NFCU Waiving EWP

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OAG
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NFCU Waiving EWP

Post by OAG »

Navy Federal Credit Union is waving early withdrawal penalties on Certificates of Deposit. Thoughtful gesture (IMO). Hope others will follow.
OAG=Old Army Guy. Retired CW4 USA (US Army) in 1979 21 years of service @ 38.
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OAG
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Location: Currently Central Ohio, USA

Re: NFCU Waiving EWP

Post by OAG »

Wright Patterson Credit Union also announced waving EWP and a lot of other fees.
OAG=Old Army Guy. Retired CW4 USA (US Army) in 1979 21 years of service @ 38.
yoyo6713
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Re: NFCU Waiving EWP

Post by yoyo6713 »

OAG wrote: Fri Mar 20, 2020 8:33 am Navy Federal Credit Union is waving early withdrawal penalties on Certificates of Deposit. Thoughtful gesture (IMO). Hope others will follow.
Problem is my CD with NFCU is paying 3.5% for the 1.5 years (10 year CD). Not goining to throw that away yet.
TropikThunder
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Re: NFCU Waiving EWP

Post by TropikThunder »

Of course they are, interest rates have cratered so they’re probably crossing their fingers that people break them. That said, if people burn thru their emergency funds, breaking a CD w/out penalty is a good Plan B in my opinion.
friar1610
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Re: NFCU Waiving EWP

Post by friar1610 »

TropikThunder wrote: Fri Mar 20, 2020 9:40 pm Of course they are, interest rates have cratered so they’re probably crossing their fingers that people break them. That said, if people burn thru their emergency funds, breaking a CD w/out penalty is a good Plan B in my opinion.
Their motivation may be as you state. I've been a member of NFCU for 50+ years and I'd prefer to think they're primarily trying to do the right thing since their primary purpose is to serve those who do serve or have served their country. You may have noticed that they have not eliminated several certificate specials they've been running for a couple of months. Seems to me they wouldn't continue those if they were primarily hopping on the cratered interest bandwagon. Or maybe we're both right.

https://www.navyfederal.org/products-se ... -rates.php
Friar1610
UpperNwGuy
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Re: NFCU Waiving EWP

Post by UpperNwGuy »

friar1610 wrote: Fri Mar 20, 2020 10:20 pm I've been a member of NFCU for 50+ years and I'd prefer to think they're primarily trying to do the right thing since their primary purpose is to serve those who do serve or have served their country. You may have noticed that they have not eliminated several certificate specials they've been running for a couple of months. Seems to me they wouldn't continue those if they were primarily hopping on the cratered interest bandwagon.

https://www.navyfederal.org/products-se ... -rates.php
Ha! You've got me beat. I've only been a member for 46 years. And, yes, it is surprising to see that they are still offering those Special Easy Start CDs that pay interest rates that are more than double the prevailing rate.
MikeG62
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Re: NFCU Waiving EWP

Post by MikeG62 »

I’ve only been a member for a few weeks (established a relationship to get into both their promotional 37-month IRA CD and 17-month add on CD), but must say I am really impressed with the organization and the quality of their CSR’s.

Agree that their waiving EWP’s does not seem to be about trying to get people out of higher-yielding and into lower-yielding products, but rather to allow people who suddenly find themselves short on cash (such as from a job loss) to access money that otherwise would be tied up. Bravo to them for taking such action.
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grettman
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Re: NFCU Waiving EWP

Post by grettman »

I called them to see what the “catch” is.

Very weird convo with the CSR. I called twice because it was so strange...

They want to hear about my hardship and have a “conversation” (their word not mine) about my situation before waiving the EWP. This just doesn’t seem right.

How will they know I’m not lying ? What proof would they want that I have such a hardship? Of course providing evidence isn’t possible (or at least hard to do depending on situation) so I don’t know why they make the customer go through this.

I said that I don’t have a hardship yet. I want to cash out because I want to be prepared.

He then said he can do some quick calculations about my penalty! I said WHOA... !! I will leave my CD alone if there is a penalty. He then said, “if you find yourself very worried, call us back and we will waive the fee”.

Why not just allow the customer to pull money out and let them on their way? What is the purpose of having them go through this? (Will be uncomfortable for many)

I appreciate them wanting to help but execution needs work.
doss
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Re: NFCU Waiving EWP

Post by doss »

@grettman, thanks for the story. That was weird. :?
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yoyo6713
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Re: NFCU Waiving EWP

Post by yoyo6713 »

grettman wrote: Sat Mar 21, 2020 6:55 am I called them to see what the “catch” is.

Very weird convo with the CSR. I called twice because it was so strange...

They want to hear about my hardship and have a “conversation” (their word not mine) about my situation before waiving the EWP. This just doesn’t seem right.

How will they know I’m not lying ? What proof would they want that I have such a hardship? Of course providing evidence isn’t possible (or at least hard to do depending on situation) so I don’t know why they make the customer go through this.

I said that I don’t have a hardship yet. I want to cash out because I want to be prepared.

He then said he can do some quick calculations about my penalty! I said WHOA... !! I will leave my CD alone if there is a penalty. He then said, “if you find yourself very worried, call us back and we will waive the fee”.

Why not just allow the customer to pull money out and let them on their way? What is the purpose of having them go through this? (Will be uncomfortable for many)

I appreciate them wanting to help but execution needs work.
I don't think that is weird. I think it really is a move to alleviate hardships. Most people are honest.
tomd37
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Re: NFCU Waiving EWP

Post by tomd37 »

Friar1610 and UpperNwGuy

I've got you both beat with a NFCU membership since 1961. But that's beside the point. On February 27th I took advantage of their offering of a 2.25% APY 17-month certificate in my name with my wife as joint owner. Decided yesterday that, with the way interest rates are going, I would get another. So I opened a second certificate in my wife's name with me as joint owner. In both these certificates I am leaving room for adding additional funds up to the $75K limit as I have a one-year ladder of certificates expiring each month. Rates on 12-month certificates appear to be about 0.5% or more lower right now.

In May of each year is when NFCU usually has special offers honoring military service. Not expecting too much this year though with the way interest rates currently are :!:
Tom D.
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