Friday, February 15, 2013 - 3:29 PM

$5,500 Incorrect Charge not corrected.

(1 stars)

Do not invest your money at Sterling Bank.

Sterling bank rolled over a $182,000 3.39% 2-year CD to a 0.55% 2-year CD without my approval.. I wanted to transfer the cash to TIAA at 3% no time limit. They would not correct their error, and wanted to charge me $5,500 to cancel the incorrect CD.

marsparks1 posts since
Feb 15, 2013
Rep Points: 1

1. Friday, February 15, 2013 - 5:52 PM

When you open a CD, there is typically a clause in the paperwork which indicates that the CD will automatically be renewed unless the institution is notified within a certain time period ("grace period") that you do not wish to renew it. It sounds like you got a great deal on a 2-year CD originally, but did not let Sterling know in time that you didn't want to renew it.

The $5500 is the EWP (early withdrawal penalty) for closing the renewed CD prior to maturity.

By the way according to the bank's rate table, as of 2/11/13 a 2-year CD with a balance of $10K and up earns 0.80%, not 0.55%.

pearlbrown1,030 posts since
Nov 2, 2010
Rep Points: 3,972