Penalties for early withdrawal of CD

[upendra]

What is the name of your state (only U.S. law)? GA

I had a CD matured recently at Chase Bank recently. I went to the branch 2 weeks after the maturity date. When I found that my CD was automatically renewed at 0.20% interest for another 13 months (while the specials was around 1.5%), I was upset. I wanted to close the CD, bank said the grace period was already over, they estimated the penalty - which was $25 + 3% of the money I am withdrawing. It seems like I am being forced to continue the CD to avoid the unrealistic penalty charges. I have raised this to their manager and he said it is bank policy blah blah, but wouldn't waive the penalties. I would like to understand my rights and who should I complain for fair business practices.
I do not really need the money now, so worst case I can leave it there, but 0.20% interest rate is like I am giving my money to them for free.
Any thoughts on how I should approach this?

Thanks much
-Upendra

 

[Antigone*]

What is the name of your state (only U.S. law)? GA

I had a CD matured recently at Chase Bank recently. I went to the branch 2 weeks after the maturity date. When I found that my CD was automatically renewed at 0.20% interest for another 13 months (while the specials was around 1.5%), I was upset. I wanted to close the CD, bank said the grace period was already over, they estimated the penalty - which was $25 + 3% of the money I am withdrawing. It seems like I am being forced to continue the CD to avoid the unrealistic penalty charges. I have raised this to their manager and he said it is bank policy blah blah, but wouldn't waive the penalties. I would like to understand my rights and who should I complain for fair business practices.
I do not really need the money now, so worst case I can leave it there, but 0.20% interest rate is like I am giving my money to them for free.
Any thoughts on how I should approach this?

Thanks much
-Upendra

You agreed to the terms of the CD when you opened it. Often times these promotional CDs are only given the promotional rate for the inital period. If you did not exercise your rights during the grace period then you are subject to the penalty.

If you want to complain I suggest you find yourself a mirror and start complaining. The bank is well-within their rights to charge you the penalty for not acting in accordance to your depository agreement.

 

[TinkerBelleLuvr]

A letter would have been sent to the address on file stating the maturity date, along with the date that YOU had do something about. You normally have 10 days after maturity before it rolls into the next CD.