ACH For Maturing Funds

bz11 | Nov 9, 2024 | 3 posts since 2023

I only ever want to open a CD with a bank that does ACH payouts for maturing funds. So I have been coming to Deposit Accounts to read the info on any bank I'm considering. Over the past couple of years, despite DA saying that banks offer this option, when it comes time to close the CD and get the funds out - I've now had 3 different banks tell me they don't do that and it must be either a $25 wire or wait around for a mailed check. I open online accounts and go paper-free precisely so I don't have to deal with anything being mailed - let alone the lost income from the huge time gap between closing one CD and opening another. The latest bank that this is now happening with is Hyperion. If you examine DA information on this bank, it clearly states ACH for maturing funds. Yet just yesterday I was told they don't do this.

I now contact each bank prior to opening any CD and get IN WRITING that they offer the ach option because DA's information has caused me problems repeatedly. Has anyone else suffered this same problem? It is so ridiculous that in 2024 ANY bank doesn't offer ACH.

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Answers

me1004 | Nov 9, 2024 | 1,379 posts since 2010

This is one big reason why I prefer credit unions -- the ones in the shared branch system. With that, I can just go to a shared branch near me and deposit the money for the new CD directly into a savings account at the new place, and have the new place transfer it to open the CD, despite any hold on a check.

Alternately, you can always try pulling the money into the new place via ACH. You often can transfer more that way to open the account than you can routinely. That is one extra step, but can accomplish the same thing. With the extra step, maybe it will take one day longer.

But also, as P_D says, be careful about what CSRs tell you, they often are wrong, even very assertive that they are right. The CSRs telling you they don't do it might be wrong, go up to the branch manager to double check. The CSR might have menat that they don't ACH that high an amount; but there can be details, such as merely no one ACH can be more than a certain amount, but you can do two of them in a single day. There are details, details, details. It wears you down.

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enduser | Nov 10, 2024 | 711 posts since 2015

When I open a CD at any FI I always open another free account such as checking or savings. I use that account to fund the CD and to have them transfer the maturing CD to it when it expires. I then use the external FI to PUSH or PULL those funds to establish or clean out the CD funds. I have never had any FI ACH a CD to any of my other accounts. ACH only seems to happen for checking or savings type products.

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Hooked | Nov 9, 2024 | 236 posts since 2019

For Hyperion, I opened their free checking in addition to the CD so that matured funds can be deposited into checking. I would also link the checking account from my external hub to test the funds transfer speed well in advance. Similar setup (free checking or free savings) for all my CDs.

Even if banks offer ACH payouts for maturing funds, there may be a dollar limit and it may take days.

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Ally6770 | Nov 10, 2024 | 4,290 posts since 2010

I also open a free checking and have CD's deposited to it and also for my RMD.
I write a check the same day and deposit it. That way I do not worry about any of the crazy stuff going on with anything.

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