E*Trade Complete Savings Being Turned Into Discover Online Savings

Not sure if this was already discussed, but here is the email I received:

IMPORTANT INFORMATION about Your Complete Savings Account


Account Number Ending in: XXXX

Dear _________,

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 the transfer to occur on or about March 7, 2010. If you have already closed your account, please disregard this message.

Transferring your savings account will provide you with these important benefits:

• Rates that are at least 5X the national average¹ – currently 1.35% APY²
• Continued FDIC insurance up to $250,000 per individual accountholder³
• No minimum balance requirement
• Banking Specialists available 24 hours a day, 7 days a week

And you'll still enjoy fast and free online money transfers4, direct deposit capabilities and secure, 24/7 online access you enjoyed at E*TRADE Bank. For more information on Discover Bank's Online Savings Account, visit DiscoverBank.com/welcome.

If you have any other E*TRADE Bank or E*TRADE Securities accounts, this transfer will NOT affect them in any way.

Please note the following:
• While the account transfer is pending, you can access your account online as usual and continue to use Quick Transfer to make individual and automated deposits.
• Seven calendar days prior to the account transfer, Quick Transfers from accounts outside of E*TRADE will no longer be processed. Please take the time to delete any scheduled or recurring Quick Transfers you have for your account by this date.
• Any checks you wish to deposit must also be received at least seven calendar days prior to the transfer. Checks received after this deadline will be returned to you by mail.
• Direct deposits will be accepted up until March 5th, 2010. Direct deposits that come in after March 5th will be returned to the sending institution.
• Past statements and tax documents will continue to be available on etrade.com after the transfer is completed. Your account history will not be transferred to Discover Bank.
• The current mailing address we have on file for you is:
xxxxxxx
If this address is not current, please visit etrade.com and update your information.

Discover Bank will send you a welcome letter approximately five days before your account is transferred with complete details on your new account, including your new account number, an account agreement and information on how to register for Online Banking. After you register, you can set-up online money transfers and redirect any direct deposits to your new Discover Online Savings Account. In the meantime, if you have any questions, please feel free to contact us at 1-800-ETRADE-1 (1-800-387-2331) anytime, seven days a week or visit DiscoverBank.com/welcome.

We are working hard to make this transition as smooth as possible. We've appreciated having you as an E*TRADE Bank customer.

Sincerely,

Robert V. Burton
President and Chief Operating Officer, E*TRADE Bank


PLEASE READ THE IMPORTANT DISCLOSURES BELOW

1. The APY for the Online Savings Account as of February 1, 2010 is more than 5 times the national average APY for interest-bearing savings accounts with balances of $500 as reported by Informa Research Services, Inc as of February 1, 2010. Although the information provided by Informa Research Services has been obtained from the various institutions, the accuracy cannot be guaranteed. Rates are subject to change at any time.

2. The rate referenced in this communication is valid as of February 1, 2010 and is subject to change daily without notice.

3. On October 31, 2008, FDIC deposit insurance temporarily increased from $100,000 to $250,000 per depositor though December 31, 2013.

4. Under federal regulation, you may make up to six automatic or preauthorized withdrawals from your savings account per month.

© 2010 E*TRADE FINANCIAL Corp. All rights reserved.

Hmm, only had this to save on fees/FOREX at overseas ATMs ; time to close.

Time to move on.

hm.. that's stupid.. the reason i'm on etrade is to consolidate.

I haven't gotten the memo yet, but are checking accounts being transferred, too?

just got the same email...wonder if checking will get sold soon?

Alcibiades said: Hmm, only had this to save on fees/FOREX at overseas ATMs ; time to close.

that was a huge advantage, one I used liberally. Does Discover do this?

I won't be closing my account because I also have my brokerage there; but if moving money from Discover to ETrade Brokerage isn't instantaneous, then I guess I might look around.

runderwo said: Any other banks with free ACH push and no DD requirement?

schwab

eagle1wi said: ferengi31337 said: I haven't gotten the memo yet, but are checking accounts being transferred, too?

Based on the FAQ at the page in the email, no

Discover Welcome FAQ

everything seems to reference savings accounts only

I hope they leave checking alone - I don't want to move all my payees in my BillPayMy email listed my 4 Complete Savings accounts, but no mention of my Checking account. I'm guessing they'll hang on to the checking accounts, unless they sell the entire EtradeBank division (the checking accounts are pretty much all that'll be left).

