CD Discussion Thread

Finance
445

Moving funds out of EBSB should be as easy as a pull from Alliant, meaning you’ll be one day slower in getting it to wherever you want to to go. For an extra 0.5%.

For all the waiting, I’ll also point out that each day you wait you’re loosing the extra 1% you could’ve been getting (from this particular CD option). How much higher rate do you expect to get, and how long are you willing to wait to (hopefully) get it? It doesnt take much time for the wait to eat away the benefit of holding out for a 4% or 4.5% rate. Just another way of thinking about it.

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446

Some bad news this morning regarding the Sun East CD deal. The news comes from Ken’s website and he gets credit.

Ken finally has posted the deal on the front page of his blog. As you all know, Ken is a pro and he can be relied upon to do very thorough work where these deals are concerned . . . . unlike certain amateurs who shall go nameless but we know who we are.

Anyway, according to Ken you cannot get your money out of this CD at maturity . . . except in the form of a snail mailed paper check!!!

I did not post that earlier here because I did not know. And in fact, I never saw that one coming!! Ken is saying ACHing your matured CD money out of your savings is a no-no.

One more thing. This is for information only. It does not counter what Ken wrote. I am merely your humble reporter here:

I ended up with a small balance in my Sun East savings once my CD account had opened and the dust had settled. The amount was less than $100. Using my ACH link between Alliant and Sun East, I successfully withdrew via ACH that small balance and moved the funds to Alliant.

Q: OK Shin, let’s get this straight. You say you were able, using ACH, to withdraw money from your Sun East savings. Was there a penalty?

No

Q: Might they hit you with a penalty later, when your statement cuts?

Anything is possible.

Q: Can you explain why Ken wrote what he did, considering what you were able to do?

I do not know. There is one possibility, certainly no more than that. It is possible Sun East forbids ACH pushes, ones initiated at their own website. I did an ACH pull initiated at Alliant, but it was only for quite a small amount of money.

The sending of paper checks being as twentieth century a concept as it is even today, I harbor hope that by 2021 this issue might have evaporated, allowing all of us to remove our matured CD funds from Sun East using an ACH pull.

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Are you sure they’re not just talking about the inability to cash out the CD directly to an external account?

You know, I’d read the article you reference to see what it does say, but “Ken’s website” isn’t recognized by Google and you provided no link.

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448

Anyone who does not know what “Ken’s website” means by now, and who does not already have it bookmarked, should not be doing certificates of deposit. Ken has been doing his CD thing for more than ten years! And his website has been the “go to” place for CD players for nearly that long.

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https://www.depositaccounts.com/blog/

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I’ll go with you shinobi.
There is actually no real problem with receiving a “snail check” when CD matures. It just takes more time. But, since you have already tried to get funds using your ACH link to withdraw money from Sun East & it worked. I see no real problem.

I think on Monday I will add more funds to this CD. Right now it is the only thing I see that has this fairly good rate. 27mo CD 3.50%!!

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We’re supposed to be here to be helpful, though, Shinobi. And saying depositaccounts.com instead of “Ken’s website” only takes 6 keystrokes. Also, though it may be your go-to website for reference, it is only one of plethora of sites on that subject matter that are equally as useful.

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StatGren,
Please mention some of the plethora of sites that you use for reference on this subject matter, I for one would certainly be interested… Thanks…

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I’ll alert the media.

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I look at depositaccounts.com (thanks, zzz), and find exactly zero times that it refers to itself as “Ken’s website”.

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This isn’t the thread for it. I’ll start a new one.

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This clearly refers to ways of initiating the withdrawal with Sun East; if they do not offer an ACH initiation service, you obviously cannot use that non-existent service to push funds out of your account. They’re only going to speak to the options they offer, not what their competitors may offer. Your hyper-drastic hell-froze-over spin on a rather benign detail is no different than claiming Sun East wont pay any checks drawn on your Sun East checking account.

Anyone who does not already know this should not be messing around with ACH transfers. No matter how long “Ken” has been doing his thing.

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FWIW, I think you nailed it. Not really a problem.

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I appreciate all the responses. Upon reflection I now believe my earlier post was an overreaction to what Ken wrote, and I apologize. I did save myself a little, but not enough, by reporting my own experience with externally initiated ACH activity at Sun East. But I’m now with all of you in the belief that funds can be removed from Sun East at maturity using ACH.

There are some other negative comments about Sun East on Ken’s website. I guess those of us already in on this deal will just have to live with whatever ensues. It is too late for us to turn back now.

Back on the ACH thing, I think we all realize with ACH point of initiation means everything. I’m a little surprised Ken would not have made that part clear, but he did not. And I fell headlong into the trap! :slightly_frowning_face:

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shinobi,

I appreciate all the research you have conducted on Sun East. I don’t understand the trap you mentioned. I have made a couple ach deposits & opened the special CD. I still think this is a good deal.

I’m going to look the situation over Monday & decide if I want to ach more funds & open another CD. I remember you said that Sun East allowed you to add more funds at a later date into the first CD. They made me open separate CD’s as I sent a second amount of money into the Savings.

Sounds like they will probably end this special very soon.

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By “trap” all I meant was that I jumped to an (I hope) erroneous conclusion based on wording Ken used. I think other posters here had a smarter take than me, even though a different choice of words by Ken could have made the ACH withdrawal matter far clearer. Inability to withdraw funds via ACH is a big deal. Inability to withdraw funds by an ACH originated at Sun East is not an issue at all. I dare say regarding the latter, nobody even cares.

Yes, I did say that. However, I do not know for how much longer that privilege will be extended. And I take nothing for granted.

Agreed. Except that is what they were telling me with great urgency last Monday and the deal is still alive now, nearly a week later. Not a complaint, just a fact; there is after all such a thing as “crying wolf”. :grinning:

Now that is new information, pattyb53, and I thank you for the heads up. I did not see that one coming. Thanks!!

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Came here to post about Capital One 1-year CD at 2.60%. Just got that in a physical mailer. Wanted to provide a link and see that they raised it to 2.70%.

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I decided this morning to go ahead & ach a modest amount of funds over to Sun East. The special is still showing today, so what the heck. “a bird in the hand”.

shinobi, you mention waiting until Wednesday to see what might be in store for us savers. But then again glitch99 posted about loosing the extra 1% & how long are you willing to wait.

Things to ponder.

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Things have become very turbulent in the markets, stock and fixed income. I could easily end up regretting not following your lead. If they raise on Wednesday afternoon, at 2:00pm ET, I will be fine.

If not, the joke most likely will be on me.

Believe me, I will be attentively watching two days hence. It’s a roll of the dice.

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I’m not too worried about Fed NOT raising rates on Wed. All indicators are that’s almost a done deal. Plus, I think the President has more or less forced their hand by tweeting against rate hikes. If the Fed did not raise rates, it’d paint them as compromised in their independence and rattle market confidence further I’d think. But we’ll see.