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I wanted to return the money in the CD to my checking account at the same bank. Not take it out as cash.
If you buy CDs through Schwab, and you want to not renew one at maturity, do you have to go someplace in person? But you can buy CDs from different banks so the rules might be different depending.
Brokered CD's do not renew. You need to go buy something new with the funds you receive at maturity.
I wanted to return the money in the CD to my checking account at the same bank. Not take it out as cash.
If you buy CDs through Schwab, and you want to not renew one at maturity, do you have to go someplace in person? But you can buy CDs from different banks so the rules might be different depending.
I think you may be confusing getting a CD directly from a bank and buying a brokered CD from a firm like Schwab.
When you buy a brokered CD from Schwab, you have no banking relationship (or any relationship for that matter) with the bank that issued the CD. You are not a customer of the bank that issued the CD. You are a customer of Schwab. It is a different situation than opening an account at a bank either online or in person and then putting money into a CD offered by that bank.
I wanted to return the money in the CD to my checking account at the same bank. Not take it out as cash.
If you buy CDs through Schwab, and you want to not renew one at maturity, do you have to go someplace in person? But you can buy CDs from different banks so the rules might be different depending.
Of course not. If it is not set to automatically renew, it will roll into your core account at maturity. You will get an email before and after. You can then transfer the funds to wherever you like.
They can certainly be set to renew. It is an option when you purchase the CD.
I have never seen an option to auto-renew brokered CDs on TD Ameritrade, Schwab, or Fidelity. If for example I buy a three month brokered CD issued by Bank of China, there is no guarantee that Bank of China will be offering a three month CD through that broker when the first one matures. What CD would they auto-renew into? A three month CD they picked at random?
I have never seen an option to auto-renew brokered CDs on TD Ameritrade, Schwab, or Fidelity. If for example I buy a three month brokered CD issued by Bank of China, there is no guarantee that Bank of China will be offering a three month CD through that broker when the first one matures. What CD would they auto-renew into? A three month CD they picked at random?
I don't know what they choose - as I said, I don't set mine to auto-renew. I guess you can call them and ask.
But it certainly IS an option when you purchase, even for a 3 month.
I have never seen an option to auto-renew brokered CDs on TD Ameritrade, Schwab, or Fidelity. If for example I buy a three month brokered CD issued by Bank of China, there is no guarantee that Bank of China will be offering a three month CD through that broker when the first one matures. What CD would they auto-renew into? A three month CD they picked at random?
I have never seen an option to auto-renew brokered CDs on TD Ameritrade, Schwab, or Fidelity.
I buy CDs with Fidelity. On the screen where you enter the amount you wish to buy, there is an Auto-roll button. You can select yes or no. Don't know how auto-rolls are handled as I have never selected yes, but here is what Fidelity says. https://www.fidelity.com/bin-public/...-Agreement.pdf
If you choose to auto-renew a CD, at maturity the brokerage firm or bank (Fidelity in my case) will look for an equivalent CD time frame (I.e., 3 month, 6 month, etc), as the CD its replacing, and renew it with the highest interest rate available at that time. It may be higher or lower or equal to the rate of the CD approaching maturity - but they will get the best rate offered according to your specifications (callable or non, etc.). The new CD will most likely be from a different financial institution than the one it's replacing. Like if the 1st CD is from Wells Fargo, it could auto renew into a new CD from People's Bank, or Bank of Singapore, etc. It really doesn't matter as long as it's the best rate and for the same term length as the CD its replacing.
This is why I don't auto-renew CDs. I like to look at the rates myself when a CD is near maturity and see what's out there. If the rates are significantly lower, I may choose to do something else with that money and not auto renew. It's dead easy to change CD renewal status at Fidelity with a click of the mouse at any time. It couldn't be a simpler process.
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