To continue its evolution toward fuller service, online discounter E*Trade had planned to add 401(k)s to its stable of E*Trade Bank offerings early this year. But the firm’s initiative has slowed, according to an E*Trade spokesperson.
The spokesperson refuses to provide a reason for the change in plans. She says an announcement regarding 401(k) services won’t be made until summer.
In August 2000, CNET News.com reported that Oracle Corp. was expected to become E*Trade Bank’s first customer for 401(k) accounts. At the time, a spokesperson for Oracle would not confirm the story, noting that the database company’s retirement plan was managed by Fidelity.
After E*Trade bought Roanoke, Va.-based Telebank in January 2000 and relaunched it three months later as E*Trade Bank, a Telebank spokesperson said E*Trade’s move into banking diversifies its revenue and furthers its goal of becoming a one-stop financial portal.
E*Trade says it has 3,500 corporate clients in its Business Solutions Group, which offers financial services such as stock option exercise programs to corporations. It hopes some of those clients will eventually use its 401(k) package.
