Xcelfcu -- Breaking A CD Early.

cdqueen | Sep 17, 2018 | 78 posts since 2016

What is or should be average response time for such request to be fulfilled after made (on a Sunday evening) via credit union's internal messaging system? Subtract EWP (90 days of interest) and redeem remaining funds to same institution checking account...? Thank you DA readers.

Post an answer

Answers

alan1 | Sep 17, 2018 | 877 posts since 2015

My one experience with XCEL's online message system is this: I never received a response.
Also, you should be aware that, at some point, XCEL increased its early withdrawal penalty to 180 days. While the increase should not apply to your CD, XCEL's computers are not aware of that; and you may have problems convincing employees that there should only be a ninety day penalty.

cdqueen | Sep 17, 2018 | 78 posts since 2016

Whoa, significant difference in penalty, thank you alan1. Is the reason the increased penalty should not apply due to the increase occuring after my 'contract' was made? Thank you.

me1004 | Sep 17, 2018 | 1,379 posts since 2010

Let us know whether you are hit with 90 days or 180. There have been a couple other places that changed their EWP and did apply the new rules to existing CDs, Fort Knox FCU a prime case. Whether that is legal is a bit murky, and it is helpful to know how all such situations are handled.

alan1 | Sep 17, 2018 | 877 posts since 2015

Fort Knox increased its penalty and notified existing CD holders of a change in terms. The NCUA ruled in favor of Fort Knox. XCEL simply increased the penalty on new CDs. The problem I ran into re the 90 day penalty was not about legalisms. It was that XCEL's computers were set to impose a 180 day penalty, and XCEL employees I spoke with were not aware of the existence of older CDs with a 90 day penalty. I was able to close the CDs, with the penalty being manually computed at 50% of the 3 previous months' interest payments (which came out to 91 days). It was fortunate that I had a copy of the original paperwork,

Another thing to look out for -- I read my disclosure as giving me the right to withdraw interest without penalty. The XCEL employee I dealt with, and the computer, seemed to have a different opinion. There was some ambiguity in the disclosure. I was sufficiently pleased to be able to close with the CDs that I didn't seriously argue the point. It came to very little money.

cdqueen | Sep 18, 2018 | 78 posts since 2016

Alerted to the significant potential discrepancy, I thought it wise to pay an in-person visit to the branch with copies and original paperwork stating clearly penalty not to exceed 90 days of interest. Good thing too, because they had executed my 'please break' request albeit with 180 days, but kindly revisited and re-executed using 90 days as paperwork clearly states. Now they will have to reconcile this discrepancy as they are aware it exists and will likely recur. Big thanks again to Alan1 for saving me considerable time, frustration and money.

The financial institution, product, and APY (Annual Percentage Yield) data displayed on this website is gathered from various sources and may not reflect all of the offers available in your region. Although we strive to provide the most accurate data possible, we cannot guarantee its accuracy. The content displayed is for general information purposes only; always verify account details and availability with the financial institution before opening an account. Contact [email protected] to report inaccurate info or to request offers be included in this website. We are not affiliated with the financial institutions included in this website.