Mark G Rsk

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Lafayette Federal won't return the available balance I see online when cashing in CD

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Updated by user Oct 17, 2023

They refuse to give me back my available balance from the screenshot I documented to them.

Original review Oct 10, 2023
I would give negative stars if I could.
Beware of off the chart penalties for early withdrawal on Lafayette Federal Credit Union CDs which are hidden when the CD accounts are open. They can be up to almost a 2 year penalty for a 5 year CD.

I looked up the available balance on my 5 year CD I opened last year and it was the full balance yet Lafayette Federal Credit Union has given no indication it will honor it. They also had the option to waive the early withdrawal penalty for emergencies which they do not do. The NCUA and other regulators are investigating my complaint.
I had all kinds of issues opening the account and never got it resolved when I emailed LFCU leadership. I had a family emergency which meant I needed to cash in the CD early.

Top my surprise, they had a 600-day penalty for early withdrawal on my CD. I don't recall seeing this when I opened the CD. You will not see this in the certificates section of the LFCU website lfcu.org/personal/certif. Hidden on the LFCU website is all the penalties for early withdrawal.

lfcu.org/files/Fixed-Rat
There are plenty of banks out there with similar or higher rates with far lower penalties for early withdrawal. You can even get similar rates on US Treasury Notes with no state tax and no penalty for early withdrawal.
LFCU says it is Member-Owned, Not-for-Profit -You're a member AND an owner at Lafayette Federal. We treat our members as unique individuals with specific needs and financial goals. We are member-owned, not-for-profit, and community-minded.

This couldn't be further from the truth based on my experience.

The penalty for early withdrawal section shown above which I don't recall seeing when I opened the CD says LFCU MAY impose a penalty for early withdrawal. They want to impose a huge penalty and this is after escalating to LFCU leadership.
View full review
Cons:
  • Wont give me my available balance when i login

Preferred solution: Get my available balance I login to Lafayette Federal Credit Union.

User's recommendation: Do not bank with Lafayette Federal Credit Union.

Mark G Rsk

This review is from a real person who provided valid contact information and hasn't been caught misusing, spamming or abusing our website. Check our FAQ

Verified Reviewer

Off the charts penalty for early withdrawal on CD

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Updated by user Sep 12, 2023

I haven't heard from Lafayette Federal. They don't seem to care if a customer who recommended them to lots of other people has an emergency and needs to withdraw funds preferably with the withdrawal penalty waived.

Updated by user Aug 13, 2023

https://***/news/auto-insurance-health-insurance-bills-after-car-accident/ I emphasized to Lafayette Federal Credit Union all the way to the CEO my health has deteriorated since this and this is why I needed to take an early withdrawal. They didn't seem to care.

Updated by user Aug 13, 2023

https://***/news/auto-insurance-health-insurance-bills-after-car-accident/ This is what I have been dealing with and it has only gotten worse. They know at Lafayette Federal Credit Union all the way up to the CEO and don't seem to care.

Original review Aug 13, 2023
I would give negative stars if I could. I opened a 5-year CD with Lafayette Federal Credit Union last year.

I had all kinds of issues opening the account and finally got it resolved when I emailed LFCU leadership. I had a family emergency which meant I needed to cash in the CD early. Top my surprise, they had a 600-day penalty for early withdrawal on my CD. I don't recall seeing this when I opened the CD.

You will not see this in the certificates section of the LFCU website lfcu.org/personal/certif. Hidden on the LFCU website is all the penalties for early withdrawal. lfcu.org/files/Fixed-Rat
There are plenty of banks out there with similar or higher rates with far lower penalties for early withdrawal. You can even get similar rates on US Treasury Notes with no state tax and no penalty for early withdrawal.
LFCU says it is Member-Owned, Not-for-Profit -You're a member AND an owner at Lafayette Federal.

We treat our members as unique individuals with specific needs and financial goals. We are member-owned, not-for-profit, and community-minded. This couldn't be further from the truth based on my experience.

The penalty for early withdrawal section shown above which I don't recall seeing when I opened the CD says LFCU MAY impose a penalty for early withdrawal. They want to impose a huge penalty and this is after escalating to LFCU leadership.
View full review
Loss:
$9500
Cons:
  • Huge penalty for early withdrawal even in emergency- 4x of ally

Preferred solution: Full balance in account with interest earned.

User's recommendation: Avoid like the plague unless you are ok with huge penalties for early withdrawal even in emergencies.

2 comments
Guest

Don’t be passive/aggressive and say “even in an emergency.” They are bankers, not your friends. No one told you to do a five year CD.

And to be honest, even an amateur knows there are only two important pieces of info with a CD.

The % return and what your total is after five years and a year one through four breakdown of the penalty for breaking the CD. So go cry yourself to sleep.

Guest

It’s clearly stated on the site. Do better.

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