E*TRADE from Morgan Stanley

Overview / Commentary
671 North Glebe Road
Arlington, VA 22203

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.

Related Posts

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2/24/10 - Update on ETrade Bank and the Transfer of Customers' Savings Accounts
2/8/10 - ETrade Super Bowl Commercials - What Happened to ETrade Bank?
1/27/10 - E-Trade reports quarterly net loss of $67 million [MarketWatch]
1/16/10 - Etrade's Lifetime Limits for Adding External Accounts [FW]
10/1/09 - E*TRADE Savings Account Yield Back Up To 5.05% - Bonus and Account Review
3/30/09 - E*TRADE Bank Raises Yield on Complete Savings Account
1/19/09 - E*TRADE Bank - Savings Account Promotion and Account Updates
11/24/08 - E*TRADE Update - Savings Account Promotion and Latest News
7/26/08 - E*TRADE Update - Promotions, Savings and Checking Accounts
6/28/08 - E*TRADE Bank Increases Rate on its Max-Rate Checking Account
6/21/08 - E*TRADE Savings Account Bonus Update
5/8/08 - E*TRADE Raises Complete Savings Account Yield - Start of a New Trend?
5/1/08 - E*TRADE Update - Savings Account Bonus, Financial Health
2/12/08 - E*TRADE Update - Rate Drops, Savings Account Bonus, Financial Health
1/7/08 - New $25 Bonus for E*TRADE Bank's Complete Savings Account
11/12/07 - Worries about E*Trade
8/1/07 - $75 Bonus for ETrade's Max-Rate Checking Account
6/9/07 - ETrade's $25 Savings Account Promo Extended to End of Year
6/8/07 - $25 Sign-Up Bonus for ETrade Bank's 5.05% Savings Account
6/8/07 - ETrade Bank's $25 Sign-Up Bonus Extended for the Complete Savings Account
6/8/07 - Update on ETrade's $25 Savings Account and Checking Account Bonuses
11/16/06 - ETrade's New High Yield Online Savings Account
10/23/06 - Etrade Money Market Account Promo Update - $50 Bonus
9/4/06 - Etrade Money Market Account Promo Update - 5.28% and $50 Bonus
6/23/06 - ETrade Bank Raises CD Rates to New Highs
6/14/06 - Etrade 5% Money Market Promo and $50 Bonus
6/13/06 - New CD Rates at ETrade Bank: 5.40% 6-Month / 5.50% 1-Year
5/3/06 - New ETrade CD Rates - 5.21% 6-Month CD
4/11/06 - 5.10% 6-Month CD at ETrade Bank
3/23/06 - 4.75% Intro Rate and $50 Bonus for ETrade Money Market Account
2/6/06 - $50 Bonus for ETrade Money Market Account
12/7/05 - 4.56% 6-month CD at ETrade Bank
10/31/05 - Big Increase in E*Trade Bank's CD Rates
9/22/05 - $50 Signup Bonus for E*Trade Bank's Money Market Account

Long Time Customer

Posted by: |

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.

A Great Bank

Posted by: |

I have been banking with Etrade for about a year. It has been a welcome relief after dealing with Fidelity brokerage and banking. Etrade customer service actually follows through on requests which Fidelity never did.

Pretty Good, Poised To Improve

Posted by: |

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.

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.



Data as of Q4 2023

Data displayed below is for insuring bank: Morgan Stanley Private Bank, National Association
Learn why bank health matters

Health Grade Components

FDIC Certificate #34221
Year Established1996
Primary RegulatorOCC
Profit Margin
Return on Assets - YTD1.09%
Return on Equity - YTD13.52%
Annual Interest Income$8.27B
Assets and Liabilities
AssetsQ4 2023vs Q4 2022$203.3B$209.7B
LoansQ4 2023vs Q4 2022$133.3B$129.7B
DepositsQ4 2023vs Q4 2022$185.3B$192.3B
Equity CapitalQ4 2023vs Q4 2022$15.82B$15.97B
Loan Loss AllowanceQ4 2023vs Q4 2022$288MM$156MM
Unbacked Noncurrent LoansQ4 2023vs Q4 2022$268MM$124MM
Real Estate OwnedQ4 2023vs Q4 2022$1,000K$6MM
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* The APY shown varies based on the deposit amount. Expand the listing to see APYs for other deposit amounts.

E*TRADE from Morgan Stanley Savings Account Rates

4.25%--Premium Savings Account

E*TRADE from Morgan Stanley Checking Account Rates

3.00%--Max-Rate Checking Account
1.50%--Checking Account

E*TRADE from Morgan Stanley is an Internet only bank and does not have branch locations. Its headquarters is located at 671 North Glebe Road - Arlington, VA 22203

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