I open most CD's online. Is is acceptable if I send a letter with my
paperwork when opening the CD saying I do not want for it to auto-
renew?
Buy brokered CDs from your stock broker. The CDs are issued by a bank
so they are insured.
--
Ron
Andy comments;
I have been trying to accomplish that for 20 years without success.
Having dealt with CDs with dozens of banks, NONE of them allow a
person to deviate from the policy of automatic renewal unless they
receive a "request" to the contrary in a certain "grace period"....
It is a windfall for them, since , based on the renewals that week,
they can adjust their interest rates to maximize their profits, and
lots
and lots of people don't bother to contact them, whether it be due
to oversight or to death.
Furthermore, the "grace period" is for CALENDAR days and not
business days, usually about seven of them..... Consequently, they
can actually issue the CD on a banking holiday preceeding a weekend,
and a person may only have 3 or 4 days in the grace period instead
of 7....
If you find a solution, please post it here. I'd really like to
find
out how it could be done..... For instance, when one buys a CD,
have a box checked that says "do not renew". It may sit in the
bank interest free for a while, but one could redeem it without
forfeiting up to a year's interest in penalties......
..... but I don't think any bank will do it.....
Andy in Eureka, Texas
While we are at it, someone please find a way to stop auto-renewal of
book club memberships and access to anti-virus software.
I just checked one of my credit union CDs, and it does have just such
a box labeled "non renewable".
Andy comments:
Thanks for the info. Perhaps enough people have complained about
this for change to happen. I'll keep on the lookout for this on my
next financial transaction.