My PenFed 5 yr CDs are maturing

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Hayden
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My PenFed 5 yr CDs are maturing

Post by Hayden »

My PenFed 5 yr CDs are about to mature. They are set to renew in new 5 yr CDs at a rate of 3.5%.

I have no need/plans for this money. I maintain a 50/50 allocation, with these CDs counted as part of the bond allocation; the remainder of the bond allocation is in intermediate term bond index funds at Vanguard and Fidelity.

Do you think I should move the money, either to brokered CDs or Total Bond Market fund, or just let them renew at 3.5%?
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alpenglow
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Re: My PenFed 5 yr CDs are maturing

Post by alpenglow »

I'm consolidating accounts at Fidelity and going with brokered CDs.
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djpeteski
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Re: My PenFed 5 yr CDs are maturing

Post by djpeteski »

Currently the 5 year brokered CDs are at 3.5% as well. The one I am looking at is from Wells Fargo and has a monthly coupon. However, it sounds like you don't need the income.
sport
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Re: My PenFed 5 yr CDs are maturing

Post by sport »

I prefer having my CDs mature at staggered dates, aka a CD ladder. That way, they all do not mature at a time when the rates are low, and if rates increase, I will not have to wait a long time to take advantage of the increase. The price for this "insurance" is a lower yield on the shorter CDs you need to set up the ladder.
Austintatious
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Re: My PenFed 5 yr CDs are maturing

Post by Austintatious »

I suspect that more than a few Bogleheads are in the same position as Hayden. My DW has some of those CDs at PenFed, set to mature in early January. We've carefully watched rates at PenFed and across the nation. Unless something pops up very soon, sufficiently more enticing that the current PenFed rates, we'll be keeping DW's money there. We intend that this portion of her fixed income be placed in CDs as opposed to bonds or bond funds, and we're just not interested in brokered CDs.
RNJ
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Re: My PenFed 5 yr CDs are maturing

Post by RNJ »

Hayden wrote: Tue Dec 11, 2018 11:04 am My PenFed 5 yr CDs are about to mature. They are set to renew in new 5 yr CDs at a rate of 3.5%.

I have no need/plans for this money. I maintain a 50/50 allocation, with these CDs counted as part of the bond allocation; the remainder of the bond allocation is in intermediate term bond index funds at Vanguard and Fidelity.

Do you think I should move the money, either to brokered CDs or Total Bond Market fund, or just let them renew at 3.5%?
Are your CDs in a taxable account?
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Hayden
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Re: My PenFed 5 yr CDs are maturing

Post by Hayden »

RNJ wrote: Tue Dec 11, 2018 12:44 pm
Hayden wrote: Tue Dec 11, 2018 11:04 am My PenFed 5 yr CDs are about to mature. They are set to renew in new 5 yr CDs at a rate of 3.5%.

I have no need/plans for this money. I maintain a 50/50 allocation, with these CDs counted as part of the bond allocation; the remainder of the bond allocation is in intermediate term bond index funds at Vanguard and Fidelity.

Do you think I should move the money, either to brokered CDs or Total Bond Market fund, or just let them renew at 3.5%?
Are your CDs in a taxable account?
Yes, taxable account.
Prudence
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Re: My PenFed 5 yr CDs are maturing

Post by Prudence »

I am thinking about rolling my maturing CD to a one year penfed CD at 2.8%.
jj
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Re: My PenFed 5 yr CDs are maturing

Post by jj »

Prudence wrote: Tue Dec 11, 2018 10:26 pm I am thinking about rolling my maturing CD to a one year penfed CD at 2.8%.
That's what I think too. Though I'll take $20k out to move to I Bonds.
...it is madness to risk losing what you need in pursuing what you simply desire. Warren E. Buffett
Dandy
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Re: My PenFed 5 yr CDs are maturing

Post by Dandy »

If you have other accounts at PenFed it makes some sense. Direct CDs can be a bit of a hassle e.g. you get a limited time to make a decision at maturity or it renews at the bank's current rate -- which may or may not be competitive. If the bank you use decides not to offer competitive rates you need to find another bank. Some advantages too like having the interest reinvested at the CD rate.

