Let's get this done! Closing a CD account can seem a bit daunting, but with the right steps, it's a smooth process. So, let's dive into how you can close your CD account with USAA, step-by-step.
Closing Your USAA CD Account: A Comprehensive Guide
Are you ready to free up those funds or consolidate your investments? Closing a Certificate of Deposit (CD) account with USAA is a straightforward process once you understand the steps involved. Whether your CD has matured or you're considering an early withdrawal, this guide will walk you through everything you need to know.
Step 1: Are you absolutely sure you're ready to close that CD?
Before we even talk about paperwork, let's confirm this decision. Closing a CD, especially before its maturity date, can come with penalties. Have you considered:
- The maturity date of your CD?
- Any early withdrawal penalties that might apply?
- Alternative investment options for your funds?
- Whether you truly need the funds immediately?
Take a moment to review your USAA CD details and ensure this is the best financial move for you right now. If you're still on board, let's proceed!
Step 2: Understand Your USAA CD Account Details
Before you initiate the closure, it's crucial to have a clear picture of your specific CD account. This will help you anticipate any potential issues and ensure a smooth process.
2.1 Locating Your CD Information
You can find your CD account details through a few avenues:
- Online Banking: Log in to your USAA online account. Navigate to your accounts summary, and you should see your CD listed. Click on it to view details like the original deposit amount, interest rate, maturity date, and any early withdrawal penalties.
- Account Statements: Your monthly or annual statements from USAA will also contain detailed information about your CD.
- Contacting USAA: If you're having trouble locating the information, a quick call to USAA customer service can provide you with all the necessary details.
2.2 Understanding Maturity vs. Early Withdrawal
This is a critical distinction when closing a CD:
- Matured CD: If your CD has reached its maturity date, you typically have a grace period (often 7 or 10 days) during which you can withdraw your funds without penalty. USAA will usually send you a notification as your CD approaches maturity, outlining your options. This is the easiest time to close your account.
- Early Withdrawal: If you need to access your funds before the CD matures, you will likely incur an early withdrawal penalty. This penalty is usually a forfeiture of a certain amount of interest, which can vary depending on the CD's term and USAA's specific terms and conditions. Always confirm the exact penalty before proceeding with an early withdrawal.
Step 3: Choose Your Preferred Method of Contacting USAA
USAA offers several convenient ways to manage your accounts, including closing a CD. Select the method that works best for you.
3.1 Online Banking (for Matured CDs or Inquiry)
While you generally cannot initiate an early CD closure directly online, you can:
- Check CD Status: Verify if your CD has matured.
- Review Account Details: Access all the information you need before contacting USAA.
- Secure Message: For specific inquiries about your CD or to express your intent to close a matured CD, you can send a secure message through your online banking portal. This is a good starting point for gathering information.
3.2 Phone Call (Most Common and Recommended)
- For both matured and early withdrawals, a phone call is often the most efficient way to close your CD. You can speak directly with a USAA representative who can guide you through the process, confirm penalties (if applicable), and execute the closure.
- Have your account number and personal identification ready before you call to expedite the process.
- USAA Customer Service Number: You can find the most current customer service number on the USAA website or your account statements.
3.3 Mail (Less Common for Closures)
While you can technically send a written request to close your CD, this is generally the slowest method and less recommended for time-sensitive closures, especially if penalties are involved. If you choose this method, ensure your letter includes:
- Your full name
- Your USAA member number
- Your CD account number
- A clear statement that you wish to close the CD
- Instructions on where to transfer the funds (e.g., to another USAA account or an external account)
- Your signature
Step 4: Initiating the Closure Process
Once you've chosen your contact method, it's time to make it happen.
4.1 For Matured CDs
- Online: If your CD has matured, log in to your USAA account. Look for options to manage your CD, which may include rolling it over or withdrawing funds. Follow the prompts to withdraw the funds to your linked USAA checking or savings account, or to an external account. If you don't see a clear option, use the secure message feature to request the closure and fund transfer.
