CD Maturity

MaxG | Dec 31, 2022 | 2 posts since 2022

I opened four 60 month cd's at Capital One bank on Dec 27th, 2022. The $ was added to the accounts electronically on Dec 30th, 2022. The maturity date of the cds is Jan 3rd, 2028. I thought the maturity date should have been Dec 28th, 2028. Am I wrong for thinking this?

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Answers

MaxG | Dec 31, 2022 | 2 posts since 2022

I spoke to a rep at capital bank. It is a bank cd, not brokered. The cd's started earning interest on 12/30/22. The rep said the maturity date should be 12/27/2027. He sent an email to the higher ups to review this matter. He gave me a transaction # and told me to call back in 5 bus days.

MY2CENTSWORTH | Dec 31, 2022 | 436 posts since 2016

I'm not certain, but my initial thought is that in the calculation that the bank uses there are a few extra days added to make it the true 60 months and I think there is a leap year involved in the mix as well. It could very well be that it was after hours yesterday and because of the long holiday weekend the next business day is January 3, 2023. Furthermore, I would think the maturity date should be December 30, 2027/January 3, 2028. I'm sure someone on this DA site may have an exact answer or better yet, just call/chat CapOne and ask. But, don't you mean December 28, 2027? December 28, 2028 would be 72 months or 6 years not 5 years/60 months?

MAKNYC | Dec 31, 2022 | 323 posts since 2015

We’re these brokered CD’s or bought direct from Cap One? And if direct from Cap One the term/product you bought was a 5 year CD?

MY2CENTSWORTH | Dec 31, 2022 | 436 posts since 2016

MAKNYC, Would being brokered CD's vs direct from CapOne make any difference? Educate me!

MAKNYC | Dec 31, 2022 | 323 posts since 2015

If it’s brokered the CD was marketed with the specific maturity date, January 3, 2028 in this case. Possible fact pattern based on the description…you enter order December 27. Broker executes order December 30, and the settlement date is January 3, 2023. Some people don’t recognize the distinction between trade and settlement dates at brokers.

MY2CENTSWORTH | Dec 31, 2022 | 436 posts since 2016

Ah, ok. I get it. I have no experience with brokered Cd's but good info. Thanks for your reply. Happy New Year!!

John19 | Dec 31, 2022 | 395 posts since 2022

Might not start earning interest until Jan 3rd either. The website will show the interest earned so far.

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