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Automatic Renewal No Thanks

Ltssharon
  |     |   471 posts since 2020

I followed up and bought the teachers fed cu 22 month cd. Than they sent me a contract to sign and return. On the contract they had typed that I wanted automatic renewal at maturity. I did not want to sign a contract saying I wanted to automatically renew.

Sigh. It took forever and several holds before I was transferred to someone who advised me I could change the wording and include a letter of instruction so that upon maturity the proceeds go into the savings. I mean it took about a half hour. Finally I said ‘I have asked you nicely twice before to let me speak to someone from the cd department- will you please do so now? Anyhow, watch for these contracts and what they have typed upon them. You

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6


Answers
Kaight
  |     |   1,192 posts since 2011
I feel your pain. The overwhelming propensity of financial institutions to default to CD renewal upon maturity is one the the bains of my existence. It is BEYOND annoying. I never renew maturing CDs, and I certainly would not do so in advance. How stupid do they think we are?

I also love it when they blithely tell you "not to worry, you have ten days following auto-renewal" to get your funds out. Of course in many instances if you wait into that grace period and then close the CD you will not be paid any interest past maturity. The entire thing is an oversize sack of what comes out the posterior end of a bull. So vexatious!
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Choice
  |     |   937 posts since 2020
Luv counteroffers!
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chaser14
  |     |   61 posts since 2019
I’m so glad I just read this post. I have 3 large 3 year CD’s maturing this fall and when I just checked my documents 2 of the 3 have “automatic renewal” checked. I just called Total Direct Bank and they said I have to email them before maturity providing the last 4 digits of the account for the funds to be transferred to my linked account where my monthly interest is sent. They also said they would prefer email rather than snail mail. (Wondering if I should to both just to play it safe.) I’ll follow up the email with a phone call to confirm my directions.
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Ltssharon
  |     |   471 posts since 2020
yes, I would do both. The reason is that if you do a "Letter of Instruction" and have the post office somehow make it overnight and somehow guarantee or something delivery, you are covered. I do not know how to find out if an email has actually been read. Hmmm, it would be nice to know how to find out if an email has been delivered and read, and have proof of that, but I personally do not know how.
I am pretty sure I have other CDs where I did not be this careful about the "upon maturity" part of the agreement, and so I am always a nervous wreck worrying that I will lose track of the maturity date. Going forward, though, I will take my own advice.
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Rickny
  |     |   1,296 posts since 2017
Most banks/CUs I deal with have auto renewal when opening a CD.

Penfed gives you the option of auto renewal or not when opening. The only one I've seen that does this.

Other banks (I believe on is NASA). Lets you change your renewal option on-line after opening.

I send a secure message (if an option) or a written letter a week or so before a CD matures with my closure instructions.
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