I have a brokerage account at VG and have found using their brokerage CDs to be more convenient. The rates seem to be very competitive and interest and matured CD assets automatically go to the clearing account. I hold them in my TIRA and have no problem holding them to maturity since they make up a small portion of that account. I also don't have to worry about renewal timing or exceeding the FDIC limit since I buy from several different banks. The biggest drawback can be that if you need the principal before maturity you need to try to sell it and that may take time and/or result in a loss.
k3vb0t
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Re: My PenFed 5 yr CDs are maturing

Post by k3vb0t »

I'm in the same boat. Rate was 3%/3.04%, right? Picked them up thanks to a FWF post 5 years ago.

I'm looking at the 12 (2.8%) or 18 month (2.9%) option. I think rates are likely to rise over the next 5 years, it's close enough to the 3% I was getting, and I can reevaluate in a much shorter time period.

As others mentioned it depends on the purpose of the CDs and if you want to ladder. Laddering will lock you in at some lower rates, but give you better options if rates rise in the future.

Edit: Another thing I'm considering is the hassle of moving the money from Penfed back to my bank and then again to somewhere else, missing interest as it goes.
fsrph
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Re: My PenFed 5 yr CDs are maturing

Post by fsrph »

jj wrote: Tue Dec 11, 2018 10:33 pm
Prudence wrote: Tue Dec 11, 2018 10:26 pm I am thinking about rolling my maturing CD to a one year penfed CD at 2.8%.
That's what I think too. Though I'll take $20k out to move to I Bonds.
Hey, I did this also. Figure 2.8% is pretty good for a 1year CD.

Francis
"Success is getting what you want. Happiness is wanting what you get." | Dale Carnegie
mchop
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Re: My PenFed 5 yr CDs are maturing

Post by mchop »

Interesting how a number of us are all in the same boat having taken advantage of that offer 5 yrs ago. Time flies.

I am going to roll my existing one over and build a 5 yr ladder with the proceeds of a house sale that closes this week. The bond portion that i need to invest will be going to these PENFED CD's as opposed to my bond fund (Vanguard Intermediate Term Tax Exempt).
gclancer
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Re: My PenFed 5 yr CDs are maturing

Post by gclancer »

sport wrote: Tue Dec 11, 2018 11:30 am I prefer having my CDs mature at staggered dates, aka a CD ladder. That way, they all do not mature at a time when the rates are low, and if rates increase, I will not have to wait a long time to take advantage of the increase. The price for this "insurance" is a lower yield on the shorter CDs you need to set up the ladder.
With the yield curve flattening now is as good of a time as ever to build a ladder (of CDs, treasuries, I Bonds, whatever combo makes the most sense).
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Hayden
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Re: My PenFed 5 yr CDs are maturing

Post by Hayden »

sport wrote: Tue Dec 11, 2018 11:30 am I prefer having my CDs mature at staggered dates, aka a CD ladder. That way, they all do not mature at a time when the rates are low, and if rates increase, I will not have to wait a long time to take advantage of the increase. The price for this "insurance" is a lower yield on the shorter CDs you need to set up the ladder.
Maybe that's what I should do. Is the CD ladder still the best idea if this is money I dont need and probably won't touch for 30 years?
glock19
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Re: My PenFed 5 yr CDs are maturing

Post by glock19 »

gclancer wrote: Wed Dec 12, 2018 10:20 am
sport wrote: Tue Dec 11, 2018 11:30 am I prefer having my CDs mature at staggered dates, aka a CD ladder. That way, they all do not mature at a time when the rates are low, and if rates increase, I will not have to wait a long time to take advantage of the increase. The price for this "insurance" is a lower yield on the shorter CDs you need to set up the ladder.
With the yield curve flattening now is as good of a time as ever to build a ladder (of CDs, treasuries, I Bonds, whatever combo makes the most sense).

