Transferring investment account

I’ve had an investment account with Capital One Investing for a number of years now. They are being bought out by E-Trade and if I do nothing my accounts will be moved over there in the coming months. The whole thing doesn’t sit well with me, and there is the extra annoyance that my Capital One 360 savings account will NOT move. So I’m looking to simplify everything by transferring my accounts myself.

What I’d like is one online bank that will satisfy all my needs:

  1. Give a competitive rate for a savings/money market account.
  2. Handle the transfer of my Roth IRA account.
  3. Handle the transfer of my investing account consisting of only simple ETFs.

I started with this list from Motley Fool and so far Ally Bank seems to be my front runner. The savings rate is listed at 1.85% which is about what I’m getting now and seems like it shouldn’t have a problem with the IRA or investing accounts. It looks like I even stand to get an extra $600 and have transfer fees covered.

Does anyone have any advise or other banks I should look into? I’m very much an investing noob and I’ve been burned before by my lack of experience. I don’t do much trading at all, so I don’t need anything advanced. I only buy shares of a few ETFs a handful of times a year when my rainy day fund looks bloated. Is there anything else I should know about transferring an investment account, tax implications, etc?

Any advise is appreciated.

We started banking with Everbank long enough ago that most people thought we were nuts to be banking online. Recently they were bought out by TIAA Bank. We’ve been very happy with them, both before and after the buyout.

I don’t think there are generally any tax implications around transferring an account to a new custodian. All the assets will still be there in kind, so there’s no sale that would generate income.

Many organizations will charge you to transfer your investment accounts away. Like $50 to $100. Many receiving organizations will give you a rebate for those costs, so I’d look into that.

I’ve had a bank account at Ally for years and they seem fine.

Thanks for the input, my butchering of advice notwithstanding. :smack: Upon further research, I may even be able to replace my checking account with Ally to truly unify everything. Though there is something nice about knowing I can just walk across the street to a real brick and mortar establishment, so I may not do that quite yet. The reviews of TD Ameritrade also looked good, but I didn’t see a Savings/Money Market option, so I suppose Ally it is!

For my IRA, Roth IRA and inherited IRA, I have a Fidelity account. We bank elsewhere. But if I wanted to combine everything, I’d give Schwab a good hard look. They have a very good reputation as an online bank, as well as being a solid investment platform.

You have to make sure they don’t do the transfer by sending you a check if it’s a retirement account (e.g. the 401(k)).

I imagine that’s pretty rare, these days, but a friend was rolling over some retirement money from her employer, and they wrote the check to her. And they withheld taxes from it :mad:. She had to deposit it at Fidelity or wherever. It was within the 90 day rollover timeframe, but she had to come up with the withheld tax money herself, or that part would have been treated as taxable income (think 10,000 dollars, withholding 2500 dollars, check for 7500; if she’d only deposited that 7500 dollar check the 2500 would have been subject to tax and penalty).

You also need to make sure they don’t liquidate the ETFs, but rather transfer the custodianship - you don’t want to get hit with capital gains on those.