In order to help me take advantage of a one-per-person limit on promotional CDs, an elderly family member opened one for me in his name, with my money, and with me as the POD beneficiary.
At present the family member is 95 years old and there are about 12 years left until the CD matures. So I think there is a very high chance the POD provision will be executed, but with interest rates what they are (and this being a promotional rate to begin with) I'm worried that the bank will try to force early withdrawal rather than allowing the certificate to continue in my name until maturity.
Can the bank do this? The bank/account disclosures don't say anything about PODs or Totten Trusts and although the branch manager told me verbally that I would have the option to either close or continue it until maturity, she said "don't worry about that" when I asked her for written documention (which is not normally an answer I would accept, but I didn't push the issue because it was a promotion they were in the process of phasing out). The reason I'm asking is because I'm trying to do some long term financial planning and, given the drop in interest rates and the long term of this certificate, it will make a big big difference if I'm forced to withdraw early and reinvest elsewhere.
Thanks for your input.