bank rates

What Should I Do With My MetLife CDs?

I’ve always appreciated MetLife Bank for its rates and service.

But lately, it’s had me confused.

In December, parent company MetLife Inc. agreed to sell its depository business to an industrial bank subsidiary of GE.

MetLife was tired of bank holding company regulation and worried about its impact on its core insurance business.

The deal was originally expected to close by June 30.

However, MetLife’s CEO recently said that “the actual timing … could vary based on the regulatory review process.”

Plus, last week, I couldn’t access the bank’s Web page discussing the deal and confirming GE won’t lower rates on outstanding CDs after the closing.

(A customer service representative I called couldn’t find it, either. MetLife ultimately found the page and reposted it.)

This all leaves me — the owner of five CDs maturing this month — hanging.

I’m not sure what to do with them.

When a CD of mine matured at year’s end, the bank was publishing a bizarre CD rate sheet — 1.00% APY on 12-month CDs of $25,000-plus and only 0.75% on longer-term CDs.

A CSR told me no problem — I’d get an extra 0.15% if I put the funds in a 1-year CD. (I declined.)

Thereafter, the bank raised the posted 12-month CD rate to 1.05% APY.

I closed another CD maturing in March. I may have been offered a renewal bonus, but, needing the cash to pay taxes, I wasn’t listening all that carefully.

Finally, in late April, the bank changed published rates to more competitive levels for all maturities.

While keeping the 1-year 1.05% APY, it’s now offering, for example, 1.12% for 18 months and 1.17% for two years.

Further, the CSR I spoke to last week advised me that, had one of my CDs matured that day, I’d have received a 0.10% bump-up for staying put.

Of course, she cautioned, I’ll have to confirm the availability of any bonus on the actual maturity dates of my five CDs.

I’ll know for sure then, but, for now, it seems the bank wants me to stick around.

Maybe the best course would be to close the CDs and stash the money in a MetLife money market account (offering 0.85% APY for $10,000-plus balances).

Then it would be available in case GE decides to do an attractive CD promotion after the sale is completed.

But who knows?

I just keep scratching my head — a befuddled customer.

That’s probably my fault, not MetLife’s or GE’s.

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Comments (2)
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2 Existing Comments
  1. Charles Rechlin said:
    on May 12th at 07:42 am

    Since I penned this post earlier in the week, one of my CDs matured, and MetLife did offer me the .10% rate bump-up for renewing it (which I did).

  2. Elder Wisdom said:
    on May 12th at 02:10 pm

    Whoopee! Whatever will you do with all that extra .10%???