- Phone: Call USAA customer service. Inform them that your CD has matured and you wish to close it and transfer the funds. They will verify your identity and guide you through the process of transferring the principal and earned interest.
4.2 For Early Withdrawals
- Phone Call is Key: This is where a phone call becomes almost essential. When you call USAA, clearly state that you wish to close your CD early.
- Penalty Discussion: The representative will inform you of the exact early withdrawal penalty that will be applied. Make sure you understand this amount before proceeding.
- Confirmation: Once you agree to the terms, the representative will process the early withdrawal. The principal minus any penalty, plus any accrued interest (up to the point of withdrawal), will be disbursed.
Step 5: Fund Disbursement and Confirmation
After initiating the closure, the next step is receiving your funds and confirming the account is officially closed.
5.1 Receiving Your Funds
- Internal Transfer: The quickest and most common method is to have the funds transferred directly to another USAA checking or savings account you hold. This transfer is typically immediate or processed within one business day.
- External Transfer (ACH): You can request the funds be transferred to an external bank account via ACH. This usually takes 1-3 business days to clear.
- Check: In some cases, you may be able to request a check be mailed to you. This is the slowest option.
5.2 Confirming Closure
- Online Banking: After a few business days, check your USAA online banking portal. The CD account should no longer appear in your active accounts list.
- Statement: Your next statement from USAA should reflect the closure of the CD account.
- Follow-up Call: If you're unsure, or if the account still appears after a reasonable time, don't hesitate to make a follow-up call to USAA customer service to confirm the closure.
Step 6: What to Do After Closing Your CD
You've successfully closed your USAA CD! Now what?
6.1 Reinvesting Your Funds
Consider where you want your funds to go next. Options include:
- High-Yield Savings Account: For easy access and competitive interest rates.
- Another CD: If you still want the stability of a CD but perhaps with a different term or rate.
- Investment Account: For potentially higher returns, though with more risk.
- Paying Down Debt: A smart use of funds if you have high-interest debt.
6.2 Updating Your Financial Records
Make sure to update your personal financial records, spreadsheets, or budgeting tools to reflect the closure of the CD and the new location of your funds.
10 Related FAQ Questions
How to check the maturity date of my USAA CD?
You can find the maturity date by logging into your USAA online banking account and viewing your CD details, or by reviewing your USAA account statements.
How to avoid early withdrawal penalties on my USAA CD?
The only way to completely avoid early withdrawal penalties is to wait until your CD matures. If you anticipate needing the funds sooner, consider a no-penalty CD or a different type of savings vehicle.
How to transfer funds from a closed USAA CD to an external bank account?
When you close your CD (either matured or early withdrawal), you can instruct USAA to transfer the funds via ACH to a linked external bank account. You'll need the routing and account number of the external account.
How to roll over my USAA CD after it matures?
USAA typically offers a grace period after maturity during which you can choose to roll over your CD into a new one. You can do this online, by phone, or sometimes automatically if you've set up that preference.
How to determine the early withdrawal penalty for my USAA CD?
The early withdrawal penalty for your specific USAA CD can be found in the original CD agreement, by logging into your online account, or by calling USAA customer service directly. It's usually a forfeiture of a certain number of days or months of interest.
How to close a USAA CD if I'm overseas?
You can close a USAA CD while overseas by calling USAA customer service using their international contact numbers or through their secure messaging system within online banking. Ensure you have access to your account information.
How to get a check for my USAA CD funds after closing?
When closing your CD, you can request that USAA mail you a check for the disbursed funds. This option is generally slower than electronic transfers.
How to confirm my USAA CD account is officially closed?
After initiating the closure, you can confirm it by checking your USAA online banking account to see if the CD no longer appears, by reviewing your next account statement, or by calling USAA customer service for verification.
How to access my USAA CD agreement details?
Your original CD agreement details are typically available through your USAA online banking portal, or you can request a copy by contacting USAA customer service.
How to speak to a USAA representative about closing my CD?
You can speak to a USAA representative by calling their main customer service number, which is usually found on the USAA website, your account statements, or by logging into your online account for specific contact options.
