Credit unions often beat banks

Dear Liz: You told a reader to be suspicious of a bank’s offer to waive early withdrawal penalties on a certificate of deposit. But several credit unions allow early withdrawals from five-year CDs after the account holder turns 59 1 ⁄ . These credit

2 unions will even allow you to get higher-interest CDs at other credit unions with no penalty after 59 1 ⁄ . My husband

2 and I and sister did this for many years. I even do Roth conversions every year and take money from five-year CDs with no penalty and go to the place with the highest interest rate. When my husband died and I disclaimed his traditional IRAs, the children were allowed to keep the 6% interest on those CDs until they matured, even after they were changed to inherited IRAs.

Answer: Credit unions, which are owned by their members, often have better rates and terms than banks, although some banks also offer to waive early withdrawal penalties after 59 1 ⁄

2 on certain CDs.

But no one should rely on a verbal assurance that a fee will be waived. The offer to waive the fee should be in writing and kept with other financial documentation.