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Need advice??

July 25th, 2014 at 01:29 pm

I received $275 in dividends from a certificate of deposit that I hold in a local back. I will add it to my $20 challenge.

My question is: I received a letter this week from this bank, telling me that they are closing my branch. I have a jumbo C.D. which I cannot cash out without penalty until Jan. 2015. Right now, I will lose $550 in interest (penalty) if I cash out.

My problem is, they will be moving my account to another state, probably Alabama, I perfer to do my banking in person, not by mail. Online is really difficult for me.

Should I just take the penalty and cash out, so my funds will not be moved out of state (where, I do not know) or should I stay put. I have talked to the bank people in person, but got no help.
What would you do?

Prev. total $10,627.00
today 275.00
new total $10,902.00

13 Responses to “Need advice??”

  1. creditcardfree Says:
    1406293380

    I would probably cash out in your case. Personally, we bank online so it would be a non issue for me. I would guess that a phone call to the new bank at maturity would be more to your liking and produce similar results as banking in person.

    Good luck!

  2. doingitallwrong Says:
    1406293505

    For $550+ I would deal with out-of-state banking for a few months. With a CD there shouldn't be too much dealing with the bank, and then when it matures you can just close out the account.

  3. MonkeyMama Says:
    1406294711

    We rarely bank in person. I would just deal with it. You will get statements and you don't need to transact. You call them when the CD expires. That is only one out-of-state transaction. IT should really be pretty simple.

  4. CB in the City Says:
    1406295075

    I agree. You don't have to do anything till the CD expires. Call them at that time. You don't have to go online at all.

  5. Beawealthywarrior Says:
    1406298695

    I would leave it at the bank. Just make sure they have your maturity instructions on file.

  6. Ima saver Says:
    1406300048

    First on all, I never get any statements from the bank regarding this C.D. Secondly, I have no idea where they are moving the money to, and they can not tell me. I don't like that.

    I really appreciate all your advice. So far, I am leaning towards cashing it on, so I don't constantly worry the next six months.

  7. My English Castle Says:
    1406312154

    It's covered under FDIC limits? If so, you've got nothing to worry about!

  8. creditcardfree Says:
    1406317729

    It does seem strange that the bank cannot tell you who the money is being transferred to, a working phone number would be key to me if I were to keep the CD. It is interesting that the letter does not clarify this information. I can see how you are worried. You health and low stress about this are important!!

  9. Kiki Says:
    1406319251

    Open an account at a local bank and move everything you can there. Keep the CD where it is until maturity and hen move it to he new bank. 550 is an amount i would hate to lose.

  10. snafu Says:
    1406329812

    You need more information. I would take the letter from the bank that is closing to your regular bank plus the original documentation from the purchase of the jumbo CD and ask them for help. Is the closing bank closing all branches and relinquishing state license? If they aren't giving you a specific forwarding address are they even continuing to remain in business? Will you need to engage the state banking regulator to get your 'insured' money?

    Can the CD transfer directly to your regular bank? Ask your regular bank to send a fax to the closing bank with instruction that the sum due January 2015, original CD + interest be paid directly to your account. Make sure they give you a copy of the fax. If the closing bank is going into default, I'd get my original sum back and give up anticipated, future interest. Dealing with the regulators takes a long time and a lot of paperwork.

  11. PatientSaver Says:
    1406335462

    This one time you can probably deal with an out of state bank. When it matures, make a phone call and have them mail you the check. Or follow whatever their procedure is. What's the big deal? It's hardly worth it to sacrifice all that interest.

  12. Amber Says:
    1406380029

    I would waint until the renewal period and then withdraw my funds.

  13. Ima saver Says:
    1407338378

    Thank you for all the advice. I do not have a phone number or a banklocation of where they money is to be moved. They will not be operating any more banks in this state. I did go there in person, but they cannot transfer me to any local bank. They could offer me no informations as to what would happen to my bank. Everone I have talked to locally is closing their accounts because of the mystery surrounding this bank.

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