1. Sunday, October 24, 2010 - 6:29 PM
One alert about Hudson: I had a CD there at one time, and when I went to close it (early, but no penalty -- never mind why), I learned that they do not pay any interest that has not yet been posted, regardless of how much might be accrued. So, I had to wait until the last day of the month to close it -- in order not to lose a couple weeks of interest! They did NOT pay interest on the basis of the average daily balance for the month. If the money was taken out prior to interest posting, even by a single day, they paid no interest at all. They did NOT pay interest through day of withdrawal.
I got the impression that is the case on all their accounts, so likely on this money market account too. I was doing a full closure. I don't know what they do about calculations if you merely take out some money over the course of the month, or worse if you have multiple withdrawals and deposits, as you would do with an active account, but I suspect you will get no interest on the amounts that you withdraw that month, it will not count as part of an average daily balance for purposes of interest calculation.
No wonder Hudson can post better interest rates than average -- they may actually be paying you NO interest on at least part of your money without you realizing it!
I got the impression that is the case on all their accounts, so likely on this money market account too. I was doing a full closure. I don't know what they do about calculations if you merely take out some money over the course of the month, or worse if you have multiple withdrawals and deposits, as you would do with an active account, but I suspect you will get no interest on the amounts that you withdraw that month, it will not count as part of an average daily balance for purposes of interest calculation.
No wonder Hudson can post better interest rates than average -- they may actually be paying you NO interest on at least part of your money without you realizing it!
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