Thursday, December 9, 2010 - 2:12 PM

Installement Account Changes

	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.

mariafalter57 posts since
Jun 6, 2010
Rep Points: 222

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This post applies to the following states: CA,NJ,NY.

Quick
Summary

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.

me1004292 posts since
Jan 16, 2010
Rep Points: 1,857

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.

mariafalter57 posts since
Jun 6, 2010
Rep Points: 222