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CD Redemption


BrownJackC
BrownJackC | | 4 posts since 2012

One thing to consider in choosing a bank to open a CD with is how fast the money will be available upon CD redemption. When redeeming a CD with Barclays they moved the CD proceeds into my Barclays savings acct within minutes. When doing the same thing with Synchrony they said it could take up to 4 business days to move the CD into my Synchrony savings acct (an internal transaction). Counting the weekend that could take 6 days and they pay no interest for those days. That is an issue if the money is needed pretty quickly.




me1004
me1004 | | 589 posts since 2010
If you had that issue with Barclays, please report them to the appropriate banking regular. They will only get away with it because no one takes action against them.

That is not legal, for multiple reasons, but the most basic is that you have a contract for that money to be available the day the CD matures. Barclays is stealing from you, as they are not going to give you any interest for those 4-6 days, they will take a free float and make money off it. And that's why they are doing it, for purposes of theft.
MidAtlantic
MidAtlantic | | 96 posts since 2012
Best to read more carefully before making accusations. BrownJackC says Synchrony, not Barclays, delayed payment.
BrownJackC
BrownJackC | | 4 posts since 2012
Follow up. I called Synchrony a couple days later and talked to a supervisor and told her if my CD proceeds were not moved to my savings acct by day's end I would close my savings acct. The CD proceeds were in my savings acct within two hours with interest.
me1004
me1004 | | 589 posts since 2010
I still encourage that you file a complaint with the regulatory agency -- they will do this with everyone if no one complains. And yes, Synchrony, not Barclays.
BrownJackC
BrownJackC | | 4 posts since 2012
I called our state banking commission and they said as long as the proceeds are available in a 'reasonable' time frame that there is nothing they can do. They gave no definition of "reasonable".
Kaight
Kaight | | 141 posts since 2011
This same level of caring, cooperation and integrity can be anticipated more often than not from any government entity. Consider the classic laugh line:

"I'm from the government and I'm here to help."

What is amazing is the number of Americans who actually believe this stuff! I guess such thinking provides a handy crutch for those deficient in self-reliance.
me1004
me1004 | | 589 posts since 2010
Of course the state banking commission can't do much, they are not the primary regulator for Synchrony. Its primary regulator is the US Comptroller of the Currency, and that would be who to file with. From Synchrony:

As a savings and loan holding company, Synchrony is subject to extensive regulation, supervision and examination by the Federal Reserve Board. In addition, as a large provider of consumer financial services, Synchrony is subject to extensive regulation, supervision and examination by the Consumer Financial Protection Bureau (the “CFPB”).

The Bank is a federally chartered savings association and therefore is subject to extensive regulation, supervision and examination by the Office of the Comptroller of the Currency of the U.S. Treasury (the “OCC”), which is its primary regulator, and by the CFPB. In addition, the Bank, as an insured depository institution, is supervised by the FDIC.