Latest move will add 401(k)s via E superscript *Trade Bank.
Online discounter E superscript *Trade will be adding 401(k)s to its stable of offerings, continuing its evolution toward fuller service.
An E superscript *Trade spokesperson confirms that E superscript *Trade Bank "will be announcing a 401(k) management plan before December." She declines to provide further details, saying specifics will be addressed in a formal announcement.
In August, CNET News.com reported that Oracle Corp. was expected to become E superscript *Trade Bank's first customer for 401(k) accounts. A spokesperson for Oracle would not confirm that story. The database company's 401(k) is currently managed by Fidelity.
E superscript *Trade bought Roanoke, Va.-based Telebank this past January and relaunched it in April as E superscript *Trade Bank. The bank has $3.2 billion in deposits and more than 170,000 customer accounts.
A spokesperson for the bank says E superscript *Trade's move into banking diversifies its revenue and furthers its goal of becoming a one-stop financial portal.
E superscript *Trade already claims to have 3,500 corporate clients in its Business Solutions group, which sells financial services like stock-option exercise programs to corporations. E superscript *Trade hopes some of those clients use its 401(k) package.
Separately this past May, E superscript *Trade and consulting firm Ernst & Young agreed to launch a $50 million venture that will give financial advice to E superscript *Trade customers.
And in September, E superscript *Trade agreed to buy Web money manager PrivateAccounts.com. The brokerage described the deal as an attempt to attract affluent online investors.