I currently have CDs in Wachovia and Wells Fargo. When Wells Fargo takes over Wachovia, am I allowed to close my CD accounts without penalty?
Whether or not you'll be allowed to do so will be a decision made by Wells Fargo or Wachovia before the actual merger date. Federal rules will permit the waiver of early withdrawal penalties in such situations.
Whether you need to do so is another matter. If your concern is the FDIC insurance coverage for the CDs, you have a grace period during which those Wachovia CDs will be insured just as if they are still in a separate bank. If the Wachovia CDs mature more than six months after the legal merger date, the grace period extends to the maturity date of each CD. If a CD matures during the six months after the merger date, and you roll it over for the identical term and without adding to it or subtracting from it, except for the interest, which you can take or leave in the account, the grace period will stretch to the new maturity date for that CD.
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Whether or not you'll be allowed to do so will be a decision made by Wells Fargo or Wachovia before the actual merger date. Federal rules will permit the waiver of early withdrawal penalties in such situations.