Frequently asked questions
How can I request a debit card, how long will it take to arrive?
Which accounts are eligible for a debit card?
- Domestic individual, joint, and custodial brokerage accounts are eligible for the E*TRADE Complete™ debit card.
- Certain IRA accounts are eligible for the debit card if you are over the age of 59½. Click here for more information regarding E*TRADE Complete™ IRA accounts.
- Max-rate Checking account is eligible for the Morgan Stanley Private Bank Max-Rate Checking debit card.
- Checking account is eligible for the Morgan Stanley Private Bank Checking debit card.
Savings accounts are not eligible for a debit card.
What is an EMV card, Chip, and PIN-preferred?
- Your E*TRADE or Morgan Stanley Private Bank debit card is embedded with a chip that leverages EMV (Europay®, Mastercard®, Visa®) technology. EMV is the global standard for credit and debit card payments, providing global acceptance and an enhanced level of security.
- For added security your E*TRADE or Morgan Stanley Private Bank debit card is now PIN-preferred. You will be prompted to provide a PIN when making purchases like you are when accessing cash at an ATM. Certain merchants have the ability to modify this preference for added convenience. Chip and PIN-preferred terminals are the standard internationally.
What are the daily limits for debit cards?
- You can make purchases up to $5,000 per day using your E*TRADE or Morgan Stanley Private Bank debit card.
- You can also withdraw cash up to $1,000 per day using your E*TRADE or Morgan Stanley Private Bank debit card.
Both limits are dependent upon the available balance in your account.
What is the ATM Refund Policy?
Neither E*TRADE nor Morgan Stanley Private Bank will charge you a fee for withdrawing funds from any institution’s ATM, but the owner/operator of the ATM may. E*TRADE and Morgan Stanley Private Bank will refund the amount of the owner/operator’s fee by the end of the same day that the withdrawal occurred to your eligible account if you meet any of the following conditions:
- Your withdrawal was from a Max-Rate Checking account.
- Your withdrawal was from your Money Market Account or Independent Checking Account (not including a Checking Account) and your total balance is $5,000 or more after the completion of the transaction.
- You have a $50,000 or more average monthly balance in your linked Morgan Stanley Private Bank Accounts.
- You have $50,000 or more in cash and securities in your linked E*TRADE Securities brokerage, retirement, and employee stock plan accounts (including vested in-the-money options, stock option plan shares, ESPP shares, and released restricted stock) on the date the fee is charged.
- You executed at least 30 stock or options trades during the prior calendar quarter in your linked E*TRADE Securities account(s).
What can I do to make sure my debit card will work in a foreign country?
- Call us at 800-387-2331 in advance to inform us about your travel plans.
- Standard limits still apply when traveling.
- For your security your debit card activity will still be monitored for suspicious activity.
What do I do if my debit card is lost or stolen, how can I dispute a transaction?
If you believe your card has been lost or stolen, or that your Personal Identification Number (PIN) has been discovered by someone else, or that someone has conducted or may conduct an automated banking transaction without your permission, contact us immediately by calling us at 800-387-2331.
What are the benefits to my E*TRADE or Morgan Stanley Private Bank Mastercard® debit card?
Mastercard’s universal acceptance means you can use your debit card in place of cash or a check at millions of locations worldwide, anywhere Mastercard® is accepted.
For full details on your benefits click here: Mastercard® Guide to Benefits
Line of Credit
What is a Line of Credit?
A Line of Credit is a revolving, non-purpose line of credit offered by Morgan Stanley Private Bank and secured by the eligible collateral you hold at E*TRADE Securities.2
How can I apply for a Line of Credit?
To apply, visit the Line of Credit page, and click the “Get Started” button to begin the application process. Be sure to review the product features, risks, and disclosures to determine if this product is right for you.
How is a Line of Credit different from margin borrowing?
A Line of Credit is different in two ways: (1) the way in which the funds are used, and (2) the interest rates on the Line of Credit.
- How the funds are used:
- For a Line of Credit, funds can be used for any lawful purpose, except for the purchasing, carrying, or trading of securities or repayment of a margin loan.
- Margin can be used for any lawful purpose, including the purchasing, carrying, or trading of securities.
- Interest rates:
- A Line of Credit is tied to the 30-day rolling compounded average Secured Overnight Financing Rate (SOFR), as published by the Federal Reserve Bank of New York, plus a variable rate adjustment, plus a margin.
- Margin interest rates are typically tied to the E*TRADE Base Rate, which is set at the discretion of E*TRADE Securities with reference to commercially recognized interest rates. Margin interest rates may move with changes in the E*TRADE Base Rate, or with adjustments in the debit balance.
What account types are eligible to be pledged as collateral for a Line of Credit?
Non-retirement accounts including individual, joint, and revocable trusts with no more than two trustees, inclusive of Managed Portfolios, may be pledged as collateral.
