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My CD Matured, So Pay Me Already

hourglass calendarI’ve been moving money out of bank and credit union CDs lately.

But it’s not because I’m fleeing certificates of deposit. It’s only because I’m reinvesting it in CDs elsewhere.

Usually, when I decide not to renew a CD, I transfer the balance into a checking, savings or money market account I already have at the same institution. From there, I move the funds into a CD elsewhere, by ACH, check or (occasionally) wire transfer.

You’d have thought a purely internal transfer of funds would be relatively simple and quickly consummated, like moving change from your right pocket to your left – a feat even I can accomplish in less than five seconds.

Well, sometimes it is and sometimes it isn’t.

Fortunately, most institutions at which I bank are able to move my balance into my checking, savings or money market account on the maturity date, in real time and with immediate availability, provided it’s a business day.

This requires that my instructions arrive on or before the morning of the maturity date, either by telephone (where permitted), online message or snail mail.

Those able to achieve a same-day transfer include Ally Bank, USAA Bank, OneWest Bank, Rabobank, Alliant Credit Union and Melrose Credit Union.

Some institutions, though, are slow-payers who leave me and my money hanging.

One is Synchrony Bank, at which I open and close CDs regularly.

Synchrony, which recently changed its name from GE Capital Retail Bank, usually processes the credit for my maturing CD balance overnight, which means it isn’t available until the next business day.

Nationwide Bank is slower still. Here, I sometimes have to wait until late the next business day to see an available credit in my money market account.

But CIT Bank has proven to be the worst of the lot.

Recently, in an attempt to extract funds from a maturing Achiever CD so I could reinvest them in a First Republic Bank CD, I instructed CIT, over the phone – first thing on the morning of the maturity date – to close the account and transfer the balance to my CIT online savings account.

That was on a Wednesday.

The funds did not show up in my savings account – available for withdrawal – until the following Saturday morning.

CIT provided me an extra day’s interest, but so what when I’m trying grab onto a great promotional CD deal elsewhere before it goes away?

I don’t know exactly what the back office folks do at CIT, but they sure take their time about it.

Maybe I expect too much of my banks and credit unions.

But I don’t think so.

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