SPACE COAST CREDIT UNION EWP 2 YEARS INTEREST !!!!

chipcollector | Apr 18, 2023 | 111 posts since 2010

Earlier this month I had helped an elderly neighbor re-work some CD's to gain him additional interest. Navy Federal was great and SunCoast CU was just OK.

Now that I finished helping him I looked at my own CD with SPACE COAST CREDIT UNION. I have a 5 year CD that pays 3.80% interest and matures in June of '24.

I noticed they have a 24 month CD that pays 4.25%

I contacted Space Coast and asked about swapping my CD for the 24 month CD.

I was told that the CU would definitely assess the EWP on such a transaction.

No waivers.

Can you imagine a 24 month EWP ?

Stay away!!!!!

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GH1 | Apr 20, 2023 | 1,058 posts since 2017

For a while space coast was one of the higher paying CDs in the Florida area. Now they have retreated. So those cds you and i bought just hold them to pay the fee and try to jump in a market that may not rise to much is not a advantage to use. They know that. They have been lowering there rates slowly so when they renew move them away. Hey back then 3.8 was high we did not think market would jump. June of 24 the rates will probably be what your receiving now

chipcollector | Apr 20, 2023 | 111 posts since 2010

Thanks for the reply.

I only posted that to warn others of this egregious EWP.
To be honest, I never considered it when I bought the CD 4 years ago.

I don't know if that is their current EWP policy or not, but for sure, when the CD matures, I will not be renewing! And......if I can save anyone from getting caught in this trap, I feel like I contributed to the discussion.

Rickny | Apr 20, 2023 | 1,298 posts since 2017

So for a few years you were getting a graet rate @3.8. People need to read the terms of the deposit agreement.

GH1 | Apr 20, 2023 | 1,058 posts since 2017

Agreed we all know when we sign it. When market changes to fast you must decide is the penalty worth it. My case no. 10 more months cd matures. So in meantime you invest in other pull that rate up. Really at that time 3.8 was the highest. 4 or 5 years is a long cd. Todays rates maybe going 5 years at a 5.5. Knowing you need a monthly income for retirement

chipcollector | Apr 20, 2023 | 111 posts since 2010

Hi Ricky:

Thanks for taking the time to comment.

The terms of the EWP were not known to me until the CD paperwork was delivered.
I am not saying that Space Coast hid the EWP but they certainly did not make a point of disclosing it at the time of purchase, If you take the time to read what I wrote above you will see that I am only reporting this so that others in the forum are aware of this egregious EWP

I know it was a good rate at the time. That's why I bought it.

Rickny | Apr 20, 2023 | 1,298 posts since 2017

Chip You may have still gotten the CD if you knew the penalty since that was a great rate at the time. You can always ask a bank to waive penalties but they don't have to do it. No one can predict the future. You win some and you lose some. If you have a CD ladder it can help balance things out which some low rate CDs and some higher ones. Who knew year or so you could earn over 5% on a savings accounts.

Looking at EWPs when opening a CD should be taken into account when comparing CDs.

chipcollector | Apr 20, 2023 | 111 posts since 2010

Agree 100%

JeffinEasternFL | Apr 20, 2023 | 744 posts since 2020

I posted about this a few mos ago: 730 day EWP and they will NOT waive it for a longer term, larger deposit, deposit of principal and interest, etc.,et all. I went up the chain a couple times attempting to do so on a 3.03% APY 60 mo CD. So Now I take the interest quarterly and redeposit it at MBoI for 4.50% APY. The CD at SCCU matures summer '24. It's the only Jumbo CD in my ladder of 5 going out another 59 months that isn't at 5% APY or greater.

chipcollector | Apr 20, 2023 | 111 posts since 2010

Hi Jeff:

Goes in the category "live and learn"

JeffinEasternFL | Apr 20, 2023 | 744 posts since 2020

No biggie, I still grabbed jumbos in February thru early April from: Savebetter/Sallie Mae, Quorum FCU, University FCU and All IN CU, each with a different CY maturity and all at 5%-5.25% APY! When the SCCU CD matures summer '24 maybe there will be some longer-term CD deals available, if not, those $$ will hang out awaiting at MBoI insured and getting top tier interest income along the way...

I filled my ladder when long term CD rates peaked nicely! I strip that interest from SCCU to MBoI (@4.5% APY) quarterly and "viola", I have annual interest income (all still compounding) approaching $60K annually just from CD's now, what a difference a decade makes!

SCCU is a good CU otherwise, nice folks, good service, just very tight on CD EWP.

chipcollector | Apr 20, 2023 | 111 posts since 2010

....as I found out!

thinking there will be some 5% 5 year CDs available shortly as the smaller banks tap out their FHLB advances and need to shore up deposits

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