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Withdrawing Matured Cds From Credit Unions

paoli2
paoli2   |     |   2,227 posts since 2011

Can anyone advise if they have had any problems getting a matured CD funds returned back to the owner via paying for it to be wired to one's bank from a credit union?  For example, we have a CD due to mature from an out of state credit union for a "decent" amount and I don't want them to just mail the check by regular mail which can take several days.  I was advised by the credit union they would put the funds in the Share savings account we have when it matures and I could just call them over the phone and request them to wire the funds to our local bank account.  My concern is once they stick it in their Share savings for us, whether they would release the funds immediately the next day to wire to our local bank.  They do not do ACH transfers so it's a domestic Wire for $15.00 or regular mail.

Has anyone withdrawn a closed, matured CD from a credit union by this procedure and can advise if they encountered any problems getting their funds as soon as possible or any holdups?  Thanks for any info or advice.  Much appreciation.



Answers
Shorebreak
Shorebreak   |     |   4,078 posts since 2010
Wire transfers to US institutions usually take about half of a business day to be received. Normally if they are sent in the morning they are received that afternoon. Funds from the certificate should be available the day following the maturity date for transfer into the share savings account. Once that is accomplished the funds are available for wire transfer immediately. I haven't encountered any problems in the past.
me1004
me1004   |     |   537 posts since 2010
Paoli2, you should actually be able to wire out the funds directly from the CD, wtihout bothering to transfer to the savings. They would simply clase the CD and rather than tranfer the money to a savings  or put it in the mail, they would put it out via wire. Shorebreak is right about the timing -- although your institution might have rules or slow processing that creates delays putting  the  funds  into the federal wire system, but that is them, not the Federal Wire. You might want to ask into such things in advance.

But if you choose to  transfer the funds to the savings and then wire out, that should not create a  day  delay  once they do the transfer -- but you might want to find out what  time of day they will  do that transfer, as they might not until the evening. But if they do it first thing in the morning, you can immediately access that money for whatever you want, by law there is no delay because it is cash.

I also suggest an alternative: Transfer the CD proceeds to a checking account rather than a savings account, and simpiy write a check from home. I typically open a checking with a CD just for  that reason, and if no free checks up front, I generally can at least get some temporary  checks from the bank for free, and I only need one.

Actually, Shorebreak, funds from a CD are available on the day of maturity, not the next day. 
Shorebreak
Shorebreak   |     |   4,078 posts since 2010
Regarding the availability of funds when a CD, share certificate or money market certificate matures it appears to vary with the institution. For example, with PenFed when their Money Market certificates mature, the funds are not available until the day after the maturity date. The customer agent at PenFed stated that is "because you are still earning interest on the date of maturity and the transaction is not completed until the end of the business day".
paoli2
paoli2   |     |   2,227 posts since 2011
Thanks for the help and the advice.  My concern was that this particular credit union seemed to want to have the CD upon maturity to be put into their Share account before I could request a wire by phone.  In fact they have already put a note in our account that this is the way "we" want it to be done upon maturity.  As long as I can have it wired to our local bank account within a day or so after maturity, I don't really think it is worth it to hassle with them over handling the Wire this way.  I am glad to read no one seems to have had any real problems doing it this way.  Thanks for the input.
me1004
me1004   |     |   537 posts since 2010
OK,  Shorebreak, if you have had that expeience, then it must  happen.  But is several decades of having CDs, I have always been able to access them on the maturity date. 
paoli2
paoli2   |     |   2,227 posts since 2011
me1004:  In several decades or more, I have always been able to go into our bank or credit union and close and withdraw the CD funds upon maturity date also.  However, times have changed and so have the rules with a lot of the institutions.  This is why I posted my question to find out if any of our members have faced any problems with these "changes".  It seems those who replied have not so when the time comes, I will request my wire transfer and hope it will be done as expeditely as possible.
Alskar
Alskar   |     |   9 posts since 2010
If both credit unions participate in the shared branching system, the easiest way to transfer between credit unions is via the "shared branching" system.  To do this, I go to my local credit union and have them transfer the money between the other credit unions.  No wire fee and instantaneous. 
me1004
me1004   |     |   537 posts since 2010
If she is sending it to a credit union in the shared branch system, you are correct Alskar, that is how I do it. But she said she was sending it to a bank, so that won't work.