Is it legal for banks to automatically renew your CD?

Answers:5   |   LastUpdateAt:2012-07-20 20:12:02  

Question
Norville
Asked at 2012-05-21 03:37:58
and when attempting to remove , they charge you a fine?
(My original CD expired at the end of May. The bank renews me for another period of 18 months at the current rate is very low. When I tried to close the CD , I want to collect six months of interest.)
Answer1WarrenAnswered at 2012-05-25 05:59:13
You should only lose interest after 1 May. Once mature than the other policy becomes the director of what they should penalize you beyond what it was worth on 1 May.

Why buy CDs in this market to begin with? Probably won with nothing extra in return for the lack of liquidity. Be smart about it .... half of one percent is $ 50 throughout the entire year at $ 10,000.
Answer2chameleonAnswered at 2012-05-29 10:54:10
Legal? It is illegal not to renew automatically!

The penalty is in the interest, not principal. So really do not lose money.
Answer3Love Sick,Heartbreaker,Your the one that Answered at 2012-05-31 21:49:50
You will be notified of these policies to open the CD. Usually there is a " grace period" when a CD matures ( 10 days, etc. . ) If you take no action, the bank will automatically be renewed for the same period.
Answer4LarrAnswered at 2012-06-02 21:51:02
if the contract covers the original CD, then it is legal. Why did not you read?
Answer5KhalidAnswered at 2012-07-20 20:12:02
Yes, you have the option to withdraw money on the day of expiry of the original CD without having to pay a fine, or for a short grace period after that is renewed , again without penalty . The renewal is automatic, and once the grace period ends , you can not withdraw without penalty.
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