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?
Checking/Savings Account Debited On
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.
By Jonathan Ping | Investing | 10/7/06, 11:15pm