Advertising Disclosure

GTE Has Changed (Worsened) Its Early Withdrawal Penalty and Its Roth CD Policy

racecar
  |     |   599 posts since 2014

For years GTE had a moderate EWP of no more than 180 for all their CDs, even 5yr ones. Not any longer.

GTE has increased their EWP for any CD over 30 months, from what used to be 180 days interest to 365 days now. Did anyone else notice?

I'm not sure when this happened, but about 2 years ago I opened a 5yr CD with them and the EWP was still 180 (I have their CD paperwork to prove it). I don't know how GTE will treat those who want to break a CD opened when it was 180 (since it's clearly listed as 180 on the CD paperwork) but now, GTE's EWP for mid- and long- term CDs is now 365, no longer 180.

They also abruptly stopped their policy (touted and advertised in the Roth section of their website) that said Roth CD holders over 59.5 could take out 20% of a Roth CD's vaule each year with no EWP from GTE. That's now missing on their Roth page and when I called up to ask, I was told no, the once highly promoted "20% EWP-free" is no longer the case (I don't know if they will honor it for those who opened Roth CDs back when that feature was promised, probably not, but I never opened any Roths at GTE myself, partly because of their excessive fee for sending funds elsewhere).

At this point I see little reason to use them again, save for some incredible special. Their new higher EWP makes them a lot less appealing than the same or better EWP elsewhere, especially when you consider the hassle of having to avoid all their numerous fees -- plus I don't like that they promote features of accounts only to take them away; I'd rather go with places that keep the features of their accounts stable. I'm sure many GTE customers opened 5yr Roth CDs because they were told they could take 20% out each year without a GTE fee. Not anymore.

I still have 2-3 years left on my 5yr CD with them (with 180 EWP clearly written on the paperwork), but once it matures I don't forsee using them again, barring some amazing special.

  Post a comment
13
Ltssharon
  |     |   467 posts since 2020
Yes, I was repeatedly recently told by gte staff the 5 year cd ewp would be 180 days. However upon receiving the cd it was 365 and they would not modify it based upo their customer service representation. Bad vibes here.
Reply
8
racecar
  |     |   599 posts since 2014
Whenever you speak to a CSR about anything important always get their name and keep a record of the date and time of your call. I've had things like that happen to me, and only because I was able to provide them with the date of the call, the time, and the agent's name, would places relent and honor what they told me.

It's almost no effort... I keep an envelope for each place I deal with, and put an extra piece of paper inside each envelope -- and each time I speak to a CSR about anything important, I scribble what was said, notating the agent's name, date, and time.

Many times over the years... it's only because I could provide them with that info that could they pull the call and reluctantly honor what they originally told me.
Reply
7
Ltssharon
  |     |   467 posts since 2020
I have emails I was sent, but to whom should I forward these emails?
Reply
2
racecar
  |     |   599 posts since 2014
I'd talk to a supervisor and tell them you have emails and demand they honor what their emails say. If that gets nowhere, I'd immediately write a letter to the CEO (google to find out who the CEO is and the address of the headquarters), enclosing copies of the emails as proof. Most likely the CEO won't ever see it, but their secratary will know who to send it to and will be much more receptive to getting it fixed than someone down the food chain who's worried that honoring what you were told might get them in trouble. One time, I actually did hear back from a CEO (of a very large CU) who addressed my issues, then gave me the direct number of their assistant in case I ever had any other issues in the future. CSRs will likely brush you off, but if you send it in writing to their CEO c/o their headquarters the issue will probably get addressed.
Reply
2
Ltssharon
  |     |   467 posts since 2020
Thank you . I may circle back and try to find those emails. I am low in dealing with bureaucracy energy just now which of course is what the customer service people count on. When I hopefully do get my bureaucracy energy back up I will post. Thankyou

I did actually as you mentioned once in the past with regards to a placed stock order, and it got addressed positively.
Reply
2
Ltssharon
  |     |   467 posts since 2020
Hi again. I just want to let you know that as of today I have printed 25 emails and tomorrow I am mailing them to CEO Brian Best. I will keep you updated.
Reply
5
hiyield
  |     |   41 posts since 2017
I need to make a routine to download and save all related to a new CD documents on the day of its opening.
Reply
6
racecar
  |     |   599 posts since 2014
Yeah, I'm going to open a new 5yr CD this week before rates drop further. I was considering GTE even though the CD will be under $100k, but upon seeing that their 180 penalty doubled to 365 now, I'm going elsewhere. There are still places with similar rates @ 180 (and places with better rates for the same 365 under $100k) that also don't come with all that fee baggage.

