Massive storms and their subsequent floods can quickly cause a different kind of liquidity crisis.
Unexpected expenditures for replacing essentials like food and clothing, relocating to hotel rooms, paying higher gas prices and getting emergency repairs on homes can easily deplete any cash that victims may have lying around.
Because of that, many victims of Superstorm Sandy will probably need to access whatever savings they have locked up in certificates of deposit. Normally, cracking open a CD early can cost a lot of money in fees, but as we noted in the banking blog, several large banks are offering customers in states affected by Sandy a break on CD early withdrawal penalties.
- Wells Fargo is offering to waive early withdrawal fees incurred until Nov. 7 for customers in New Jersey, New York, Connecticut, Pennsylvania, Delaware, Maryland, Virginia and Washington, D.C. That waiver should be applied automatically.
- Bank of America will waive early withdrawal penalties until Nov. 7 for customers in Rhode Island, New Hampshire, Maine, Massachusetts, Connecticut, New Jersey, New York, Pennsylvania, Delaware, Maryland, Virginia and Washington, D.C. That waiver won't be automatic; customers must call (855) 729-1764 to request a waiver.
- Citibank will automatically waive early withdrawal penalties on CDs until Nov. 7 in New York and New Jersey. In other states affected, early withdrawals made between when the storm hit and Nov. 5 won't be penalized.
- TD Bank is waiving early withdrawal penalties on CDs for customers affected by the storm and hasn't set a specific cutoff date. Customers will need to call (888) 751-9000 to receive the waivers, however.
If you know of other banks not listed here offering similar relief to storm victims on CD early withdrawal penalties, please let us know.
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