My CD lapsed by 15 days, and I am not sure what the rules are for this. If they give me a lower rate for 12 months, than the special, and I remove the principal could I could loose interest for the quarter, but could they take anything out of my principal or would i just loose interest on the 15 days?
12 monthis is 3.75% and 6 months is 4%. 24-36-48 is 3.50%
You’ll have to check the Ts&Cs of your specific situation but the penalties probably apply to the new and not the matured CD.
If that’s the case you should be able to pull your money out of the new CD.
I’d be talking to the bank ASAP if you want to make a change.
Clark has talked about this. In the “old” days a bank would roll a CD into another CD that was the current % for the equivalent CD. Now, they just kick it back to normal saving account rates. Which for brick and mortar banks is nothing. So now, if you have CD’s you have to keep track when they mature and specify to the bank what you want to do with them.
if i take it out now, could they take any of my principal?
I don’t think so, but to be sure, call and ask them.
You shouldn’t lose principal on a CD but some banks have early withdrawal penalties. That’s usually a forfeit of interest, not principal.
You should compare the total interest you’ll get on the new 1-year CD with a money-market account. If you can get a sizable amount of interest by switching to a different account or even different bank, then dump the CD and grab the higher rate.
thank you cdt, that answers my question.