You may have read on the interwebs that E*Trade is shutting down bank operations to focus more on the brokerage. As part of that process, all accounts are being sold to Discover Bank in what seems like the first bank sale that didn’t involve the FDIC. 🙂
Unfortunately for E*Trade and the hilarious E*Trade baby, taking away the bank account takes away their last differentiator. The savings account, despite it’s abysmal rates, acted as a higher than average interest rate sweep account for brokerage funds. It was an FDIC insured place you could keep your money between investments. The interest rate wasn’t that great, probably foreshadowing this sale, but it was better than getting nothing.
Update: It turns out that not all savings accounts will be transfered, just those without an ongoing brokerage relationship. Thanks to all the readers who shared that in the comments below, you can get more detailed coverage here .
So today I started the process of closing my E*Trade Complete Savings account. Fortunately, it was pretty easy and you can do it online:
- Log in and look for Contact Us at the very bottom (or try clicking this link , not sure if it’ll work if you’re not logged in).
- From the account drop down, select your bank account.
- From the Subject drop down, select Account Services.
- From the Topic drop down, select Close Account.
- Type in a message, this is the message I sent:
I would like to close my Complete Savings account and have its assets transfered into my brokerage account.
About 24 hours later I received the following response (there was more text around the message but I trimmed all but the salient part):
Thank you for your message requesting to close your Complete Savings Account and moving it to your brokerage account XXXX-XXXX. I have submitted the request to have the account closed and the funds moved. The transfer of the money should occur tomorrow.
Then, after another 24 hours, I received a simple Account Closure Request Status message indicating the closure was complete. Easy as pie!
(Photo: thomashawk )