My Experience Closing a WaMu/Chase CD and Tips on Redeeming CDs
POSTED
BY Ken Tumin
My 5% WaMu CD matured last week, and I was able to close the CD by calling when it matured and instructing the CSR to transfer the money into my Chase checking account. My WaMu CD was converted to a Chase CD at end if July so the Chase CSR was able to access it. I called in the morning, and when I logged into my Chase checking account in the early afternoon, the CD money was available in the checking. I then logged into my Ally Bank account, and initiated an ACH transfer to withdraw the money from the Chase checking account. The money was deposited into my Ally savings account on the next day.
Don't forget that no interest will be be paid during the grace period after the Chase CD matures if you redeem the CD. So if you plan on closing the CD, it's best to close it on the day it matures. The grace period is 10 days after the CD matures. If you don't close the CD during the grace period, the CD will automatically renew for the same term at the standard interest rate (which is likely to be very low). This information was included in the letter that Chase sent to me a few weeks before the maturity date.
I'm going to miss that 5% CD. I certainly didn't think interest rates would be this low when I opened that 5% CD last year.
Checking or Savings Account with a CD
Having a checking account or a savings account at the institution where you have a CD can make it much easier to close a CD. In addition to Chase, I've been able to transfer the CD into my liquid account by a phone call at several banks and credit unions. Some even allow you to request the transfer online. Without the Chase checking account, I could have requested that they mail me the check which would have meant many days of zero interest and the worry of the check being lost in the mail. Also, I could have gone to a Chase branch and requested a check.
Convenience of ACH Transfers
Once the CD funds are moved into your checking account, you can then write a check for another CD. However, I've found it very convenient to use my Ally Bank savings account to pull the funds via an ACH transfer. This also works well when you have CDs at credit unions since you always have to maintain a savings account to retain your membership. When the CD matures, you can instruct the credit union to transfer the funds into your credit union savings account. Once it's in the savings account, you can use your online bank to transfer out the funds.
The only issue that I had with this method was at Navy FCU which does not allow ACH debits from its savings account. I had to open its money market account which allows ACH debits. So it's a good idea to do a test ACH withdrawal before the CD matures.
Ally Bank works well for ACH transfers. It has five important attributes:
Refer to my weekly rate summary for the best nationwide savings accounts. In this list I include links to reviews with info on the banks' ACH transfer services.
Don't forget that no interest will be be paid during the grace period after the Chase CD matures if you redeem the CD. So if you plan on closing the CD, it's best to close it on the day it matures. The grace period is 10 days after the CD matures. If you don't close the CD during the grace period, the CD will automatically renew for the same term at the standard interest rate (which is likely to be very low). This information was included in the letter that Chase sent to me a few weeks before the maturity date.
I'm going to miss that 5% CD. I certainly didn't think interest rates would be this low when I opened that 5% CD last year.
Checking or Savings Account with a CD
Having a checking account or a savings account at the institution where you have a CD can make it much easier to close a CD. In addition to Chase, I've been able to transfer the CD into my liquid account by a phone call at several banks and credit unions. Some even allow you to request the transfer online. Without the Chase checking account, I could have requested that they mail me the check which would have meant many days of zero interest and the worry of the check being lost in the mail. Also, I could have gone to a Chase branch and requested a check.
Convenience of ACH Transfers
Once the CD funds are moved into your checking account, you can then write a check for another CD. However, I've found it very convenient to use my Ally Bank savings account to pull the funds via an ACH transfer. This also works well when you have CDs at credit unions since you always have to maintain a savings account to retain your membership. When the CD matures, you can instruct the credit union to transfer the funds into your credit union savings account. Once it's in the savings account, you can use your online bank to transfer out the funds.
The only issue that I had with this method was at Navy FCU which does not allow ACH debits from its savings account. I had to open its money market account which allows ACH debits. So it's a good idea to do a test ACH withdrawal before the CD matures.
Ally Bank works well for ACH transfers. It has five important attributes:
- Transfers are free. Some banks charge for each transfer (or outbound transfer). Bank of America is an example of a bank that charges for outbound transfers
- Allows you to link external accounts online via trial deposits. Some online banks require you to mail in voided checks.
