Closing CDs Early

ChrisCD | Jul 18, 2013 | 134 posts since 2010

Just wanted to let folks know that a few or our clients successfully closed some CDs early this week. One of them even went back into the same bank. We asked our contact if he had any problems with it and he said no. Nobody had any trouble at all.

Penalties were 6-months and 3-months.

cd :O)

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paoli2 | Jul 18, 2013 | 2,427 posts since 2011

Chris: Were these CDs they had purchased from you? If so, they must have closed them early because they found better rates. I am confused as to why you would want us to know this. I would think those here would make sure they knew what your EWPs were before purchasing. That 3 month penalty must have been for a short term CD. Not too long ago, I was fortunate to get 3 month penalties on 5 year CDs. The rep told me wrong over the phone and the bank still agreed to it. That is unusual.

ChrisCD | Jul 18, 2013 | 134 posts since 2010

I shared because there is a lot of chatter about whether or not banks will honor their requests. By in large, I believe most will. And of course there was even the case where they let the client come back with out any problems. So just hopefully providing some optimism if rates continue to rise or if they rise further in the future.