Shouldn't there have been formal options included to not move an account,personal info,etc to DiscoverBank?
ie Opt-out. (close now, or automatically close and issue a check)

And as mentioned, now a transferred customer may not be able to take advantage of a signup bonus for this new accout type if they offer one...

"What's in it for me??"

I just gave E*trade a call as i have a few accounts with them, the rep told me that they are moving over people who are savings only customers with e*trade. People with more then one account like my self should not be moved over.

The rep with whom I spoke knocked herself out to get me to keep my E*Trade Savings account open (even with a zero balance)and gave me the pitch about how I had nothing to gain by closing my account without giving Discover Bank a chance. Sounds fishy to me. I'll wait to see what Bank Deals guy has to say in his review which he is going to post in a few days. From what I've read on FW, Discover sounds slow and clunky and their rate isn't all that great. AMEX Savings with which I am familir is better; they have a higher rate, and a 1 day ACH in and out with no hold on your funds if you push money into their account from another bank site.

You would think E*Trade would consider taking down their Complete Savings sign-up page. In the past 12 months they seem to be taking away every incentive for me to stay with them.

Just transferred the remainder of the $$$ out from E*trade. My experience with Discover has not been good. Nice reps, they'll you what you want to her but it never happens. This scumbag running the worst student loan origination operation too. Dealing with the operation folks just like pulling teeth.

I need to have Etrade and the free ACH push so that I can DD into a few checking accounts. In addition I hold money in there for quick transfers into my brokerage account for trading. I like this happy marriage. Hopefully they keep the brokerage accounts with savings accounts together. Otherwise....I'm out of Etrade.

Man, I with we could get those great 5.25% savings rates back!

suidroot said: I just gave E*trade a call as i have a few accounts with them, the rep told me that they are moving over people who generally are savings only customers with e*trade. People with more then one account like my self should not be moved over.

i have not received one of these notices

interesting - but weird. What's the marginal cost of maintaining a few bank-only customers once you've built the whole infrastructure for your bank and brokerage customers?

But as you said, I haven't gotten the email yet. I have a Roth, a brokerage account, and a Complete Savings account with them.

balor124 said: The website is always down for maintainance and is pretty buggy (forget to click the logout button and you can't login for 20 min for example).

Website upgrade is coming next week and the preview of the interface looks 100 times better than the old; perhaps it will solve some of the other problems too.

FYI, I called in, and the rep said that my account would be unaffected since I have investing accounts with them.

Discover Bank Online Savings. I opened this act in Dec. and it has been a NIGHTMARE!!
From their website and disclosure it looked another good place to park money. But unlike
AMEX, ing, capitalone... they falsely represent their product.

- "Account Agreement and Electronic Funds Transfer
Disclosure", Section #10, states that $100 to $100K can
be transfered via the Internet.
-Truth: Internet transfers need to be done via MoneyHQ, a
3rd part corporation, and they restrict transfers to $35,000.

- http://www.discoverbank.com/online-savings-how-it-works.html
states that online money transfers are fast and free.
-Truth: MoneyHQ charges $7.95 for the fast transfer service.

- Discover does not disclose on their website or their agreement that
an Act must be set up with MoneyHQ to do the internet transfers. Nor
do they disclose that the customer must provide MoneyHQ with their
private bank account(s) information to include(username/password)!

Since I could not transfer in more than $35K/mo. via the internet I asked
them to close my act and return my funds with interest to date. Here's the
response I got via email:

"Because the account has been open for less than 90 days, closing it would
incur a $20.00 early closure fee. If you would like to proceed, please
send a letter of instruction to us by mail or by fax, and include the account
number, your name and signature, your agreement to the early closure fee, and
the method you would like us to use to send you the money."

I've spoken with numerous folks, none of them gives a $hit what the disclosure
agreement or Website advertise. Ended up filling complaint (#D6D0FF12010) with
the Office of the Comptroller of the Currency and also filed with FDIC.

I certainly "discovered the difference"

why would someone just have a savings account with etrade? wouldn't it be easier to have a savings account with a local bank? i think it would be more convenient to drive up to a bank. i can understand if you have both a trading account and savings account with etrade...

Yeah I failed at one of the $25 opening bonuses a couple years ago for some unknown reason. I withdrew my money and they threatened to close the account (whatever)....then I started getting threatening letters from Etrade/Discover that if I didn't do XYZ they were going to tell the IRS on me or something about backup withholding? Well they just sent me a statement and I have $1.12. Sweet. At 1.34%, in 30 years I'll have $1.67. Victory is mine at last.