4Sep/090
Melrose CU update – CD Penalty
Account opening went smoothly. As mentioned application was created and approved on-line with a printed version sent in.
Got a package of material back yesterday. Included IRA application and CD purchase form. On the 12th, when my other CD matures will send in forms to open the CD.
One big surprise is the penalties for early withdrawal from any CD product offered by Melrose CU. Three months interest on anything 1 year or less, and 6 months interest on anything over 12 months. The interesting thing is that in both cases the interest rate on the CD then drops to 1.5% for the remainder of the term. Pretty tough penalty.
Have not seen this harsh a penalty before. Suspect it is legal since it is disclosed clearly up front.
