This is just a quick note to say that I recently received a letter from E*Trade Bank saying that they’re moving my account to Discover Bank. According to the letter:
“We are writing to let you know that your E*Trade Bank account referenced above will soon be transferred to Discover Bank, and become a Discover Online Savings Account. This follows our plan to focus more exclusively on providing optimal investing solutions to our customers. We expect this transfer to occur on or about March 7, 2010.”
Apparently slashing their savings account interest rate to 0.5% APY last fall wasn’t enough to drive away all of their customers, so they’re selling their banking operations to Discover Bank.
(We have an account with E*Trade Bank, but it’s currently empty.)
If you have an E*Trade Bank account, here’s what you need to know:
- You’ll still be able to access your account for the time being.
- Seven days prior to the transition, they will no longer allow Quick Transfers from outside of E*Trade Bank.
- Any checks deposits have to be made at least seven days prior to the transition.
- Direct deposits will be accepted until March 5, 2010. After that date, they will be returned to the sending institution.
- Past statements and tax documents will remain available from etrade.com after the transition, but your account history will not be transferred.
You should receive a welcome letter from Discover Bank approximately five days before the transition with your new account details. The good news in all of this is that Discover Bank is paying nearly twice as much, at 1.35% APY.
Update: I’ve seen statements in the news that this doesn’t apply if your E*Trade Bank savings account is linked to an “active” brokerage account.