Etrade Banking is Not Really Banking

"Etrade Banking is Not Really Banking"

What the heck does that mean?

I'm going to go out on a limb and make the claim that part of the banking experience is being able to access your cash. I opened an Etrade Checking account in December of last year. I have yet to be able to go to an ATM machine and withdraw cash from this account.

Last year I offered this advice to others who might try and change banks:

"Don't close your old bank until your new one is active and you have used it. If issues arise- your ATM PIN does not work for example, and you have already closed your old account, you will create undue stress for yourself."

Thankfully, I followed this advice, but I could not have known then that I picked an example I would actually face and how unbelievably bad the experience of opening a bank account with Etrade would be.

I did not get the $25 signup bonus as promised until I pestered them.

They did not send me an ATM card until I pestered them many many times.

How many times, you ask?


Sure, I could have hounded Etrade in February, but I was preoccupied with my emergency appendectomy.

So in mid March, I got my ATM and I got instructions concerning how to set the PIN. I called the number provided and set my PIN to be the same as my Citibank PIN so I would not have to remember 2 numbers. Today I went to an ATM, actually excited that I was all set and would finally be able to start using this account so I can close the other one and I got a message.

A little love message from Etrade:

"Invalid PIN"

So I pulled out my Citibank card and withdrew some cash.

Perhaps one could forgive Etrade for being unable to adequately support the banking services they are offering given the troubles they've had as a company.


But my other account is with Citibank who has shown you can dramatically run your company into the ground...


...and still provide basic banking functionality to your customers.

So far Etrade Banking has provided me with a place to park my savings that is better than the sweep account in my Etrade brokerage, but at this point, Etrade Bank's savings rates are no longer competitive.

You have to scroll wayyyyy down the list on Bank Deal's recent summary to find Etrade since there are still several banks offering over 4% and etrade is down to 3.10%.

So maybe I'll close this account and look for a better option. The bar has been set pretty low. I'll keep you posted.

I hope Donald Layton, Etrade's new CEO reads this. He has a long way to go to turn things around.

In January, I changed the mutual funds in my brokerage account to no longer automatically reinvest dividends and capital gains. At least I tried to. I noticed last week that one of my funds reinvested. Once again, I notified Etrade's customer service. They saw the error and are working to fix it... Those poor reps. They reply very quickly, but the business they are trying to support appears to be in chaos.

Donald, help me!!!!!