What types of securities are eligible to be pledged as collateral for a Line of Credit?
Most securities, ETFs, mutual funds, and bonds are eligible to be pledged as collateral. Please note that certain risk factors like security concentration or level of liquidity (i.e. low average daily volume) may impact the eligible collateral value of certain securities. Use of an Managed Portfolios account presents certain additional risks including potential disruption of the management of the account and the potential termination of the investment advisory services. If you are unsure of the borrowing value of a particular security, call 800-387-2331 for more information. Morgan Stanley Private Bank reserves the right to change eligibility requirements.
Are there restrictions on my account(s) once pledged as collateral for a Line of Credit?
Yes, there are restrictions on accounts pledged as collateral:
- No margin borrowing. Funds cannot be used for purchase, carrying, trading of securities, or repayment of a margin loan.
- No margin and options trading. Upon being approved for a Line of Credit, the collateral account(s) will have margin and options trading capabilities removed (if applicable). Pledged accounts will also be prohibited from enrolling in margin and/or options trading.
- Cash management and payment features disabled. Upon taking a draw from your line of credit, all cash management and payment features will be restricted (e.g., bill pay, check writing, use of debit card, electronic funds transfers, wires).
If you would like to withdraw cash and/or securities from a pledged account, please call us at 800-387-2331 for assistance.
What are my options if I want to maintain margin, options, or certain other features (such as bill pay, check writing, use of my debit card) in my account?
You can open a new account to use as collateral for a Line of Credit. Once the new account is open, transfer the securities you wish to pledge into that account, and then apply for the line of credit.
How long does it take to open a Line of Credit?
Typically, a Line of Credit can be established within a few business days, provided all required documentation is filled out completely and accurately.
Is there a credit check during the underwriting process?
Yes, a credit check will be performed during underwriting. Credit eligibility requirements apply.
How much can I borrow using my Line of Credit?
The amount you can borrow is determined by the assets pledged for the Line of Credit. In some cases, due to certain risk factors like security concentration or liquidity issues, the amount you can borrow may be reduced. To view an estimate of how much you can borrow with a Line of Credit, launch the application and select the Credit Limit Calculator option.
What are the collateral requirements?
You are required to maintain a minimum level of eligible securities in your collateral account. A decrease in the market value of your collateral may require you to deposit additional cash or securities.
Important Note: All collateral is subject to approval and Morgan Stanley Private Bank may change its collateral requirements at any time.
What is a Maintenance Call?
A Maintenance Call occurs if the market value of the pledged collateral falls below the minimum maintenance requirement.
How do I know if my Line of Credit is in a Maintenance Call?
You can check the credit line status on the E*TRADE website at any time by clicking on your Line of Credit account from the Complete View.
How can a Maintenance Call be resolved?
You are required to maintain a minimum level of eligible securities in your collateral account. A decrease in the market value of your collateral may require you to deposit additional cash or securities into the pledged account or by paying down all or a portion of the outstanding amount, this is called a “maintenance call”. If any of the pledged collateral for your Line of Credit is held in a managed portfolio, failure to satisfy a Maintenance Call may result in the termination of any applicable advisory agreement. Call us at 800-387-2331 with any questions on how to resolve a Maintenance Call.
Important Note: Morgan Stanley Private Bank reserves the right to call a loan at any time and to liquidate all or part of your pledged collateral account(s), without prior notice to you.
What is my interest rate?
Interest rates will be determined by your estimated credit line at the time of application and is subject to change. This rate is calculated based on a 360-day year. Rates are tied to the 30-day rolling compounded average Secured Overnight Financing Rate (SOFR), as published by the Federal Reserve Bank of New York, plus a variable rate adjustment, plus a margin. The SOFR rate may be reset every business day (or the following business day in event of a holiday). Processing fees may apply for payments made by check. Please see rates, fees and other important information at etrade.com/lineofcreditrates.
Are there minimum monthly payments on my Line of Credit?
Yes, there are minimum monthly payments required for loans with an outstanding balance.
How are payments applied to my outstanding loan balance?
All payments on the line of credit shall be applied first to any fees and charges due, then to billed interest due, and then to reduce the total amount of outstanding credit advances.
What is the interest calculation period?
The interest calculation period begins on the first of every month, and finishes at the end of each month. Interest is calculated daily, and charged monthly.
What fees and charges apply?
There are no fees or charges to open a line of credit. You are only charged interest when you take a draw, and are only charged interest on the drawn amount.
If submitting payment by check, a processing fee may apply. There is also a returned-check fee, if applicable. Visit the E*TRADE fees page to view the most current fees.
How can I take a draw from my Line of Credit? What are the cutoff times?
You may request a draw from your Line of Credit at any time by logging onto etrade.com, selecting the line of credit account from your Complete View, and selecting the “Request a draw” button. Draws may be any dollar amount, in increments of $1,000. Call us at 800-387-2331 with any questions.
