Bank CD penalties; poor disclosure practices

[Zee09]

Several banks in my area are giving decent CD rates.
I personally don't like them, but it irks me that they don't list on their websites
what the penalty is. They should have the terms right there for investors to read.
It may just be a local thing but I'm not seeing the rules spelled out.

The only rule listed in the banner is that the cash must be new to the bank and not a transfer from one of the
accounts you have with them.

 

[RhondaHonda]

CIT is 5.05% for their savings right now, not sure the long term CDs are much better.

 

[oil pan 4]

Several banks in my area are giving decent CD rates.
I personally don't like them, but it irks me that they don't list on their websites
what the penalty is. They should have the terms right there for investors to read.
It may just be a local thing but I'm not seeing the rules spelled out.

The only rule listed in the banner is that the cash must be new to the bank and not a transfer from one of the
accounts you have with them.

Hmmm I'd be sure to keep it under $250,000. I bet they got put on notice by the fed.

 

[Zee09]

CIT is 5.05% for their savings right now, not sure the long term CDs are much better.

6 month is 5%
14 month is 5.35%
This bank was a joke with mm. accounts at .40%

 

[RhondaHonda]

I’ve been happy with my CIT accounts. Plus FDIC is up to $500k per account if you are married.

 

[Zee09]

Hmmm I'd be sure to keep it under $250,000. I bet they got put on notice by the fed.

That's why I like Robinhood FDIC to $2.5M and liquid.

But why not list the penalties?
I guess they want you to call in and then give you the hard sell.

 

[Zee09]

I’ve been happy with my CIT accounts. Plus FDIC is up to $500k per account if you are married.

Yup joint account doubles the insurance

 

[tnt_motorsports]

my credit union states 2 months interest right on the page they post the rates.

Just my $0.02

 

[BMWTurboDzl]

Several banks in my area are giving decent CD rates.
I personally don't like them, but it irks me that they don't list on their websites
what the penalty is. They should have the terms right there for investors to read.
It may just be a local thing but I'm not seeing the rules spelled out.

The only rule listed in the banner is that the cash must be new to the bank and not a transfer from one of the
accounts you have with them.

I imagine they can get into trouble over partial disclosure where a customer may argue that the terms in the add are the ONLY terms for the product. Obviously the rules are spelled out in the disclosure you're given when you open the account. Credit unions may be under different rules. I abhor credit unions with their bogus "non profit" status.

 

[mrsilv04]

My local credit union, the penalty on a 9 month CD earning 5%, is 90 days interest.
Everything else... the penalty on CD's ranging from 12 months to 30 months is 180 days interest.

Another bank has 6 month CD's earning 4.75%, with a 90 day penalty... and 11 month CD's earning 4.65% with a 180 day penalty.

 

[atikovi]

How far u from Towson? CFG has 5.2% MMA.

Personal Deposit Rates

5.40% APY 12-Month Term Certificate Of Deposit; 5.25% APY High Yield Money Market Account

www.cfg.bank

 

[Zee09]

How far u from Towson? CFG has 5.2% MMA.

Personal Deposit Rates

5.40% APY 12-Month Term Certificate Of Deposit; 5.25% APY High Yield Money Market Account

www.cfg.bank

54 miles... thanks

 

[Astro14]

If you would like more flexibility, there are options for regular savings accounts that pay more, no penalt, no minimum balance.

For example: https://www.americanexpress.com/en-us/banking/online-savings/high-yield-savings/

 

[CarbonToast]

Check out Fidelity Investments, their Money Market Funds are 4.9% and 3-12 month CDs 5.5%. You can setup a CD ladder too. This all can be setup online and they have good support.

 

[JohnnyJohnson]

You can get a 5.47% treasury on a 90 day bond.

 

[jurko]

You can get a 5.47% treasury on a 90 day bond.

Or 5.4% on 4 week T-bill trough Treasury Direct
My Vanguard Federal Money Market Fund VMFXX pays 5.41% compound yield

 

[MSCH]

FWIW the yield curve on bonds is inverted, so I doubt the banks are going to outdo that RE CD's with the risk on long term stuff going backwards.

why do they hide the fine print and exclusions? you know why they hide the fine print.

personally, if you desire anything in the CD world, best bet is to find the best rates and ladder them.

 

[brianl703]

Yup joint account doubles the insurance

So does adding two "payable on death" beneficiaries.