- No limit on the number of links to external accounts. Some only allow one link. ING Direct only allows 3.
- Allows large transfers. Some banks have limits as small as $2,000.
- Transfers are fast with little or no lost interest. In my case with Ally Bank, my transfer was completed in only one business day.
Refer to my weekly rate summary for the best nationwide savings accounts. In this list I include links to reviews with info on the banks' ACH transfer services.
There are no WAMU branches in Tucson so I can't walk in to a Chase branch and get anything done about it.
As already said, must call WAMU and hope for them to transfer my proceeds into existing WAMU checking for immediate ACH out to external bank.
They have already warned me the funds may not actually be available for several days after maturity.
BTW, Shore Bank in Chicago is great about creating external ACH links with very minimal restrictions.
We did not.
We had 3 CD's, with a bank that was taken over by Bank of America.
The CD's were transferred to a bank in Texas, and the B of A branch here (in CAlif.) could not even access it, let alone cash it out.
We had to call Texas, and have them MAIL a check to CA.
Needless to say, we will NEVER do business with B of A.
But if you go to a branch and do the transfer, the fund becomes available immediately.
I tried both.
Thanks
I certainly don't want to drive 250 miles each way to close out the CD's. I'll try calling again.
John's comment at 6:30 must be incorrect?
I don't have checking at WaMu any more. It was closed many months ago due to inactivity.
Should I open free or etc checking account before my CD will mature to transfer CD to WaMu / Chase checking to ACH to another Bank / CU later?
Can CD be ACH directly to another bank?
thanks.
According to the representative, the only options for not renewing one of these CDs are (1)going to a branch on or within seven days _after_ the maturity date; or (2) mailing a letter to their bank-by-mail post office box in Texas.
The CSR refused to help us despite the fact that the maturity notice we received stated that one could close the CD by calling either the branch or an 800 number.
I actually got a call from Chase trying to set me up an appointment with a VP at my branch to discuss my options after I closed the first one.
OK I know bank VP's are a dime a dozen. The point is that Chase does seem concerned about losing all these deposits.
I was delighted to get the call ... because it was so much fun to tell them all the money was going to another financial institution and that I had no interest in talking to their VP.
I did try calling Chase a couple of weeks before my CD matured to let them know that I did not want to renew it and to send a check to me when it matured. The CSR said that I cannot give my instructions in advance, but that I had to wait until the actual day of maturity. Then I would have 10 days to give them my request before it automatically renewed. After reading many posts on this site stating that they were able to give the instructions to close their accounts in advance, I called and talked with another CSR. I received the same answer, that is, that they would not do anything until my CD actually matured. I will have to call again tomorrow to close my second CD.
I do not plan on opening any CD's with Chase because they seemed quite difficult to talk with and it is somewhat of a hassle to close a CD. Other banks are much more accommodating.
Also for the people who were successful in closing the CD on the phone, remember, its a problem only if you have over 50,000 that they wont close it over the phone.
Once again, POST the amount of your CD. There is uncertainly because the amounts involved. Its been said many times over 50k cannot be closed by phone.
If the amount is over $50,000, they will require that you mailing a notarized letter or instruction -- something you really don't want to find out about on the day of maturity! AND, I believe this is something that Chase added -- I don't think this was part of the terms of the CD when I opened it.
Fortunately, I live near a branch so can just go in and do the transfer in person.
could be naive Q.
to where you are moving the money from wamu CD?
What's current good options for under $50k for 6-12 months term.
thanks.
1. The can't close it for some reason.
2. They actually did close it but somehow it didn't work.
3. They have no idea why I was transferred here and they don't deal with CDs at all.
4. I can't close it without the penalty, since it was already renewed.
5. They definitely can close it and will close it right now.
6. They already received my request to close it yesterday but somehow it didn't get to the backoffice and will be done tomorrow.
On the way of this entertaining run-around I was also disconnected twice, and got to speak to some guy that I couldn't hear at all because line quality was awful (not my line, as I could hear other guys just fine).
