In fairness I had months of delays in wresting control from a full-service brokerage where the account was held as a trust (left to me exclusively.) Not 12 months, but several months. If I hadn't happened upon a contact in another region of the company who helped by running the issue up their corporate ladder and then have it make its way back down the ladder in another region - and that was just luck - the process would have taken much longer. So this is not a problem unique to TD, except to the extent that the brokerage would likely have been more responsive to either regulatory complaints or legal action if I'd had to resort to that.Yes interest is accruing, but as I said, the interest of of little consequence when you appear to have lost control of your principal. My account was LOCKED for months, and this has happened to others frequently on TD for no reason. Not to say it can't happen elsewhere, but for any private institution you can file a complaint with the SEC, FINRA, CFPB etc. Who do you contact when you need access to your principal and the US Treasury wont give it to you and they are following government policy presumably ? Don't trivialize, the hoops they make people go through for service with signature guarantees and lengthly delays are FAR FAR in excess of any other financial institution you may deal with. Earning interest is not the only thing that matters.I understand the frustration and desire to move away from TD, but this sentiment of "while holding YOUR money" is confusing because I assume interest is accruing while TD holds YOUR money, right?Beneficiary issue is not the only service problem. AFAIK, I am still alive but had 2 very long service delays here and now. Transfer bonds to new registration took months, and the new acct created to accept the transfer was locked “for security reasons” which took months to resolve. They are just unresponsive while holding YOUR money.I do agree that while savings bonds were once useful as a bridge for beneficiaries after death while more complicated assets were being sorted out, now they aren't necessarily useful for that function.I have been investing in savings bonds for over 20 years so I would say I WAS a loyalist. But the lengthy poor service with security theater of signature guaranteed forms has turned me off, not reduced rates. They have lost me as a customer. I am gradually liquidating each year (to spread the tax impact) instead of buying my annual allotment as I once did. The attitude that it is OK to wait to get your money for months, makes the rates irrelevant to me.
In fact the main reason I created a trust was to help a disabled child when I am gone. One of the supposed benefits of a trust is faster access to needed funds upon my passing (avoid probate, new trustee should have immediate access to funds and be able to pay my son's bills so he does not end up homeless). If the new trustee has to wait 12 months to get access, then I have failed in my goal. There is just no way I am going to leave any reasonable portion of my savings in TD even if the DOUBLE the interest rates.
Statistics: Posted by tibbitts — Fri Aug 23, 2024 5:18 pm