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US Alliance EWP

mffarrell
  |     |   95 posts since 2018

Has anyone broken a CD with US Alliance? I am just wondering if they might be like GTE?

“If earned dividends are not sufficient to cover the penalty, the early withdrawal penalty may affect principal.”

Does may mean will if I withdraw all my accrued interest, then close my account. Will closing reduce my principal?

Thanks!

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2


Answers
Sylvia
  |     |   389 posts since 2012
I closed a couple CD's there last year. In one case, I did get back less money than I originally deposited. I don't think it will matter if you first withdraw accrued interest. I left mine in the CD. It appears they calculated penalty strictly off the principal amount.

I think the use of "may" instead of a more definitive "will" is to cover situations such as death of account holder or liquidation of the CU, when EWP's would be waived.
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4
JeffinEasternFL
  |     |   744 posts since 2020
Read your paperwork and the disclosures! It's all there (somewhere...:)
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2
mffarrell
  |     |   95 posts since 2018
Yes, I have read my disclosures. I was asking if may means will affect my principal? Here is the exact language as posted above.

If your Certificate Account has an original maturity date of 18 months or longer, the penalty amount will equal 360 days of dividends on the amount withdrawn.

If earned dividends are not sufficient to cover the penalty, the early withdrawal penalty may affect principal.

So, it’s as clear as mud what the language says may. The way I read it is the penalty may or may not affect my principal. I guess I will withdraw all my interest, then call to see if closing the CD will impact my principal.

I thought some here may have had experience with US Alliance.
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3
JeffinEasternFL
  |     |   744 posts since 2020
That's the way to do it, "if" it does affect principal, ASK what the penalty for EWP is as well! :) (I was told Suncoast CU here in FL, who had similar language "MAY", and it did impose an EWP of 180 days...
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