Is a CD that can be closed ONLY by telephone safe?

Question

Washington Mutual offers an online CD with a good interest rate for the initial term. Like a regular CD, it automatically renews, at a rate that is not disclosed until maturity, unless I close it within the grace period. Unlike a regular CD, withdrawals at bank branches (or online) are not allowed, even at maturity. The only way to close the account or withdraw funds, at any time, is to call a specific toll free telephone number during the grace period. I am worried that, as often happens with toll free numbers for banks, I will have difficulty getting through and will spend endless amounts of time on hold. If I am not able to get through on the telephone before the end of the grace period, the CD will renew and I will have to wait until the next maturity date to try again to get my money. Additionally, the interest rate during the renewal term might be low. Should I open this account or go for a regular CD elsewhere, even if there is a initial lower interest rate?

Answer 1

This is very odd, even suspicious.  They could easily just claim they never got your call, or even ignore it and you'd never get your money.  Just go someplace else, they (WaMu) aren't doing all that well anyhow.

Answer 2

based on what you are saying i would buy a cd someplace else!!!  

Answer 3

Something doesn't sound right here.  Are you saying you can't close it online or by mail?

I've used WaMu's toll-free number for other purposes for years and always had stellar service.