GTE Financial Add on CD - changing the rules

[Golden sunsets]

If you and DGF are not married, then your accounts are viewed totally separately, so Yes. Even if you are joint beneficiaries of each others accounts, the total insured would then become $500,000, I believe.

 

[Chuckanut]

GTE is not the only institution or person who has bet wrong on the direction of interest rates to their detriment.

I did it several times, buying short-term CD's many years ago thinking these low post 2008 rates had to go up in a year or two. I finally caved with the 3% PenFed CDs'. It happens to all of us. GTE needs to take its lumps and move on. I did.

 

[Dtail]

If you and DGF are not married, then your accounts are viewed totally separately, so Yes. Even if you are joint beneficiaries of each others accounts, the total insured would then become $500,000, I believe.

Run your scenario through this: https://www.mycreditunion.gov/insurance-estimator

But I think you are right... the two different account types are separate.

Thanks folks.
I did use the calculator and it stated that the full 270k is insured in my example.

 

[Earl E Retyre]

So …. based on current market conditions, I decided to finally add money to this GTE 3% add-on CD.

When I tried to do so, the software said there was a limit of $5k that could be done per transaction. So, I only put $5k in today. I believe I could probably put another $5k in tomorrow and so forth until I completed the full amount I wanted to deposit.

I figured I would ask over chat if I could "push" money in if my external bank allowed more than $5k - the person on chat said no. She said I could wire money in or do $5k a day.

So then I asked what happens when the CD matures and I wanted to withdraw a larger than $5k amount and the chat person said I could either wire the funds ($25 fee) or get a check (for a $6 fee).

I guess for the 3% in today's market a $6 check fee in 5 years is no big deal. But it is annoying. And I think I would be more concerned about the check getting lost in the mail. So, I probably would pay the $25 fee at that point.

 

[calmloki]

So …. based on current market conditions, I decided to finally add money to this GTE 3% add-on CD.

When I tried to do so, the software said there was a limit of $5k that could be done per transaction. So, I only put $5k in today. I believe I could probably put another $5k in tomorrow and so forth until I completed the full amount I wanted to deposit.

I figured I would ask over chat if I could "push" money in if my external bank allowed more than $5k - the person on chat said no. She said I could wire money in or do $5k a day.

So then I asked what happens when the CD matures and I wanted to withdraw a larger than $5k amount and the chat person said I could either wire the funds ($25 fee) or get a check (for a $6 fee).

I guess for the 3% in today's market a $6 check fee in 5 years is no big deal. But it is annoying. And I think I would be more concerned about the check getting lost in the mail. So, I probably would pay the $25 fee at that point.

I pushed a wire from Ally direct to the 3% CD account at GTE yesterday. Ally charged $25 to send and GTE charged $10 to receive. I sent to the CD account number but GTE shows it transferring from my share account. They do show that the wire went from the share account to the CD account on the same day.

 

[Montecfo]

I am now having a similar issue with Signal Financial Federal Credit Union. They sent me an email and now snail mail saying they changed the add-on terms. I called the CU and told them there was no provision in my disclosures to change the add-on or any other terms. She attempted to direct me to the spot on the disclosure than allowed for the terms change. It was of course not on my disclosures.

She offered to send me the "correct" disclosures but I declined, telling her I will rely on the disclosures I already have.

I invested in these CDs because of these terms:
1. Best rate at the time, 3.35%
2. Withdraw half at any time without penalty
3. Ability to extend at then-current rate (upside rate protection).
4. Unlimited add-ons (downside rate protection).

This will be interesting.

 

[Earl E Retyre]

For those of you who opened the 2019 GTE add-on CD at 3% with a 6 month penalty, it appears that breaking the CD and opening a new CD at 4% makes sense. I have never canceled a CD before.

What do you think? Are you keeping your CD or breaking it? Do you know how to break it - is it a phone call? And, how long does it take to get your proceeds? I was thinking it might take some time, so starting the process now might make sense as 4% CDs are starting to appear. Thoughts?

 

[Dtail]

For those of you who opened the 2019 GTE add-on CD at 3% with a 6 month penalty, it appears that breaking the CD and opening a new CD at 4% makes sense. I have never canceled a CD before.

What do you think? Are you keeping your CD or breaking it? Do you know how to break it - is it a phone call? And, how long does it take to get your proceeds? I was thinking it might take some time, so starting the process now might make sense as 4% CDs are starting to appear. Thoughts?

Just thought about this concept the other day and will probably make an appointment with them to discuss in person, as a branch is literally 5 minutes from me.

 

[calmloki]

Thanks to another member who posted this simple calculator:

https://www.depositaccounts.com/TOOLS/BREAK-CD-CALCULATOR.ASPX

 

[RetiredAndLovingIt]

Just thought about this concept the other day and will probably make an appointment with them to discuss in person, as a branch is literally 5 minutes from me.

I talked to GTE a couple of months ago and can report that you can pull all your CD interest out penalty free if that helps. They were very nice and if I remember correctly you needed to put it in writing to customer service and then they would transfer the money to your savings account so you could pull it out via ACH.
I ended up not needing to pull anything out for now.

 

[Dtail]

I talked to GTE a couple of months ago and can report that you can pull all your CD interest out penalty free if that helps. They were very nice and if I remember correctly you needed to put it in writing to customer service and then they would transfer the money to your savings account so you could pull it out via ACH.
I ended up not needing to pull anything out for now.

Good info, thanks.

 

[pb4uski]

For those of you who opened the 2019 GTE add-on CD at 3% with a 6 month penalty, it appears that breaking the CD and opening a new CD at 4% makes sense. I have never canceled a CD before.

What do you think? Are you keeping your CD or breaking it? Do you know how to break it - is it a phone call? And, how long does it take to get your proceeds? I was thinking it might take some time, so starting the process now might make sense as 4% CDs are starting to appear. Thoughts?

Yes, I think it probably does. Mine has ~2 years left.

100*(1+3.0%)^2 = 106.09

(100-1.5)*(1+3.8%)^2 = 106.13

So anything over 3.8% is a winner, and the 2 year Treasury is at 3.88%.

Timing might be an issue though... but the time I do the redemption and get the money into my brokerage IRA will 2 year Treasuries still be better than 3.88%... probably, but that is a risk.

 

[Earl E Retyre]

I just called GTE and spoke with a very nice person on the phone. She said that all I need to do is call them and they can immediately transfer the funds from my GTE CD to my GTE savings account. No paperwork needed - just a call. And that I would have immediate access to then transfer the funds out of the GTE savings account.

I am going to wait until the 1st of next month since my interest seems to post at the last day of the month. I am assuming by Oct 1 the brokered CD rates will be at or above 4% and will remain that way for at least a month if not more.