US Bank in California just ripped my dad off for all of the interest plus more of what he earned on his CD savings account.
My dad deposited a big chunk of money into his CD at US bank and left it there for the full term of 14 months. Afterwards they sent him a letter and told him they would auto renew it after 10 days. He made around $1200 in interest.
My dad started to shop around for other banks and found one that would give him a much better interest rate. So he decided to go pull his money and move it to this new bank. But he was a couple of days passed the “auto renew” deadline at US so they re-enrolled him in there CD plan without his permission.
The bank told him that because he was now essentially pulling his money early they would have to charge him a penalty. My dad was aware that he was a few days passed the auto renew date so he was ready to pay a penalty on what he thought would be the interest he earned during this new term. Us bank charged him an $1800 dollar penalty.
So after leaving his money with the bank for year and a half he ended up with less.
What a rip off. Make sure you read the extra fine print or else this may happen to you too. Oh and my Dad no longer banks with US Bank anymore.
