Got A Cold Call From Andrews Just Now.

  |     |   278 posts since 2019

I have a large CD maturing in mid Sept.

The call was ONLY to see if I wanted to talk to one of their investment professionals. I said no and that was the end of the call. No mention of current rates or special rates, just a blind call.

I was hoping they were going to offer some kind of above market deal to keep my money with them. Nope.

When this CD matures, I will have to decide if I keep the account open or close it and get my $5 back. Same with Penfed when my only CD with them matures on 1/1. Do we keep accounts at far away underperforming credit unions where we paid a fee to join just in the event they eventually become competitive again?

  |     |   376 posts since 2020
One thought to consider next time...ask for his/her name and then ask “if I have only been in CDs for X years why do you think that non-NCUA insured investments would be suitable for me?” You can take it from there.
  |     |   249 posts since 2020
I have Andrews as well and just the share savings at the moment. Their rates are awful right now. I plan on keeping the account open in case they decide to come out with a rare CD special. They must have seen huge outflows of cash once they lowered all their rates and their specials expired. They used to have decent CD specials pretty regularly in the past.
  |     |   110 posts since 2010
In August 2019 Andrews was offering a 7-year CD at 3.45% APY.  At that time, I had a large 7-year CD at Andrews at 3.0% APY that had about three or four years left on it.

I called Andrews and proposed to them that if they would allow me to close my 3% CD without penalty then I would move all the funds into a new 7-year 3.45% CD. My argument was that they would then have me locked up for an additional few years. I thought for sure they would tell me to go pound sand. Surprisingly, they agreed to allow me to make the switch. Moral of the story is that it never hurts to ask.
  |     |   87 posts since 2018
Thanks for sharing your story RickZ...brings to mind the old saying "squeaky wheel gets the grease".
  |     |   278 posts since 2019
Thanks for that. Just goes to show it never hurts to ask.

I am a member of a local CU at first for their RCA. I quit using it last year when CD rates were above the 3% and they automatically closed it for lack of activity. I spoke with a rep there and she said they will match others rates. I may take them up on that in Sept depending on my other options. I did not clarify if she meant nationwide or just other in state CUs or what.
  |     |   1,051 posts since 2010
I'm never quick to give up on a CU where I got my best deal when I opened the CD. I choose to hold them open, with the minimum in the account, just in case they do have a good offer another time. It not only allows me to act fast if needed, it also makes it easier than going through the often messy effort to open the membership. They can also offer some other small benefits.

A year or so ago, I was able to grab what was announced as a short time offer at Northwest FCU because I had been keeping my account with them open for a few years since the prior CD I had with them. For that offer, you had to scramble fast.

I was pretty much giving up on Financial Fed CU, but just recently they had a top CD offer -- too bad I had no CD maturing to move over to them.

I have a couple others that I figure I should close, they have not had a good deal in many years.

But Andrews -- I have a CD there now -- was a real pain in the neck to get open, if I keep them open, that will save some real headaches. And, while they might not have anything good now, they often do have some good promos. I think they definitely are one to keep open.

One issue with keeping a CU account open is that you better watch out for the dormancy penalties. I put them on my annual calendar, and will make a transfer between accounts to avoid that. Most are 1 year and dormancy, some are six months. I have one that is either two years or maybe its three. That can be a bit of a pain, but I have mine organized so it is fairly easy.
  |     |   17 posts since 2014
Easy way every quarter send 25 bucks to each of the non performing credit unions. That way you are active and if you want to ach the money out before you put it in next quarter you can.
  |     |   278 posts since 2019
I was told ANY activity was fine. So a penny works as well as $25, But, all my CUs that have charged the fees have reimbursed me so Ive never taken a loss.
  |     |   3,009 posts since 2010
It was not a cold call. Your name was chosen because you have a CD maturing soon and most likely a referral to a broker was on their list for sales this week that must be made. Your name was printed out from a sort. 
The person calling was just trying to reach her or the branches goals. Employees are paid for each person they connect to a broker, or to a mtg person, or get to apply for a loan, a credit card a new checking etc. Each week or period the product an employees needs to sell is changed. If the branch reaches its goals as well as each person they all get a bonus. The manager will receive an even larger bonus, the regional and district managers get an even bigger bonus. If after a year your branch or department makes the most goals for that year the prizes actually get quite large and you have to pay taxes on it even if it is something you do not want. Cash is always best. What employee wants to pay taxes on something they did not want or will not use at list price and even if you wanted it you could purchase it a lot cheaper. Also the call center employees has calls they have to make and they also have a goal each week or month. Each employee can make a sort or the branch manager will do it and everyone is given that print out of names with phone numbers and products you have with them and the amounts and the product they are selling that week and if it is a product that the bank or credit union or employee thinks would be a benefit to you and they might be able to sell it to you then you will get that call. You can request to be on that do not call list. If an employee has certain customers that they deal with those names are given to that person because they have a more personal relationship with that customer.
  |     |   376 posts since 2020
Ally is right but I submit the FI is ignoring their obligations to the customer as to whether or not it is suitable for that individual
  |     |   271 posts since 2011
Just my opinion. If they gave bad service, then close it. If not leave it open. Even for up to 5 years. WHY - because what exactly are you going to do with that $5. Cost of doing nothing is almost nothing, and if they go to offer another "Special", it would be good to move quickly.

Anyway .... that is what I do. Time it takes to open it up again, with or without any fees, can be time consuming. If they have no specials after 5 years .....I figure they probably won't and close those.

BUT, don't forget to check on DORMANCY issues, and minimum balances including fees. You may have to move at least a dollar in or out every 12 months. I do that either between accounts like checking, if I have one, make a deposit, ask for a withdrawal, or do ACH. Usually, if they have a special, it will be open for only a short time .... and you will need to move quickly. So worth the effort to keep it open ( in my opinion )
  |     |   278 posts since 2019
Today got a letter from them begging me to call their investment professional. smh

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