neonwalker25 said:It’s probably because you’re looking at two different beasts entirely—you’ve got one interest rate sitting there for a three-year term, and then a totally different rate for just a single month. If you decide to pull the plug early, that's when the whole thing shifts from a simple arrangement into a full-blown loan scenario.
I’m not entirely sure I follow your logic. I currently hold a few USD certificates of deposit set for three years—with interest paid out every three months. Once that three-month window closes, the bank pays the interest, and then the interest starts accruing from zero again for the next quarter (so the interest grows steadily)—until the next payout hits. If I decide to liquidate these USD CDs before the full three-year term is up, I get my principal back in full, plus whatever interest has accumulated during that final three-month stretch.
The situation with the USD accounts is quite different—they pay out interest monthly, but if I want to close the account early, they just deduct the interest already paid from my principal amount.
Are you suggesting that when the bank pays out monthly interest, they are effectively giving me an advance—almost like a small loan?
Aloha. I placed a relatively small amount of AUD into a three-year CD with monthly interest payouts sent directly to my foreign currency account... it’s been a few months now, and while the interest is being calculated and deposited quite reliably, I’ve noticed a strange quirk. If I were to decide to break the CD early, the bank treats the interest already paid out as a negative balance against the principal...
For instance: a $10,000 AUD CD Interest adjustment: -$60 AUD
Total payout if I terminate the CD early: $9,940 AUD.
My question is this: Does anyone understand why the bank is accounting for the interest as a negative figure? It seems nonsensical to me—the months have passed, the interest was earned for those previous months, and it was already paid out... I don't see any logical reason for them to still be showing it as a deduction...
I actually have a few other CDs in Euros with quarterly payouts, and everything there works perfectly fine... after three months, the bank pays the interest, and then the interest just continues to accrue normally. If I chose to close those savings accounts, they wouldn't show the interest as a negative debit like this...
It’s a losing game, honestly—you might think you’ve come out ahead here, but in the long run, you’ll almost certainly lose far more than what you managed to "earn" today. Life has a funny way of balancing the scales, and believe me, I’ve seen it happen more times than I care to count.
My mom’s security token finally gave up the ghost after four years of service... and of course, because my luck is just that great, I happen to be in Germany right now—meaning I have absolutely zero access to Chase exactly when I need it most. I actually took the time to call the Chase info line, only to be told that getting a replacement token requires showing up in person at a local branch back home. Apparently, if you aren't physically present in the States, there isn't a solution in sight.🤷
The parent bank is the one hitting you with that cash withdrawal fee—and I’m fairly certain darkmaker94 knows exactly what that figure looks like... as for the second part of your question, I already gave him my take 🙂 how much is the other bank charging you just for using their ATM?
redfox57 said:So I messed up and grabbed cash from a Chase ATM instead of a Bank of America one $667 using my Mastercard from Wells Fargo. Does anyone know what the fee is for using their machines?
I don't have the exact figure for the Federal Reserve's specific fee structure, but most major banks charge $3.25 per transaction for amounts up to $267, and once you cross the $267 mark, they typically tack on an additional 1%... which means you're looking at roughly $6.75... or at most $10...
...if you haven't settled all those debts along with the accrued interest, I’m concerned the bank might just go through the courts to initiate a garnishment—basically sitting on your paycheck until they've collected everything... I'm not entirely certain if the bank sends that garnishment order directly to your employer, but my understanding is that they can freeze any account you hold at any major US bank... I suspect Kimberly Nguyen likely has more insight into how this works 🙂
Beyond the fact that you’ll eventually be footing the bill for everything with those predatory interest rates—not to mention the headache of being blacklisted—you really need to prepare yourself for the fallout. Once you hit the credit bureau's radar, expect things to get incredibly difficult for at least the next 36 months; getting approved for any new loans will be an uphill battle, if it happens at all.