Chase Bank Gobbledygook Revisions Suggested
Where in tarnation is the certification?
A narrative of my experience when and after I purchased a CD from a real Chase banker during her lunch or snack break after I was confused by a Chase Virtual Banker can be viewed here:
https://davidarthurwalters.substack.com/p/the-virtual-chase-bank-hustle
Mind you that I had not done business with a bank other than holding non-interest bearing checking accounts for decades, so I was as naïve as a new customer, but one who had learned in junior high school what a Certificate of Deposit (CD) is and how it differed from an interest-bearing checking account. My current experience moves me to publish my observations and suggestions:
I was not given a certification of deposit stating the terms when I bought the 3-month, 2% CD. I understood that it was a variable rate CD with rates varying only at the end of the term, so, if I automatically renewed it, I would get a higher or lower rate influenced by changes in the Federal Reserve funds rate. I told the banker I was buying the short-term CD because I expected interest to rise. She said 2% was all I could get with the amount I was investing, and interest rates would not rise. It was after the Chase Virtual Banker confused me that I learned rates had risen as the 2-month certificate was paying over 4% interest, so I expected my three-month certificate to rise as well if renewed automatically. But then I saw from the rate sheets that it was at 2% since I bought it on November 15th 2023. What? Well, perhaps the 3 month CD at 2% is all you can get forever for less than $50,000?
Suggestion: a handsome certification of deposit should be delivered when each CD is sold clearly stating all of the terms for that particular kind of CD. No doubt the certificate would be worthless and itself but one would at least have in hand some evidence, like a Federal Reserve Note, and think he has something substantial. Neither the real nor the virtual banker would inform me in writing what the rates and terms were. What passes for a description of the terms is on the renewal notices, requiring one to navigate the website, or, the customer can call the switchboard and hope to understand a customer service representative. In my case, I was told I would have to come into the bank and bring identification with me, a most inconvenient way of communicating for a modern prestigious bank, at least in my opinion, especially in comparison with sophisticated online operations such as Marcus Goldman Sachs, which is paying 5.15% APY for a 12-month certificate at this time.
The notice of maturity below delivered to me by mail towards the end of the term of 3 months was the only written evidence that I had a CD other than the bank record of the transfer of my funds from checking to the CD account. I simply placed it in a folder and did not read the terms because I believed I understood what they were. It was only after I received communication from the so-called Virtual Banker, who said he could give me a better deal but could not tell me in writing what it was, that I became nervous about the nature of the CD, whether it was fixed rate or variable at renewal, therefore I contacted my real banker, who would not tell me anything substantial in writing unless I came into the bank with identification.
RENEWAL NOTICE
“Important your CD is maturing soon let's review your options
...
“If you don't want to make any changes
“Your CD will automatically renew on May 15th 2024 with a new maturity date of August 15th 2024. See additional details below. Please note, your new term may be different.”
(Why would the term change? Is the CD a three-month CD or not?)
“Term: 3 months
“Interest Payment Frequency: At Maturity
“Interest Compounding: Daily Type of Maturity: Automatically Renewable
“Interest rates and APYs vary so they won't be available until your maturity date. You'll receive the rates that are in effect on May 15th, 2024, which may be lower than your current rate. To learn your new rates, please call us at the number above after May 15th, 2024. in the meantime you can view our current rates at chase.com/CD/maturity.
(Why would the rate only become lower, not higher? Is the rate at maturity still 2% or not, so is it renewed at that rate or not? Does the customer have to buy a different CD to get the rates published on the website?)
....
“This disclosure covers both retirement and non-retirement certificate of deposit products. By opening your CD, you agree to keep the amount deposited (principal) on deposit. Here are a few things you should know about CDs, but please refer to the Deposit Account Agreement for additional information about CDs.
(Where is the Deposit Account Agreement? Did I sign one? Where is my copy?)
“Automatically renewable CD: an automatically renewable CD will renew on the maturity date for the same term unless 1) you have a different renewal term as part of a CD ladder; 2) you change or closed the account or 3) we notify you otherwise. Once your CD renews, any reference to the maturity date means the last day of the new term. For the renewable term, your CD will earn interest for the term and amount at the CD standard rate unless you qualify for the CD relationship rate. If your CD is closed during the grace period, it will not earn interest on or after the maturity date.
(Does the customer get the same rate on the last day of the CD term, which is the CD rate, or the “Standard Rate”, and what is the standard rate, where can it be found?
SUGGESTION: That is the key question, so the policy should be made perfectly clear. Again, if the customer is going to automatically get a new term and a new rate, which one might suppose by the ambiguities in the overall language, why must he come into the bank and identify himself to his banker, who probably knows him already?
Now the customer might be fortunate to find this “education” at:
https://www.chase.com/personal/banking/education/basics/cd-renewal
“Do CDs automatically renew? Typically, if you take no action during the grace period, your CD is automatically renewed. This means the funds are rolled over into a new CD with a specific term length. The interest rate for the new CD, however, generally depends on what the bank is currently offering for the term and may not be the same as the one on the original CD. While CD renewal is generally automatic, you may be able to preselect a different CD term length for your CD to be rolled over to upon maturity. Speak to your bank about their specific CD renewal policy and review your maturity notice to understand better.”
I can just hear Virtual and Real Bankers in the background thinking, “Doesn't this idiot know how things work around here?”
I was given no opportunity to preselect anything. I was given the notice as described above stating a 2% rate CD. If the Virtual Banker had not contacted me and confused me, I would have trusted in my Real Banker. Now I am left with the impression that Real Bankers do not operate in my best interest, perhaps not from intention, but from assuming that the small account holders know as much about banking as their preferred customers. Perhaps the Comptroller of the Currency could enlighten us on this subject.