Scottrade Launches Limited Online Transfers via Money Direct
I don’t know how long this has been out, but I just noticed in my Scottrade brokerage account that there is a new service called Money Direct that allows you to electronically deposit money from a bank account. Note that I said deposit only, because you can’t use the service to withdraw. What’s up with that? How disappointing.
The service appears to use Yodlee Funds Transfer as the back end, which is similar to the CashEdge service banks like HSBC and Bank of America use. You can basically link any savings or checkings account as long as you have a routing number and account number. Verification is either via website login information or trial deposits.
Here is some more useful info from the Money Direct FAQ:
Q. What is Money Direct?
Money Direct allows you to electronically deposit funds from banks, credit unions, and select brokerage accounts into your Scottrade account. Money Direct utilizes the Automated Clearing House Network (ACH) process.Q. How soon will funds be available for trading after I initiate a deposit using Money Direct?
Deposit Initiated
On *Your
Checking/Savings Account Debited OnYour Scottrade
Account Credited On **Monday Tuesday Thursday Tuesday Wednesday Friday Wednesday Thrusday Monday Thursday Friday Tuesday Friday Monday Wednesday Saturday Monday Thursday Sunday Monday Thursday *Deposits requested after 8:45 PM EST will be initiated on the following business day.
**Money Direct takes three business days to settle. In the case of a bank holiday, Money Direct may take four business days to settle.
More transfer delays, boo. Sigh… I suppose this service is better than nothing. However, if you have $5,000 with Scottrade you can already get checkwriting access and use that information to link up your account for both deposits and withdrawals through various online savings accounts. And there is less ‘lost’ time between debits and credits. This is what I have been using for months now as a workaround, I’ll make a more detailed post on it if there is interest.
For my other experiences with Scottrade brokerage overall, please refer to my Scottrade review.
October 8th, 2006 at 7:14 am
My Schwab IRA has the same thing. It’s deposits only, but better than nothing. I don’t think I can link it to my bank accounts from the bank’s end though.
October 8th, 2006 at 7:31 am
When I opened my Scottrade brokerage account about a year ago I was so surprised that they dont offer online transfers. I went into my local branch and they told me that they had some issues with it. (They were hacked or something like that) I find it so inconvenient to drive to the office, especially since they close at 5.
October 8th, 2006 at 11:43 am
you can call them to ask for a withdraw
and send them a check in the mail with your account # in the memo
October 8th, 2006 at 11:47 am
I don’t see what’s so hard about withdrawals. I know they have security concerns but so does every single bank that operates online.
The withdrawal methods remain the same - mailed check, wire (fee), checkwriting/debit card (need $5,000) - but none are as fast and convenient as online transfers.
October 8th, 2006 at 5:32 pm
I’d love to hear more about your deposit method. I have checkwriting enabled on my account but was under the impression it was a withdrawl only account number.
October 9th, 2006 at 6:23 am
I have another account with FirstTrade and they also require about 3 business days for deposit of $5000 or more. I am not sure if this is the standard procedure for brokerage firms, but the service Scottrade used to have was actually very good. For stock trading, 3 days of waiting is too long.
October 10th, 2006 at 5:16 pm
I would also be interested in hearing about your checkwriting method. I have a Scottrade acct, and an ING account - would I be able to electronically send money through? Ever since Scottrade stopped the echeck, I’ve been so discouraged from depositing money simply because of the hassle.
October 22nd, 2006 at 1:49 am
[...] This is just a follow-up my previous post on Scottrade enabling electronic deposits, but not withdrawals. You can get withdrawals too if you (a) can get $5,000 in total account equity (stock holdings + cash), and (b) use an online bank account that allows external links (ING, Emigrant, HSBC, etc.). [...]
October 31st, 2006 at 11:48 am
If you have a branch, you can drop off a check, the funds are available for trading the next day, as far as withdrawing the quickest way is just writing a Scottrade check to yourself and depositing it, for me the deposit shows up the next day, it’s quicker then using ACH with HSBC which takes 3 days.
December 21st, 2006 at 5:41 pm
I wish Scottrade would credit the account the next business day like they used to.
January 18th, 2007 at 4:57 pm
For some reason scottrade wouldnt accept my checking account. Strange, I know people that use my bank and do this with Scottrade. Maybe because its a business checking?
January 18th, 2007 at 5:03 pm
Not sure if this applies, but the name on the bank account must match the name on your brokerage account, I’m sure. That’s one of the basic security screen that they run.
March 15th, 2007 at 8:28 pm
How do you make a withdrawl from scottrade using money direct or w/e?
April 15th, 2007 at 7:49 am
Deposit only is secure since Scottrade used some cheaper backend company to transfer previous electronic transfers and it got hacked into. All Scottrade members who used this were recommended to change their bank acocunts and all kinds of stuff since the hackers got social security numbers, bank accounts, addresses and other personal info. I know, I was one that had to go through the nightmare of changing accounts.
June 14th, 2008 at 6:23 am
Since the security glitch some years ago, SCOTTRADE has not allowed electronic transfers to or from trust accounts, and Money Direct apparently does not either..
November 21st, 2008 at 11:22 am
Albeit the low brokerage fee and good customer service of Scottrade, the inconvenience of funds deposit and withdrawal without delay is THE main reason I’m using etrade and not my Scottrade account.
With etrade, I can make instanteous deposit/transfer from and withdrawal to my bank account (that’s FDIC insured), and parked extra funds there for 3.3% which is very high in market right now. Although I’m paying $12.99 per trade in etrade (and soon $9.99 when I park more funds there), it gives me the liquidity that I’m unable to get with Scottrade.
The other disappointing fact to the US settlement process in general is that, we still have T+3 settlement, where Hong Kong has been T+2 long ago.