Schwab brokered CDs - limited selection?

[martinjsxx]

I had my first experience with a brokered CD maturing today at Schwab. Neither the principal nor interest was credited to my account this morning. I called Schwab and a broker said they don’t credit the money until the issuer sends them the money and he couldn’t tell me when that would be although he said it probably be sometime today. TD Ameritrade always made the funds available for trading the morning of maturity date and Fidelity gives me an immediate credit on maturity date. I’m thinking of transferring my Schwab account to my Fidelity account. Crediting a matured CD shouldn’t be an open ended question. I should know exactly when to expect the funds in my account.

[JGC97]

Never used Schwab although I've received promotional ads and been tempted. I don't think I'd like that, either, martinjsxx. Good to know that's how they operate. Thanks. It will save a lot of headaches for others. I'll stick with Fidelity. The transactions are always smooth.

[SuiteLiving]

Originally Posted by martinjsxx

I had my first experience with a brokered CD maturing today at Schwab. Neither the principal nor interest was credited to my account this morning. I called Schwab and a broker said they don’t credit the money until the issuer sends them the money and he couldn’t tell me when that would be although he said it probably be sometime today. TD Ameritrade always made the funds available for trading the morning of maturity date and Fidelity gives me an immediate credit on maturity date. I’m thinking of transferring my Schwab account to my Fidelity account. Crediting a matured CD shouldn’t be an open ended question. I should know exactly when to expect the funds in my account.

Had the same experience this week, the principal finally showed up early afternoon. Interest didn't show up until the end of the day. I'm considering options as well.

[martinjsxx]

Originally Posted by SuiteLiving

Had the same experience this week, the principal finally showed up early afternoon. Interest didn't show up until the end of the day. I'm considering options as well.

The money and interest was credited to my account by late afternoon. I wouldn’t mind so much if they told me it definitely would be credited during the day but their response was it would be credited whenever the CD issuer sent Schwab the money. The broker said it would probably be later in the day. I asked if it was possible the issuer wouldn’t pay it that day and he said it was possible. CD redemption proceeds on maturity date should be a given, not a possibility.

The other problem was that Schwab couldn’t answer my question without having to speak to about four people. A question about when CD proceeds are credited wasn’t that complicated. They seem to have a lot of phone representatives though and they are all over the country. One guy says he’s in Texas, the next in some other state and so on.

[Teak]

I had a CD mature yesterday, 9/29. The interest came in earlier in the day and the principal at the end of the day.

But given your anxiety about Schwab, perhaps a switch to Fidelity is called for.