Earlier this year my wife and I decided to consolidate all banking and brokerage functions to one institution. After evaluating a number of options and a load of doing tedious research we decided on eTrade. Our decision was driven by no ATM fees, a superior brokerage trading platform and a high rate of return on the savings account. Thus far, the banking experience has been less than satisfying.
The first annoyance was due to our unlimited ATM refunds disappearing from our account. Even though we meet the requirements of:
“for customers with an average monthly balance of $5,000 or more in either their E*TRADE® Money Market Account or Independent Checking Account or for customers who maintain a combined balance of $50,000 or more in linked E*TRADE Securities, E*TRADE Bank”
After contacting eTrade support, they claimed our account is not eligible for the ATM refund and no further explanation was given regardless of how many times I asked. Since it took a significant amount of effort to move all of our financials we came to conclusion we would eat the fees.
Our next really annoyance was tied to the deposit process. We noticed that our account balance didn’t match our deposits. No problem, we though someone bounced a check and we will simply contact that person to let them know. Well, it turns out eTrade Bank does not notify you, nor do they return the bounced check, when there is an issue with your deposit. If you submit a deposit with multiple checks, with the same value, at one time, there is no way to tell what check bounced! Calling support doesn’t help as it appears they have no ability to few the deposited checks.
At this point we are thinking long and hard about switching banks and then the big one hit – my name changed on the account. I logged into the website to check our balance when I noticed I was no long listed on the account. In my place was some woman neither of us knew or ever heard of.
Pissed, I immediately get on the phone with eTrade support to explain my problem. “Yes, we understand…it must have been an error on our side… I’ll submit a name change request to fix the problem” the support rep says. Within seconds of the phone call, I receive a confirmation for a name change request. Foolishly, I think the problem is solved. After a week of waiting my support request was canceled and I am still trying to resolve the issue.
Etrade, the brokerage, has an incredible trading platform and provides a good level of research for investors. As a bank, however, they leave a lot to be desired. If you are thinking of becoming a banking customer, think long and hard before you do so.
UPDATE: 8-28-08 10:30
An e*trade support rep who has been working on this case since this morning just called me back, they do not yet have a resolution but are working to solve.
UPDATE: 9-09-08
The e*trade rep from 8-28 NEVER called me back and never solved the issue. I’ve attempted to resolve this three times with NO luck. Make of this what you wil just be aware before using their services.
UPDATE: 9-25-08
It took over a month but e*Trade corrected the issue. At this point I have major quesitons about their ability to run their business.