Beware of your ING Direct CDs. I just lost $300.

NEW -> Contingent Buyer Assistance Program
It turns out that ING has a 10-day window to move the money from your CD at maturity, otherwise they roll your CD into a new CD and if you want your money you are forced to pay a penalty of 3 months interest at which ever rate they opt to give you.



Unfortunately I was a little over two weeks past this deadline and ING just charged me $300 to get hold of my cash.



Oh and here's the kicker--even though they have my email on file I wasn't alerted that my CD had matured and I have only 10 days to move it or lose it.



I called ING and they said sorry, there's nothing you can do and I am SOL.



I hope by telling this bit I can prevent other savers from getting screwed!
 
There's an option under the Account Maintenance page to change what happens to your money at maturity. I know one of the options is to deposit the money into your savings/checking account, while others are to roll the CD over to a new CD (you can choose the maturity of the new CD). Anyone with ING CDs that needs to use the funds soon after maturity should double-check to confirm that the account is set to roll to a separate account.
 
was this ing bank or ingdirect? i'm suprised you even got someone on the phone if it was ingdirect. bofa has always been pretty good about letting me move a cd after i missed the grace period. i guess we've seen more than a few examples of why there is an implicit cost in the higher rates you can get from the internet banks -- either in the form of risk or lower level of service.
 
This was ING direct. I got someone on the phone and kindly asked them if I could withdraw my money without their huge penalty and they promptly refused.



Needless to say, I closed all of my accounts (personal and business). I was surprised how they really stuck it to me without any roll-over offers, discounts off the penalty for being a customer of several years with multiple accounts, etc.
 
The teacher's credit union (now School's First FCU) always sends a letter with the maturity date and what will happen on that date, the letter goes out 1 month in advance AND you can always opt to have it go directly into any account you wish on the maturity date. Time and time again, my credit union has proven to be the best.
 
School's First has even better solution: if you open your CD online, they have 2 options as to what to do with your CD: renew automatically or post the whole amount into an account you designate. I always choose the latter, and when my CD matures I know simply because all of the sudden I have money in my checking account :)
 
[quote author="Priced_Out_IT_Guy" date=1225498830]This was ING direct. I got someone on the phone and kindly asked them if I could withdraw my money without their huge penalty and they promptly refused.



Needless to say, I closed all of my accounts (personal and business). I was surprised how they really stuck it to me without any roll-over offers, discounts off the penalty for being a customer of several years with multiple accounts, etc.</blockquote>


Thanks for the warning. sorry to hear about your experience. It is annoying when you are a good customer and customer service acts like there is nothing they can do for you.



Did you ask to talk to a supervisor and kindly remind them of your business and your intention of closing all your accounts if they couldn't extend some type of courtesy (I mean before you actually closed your accounts)?
 
[quote author="JLegend" date=1225676628][quote author="Priced_Out_IT_Guy" date=1225498830]This was ING direct. I got someone on the phone and kindly asked them if I could withdraw my money without their huge penalty and they promptly refused.



Needless to say, I closed all of my accounts (personal and business). I was surprised how they really stuck it to me without any roll-over offers, discounts off the penalty for being a customer of several years with multiple accounts, etc.</blockquote>


Thanks for the warning. sorry to hear about your experience. It is annoying when you are a good customer and customer service acts like there is nothing they can do for you.



Did you ask to talk to a supervisor and kindly remind them of your business and your intention of closing all your accounts if they couldn't extend some type of courtesy (I mean before you actually closed your accounts)?</blockquote>


Yes, I did speak to a supervisor and politely asked to have the fee removed, and they refused saying "too bad, there's nothing we can do." Pretty bad customer service IMO.



I will check out the teacher FCR. I need to put my dp somewhere else until I start looking to buy in 2010.
 
[quote author="blackacre-seeker" date=1225674902]School's First has even better solution: if you open your CD online, they have 2 options as to what to do with your CD: renew automatically or post the whole amount into an account you designate. I always choose the latter, and when my CD matures I know simply because all of the sudden I have money in my checking account :)</blockquote>


Doesn't matter how you open the CD at Schools First, you can always tweak what happens at maturity via online banking...
 
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