CD Grace Period

diamondx
diamondx   |     |   134 posts since 2011

Is there any legal requirements regarding grace periods for cd's ? Does the bank even have to offer any time between maturity and automatic renewal ? Just something to be aware of with some of the tricks and extra fine print offered by some of these places.



Answers
111
111   |     |   17 posts since 2019
I'm not 100% certain but I'm about 99% certain that there is no such legal requirement. In part this is because in a very recent post I read about a particular CD offer, Ken Tumin specifically mentioned the lack of a grace period - https://www.depositaccounts.com/banks/frontwave-credit-union/offers/
paoli2
paoli2   |     |   2,567 posts since 2011
In over 50 years of buying CDs, I have never done business with any institution which did not give a grace period upon Maturity and I still won't. Especially as low as rates have been, one surely doesn't want their CDs to rollover into the same low rate if another bank or cu is offering higher. That would be a double whammy against savers if they took the grace period away!


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