Melrose's Harsh Early Withdrawal Penalties!

I read where someone wondered why Melrose doesn't have more people opening accounts with them.  Well, I think I may have learned why from my phone call from them this morning.  Before 9 AM I got a call from a male from Melrose returning my call from yesterday about their EWP and the fact I did not really understand how it worked.  He was very honest with me and made it clear one should not put money in a CD with Melrose that they may need to close early.  He admitted they have very "harsh" penalties.  It seems if we were taking our interest in monthly checks etc. and need to do an early withdrawal,  we have to repay it back from the Principal of the CD.  That can be hefty since if they lower the rate to the savings rate, we need to repay all that additional interest they paid us.  If we had a 5 year CD and had to cash it in after 3 or 4 years, that is a "lot" of money to have to pay back and they take it off of our Principal.

I told him, basically it seems Melrose "chops off our head and cuts it into pieces" if we need to close the CD early.  He agreed with me that Melrose is not the place to put money you will need to withdraw early.  I thanked him for his professionalism and honesty and told him I could never do business with Melrose since one never knows when an emergency will happen and one will need their money.   Soooo,   I, personally can't afford to be tempted by Melrose's higher rates.  They seem to be very honest about their harsh penalties and I applaud them for that.