I'm not sure I can see the advantage of establishing a ladder right now. With a flat or inverted yield curve, it seems as if there is little return reward for going out to 5 years (as an example). Also, I can't imagine many scenarios where rates will be lower this time next year.

Personally, I maintain a 5 year treasury ladder for the FI portion of my portfolio. Instead of rolling my January maturing bonds over into new 5 yr treasuries, I'm staying short at one year maturities this time. I know, this is market timing, but I just can't see committing to 5 year maturities with a flat yield curve and the slim chance that rates will drop over the next 12 months.
sport
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Re: My PenFed 5 yr CDs are maturing

Post by sport »

glock19 wrote: Wed Dec 12, 2018 11:16 am
gclancer wrote: Wed Dec 12, 2018 10:20 am
sport wrote: Tue Dec 11, 2018 11:30 am I prefer having my CDs mature at staggered dates, aka a CD ladder. That way, they all do not mature at a time when the rates are low, and if rates increase, I will not have to wait a long time to take advantage of the increase. The price for this "insurance" is a lower yield on the shorter CDs you need to set up the ladder.
With the yield curve flattening now is as good of a time as ever to build a ladder (of CDs, treasuries, I Bonds, whatever combo makes the most sense).

I'm not sure I can see the advantage of establishing a ladder right now. With a flat or inverted yield curve, it seems as if there is little return reward for going out to 5 years (as an example). Also, I can't imagine many scenarios where rates will be lower this time next year.

Personally, I maintain a 5 year treasury ladder for the FI portion of my portfolio. Instead of rolling my January maturing bonds over into new 5 yr treasuries, I'm staying short at one year maturities this time. I know, this is market timing, but I just can't see committing to 5 year maturities with a flat yield curve and the slim chance that rates will drop over the next 12 months.
You can construct a ladder of any length you wish. It doesn't have to be five years. If you do not want the longer term CDs, you can have a 4-year ladder, or a 3-year ladder, etc.
gclancer
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Re: My PenFed 5 yr CDs are maturing

Post by gclancer »

glock19 wrote: Wed Dec 12, 2018 11:16 am I'm not sure I can see the advantage of establishing a ladder right now. With a flat or inverted yield curve, it seems as if there is little return reward for going out to 5 years (as an example). Also, I can't imagine many scenarios where rates will be lower this time next year.
Fair enough. Assuming an efficient market, establishing a ladder is no more or less logical at any given time. The difference with a flat yield curve is that the opportunity cost of establishing a ladder is lower. Part of the reason for establishing a ladder is to reduce reinvestment risk.
TheGreyingDuke
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How to move the $$ from PenFed

Post by TheGreyingDuke »

I too have several of these maturing over the next few weeks. I am seeking to transfer them to my Vanguard account.

PenFed limits transfers to $5000 a day, that will make for a painfully slow process. I went to Vanguard and sought to pull money from PenFed to Vanguard (didn't go through with it because the CD still has a few days) and it seemed as if they would allow me to take the entire amount.

I am not sure if this will pan out... other suggestions on how to quickly get the money transferred (not a wire). PenFed offers to send a check but I will be traveling for the next two weeks and besides...
"Every time I see an adult on a bicycle, I no longer despair for the future of the human race." H.G. Wells
Carl53
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Re: How to move the $$ from PenFed

Post by Carl53 »

TheGreyingDuke wrote: Wed Dec 12, 2018 3:25 pm I too have several of these maturing over the next few weeks. I am seeking to transfer them to my Vanguard account.

PenFed limits transfers to $5000 a day, that will make for a painfully slow process. I went to Vanguard and sought to pull money from PenFed to Vanguard (didn't go through with it because the CD still has a few days) and it seemed as if they would allow me to take the entire amount.

I am not sure if this will pan out... other suggestions on how to quickly get the money transferred (not a wire). PenFed offers to send a check but I will be traveling for the next two weeks and besides...
PenFed offers for non-IRA CDs the option to transfer funds to a linked bank account. I'm not sure if you could link a Vanguard account. I've transferred out funds (greater than $5k) from one CD via this method successfully. Transferred it to an online savings account paying 2.25% for ongoing expenses in the near term.

