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Fifth-Third Bank IRA CD to Vanguard
Old 02-04-2023, 01:15 PM   #1
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Fifth-Third Bank IRA CD to Vanguard

I have some Fifth-Third Bank IRA CD's I want to move Vanguard.

I first thought I could cash the CD's out, and then do an ACH to Vanguard Roth. But later realized it seems Vanguard won't take Roth conversion money from a bank account. And there is the new IRS rule about 1 indirect (touch the money) IRA per 365 days Ruling.

So I will move it to a Vanguard IRA first.

However, the Fifth-Third Bank people at 1 branch didn't know how to do anything, including the manager.

I went to another Fifth-Third Bank branch, this place at least had an employee that could tell me the penalties for early withdrawal were $3.00 , very low as the CD has a 0.1% interest rate

I have a brand new IRA account at Vanguard. Vanguard gave me forms for me and Fifth-Third Bank to sign and mail to Vanguard (seems odd). Vanguard says Fifth-Third Bank needs a "Wet" signature.

This second branch couldn't do anything, as they couldn't call the IRA dept on a weekend.

Has anyone recently moved IRA CD's to Vanguard or other brokerage, and how was it done
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Old 02-05-2023, 08:58 AM   #2
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Oh gosh. Please pay the $3 penalty to get out from under a CD paying 0.1%. It all sounds normal other than the incompetence/ignorance of some bank personnel. Seems like VG makes it a bit awkward also. The process at FIDO is similar but more straight forward. Plus you can drop the signed paperwork off at a branch. Donít be surprised if the bank has their own forms. Also make sure the funds from the IRA CD go into IRA savings when the CD is terminated early.
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Old 02-05-2023, 09:08 AM   #3
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I'm mostly concerned with getting the money out of Fifth-Third Bank.

But I will comment how this is an example of how I find Banks "legally" steal from old people, but Fifth-Third Bank is the Worst I've ever encountered.
I asked the lady, what if it doesn't get moved before the 10 day decision time on renewal and she said the Fifth-Third Bank IRA CD's will renew at 0.1 percent , a person has to physically come in the bank during M-F in the 10 day window to get the "promotional" rates of 4%.

So all the old people on vacation, nursing homes, inattentive, etc... are renewing at 0.1%
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Old 02-05-2023, 09:21 AM   #4
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But I will comment how this is an example of how I find Banks "legally" steal from old people, but Fifth-Third Bank is the Worst I've ever encountered.
Interesting.

My former company was a supplier to a couple of thousand banks and credit unions. Fifth-Third Bank stands out as one of the most unpleasant I had the misfortune of dealing with. They were both ethically challenged and verbally abusive. I did a little happy dance when we parted ways.
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Old 02-05-2023, 10:19 AM   #5
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Fifth-Third Bank stands out as one of the most unpleasant I had the misfortune of dealing with. They were both ethically challenged and verbally abusive. I did a little happy dance when we parted ways.
Same here. After two horrible and costly experiences with them, lasting for months, we vowed never to deal with them again. That was 30 years ago, and I haven't heard anything good about them since.
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Old 02-05-2023, 11:00 AM   #6
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Listen to jazz - go into bank tomorrow, pay $3 and close the CD. Transfer cash to Vanguard IRA and you can buy a new ~4.7% CD.
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Old 02-05-2023, 12:42 PM   #7
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Listen to jazz - go into bank tomorrow, pay $3 and close the CD. Transfer cash to Vanguard IRA and you can buy a new ~4.7% CD.
That is the plan.

It's the actual transfer that is the problem. The bank keeps throwing up roadblocks.

I've transferred many IRA partially and fully from brokerage to brokerage and it's easy as pie. Also roth conversions.

But they are all brokerages and work well together.

Here at the bank, the workers (and manager) all say some paperwork has to be sent to the IRA dept and they do it.
They literally claim we are the first folks to walk into the bank and say we want to transfer out an IRA CD. An obvious lie.
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Old 02-05-2023, 01:08 PM   #8
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That is the plan.

It's the actual transfer that is the problem. The bank keeps throwing up roadblocks.

I've transferred many IRA partially and fully from brokerage to brokerage and it's easy as pie. Also roth conversions.

But they are all brokerages and work well together.

Here at the bank, the workers (and manager) all say some paperwork has to be sent to the IRA dept and they do it.
They literally claim we are the first folks to walk into the bank and say we want to transfer out an IRA CD. An obvious lie.
Initiate from the Vanguard side. They will deal with Fifth Third so you don't have to.
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Old 02-07-2023, 08:51 AM   #9
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We are going to transfer to TDA, as they seem to be more explicitly clear about the process and the form to do the transfer.
Plus they have secure messaging built into the website that allows the signed form to be returned instead of mailing it.
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Old 02-07-2023, 09:05 AM   #10
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We are going to transfer to TDA, as they seem to be more explicitly clear about the process and the form to do the transfer.
Plus they have secure messaging built into the website that allows the signed form to be returned instead of mailing it.
Congrats on finding a solution, apparently. Good that you are rid of the bad bank, lol. Let us know how it goes with TDA.
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