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Installement Account Changes

Thursday, December 9, 2010 - 2:12 PMNara Bank - Details
  Old New
Terms: 3 yrs at 3.56% 3 yrs at 2%
Limits: Unlimited amounts, unlimited number of accounts per customer $50,000 per household
Penalties: $50 fee for closing account before 180 days, no penalty afterwards $50 fee for closing account before 180 days and 3 mos of interest after 180 days
Depositing money: By outside ACH or check.  No checking account required Auto-debit from Nara checking account.  Note that Nara bank does not have a free checking.
6
mariafaltermariafalter57 posts since
Jun 6, 2010
Rep Points: 222
1. Thursday, December 9, 2010 - 4:20 PM
This is a locked-in CD. Let me ask: are they applying these new rules to the already existing CDs in mid-term? The legality of doing such, and whether backs actually would do so, has been a big question, although it does look like they might be able to do so legally. But what is the case on that question here?

But I have to think at least the new the limit on the amount in the account is not being applied to existing CDs, as I don't see how they could manage that.

Those are some pretty substantial cost changes, adding an early withdrawal penalty of 6 months interest where there previously was no penalty, and requiring you to use their checking account from now on, for which there will be a monthly fee.
1
me1004me1004346 posts since
Jan 16, 2010
Rep Points: 2,372
2. Thursday, December 9, 2010 - 11:30 PM
 Fortunately, the new rules apply to new accounts only.  They stopped offering this account for a while, and when they brought it back, it had a new name and the rules were changed drastically for the worse.  I was planning to open one more account with them, but it's not worth it anymore.
1
mariafaltermariafalter57 posts since
Jun 6, 2010
Rep Points: 222
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