Your request must be received by 12:00 p.m. ET for next day availability of funds via electronic transfer.
Yes, to change the bank account linked to your line of credit for loan disbursements, call 800-387-2331 to provide other bank instructions. It may take up to three business days for changes to take effect.
How can I make a payment to my Line of Credit?
There are three methods of payment:
- Electronic transfer of funds (ACH). This can be done directly on the E*TRADE website by clicking on your Line of Credit on the Complete View, and selecting “Make a payment” in the quick links menu. This is the most efficient method of payment, and gives you the flexibility to make a one-time payment, or set up automatic recurring payments in fixed amounts or to cover the monthly interest due.
- Mail a check. Paying by check may incur a processing fee. Make checks payable to Morgan Stanley Private Bank, and be sure to include your line account number in the memo field. Mail your payment to:
Morgan Stanley Private Bank
P.O. Box 71974
Chicago, Il 60694-1974
- Draw on your line of credit (no action required). Any interest not paid by the due date will be automatically paid by drawing on your Line of Credit, adding to your outstanding principal balance. This will result in compounding interest.
How can I completely pay off and close my line of credit?
To request a full payoff amount, call 800-387-2331 to speak with a representative. The payoff amount will include the total outstanding principal amount, in addition to any accrued interest.
Once the full payoff amount is remitted and processed (via any of the above noted payment options), we will close your Line of Credit account at your instruction.
What are the risks of a Line of Credit?
Securities-based lending involves special risks and is not appropriate for everyone. Be sure to carefully review product details, risks, and benefits to ensure this product is right for you.
- A decline in the value of your pledged collateral may require you to provide additional funds or securities to avoid a maintenance call.
- You can lose more funds than are held in the collateral account. A Line of Credit account is a full-recourse loan and you will be held liable for any deficiency.
- Morgan Stanley Private Bank can force the liquidation of any securities pledged as collateral, and can do so without contacting you first. You are not entitled to choose which securities in the collateral account are liquidated.
- Morgan Stanley Private Bank can modify its collateral maintenance requirements at any time, without notice to you.
- You are not entitled to an extension of time to resolve a maintenance call.
- If your assets are liquidated by the bank, there may be adverse tax or other consequences.
- A Line of Credit is an uncommitted demand facility, which means the bank may demand full or partial repayment at any time or elect not to advance funds.
What are the benefits?
There are a number of potential benefits, including:
- Access to liquidity while maintaining your long-term investment strategy.
- Access to funds quickly through a digital, streamlined application process (application decision typically within 1-2 business days).
- Manage draws and payments conveniently online.
- Repayment flexibility, allowing you to effectively manage your cash flow.
- No hidden fees or expenses.
- Interest charged only on the drawn amount.
Will I receive a 1099 for interest paid?
No, 1099s are not generated for Lines of Credit. Please speak with your tax advisor for any tax-related questions.
Can I set up recurring automatic payments? How?
Yes, automatic recurring payments can be scheduled in fixed amounts, or to cover the monthly interest due. Click on your line of credit account in the Complete View, select the “Make a Payment” button, and click “Review Statement and Setup Payment.” Next, click “Automatic Payment Rules” and select your method of payment (or create one), and specify the automatic payment rule you wish to apply.
Can I appeal a denied line of credit application? How?
Can I adjust my pledged collateral account structure (add/remove collateral accounts)?
Yes, you can adjust your pledged collateral account structure by filling out an Amendment to Line of Credit and Security Agreement form. You can retrieve this from the Forms and Apps section online, or by calling 800-387-2331 to speak with a representative for directions.
If you have an outstanding loan balance, any adjustment to the pledged collateral account structure must be reviewed and approved prior to implementation.
How much in collateral securities do I need to apply?
There is a minimum requirement of $50,000 in eligible collateral to apply.3
What happens if market fluctuations lead to a decline in collateral account value?
In this situation, you may be required to deposit additional cash or securities as collateral to maintain your original collateral amount. Failure to do so may result in the selling of some or all of your pledged securities, which may result in adverse tax consequences.
Fully Paid Lending Program
What is the Fully Paid Lending Program?
The Fully Paid Lending Program offers customers the ability to earn additional income on fully paid securities. Upon enrollment you allow E*TRADE to borrow fully paid securities from your account for, among other things, re-lending to short sellers. In return, you receive collateral held at a bank and a portion of the revenue paid to E*TRADE by the borrower of the securities.4,6
How am I compensated for participation in the Fully Paid Lending Program?
While shares are on loan, you will accrue interest daily at an annualized interest rate that will be paid to your account monthly. The annualized lending interest rate is market-driven and can fluctuate daily based on several factors, including but not limited to, borrowing demand, market supply and short selling.
