Yesterday, I was motivated to further clean up my excess financial accounts. After a long delay, I moved my main accounts into a revocable living trust, a legal entity I created earlier this year to keep my finances in the best order possible.
As I visited Wells Fargo yesterday to move my primary checking account into the trust, the customer service representative was surprised that someone so young would be establishing such a trust. I intend to live a long time, but it’s better to be safe. After years of an expanding portfolio of financial accounts, the purpose of which has been to review savings, checking, and investment accounts for the benefit of Consumerism Commentary readers, I crossed the point of sensible manageability and am now consolidating and closing what I can.
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A few weeks ago, in the effort to clean up my financial accounts stemming from the desire to put as much as possible under the umbrella of my trust, I sold what remained of my former employer’s stock that I had previously earned in the form of significantly discounted shares. The last time I sold my former company stock was in 2011.
Overall, the sale locked in good profits, selling at multi-year highs, but had I held on a little longer I would have benefited from an even higher stock price. Timing the market never works, but I can’t complain too much.
These shares were held at E*TRADE, though it wasn’t my choice. The company required all employees participating in any of its stock-based incentives, like the company stock purchase plan that offered shares at a discount of at least 15 percent, to hold an account at E*TRADE.
Over the years, I hadn’t encountered any problems with E*TRADE other than slow transfers from external accounts. I’m not a fan of the $20 fee to sell shares awarded by my former employer; in fact, the whole situation seems like a racket considering the requirement to use that particular account for all company stock incentives.
Closing an E*TRADE account isn’t very intuitive. At first glance of the brokerage’s website, I didn’t find where to submit an account closing request. I then did what most people would do: I searched Google. The top results pointed to a content farm website, where would-be writers submit articles and videos and get paid little if anything for their editorial contributions. The website aggregates possibly millions of articles supposedly explaining “how” to do various things.
The website’s articles on this particular topic, supposedly helpful for people like me looking for a clear guide on how to accomplish a task companies generally try to dissuade their customers from accomplishing, were incorrect, and the video was completely useless: Summarized, “First, open the website. Then, follow the instructions to close your account.”
Undeterred from low-quality help, I spent some more time wandering around E*TRADE’s website. Of course, financial companies would prefer their customers not close their accounts, so they make the process more annoying than necessary. I discovered this reality when I looked into closing a Bank of America checking account in the face of their latest fee increases.
If you’re wondering what the process for closing an E*TRADE account is today, here is what you do:
- Once you log in, you’ll see your Complete View. Below your account list, there is a link: “Need help? Click Customer Service Online.”
- If you click those words, you’ll be presented with a customer service page, with the first tab, “Customer Service Home,” activated.
- Click the second tab, “Self Service.”
- When the Self Service page is displayed, you will find a link for “Account Closure Request” under the heading “Account Service Requests.” Click that link.
- On the “Close Account” page that comes up, select the account to close if you have more than one at E*TRADE. Select your reason; account consolidation is always a good choice.
- Repeat the process for any other accounts you may have at E*TRADE.
My account has been ready to close for the past few weeks. After selling what remained of my former employer’s shares, I transferred the proceeds to an external account. I’d use the money for further investment or to pay current expenses — it doesn’t really matter, since once the money is in my bank account, a dollar from investments is the same as a dollar from income or other sources. All dollars are created equal once they’re mixed together.
When I logged in yesterday to close the account, I saw I had $0.03 in accumulated interest. Before closing the account, I initiated a final transfer to move the $0.03 to a linked checking account. I didn’t immediately see an option for letting E*TRADE keep the interest remainder, and it seems counterproductive to initiate a transfer, which probably costs E*TRADE about $0.10 per ACH. Also, I’m not exactly the type of person to pick up a nickel off the street. But the three cents were there, so I initiated a withdrawal, then proceeded with closing the account.
With my E*TRADE account closed, I’m getting closer to full investment consolidation. Just about all of my investments, retirement and non-retirement, are now at Vanguard. There are still some stragglers, notably the retirement accounts at Fidelity and TIAA-CREF. I also have a few shares of an exchange-traded fund in the telecommunications sector, IYZ, at ShareBuilder, where I also hold a few shares of Toyota, Akamai, and Microsoft. All have paid off well since I purchased them despite some turbulence, except for IYZ.
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Updated October 8, 2017 and originally published June 12, 2013.
{ 8 comments… read them below or add one }
Thank you so much for the correct, clear instructions. You’re right, they sure don’t make it easy to find!
Thanks. I was just about ready to pull out my hair.
No luck for me but thanks for posting. I had an employee stock purchase plan account through a previous employer. When I got to step 1 of account closure it wouldn’t allow me to select account. Instead it displayed an 800 number to call.
I did. When it listed all the options I simply pressed zero which quickly got me to a real person. She tried to walk me through the same process with the same results so I went to verification over the phone. They ask a series of multiple choice questions. In my case it was “have you ever lived on any of the following streets”, who finances your lease, and how much is the lease payment within a range.
No fee to close the account. The representative although humorless was pleasant enough.
Funny how much I cannot stand to pick up a phone. I don’t mind when things go quickly. Still annoying that I couldn’t deal with it online.
I recently rolled over a Schwab 401K and that I could do entirely online.
Thanks. This was very helpful. As usual, they tend to make it very very difficult to close the account.
I followed your instructions to close e- trade account from former employer. When I got to self service tab and clicked close account it says not possible because I have open option account, but no explanation how to change that. Any suggestions?
Thanks
As of September 2017, you don’t need to go to “Need Help.” Instead, click on “Customer Service” at the top-right. Then there will be a “Self Service” tab.
The instructions given with the suggestion offered by anonymous on 9/11/17 still holds true today. I can’t say thank you enough for this help!
Did they charge you a fee to close out the brokerage account?