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1. Thursday, December 15, 2011 - 4:35 PM
I recently learned maturing CDs have an option of being transferred to a linked external account. Two days before maturity I sent a bank mail to confirm everything was properly set up. A CSR confirmed the transfer and mentioned funds could take (5) business days to clear. I asked about a wire transfer alternative to reduce the delay and was instructed to phone the wire dept from 8-5, Mon-Fri., before 4 PM it would be sent the same day.
Contacting the wire department the next day at 9 AM, the maturity date, I realized the CSR’s information was erroneous. Closed CDs could not be wired without a deposit account, something quite unexpected. I suggested opening a savings account and wiring the balance. Fifty minutes later I was told the ACH transfer was already “in process” and couldn’t be modified in any way. The website still showed the previous month balance without final interest posted, a fact without bearing.
Every bank I know offers wire transfers of CDs in addition to mailing checks. USAA’s EFT option is an exception, but disadvantageous under the circumstances. In a ZIRP era of 5+ day ACH delays that used to execute overnight before taxpayer bank subsidies became the norm, this is another example of convoluted rules and misinformation used to the bank's benefit and the customer's detriment.
Warning: Beware the USAA CD transfer trap.
I'm shocked at all the difficulties people have had in the comments.OK, here's another one for you.
I recently learned maturing CDs have an option of being transferred to a linked external account. Two days before maturity I sent a bank mail to confirm everything was properly set up. A CSR confirmed the transfer and mentioned funds could take (5) business days to clear. I asked about a wire transfer alternative to reduce the delay and was instructed to phone the wire dept from 8-5, Mon-Fri., before 4 PM it would be sent the same day.
Contacting the wire department the next day at 9 AM, the maturity date, I realized the CSR’s information was erroneous. Closed CDs could not be wired without a deposit account, something quite unexpected. I suggested opening a savings account and wiring the balance. Fifty minutes later I was told the ACH transfer was already “in process” and couldn’t be modified in any way. The website still showed the previous month balance without final interest posted, a fact without bearing.
Every bank I know offers wire transfers of CDs in addition to mailing checks. USAA’s EFT option is an exception, but disadvantageous under the circumstances. In a ZIRP era of 5+ day ACH delays that used to execute overnight before taxpayer bank subsidies became the norm, this is another example of convoluted rules and misinformation used to the bank's benefit and the customer's detriment.
Warning: Beware the USAA CD transfer trap.
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