You will be compensated for the duration of the time the securities are on loan (seven days a week and on holidays). Loan income will be paid in the form of a credit, posted directly to your account, generally after the end of the calendar month.6
Participation in the Fully Paid Lending Program does not guarantee that any portion of your shares will be borrowed.
Learn more about how you can view loaned shares, the current rate, and how much you are earning.
Will I receive collateral for securities borrowed by E*TRADE?
Yes. In return for loaning your shares, E*TRADE will deposit cash collateral (equal to 102% of the daily marked-to-market value of securities borrowed) to your account carried by E*TRADE Securities; such collateral will in turn be automatically swept into a deposit account at one or more affiliated banks. You will see this mark-to-market daily in the transaction history to reflect changes in security prices.
Yes. Even though your shares are on loan, you retain full economic ownership. That means you can continue to trade as usual and sell shares at any time without restriction. Note that selling a position on loan effectively terminates the loan. In addition, if you write a covered call on an underlying position, the loan will also be terminated.
You have complete and immediate access to selling your shares. You continue to own the shares and are subject to market risk with price fluctuations. However, you may sell at any time without de-enrolling from the program or providing a notice to ETRADE, provided, such sell transactions will terminate the loan of such securities.
How can I see what shares are on loan, the current rate, and how much I am earning?
Any loaned shares will always be visible in your account with a notation that the shares are on loan. Positions on loan can be seen on the Portfolios page with an “FP” notation. You can access this page by logging onto etrade.com and going to the Accounts tab, then selecting Portfolios.
You can see the daily interest accrued from loaned positions by logging on to etrade.com and accessing the Reports tab under Transactions. Access the page by navigating to Transactions, selecting Reports, and then choosing the Within the Fully Paid Lending Program accrual detail link.
The Fully Paid Lending Accrual Detail page in your account will display the applicable rate and quantity of your loaned positions for each day they were on loan. Note that pay over the weekend or holiday will be combined into one line item on the last business day of the week.
A daily PDF report will be sent via email or mail, based on your trade confirmation delivery preference. Navigate to the individual daily documents by going to Accounts, selecting Documents, and then choosing FPL Loan Status Reports. To change the delivery preference, you will need to change the setting for trade confirmations.
Can I select which securities to lend?
No. Once you are enrolled, E*TRADE will borrow shares of in-demand securities from your portfolio as needed and share the revenue from the lending transaction.6,5
Please note: E*TRADE makes no guarantee that your fully paid securities will be borrowed.
Yes, you will be entitled to receive dividend payments on your loaned securities. In certain circumstances you may receive manufactured payments (i.e., payment-in-lieu) which may have different tax consequences than receipt of qualified dividends. E*TRADE may provide a credit adjustment to certain accounts to help offset the additional tax burden associated with the receipt of a payment-in-lieu. Consult a tax advisor regarding the tax implications of lending securities to E*TRADE and the receipt of substitute payments.5
Will I retain voting rights on loaned securities?
No. You will not have proxy voting rights on loaned securities.
Can I see loaned securities in my account?
Yes. Any loaned shares will be visible in your account at all times with a notation that the shares are on loan. Positions on loan can be seen on the Portfolios page with an “FP” notation. Access this page by logging onto etrade.com and going to Accounts > Portfolios.
What is the interest rate and how is it derived?
The annualized lending interest rate is market driven and can fluctuate daily based on several factors, including, but not limited to, borrowing demand, market supply and short selling. Typically, as the demand increases and supply decreases, the rate will increase.
When is the loan terminated?
Loans are terminated at E*TRADE’s discretion, upon your sale of underlying shares, writing a covered call, unenrolling from the program, or transferring shares to another un-enrolled account. Note that before a transfer of stock either internally or externally for a position currently on loan, you should contact customer service for additional support.
What type of insurance protection is included with Fully Paid Lending?
Client securities borrowed in connection with the Fully Paid Lending Program are not covered by the Securities Investor Protection Corporation (SIPC). However, the cash collateral for such loans are protected by the Federal Deposit Insurance Corporation (FDIC), subject to and in amounts up to FDIC insurance coverage limits (generally up to $250,000 at each depository institution at which the customer’s cash is held inclusive of the collateral and other customer deposits). The cash collateral may constitute the only source of satisfaction of E*TRADE’s obligations to you in the event that E*TRADE were to default on the loan or become insolvent.
How does Fully Paid Lending work with other products?
At this time, Fully Paid Lending is only available for brokerage cash accounts and IRAs with a minimum net account value of $25,000. Margin accounts, Line of Credit accounts, and other non-cash accounts are not eligible for the program.
How do I know what positions are eligible? How are securities selected?
Positions that are considered “hard-to-borrow” are eligible for the program. However, not all hard-to-borrow positions will carry the same firm demand. Participation in the program does not guarantee that your shares will be borrowed or that you will earn income.