Yes sir.
It's maybe a little sneaky, not quite slimy. Not illegal. Just sorta bugs me.
I get my 5.5% to that day, which is 6 months. 5.5% for six months, not gonna gripe.
Anyone ever have a CD called?
- Thread starter Pablo
- Start date
It's maybe a little sneaky, not quite slimy. Not illegal. Just sorta bugs me.
I get my 5.5% to that day, which is 6 months. 5.5% for six months, not gonna gripe.
Now you also see why I buy CD's from my broker that pay monthly, but those are rare with decent rates.
This is like reading the rules on the felt at the blackjack tables in Vegas. If you don't like one table try a different one. But it sucks just the same.
When you take out a loan from the bank, the terms most often say you can pay the debt off early without penalty.
This is the same - except your giving the loan to the bank, and they have decided to pay it off early.
I do agree that having a callable consumer CD is a bit slimy, but fully legal. Callable is pretty much always the case in the commercial paper world.
There could be better standards for how this stuff is published I agree.
This is the same - except your giving the loan to the bank, and they have decided to pay it off early.
I do agree that having a callable consumer CD is a bit slimy, but fully legal. Callable is pretty much always the case in the commercial paper world.
There could be better standards for how this stuff is published I agree.
Dang, I'll get no love from Pablo by going off topic................................Several high interest savings accounts are above 5% (my TIAA/Everbank). Why not just go with this easy alternative, especially if you need a quick access emergency fund?
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JHZR2
Staff member
No, not at all.
There are specific terms for every single CD that Ive ever had, about penalties if it needs to be redeemed early.
My point is simply, if its going to be called, there should be an equivalent penalty on the bank. Fair is fair...
There the seller, and he was the willing buyer? If he didn't want callable, he should have passed on the purchase.
He got 5.5% up front, which was higher than market at the time likely. So that was his penalty. Its just a variable one based on what they decide.
JHZR2
Staff member
Thats fine, but again, thats why I asked about the fine print. Was it even something that was realized at the time of purchase? Or like most garbage from big corporations, was there a giant ad about the APR, and then the callable part was just hidden in the tiniest print in the bottom corner of some terms?
Again, thus why I asked the OP about the contract terms.
IRA. No need for cash obviously. In this case MM makes a bit more sense savings accounts. Ease and rates.
Not fishing for rates and recommendations, but thanks.
Posted terms in link in OP, mod took down the link. Yeah, I had originally posted the amount in the CD, didn't seem to be a big deal, that was deleted as well (not sure what rule was violated, but if it did, then sorry)
So this Screenshot is the receipt / statement of the CD when purchased on 08/04/2023 and they put a "Call Date " on it every month until it expires ?
This thread reminds me why I don’t like banks very much, and most of my business is CU related (I know, no FDIC), Chase did him wrong, they should have plenty of cash & honored the term. I’m going to have to read the fine print a little more closely…
No, not like that. It's a summary of the features. The call date list was always like that. The features have not changed.
The first call was possible 02/08. And that finally jogged my memory. When purchasing I didn't mind it being called at all - IF it were to be called - I read that back in July, and forgot about it. Because - well frankly because I thought the chance of it being called were between zero and never. Months into it all I ever saw and thought about was "oh that CD matures August 2024", if I saw it on my Portfolio Positions page.
Then my eerse gets a wake up email, "hey dummy, your CD is being called" Holy what? Never had a CD actually called...and yes I get my interest........and so on.......JPM did as they were 100% allowed to do.
I am surprised that one is not given the option on a called CD. I consider it a "Legal" contract.
High yield savings is about the same interest currently.
Curious as to what happens with the money after the call date . Is it automatically deposited into your checking account . And what do you plan to do with the money ....... get another CD ?
It is not in the bank
Just like any stock or bond sold or bond called or matured it just goes to cash in the account as usual
I will hold in my money market or add to bond funds on dips
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I got my principle and fat interest in my account IRA brokerage this AM. So I am fat, dumb and happy. Comfortably Numb
Will redeploy Monday.
Thanks.
Edit: Mathed out to 5.52% and we all learned to read the small print on CD's!
Will redeploy Monday.
Thanks.
Edit: Mathed out to 5.52% and we all learned to read the small print on CD's!
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Just don't buy callable CD's. It's easy enough to do.
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