A reader noticed that Fort Knox Federal Credit Union's 59-month CD has an early withdrawal penalty of 365 days of interest as noted in the small print of the CD's rates page
. When Fort Knox increased the early withdrawal penalty (including on existing CDs
), it increased the penalty from 3 to 6 months of interest for terms of 24 months and greater. A reader wondered if Fort Knox had again increased the penalty on existing CDs.
I emailed Fort Knox about this, and I just received the following reply:
The 59 month CD started in July 2011 and yes the 12 month penalty started at the same time.
If you go to our homepage and click the About Us tab, please click on the Cornerstone link, our quarterly newsletter, on the inside it talks about the 59 month CD.
Member Resource Branch
So it appears the 59-month CD and its 12-month EWP are new. Thus, they don't apply retroactively.
Unfortunately, it appears this 59-month CD has replaced the 60-month CD. So you can't get a new 60-month CD. Your only option is this 59-month CD with the 12-month EWP.
Perhaps Fort Knox realized what they did had questionable legitimacy (even though they did get the okay from the NCUA