I’m writing this today, because I found out my three son’s CDs will rollover from over 4.5% to 2.25% when they mature at USAA. I turned the rollover off and the money will transfer back into their checking account.

I wonder how many people signed up for CDs and assume they will get the best rate and let them rollover. Probably a lot. My elderly mother did something like that in her last decade. She had a big chunk of money earning nothing in CDs even after the Treasury Money Market funds rates took off.

I have a couple of months before the CDs mature. I will be looking for a new bank for their savings. It’s more than this bait and switch, its their overall banking experience. The insurance side is okay.

I wonder if USAA is one of the many banks underwater if they have to mark their assets to market prices. We just don’t know. Many banks have this problem, but when they start trying to squeeze depositors maybe that is a sign. But I would prefer they stop advertising first.

Why does USAA have to spend so much on advertising? They are all over the NFL and everywhere else. Why? They were always a word-of-mouth bank for the military and did not need to waste money like this.

Michael Bond

PS. Check your CDs too where ever you keep them.

Categories: Perspectives