December 22, 2007

My Contrarian Move to eTrade Bank

It seems nary a day goes by without getting a new story from Silicon Alley Insider or another financial pub commenting on eTrade's woes. While the company's recent struggles have been well documented, many are waiting for the other shoe to drop - the declaration of bankruptcy, the report of massive losses, or a stream of customers heading for the exits. (See: E*Trade Tries to Instill Confidence, Fails)

Amid the din of bad news, I've already said I'm not leaving.

In fact, I'm doubling down, not only by staying with the firm on the brokerage side, but in a new development, I've opened up an account with eTrade's bank as well. Now, from one institution, I can have my stock activity, as well as checking and savings. And I've picked eTrade.

Why? It's actually quite simple. eTrade offers 4% or greater interest in checking, while my Wells Fargo account counters with 1/2 of 1 percent - eight times less. Also, instead of waiting days to transfer money from my bank to the brokerage, it should take minutes. And with eTrade, I don't have to pay ATM fees anywhere. Effectively, every ATM on the planet is now my bank's branch. No more hunting down Wells Fargo and avoiding Bank of America, or requesting cash back at the supermarket.

Essentially, my money is now easier to get to, easier to move and easier to see grow. While eTrade takes its time to sort out its own financial issues, I've got mine solved.

1 comment:

  1. You can have a similar deal with Fidelity (high interest checking, savings, trading all with one financial institution, free atm, etc) without worrying about them going under.

    Hope at least SOME of your funds have FDIC.