CD That Cannot Be Set To Not Renew Until 30 Days From Maturity Date

caliguy1 | Jun 24, 2017 | 5 posts since 2016

Hi,

I have a CD from a bank that is maturing in September 2017 and I tried to set it to not renew (transfer to my savings at maturity) and they are not allowing me to do it until approx 30 days from the maturity date. I'm worried that I will forget or will be out of town and be unable to do it.

Has anyone else had this experience and have a solution? Is it common? Would it be best to avoid banks who do that (e.g. shows bad customer service, as it seems to me they are doing that on purpose because they know some people will forget to do it)?

I know you can just try to set a calendar reminder but if the bank creates hoops like having to call in for it, within only certain business hours, it could be easier to miss than you might think.

Thanks.

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Answers

Bozo | Jun 24, 2017 | 1,375 posts since 2011

Caliguy, I have been in your situation. If your bank does not have a feature on its website to indicate your preference, just send them an e-mail, clear and to the point, that you do not want your CD to renew. Ask for a reply. If none is generated, send your request via snailmail, certified, return requested.

That should suffice.

caliguy1 | Jun 24, 2017 | 5 posts since 2016

Yes, it's a big deal IMO..imagine if you have a 5 year CD with 365 days ewp and cannot set it to not renew in time. Then you're out of 1 year's interest. And also just psychologically I don't want to have to think/worry about it during the length of the CD.

Bozo - I will try that but they could have something in their TOS that makes that approach invalid. And they could just respond and say you have to do it within X days of maturity.

If DepositAccounts could add this information to the top banks/CUs (i.e. whether each bank/CU allows setting a CD not to renew at any time vs. only close to maturity) that would be extremely helpful.

paoli2 | Jun 24, 2017 | 2,641 posts since 2011

This is one of my biggest gripes with the institutions I deal with too. I wanted to be able to go on line and mark a form stating they are NOT to renew my CDs at maturity and was told I had to wait until closer to the Maturity date. They put the responsibility upon the customer when it could be so simple to just let us mark it on their website.

I put up such a fuss with two of my bigger institutions that they said "they" would note my accounts to switch the funds into the Savings Accounts upon Maturity which I have with them and at least the CDs would not be renewed. I could then withdraw the money are have it transferred to my local checking whenever I wanted.

I especially resent the fact that all of my CDs state they are "renewable at Maturity date " but we do get 7 to 10 days Grace period to withdraw. So I make sure I have notes set up for my family how to handle if I am sick or not around to do it.

me1004 | Jun 24, 2017 | 1,379 posts since 2010

Bozo, at least some banks or CUs will not accept an instruction outside the time frame they specify for it. It sounds like that is what caliguy1 is talking about.

I had a terrible experience with Christian Financial CU some years back -- and will never do business with them again because of the stress and delays it created in getting my money -- in that they would not take any instruction about a CD within two weeks in advance of it maturing, it will automatically renew. In my case, I gave the instruction 13 days in advance, and they would not accept it. I had to wait until AFTER the CD matured and was automatically renewed to give an instruction during the grace period of five days to close it and mail me the money (I don't recall why it had to be mailed rather than me write a check, but it had to be done that way, I think because of some rule they had). Then, once they get the instructions, they take some time to process it before putting the check in the mail, which wold take three more days to get to me. In all, I did not get the check until five days after the CD matured, losing all that time of interest as if you close a CD during the grace period, you get no interest for that grace period time, and meanwhile the money sitting with them and them taking a free float. I did not think they had acted in a very Christian manner.

That was my worst experience with such rules, but I have come across them at other places too.

Sylvia | Jun 24, 2017 | 389 posts since 2012

In response to your question about avoiding banks demonstrating such rigidity and internal focus, I'd say it depends. I'd categorize the problem you described to be an annoyance I might be willing to tolerate in exchange for, say, access to a 2-year CD at 3% with reasonable EWP and otherwise solid customer service. In other words, take a look at the full picture. If they're at best competitive in other areas, I'd pass.

Ratesaver | Jul 2, 2017 | 187 posts since 2013

Calguy, ,I have many cds and most banks are just as you said ,,, They want you to forget and we do forget... I order not to forget I have a Log book ... What I call my bible... I lest every cd I have on this log book ... It usually take's a good size page...I list the number of the cd, the date opened, the date closed the amt. ect... Each January I rerilght all cds in this log except the ones that came due... The ones came due I cross out with a red pen line so as to just see it enough to return to it should I need to refesh my memory... I put all new cds. on the next yrs . page.... I also each January look at the ones coming due that yr.... I right those down on my calender... Hope this helps...good luck

peacejogger | Aug 2, 2017 | 22 posts since 2011

Well, I have been using CD's for many years and have not forgotten yet, but I suppose it could happen. I just keep a simple spreadsheet with the maturity dates listed, but I rarely have to use it. All of my banks/credit unions send me a notification in plenty of time to make my preferences known.

Bozo | Aug 2, 2017 | 1,375 posts since 2011

Peacejogger, as a "general rule", financial institutions will send you a notification when your CD is about to mature. If your e-mail is on file, you'll get an e-mail. Probably also a snail-mail. Hard to ignore.

That said, there is usually a "grace period" after the CD matures where you can back out with no EWP.

me1004 | Aug 2, 2017 | 1,379 posts since 2010

Bozo, I would disagree with that. Yes, I have gotten notification from some places, but only the minority of places. Most CDs I have had did not send any notification of impending maturity.

Bozo | Aug 2, 2017 | 1,375 posts since 2011

me1004, that is somewhat shocking. Over many years, with many CDs, I have always received (both by e-mail and snail-mail) notices that a CD was expiring.

Ally6770 | Aug 2, 2017 | 4,292 posts since 2010

That is why we have calendars or cell phones. I use a desk calendar that are on sale right now at the $1 store. They are the size of a small phone book and each month fills two pages when you open it.
Each square has lines in it. I use one color for things to do, one color for birthdays and anniversaries, and one color for doctor and dentist appointments. I look at the calendar every Sunday morning so I know what I have to do that week. If I have something important to do I look at
it nearly everyday that week. Or on Sunday you can set your alarm on your cellphone to ring and that should remind you.
I buy several for the people to whom I bring home made soup and a doughnut. I give them two different colors of pens with the calendar to use for their appointments. One color for the wife and one for the husband. The lines in each square help to make the writing easier for them.
In fact in Jan of each year I go through all my CD's and mark on the calendar any are due that year and I always mark it also a week before to call a week to make sure they will do as I want with the money.

Bozo | Aug 3, 2017 | 1,375 posts since 2011

Ally6770, too funny. As I am a dinosaur, I use a legal pad.

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