So far I still don't have the money, let's hope they'd really have it tomorrow. In the meantime, I would probably try to stay away from Wamu customer service in a foreseeable future.
I explained I wanted to have my cd closed at maturity, within a min the first rep needed to transfer me to the "CD Department".
The second rep verified my account information (name/account number/date of birth/SSN)... confirmed which CD we were talking about. Then he needed to do "additional identity verification", where he asked questions from my credit reports or public records.
These are five option multiple choice questions. The first two easy/about addresses I had previously lived at (what city is a street address in and what street address did I live at).
The third question was impossible they
asked how old is another person I should know... the problem is there are *three* different people with the same name who are related (mother and two aunts). While you might think that my mother would be the obvious answer, that was her married name for a few years but she wouldn't have used that name in several decades. Even if I knew which one they meant I haven't had contact with any of them in a decade, and I didn't know them well enough to answer.
I explained the issue, answered the multiple choice option which correct "I'm not familiar with that person", then asked for another question that doesn't involve this family member's name.
The fourth question was where does the
same family member live. I used the "I'm not familiar", asked for a question that didn't use that person and was told that I failed the identify verification and the close at maturity request would not be processed.
I waited on hold 15 mins, and spoke to a supervisor for 20 about this... it's bank policy to ask these questions even if they can't be answered they are required by the phone banking service.
There are three ways to instruct the bank to close the CDs at maturity:
- over the phone 35 days before
- by notarized letter
- in person at a branch *after* maturity
The in person branches are "not allowed" to enter close out instructions for future dates.
They would not allow me to visit a branch to verify my ID and then call the call center from there.
They would not generate new questions
that don't involve the ambiguous name.
They would not allow no way to setup an alternative identity verification password or "shared secret" for my account so that I could bypass this step in the future.
If I do phone banking in the future I should expect to be asked the same questions there is no way to instruct WaMu to not ask about this family member.
I was told that both Chase and WaMu used the same verification questions from the same source before the merger.
The support supervisor told me that bank policy prevents her from telling me what data provider's report supplied the data these questions come from. Other than saying it was from my credit reports and "other public records".
I understand that I just had a bit of bad luck here with these questions...
if they had asked different questions
there would have been no problem. It very annoying they couldn't bypass this system or skip certain questions.
She would forward my issue to "upper management" but I would not hear back.
and then, i love how they offer $100 to open an account with them to gain new customers. doesnt any bank know how to provide quality service anymore?
Asked repeatedly how they came up with their amount with this rate information. Could not explain.
Spent over half an hour on phone talking with four different people. One did admit that the math was incorrect, but did not know what to do about it. Research department is suppose to call me back within 24 hours.
After about an hour spent with a bank manager arguing over whether I received notification of the automatic re-enrollment, they refused to override the penalty, despite having the option to do so. The also could not show me any documentation that I had agreed to this, and they could not confirm that I was notified. I received no email or postal notification of my options. After years and years of dealing with Chase's fees and regulations, their refusal to work with me was the last straw. I paid the $342 penalty, then I closed all six of my Chase personal and business accounts. Their inflexibility over a $342 fee cost them just over $200,000. Way to do business, Chase!
First Chase said I could transfer the $ electronically over the phone to my Chase checking account. Then they said I couldn't do that, because my CD was with a WaMu branch that had not yet fully merged with Chase. They said my only options were to come into a branch (impossible, as I'm in Massachusetts, where there are no Chase branches) or to send a notarized letter requesting that a check be mailed to me. They said it was impossible to do an ACH or wire transfer.
I have now sent two notarized letters. Chase claimed not to have received the first letter. After the second letter, they claimed they did mail a check, but I just learned that they sent it to an incorrect address! I am now asking Chase to cancel the misdirected check and do the electronic transfer to my checking that they had originally promised. The CSR said she would try to do this. I'm still waiting to hear back.
Given much of what's been written here, Chase is clearly incompetent, but I wonder if there's something more going on. Are they intentionally making it difficult (through their policies and actions) for people to withdraw funds from CD's?
I am submitting a formal complaint to the Comptroller of the Currency (www.helpwithmybank.gov) and would encourage others to do the same. There is a pattern here that regulators should know about.