If I have a CD that matures and I don't call the bank until 7 days later, still within grace period, to transfer it over to a savings acc. Will I get interest for those 7 days and at what rate? Let's say the CD earned x% and the savings acc is y%, will the rate for the grace period be x or y?
Believe it or not, I asked customer service at BofA And the answer was don't know. So I just want to see what is commonly done.
It should be in your paper work from when you opened, But most banks will not pay any interest if you close. Why would you wait 7 days anyways? Most here would have made sure to close on day of maturity and have an exit plan that results in the min amount of lost interest
thanks for your responses. I never knew I have 0 interest during the grace period. Now I'll be more careful.
Chyvan
Senior Member
posted: Oct. 31, 2009 @ 1:18p
I like the way people said "generally." I have dealt with a couple of credit unions that let me keep the interest earned during the grace period. Now, I'm curious, is it because of so often losing the interest during the grace period that people avoid having the the date of maturity be a Saturday, Sunday or a holiday?
I have had several CDs at BoA and the terms all said that no interest was paid when the CD matured unless it was rolled over into a new CD at the current rates.
Were you talking to a CSR on the phone or someone at a branch? BoA's telephone CSRs range from marginally competent to abysmally stupid, but you should have been able to get the correct information from someone at a branch.
olegos
Senior Member
posted: Nov. 1, 2009 @ 10:38p
In my experience with several banks, you do get interest, at the new rate the CD would have if you didn't close it. Really, the CD renews automatically for the same term on maturity date, and starts accruing interest on that date at the new rate. The grace period is when the early withdrawal penalty is waved, so technically you're closing the new CD, without the penalty.
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