Has anyone ever gotten the bank to wave the EWP on a CD?

[OldShooter]

I only had savings and checking accounts, but I kept a lot of money in those. ...

Yes. I missed that category. Passbook savings and low/zero interest checking with large balances also get respect as both are very profitable.

 

[CRLLS]

I was, in a previous life, a member of our small company CU. I was also a member of the Credit Committee where we reviewed loan applications for approval or rejection. We had a set of guidelines that we could consider. I was also on the Board of Directors. When it was time for me to purchase a vehicle, I told the dealer I would do some competitive checking. Since I wholly supported the idea of CU's, I went to them for loan rates. I then told the dealer I had better rates at my CU. He promptly found a lower rate at a local bank. I went back to our Manager and asked if they could do any better. I really wanted to give them my business, but I was not willing to do so at a cost to me. She said the rates are the rates. She had no flexibility. The CU didn't want to get into a situation where it could be seen as preferential treatment for lower risk members. They had to follow their posted loan rates. Perhaps today there might have been more flexibility.

My point is that there may be no leeway on whether your CU will write off the early withdrawal penalty. But it certainly doesn't hurt to ask. Just don't go in with guns-a-blazin' .

 

[jazz4cash]

Just about every time I've had a bank, credit union, or credit card company extend some courtesy to me, they mention how long I've been a customer, not how big my account is. In fact I make every effort keep as low a balance as possible at the bank and pay credit balances fully unless at teaser rates.

 

[Luvdogs]

Turning it the other way around--back around 2008/2009 my Dad had CDs with several different banks.

One (or maybe more) of them went belly-up, was bought out by another bank. The new bank reduced the rate of the CD during the term. I'm sure there was some fine print that they could do that but we were surprised.

 

[Texas Proud]

Turning it the other way around--back around 2008/2009 my Dad had CDs with several different banks.

One (or maybe more) of them went belly-up, was bought out by another bank. The new bank reduced the rate of the CD during the term. I'm sure there was some fine print that they could do that but we were surprised.

When a bank gets shut down by the FDIC it has the ability to fix the rates... but I think (and I could be wrong) that if they do lower the rate you have the ability to cash out...




I looked at about 4 recent bank closings and every one of them gave the ability of any deposit holder getting his money without any penalty... that was until you entered into a new agreement with the new institution... I would assume that they made an offer for a lower rate and your Dad did not know he could take his money anywhere he wanted...

 

[Winenot]

If I was a CU manager and was approached with an ultimatum as stated in the OP, I would simply refuse and hope the customer did leave. I would certainly not train him to think that he can get me to lose money simply by threatening to pull his savings. Unlike dogs, customers usually need only one lesson to learn a bad habit.

+1. Keep in mind deposits are on the liability side of the balance sheet at the CU. Unless they have high loan demand that puts those deposits to work, they may not care much if you walk. Better be prepared to follow through. Just sayin'...

 

[OAG]

I actually did that back in 2003 at Pentagon FCU. Called about one of my IRA CD's I wanted to change to a HIGHER rate with them. In the discussion several other IRA CD's were brought up. The actually closed all of the existing IRA CD's (Penalty free) into new consolidated ones (one for me and one for the DW) giving us 2 new 7 year CD's earning 6.25%. I was elated about it at the time and those funds remain there today (less a few years of RMD's).