Do You Know Of A Bank Or CU Willing To Waive Their EWP For Existing CDs?

Kaight | Mar 24, 2020 | 1,192 posts since 2011

EWP stands for "Early Withdrawal Penalty"

In the wake of the coronavirus, some financial institutions are waiving penalties when you close your CD early. If you know of such a situation, please post. Thank you very much.

I can offer three examples to get this started, but I'm hoping there are more. My contributions:

Navy FCU

Merck Sharp & Dohme FCU

Hanscom FCU

Post an answer

Answers

alan1 | Mar 24, 2020 | 877 posts since 2015

Freedom Northwest Credit Union (up to 50% of balance)
see https://www.depositaccounts.com/banks/freedom-northwest-credit-union.html#promo41298

Amalgamated Bank (appears to have no restrictions, other than the standard one: can't be closed until 7 days after opening)
see https://www.depositaccounts.com/banks/amalgamated-bank.html#promo41317

pgroove_fan | Mar 25, 2020 | 168 posts since 2019

alan1, thanks for quoting the letter from Freedom Northwest. It points out a few reasons that folks might want to take this "bad deal" of taking money out of a high(ish) rate instrument. It also is explicit in telling members that taking this opportunity is not being encouraged.

blazer9 | May 4, 2020 | 228 posts since 2019

Premier America Credit Union
NOW till July 31 2020
No withdrawal fee for CDs
Maybe I will to get funds into add ons
but mine matures 6/23 will see how much left on the table

Bozo | Mar 25, 2020 | 1,375 posts since 2011

IRA CDs (including partials): PenFed and StateFarmBank. StateFarmBank may be acquired by US Bank, and the policy may change. Patelco (if you close entire IRA CD). These waivers apply to folks over 59 1/2.

Choice | Mar 25, 2020 | 937 posts since 2020

There is a difference between CDs (591/2, 70, etc) non-IRA CDs...the inquiry should be restated

Kaight | May 4, 2020 | 1,192 posts since 2011

Since writing OP have been successful so far in extricating funds without penalty from two lower yielding CD situations:

* Bellco Credit Union in Colorado

* Dover FCU in Delaware

Money will move into higher rate add-on CDs having more distant maturity dates. Cannot envision interest levels rising to those same higher rates any time soon. Needed money to lock in those rates, and extend maturities, and found it with no EWP because of the pandemic.

Do have funds locked up elsewhere several situations. But not having luck avoiding EWP at those other credit unions. Not all financial institutions are considerate and helpful, even when existing higher yielding CDs are involved, closure of which could result in a win-win despite their granting of an EWP waiver.

Choice | May 4, 2020 | 937 posts since 2020

“ Not all financial institutions are considerate and helpful, even when existing higher yielding CDs are involved, closure of which could result in a win-win despite their granting of an EWP waiver. “

Why would someone want to move funds that are currently having a higher yield?

Kaight | May 4, 2020 | 1,192 posts since 2011

Good question. In my case I still have CDs which, while they are high yielding, mature early as next year. It would be my preference, if possible to do so without penalty, to close those CDs and move the funds into add-on CD situations equally high yielding, but which mature late 2022 to 2024.

Nobody knows for certain what will happen with interest rates. I do not know. But I'm betting on rates remaining low for the next several years. Hence, I do not welcome the idea of CDs maturing any time soon, least of all in 2021. Am doing what I can to lock in higher yields for long as I can finagle.

Additionally, my several "add-on CD situations" are potentially volatile. They could be withdrawn, by the financial institutions offering them, with just 30 days' notice. A bird in the hand is worth two in the bush. In absence of need to pay a penalty to acquire funds, I would prefer to use my add-on CDs now rather than stand around doing nothing except awaiting possible trouble.

Choice | May 4, 2020 | 937 posts since 2020

Got it! Go for it

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.