Are Your IRA CDs An Add-On?

Choice | Feb 2, 2021 | 937 posts since 2020

As a friendly reminder up until tax filing time some/most FIs allow you to add on to an existing IRA CD. Good time to “help” your local FI reduce its interest expense by attempting/negotiating to have a no cost transfer to another FI that has a better/existing IRA CD rate (or longer term) for your portfolio

Post a comment

Anon456 | Feb 3, 2021 | 249 posts since 2011

Doing IRA moves for my wife's account now at NAVY. Had others, but they have all matured. Not a bad idea to take advantage of them when they show up. I had a few at 1.5% that, at the time, I thought was too low to use ..... but a few months later they became very attractive.

Choice | Feb 16, 2021 | 937 posts since 2020

Somewhat related...anyone able to still get EWP waived for nonIRA CDs redemption b/c of pandemic...at Navy FCU? Seems to me they would like to eliminate those higher rate CDs...maybe pay one to redeem!

alan1 | Feb 16, 2021 | 880 posts since 2015

Navy Federal's "COVID-19 Member Pandemic Relief FAQs":

Program Availability and Eligibility

Is Navy Federal offering any financial assistance at this time?

Yes, we’re offering several options to assist eligible members who may need help.

Eligible members have access to loan extensions, deferred payments, credit card line increases, student loan forbearance through LendKey, overdraft protection, fee-free transfers and penalty-free certificate withdrawals.

How can I access the relief offerings?

We're available to assist you 24/7.

Submit a request through the mobile app* or online banking for a credit limit increase.
For loan extensions and deferments on credit cards, auto loans or personal loans, call us at 1-800-336-3767.
Send a secure message to request a mortgage loan forbearance.
Contact the Student Loan Center for all student loan questions. They’re available from 8 am to 8 pm, ET, Monday through Friday at 1-877-304-9302.

Are new members eligible for these offerings?

Yes, new members are eligible.

(italics added)

https://www.navyfederal.org/about/covid19/faq.html#faqs-accord-0

alan1 | Feb 16, 2021 | 880 posts since 2015

Please note that Navy's COVID-19 relief program is intended for "members who may need help." Note the word "need". It is intended to be a relief program for those in need of assistance.

Additionally, please see comments at https://www.depositaccounts.com/banks/navy-fcu.html#promo41294

"According to a CD specialist CSR, the operative word is "need". IOW, if someone has a legitimate financial emergency, i.e., loss of job or medical expenses, the waiver would apply. Otherwise, if the purpose is to chase other rate specials or gobble up muni bond bargains, normal penalties apply."

senda | Feb 24, 2021 | 126 posts since 2015

I called Navy a few months ago (just out of curiosity) to see if they were still honoring their "close out the CD early witout penalty". The agent told me no, not anymore, but you could put in a request.
Knowing Navy, they'll simply do the math -- and if what they (Navy) will have to continue to pay you in higher interest is more than what they'd get from a penalty, they'll probably agree to it.

BTW: for those who didn't know, if you DO incur a penalty for closing a CD early, you can write the amount of the penalty off on your taxes (unless that's changed, you could as of a couple years ago).

The financial institution, product, and APY (Annual Percentage Yield) data displayed on this website is gathered from various sources and may not reflect all of the offers available in your region. Although we strive to provide the most accurate data possible, we cannot guarantee its accuracy. The content displayed is for general information purposes only; always verify account details and availability with the financial institution before opening an account. Contact [email protected] to report inaccurate info or to request offers be included in this website. We are not affiliated with the financial institutions included in this website.