 | $203.6B$184.3B |
| Equity Capital | Q1 2025vs Q1 2024 | $17.75B$16.41B |
| Loan Loss Allowance | Q1 2025vs Q1 2024 | $374MM$282MM |
| Unbacked Noncurrent Loans | Q1 2025vs Q1 2024 | $472MM$391MM |
| Real Estate Owned | Q1 2025vs Q1 2024 | $5MM$0 |