I really can't see myself using GTE ever again once my current CD matures, unless there's some great special -- but since they require you to keep $500 min with them at all times (or $$ fee) I may just give up my membership at that point.
Reply
3
QED
  |     |   398 posts since 2013
Oh my goodness, racecar, you are in a black mood today. Is your dog ill?

Membership surrenders give me the shivers . . . . and that goes double for GTE which historically has offered some pretty great deals. I think deplorable_1's approach is much more apropos, and just plain smart, where GTE is concerned. He keeps his membership afloat while making a small profit, tax free, on the side. What's not to like about that? And he stands at all times ready to jump in on the next GTE special deal.

My only negative regarding GTE, my only concern, revolves around their long term viability. They have Grow Financial down there in their patch, after all, sucking up significant oxygen. And there are always the wipeout weather threats. I used to rely heavily on Weiss to provide me worst case GTE skinny. But recently with Weiss, well, you know. Nevertheless last I checked Weiss had actually UPgraded GTE a scooch. Not that that means anything now.

Bottom line I do keep my GTE exposure within NCUA limits, just based on history. But I would never dream of surrendering my GTE membership.
Reply
5
racecar
  |     |   599 posts since 2014
No, not in a black mood at all, I just always found GTE a pain to deal with, but like with NavyFed, I put up with them for the benefits. But there aren't many benefits anymore. At one time I thought I'd put my Roths there because of their 20% no-EWP policy, but even as I found other places with 100% no-EWP policy for 59.5+ GTE gets rid of even their 20% no-EWP policy. Their moderate 180 EWP for 5yr CDs was a major plus (some people don't care about EWP, I do, I've closed CDs early in the past when it was worth it) but now that's gone up to 365. Places like MACU have 365 for their long-term CDs too, but offer higher rates without the ridiculous fees (which yes one can work around, but it's just another demerit).

I know you and Dep use GTE for other things, but even that now almost seems not worth it, $500 instead of $5000 now. They cut to 1/10th what you could work with, almost not worth the effort. There might be other offerings others take advantage of but I'm not aware of them.

With each passing year I add more CUs to the pile, and it's getting a little much. Maybe you can PM me with reasons why to stick with GTE I'm not aware of. They used to have CD deals in the past but they seem to be pretty rare these days unless I've just missed them. GTE certainly did come in handy some years back, but I'll have to see 2-3 years from now...

As far as quitting and possibly rejoining at CU, that's an interesting question, and worth a separate thread in the MISC area...
Reply
2
Ltssharon
  |     |   467 posts since 2020
Qed, I see you have been asked to pm to another person, but could you please also post your reasons for staying with them here?
Reply
5
QED
  |     |   398 posts since 2013
Hi, Ltssharon

Respectfully I've little to add to that which I wrote above. I maintain CU memberships on basic principles. My experience over the years has shown me you never know when an attractive deal will emerge . . . or where. I have made significant money following this course. For example:

Fairly recently I had CD money to invest and, lo and behold, a good deal became available at Veridian, in Iowa. I am a long time Veridian member with no activity whatsoever, save for "keep alive" stuff, over the last several years! I called and was able with no problems to open two CDs spaced a week or two apart. They accepted mailed paper checks straightaway, with no issues, both times.

Some folks prefer avoiding the nuisance of CU "keep alive" activity. I am totally respectful of that preference. But for me membership maintenance works, and has worked and been profitable over many years.  And at GTE, using the membership maintenance tip provided all of us by deplorable_1, I see no reason to leave. 
Reply
4
deplorable_1
  |     |   2,225 posts since 2020
I try to keep most accounts open at least at credit unions since they are more difficult to open in the first place and often times require a hard pull to join. Like QED said you never really know when they may offer a top CD rate or bonus. I was thinking about getting rid of Andrews FCU about 3 times and each time they came up with a surprise top CD rate or the last time I was about to broom them a high yield savings account which makes it more worth it to keep activity and keep open. NFCU hasn't had any good rates in a while but it's still worth it to keep them open for their 0% credit card deals at the very least.

With GTE it's been my experience that they will honor any old terms at the time when your CD was opened particularly if you saved the old terms and can quote them back to them. Case in point I closed a 5 year CD just recently with 3 years to go with $0 EWP by transferring out all dividends prior to closing. Then I called in and quoted their old terms at the time of my CD opening and they honored them. Plus if they are smart they may decide to reinstate the $5,000 cap for Credit/debit card funding again once they see the massive cash outflows. Or they will need to have a CD special with a good rate to bring cash back in. Either way a good reason to hold for now.
Reply
8

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.