June 08, 2006

E*Trade Interest Scam

I transferred account from E*Trade to BrownCo a number of years ago because I was fed-up with E*Trades fees, lies (promised no fee IRAs and then added fees a year later), and hassle. My first month back with them (because they bought out BrownCo) has been good until today. They have some good features like Quick Transfer, etc.

But I learned today that they have only one option of taxable interest income on cash in IRA accounts - the E*Trade Sweep that is really a deposit with the E*Trade bank side that pays a measly .25% annually. Meanwhile the E*Trade bank side gets to loan out the money at market rates. What a scam.

Posted by Jeremy Showalter at June 8, 2006 05:16 PM
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