Does CD "Limit" Include Dividends?

dnc2933 | Feb 17, 2020 | 11 posts since 2016

I have a Fixed Rate Term Deposit With Agreement with Mountain America Credit Union. The limits are stated as "After the term deposit is opened, additional deposits can be made to the term deposit at any time with a maximum of $100,000 on deposit ----".

The question that seems to buffalo Mountain America is "does the interest (dividends) added each year constitute a part of the $100,000 limit or does the $100,000 limit apply just to what I deposit?.

Any of you guys have one of these CDs? Any answers?

Post an answer

Answers

dnc2933 | Feb 18, 2020 | 11 posts since 2016

Mountain America Credit Union
This is what I received.

Hello,
Thank you for the question concerning the Growth Certificate. You can add funds until it reaches the $100,000 limit, but the dividends will still continue to accrue until the end of the term.
This means the amount in the Certificate will end up being more than the $100,000 with the dividend added in.
If you have any other questions, please feel free to reach out to us at 1-800-748-4302.

Thank you,

Star Montoya

Mountain America Credit Union

(800) 748-4302

blazer9 | Feb 18, 2020 | 228 posts since 2019

looking for more info

blazer9 | Feb 19, 2020 | 228 posts since 2019

Hello, I’ve attached the growth certificate agreement form for clarity purposes and I’ve highlighted the portion that was confusing.

“After the certificate is opened, additional deposits can be made to the certificate at any time with a maximum of $100,000 on deposits in any one, or combination of, Growth Certificates per primary account holder”

This does not include compounded interest into the certificate (CD) this only includes deposits on the certificate.

I have also requested an update on our internal communication so that our employees have a clear understanding of this product per your request as well.

h_meister | Feb 17, 2020 | 32 posts since 2014

I have a 3 year CD that I started with 10K and had to set up the required monthly deposits ($5). I had some money coming from other CDs and put in another 10K and about 2 months latter a deposit of 79K+ that took me up to just under 100K. since then I've accrued another 2K of interest, so the bottom line is your deposits and any intervening interest can total 100K before they stop paying interest on your principal. FYI, remember to stop the recurring deposit.

blazer9 | Feb 17, 2020 | 228 posts since 2019

I believe you may be mistaken.

RickZ | Feb 17, 2020 | 218 posts since 2010

I can provide an empirical data point to confirm that interest is paid on the full balance in this Mountain America CD even if the accrued interest takes you over $100K.

On 12/1/19 my balance was about $150 under $100K and I received 3.45% interest (which equals 3.51% APY) on the full balance for the month of December. On 1/1/20 my balance was about $150 over $100K due to the interest that was added on 12/31/19 and I again received 3.45% interest on the full balance for the month of January.

blazer9 | Feb 19, 2020 | 228 posts since 2019

RickZ
would you please check if the 150$ over the 100k was deposited back into the balance of the CD or it was credited to the total of combined savings, CD or other acct you have?

I hearing some strange replies from others CSRs about your and dnc2933 questions.
The replies are setting a whole new question about our interest. On your reply, I'll submit their answers.

blazer9 | Feb 17, 2020 | 228 posts since 2019

There was alot of debate on all terms of those CDs. It became a total free for all of what is and what ain't. I suggest you call MACU for positive better source of the terms . By now the CSRs should have a straight story of the now established CDs are supposed to be managed.

These are of course the about the SPECIAL Add On CD that was offered if I remember in Nov. 2018

Even my thoughts may instigate a new barrage of theories in this post. I Hope Not !
I will say "though" I believe ..interest.. does not count towards deposit limit of 100k. They ..Do...Not ...Stop..paying interest until the 24,36,or 60 months CD term ends.

dnc2933 | Feb 17, 2020 | 11 posts since 2016

Thanks, guys. I put this question to MACU 10 days ago but no reply yet. I will post if I get a reply.

blazer9 | Feb 17, 2020 | 228 posts since 2019

apology :- (

2018 in my above post should be 2019

Robb | Feb 17, 2020 | 322 posts since 2018

Good question and discussion. I have been thinking about funding my 5 year with about 90k by the end of year two and then with interest and the $10/month transfer it would come to near the 100k mark by maturity. It sure would be good to get clarification on this. And, also, above the cap what would the rate be in terms of interest??

Duck | Feb 17, 2020 | 111 posts since 2010

I haven't had reason to ask as I haven't reached the threshold yet but if you want answers to this do not go with the reg CS ask for 1 of the girls in loans when ya call BTW Maddie or Topanga are very nice an they will get you an answer

CDmanFL | Feb 17, 2020 | 286 posts since 2019

If they have a $100,000 maximum and you deposit $100,000 (whether intermittently or all at once), logic strongly tells me that you’ll still get interest every month. It would be lunacy to think that if you deposit the maximum that all you’ll get back is your original deposit. What am I missing?

RickZ | Feb 17, 2020 | 218 posts since 2010

The question isn't whether you'd get interest on the first $100K in the CD which you of course do, the question is whether you'd get interest on the incremental amount over $100K which is a result of interest being added to the CD.

CDmanFL | Feb 17, 2020 | 286 posts since 2019

Got it. I never claimed to be the smartest person here (or anywhere).

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.