I also have a PF TIRA CD for which this is not offered as an option. Was going to and may still transfer the funds to Vanguard if they can get their act together. Spoke to several reps last Friday about direct transfer, but paperwork they promised did not show in the mail and they failed to make a scheduled telephone appointment. When I sent them a secure email regarding it they left a voicemail (this was fine as I don't hustle to answer unknown numbers these days). Of course they gave me a number and extension to call a particular individual that did not work as they offered. Supposedly dial number, then select 1 and followup with extension. But once you pick 1 you get put in generic queue. Not sure if I want to start over again with another new person having went through everything twice on the first call.
MichDad
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Re: My PenFed 5 yr CDs are maturing

Post by MichDad »

fsrph wrote: Wed Dec 12, 2018 9:05 am
jj wrote: Tue Dec 11, 2018 10:33 pm
Prudence wrote: Tue Dec 11, 2018 10:26 pm I am thinking about rolling my maturing CD to a one year penfed CD at 2.8%.
That's what I think too. Though I'll take $20k out to move to I Bonds.
Hey, I did this also. Figure 2.8% is pretty good for a 1year CD.

Francis
We had some PenFed's five year CDs mature today. We put about half that money into two new one year CDs with PenFed earning 2.8 percent APY. We were able to do this over the telephone in just a few minutes. We didn't have to complete any paperwork. The representative told me that PenFed will mail us the CD information shortly. All was very easy and user friendly.

MichDad
TheGreyingDuke
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Re: My PenFed 5 yr CDs are maturing

Post by TheGreyingDuke »

My PenFed and Vanguard accounts are linked... the question is can a pull more than $5000 a day to Vanguard, PenFed states that I am limited to $5000 a day to push to Vanguard
"Every time I see an adult on a bicycle, I no longer despair for the future of the human race." H.G. Wells
Desert
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Re: My PenFed 5 yr CDs are maturing

Post by Desert »

I just did a $23K transfer from PenFed to Vanguard in a single transaction.
dcb
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Re: My PenFed 5 yr CDs are maturing

Post by dcb »

I have a considerable amount of money in 5 CD's all maturing on the same date in January in a tIRA fund with PenFed. I would like to transfer it all back to my IRA with Vanguard (initially into a prime MM fund) as quickly as possible after the maturity date. What would be the best procedure for getting this done? Should I initiate contact with PenFed and tell them what I want then let Vanguard know the money is coming, or should I contact Vanguard and let them take care of it all. Or none of the above or something else.

dcb
Austintatious
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Re: My PenFed 5 yr CDs are maturing

Post by Austintatious »

dcb wrote: Wed Dec 12, 2018 4:45 pm I have a considerable amount of money in 5 CD's all maturing on the same date in January in a tIRA fund with PenFed. I would like to transfer it all back to my IRA with Vanguard (initially into a prime MM fund) as quickly as possible after the maturity date. What would be the best procedure for getting this done? Should I initiate contact with PenFed and tell them what I want then let Vanguard know the money is coming, or should I contact Vanguard and let them take care of it all. Or none of the above or something else.

dcb
In the past, we've simply called Vanguard and asked them to assist with DW's tIRA transfer from another institution to Vanguard. They made a call right then and, with DW still on the line, facilitated the transfer. It took maybe 5 to 10 minutes. A check made out to Vanguard FTC fbo Carmen Miranda arrived shortly thereafter and she forwarded the check to Vanguard with instructions re disposition. That way, it was considered a so called "trustee to trustee" transfer. It's what I'd first try now, if we were looking to do another transfer.
glock19
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Re: My PenFed 5 yr CDs are maturing

Post by glock19 »

sport wrote: Wed Dec 12, 2018 11:23 am
glock19 wrote: Wed Dec 12, 2018 11:16 am
gclancer wrote: Wed Dec 12, 2018 10:20 am
sport wrote: Tue Dec 11, 2018 11:30 am I prefer having my CDs mature at staggered dates, aka a CD ladder. That way, they all do not mature at a time when the rates are low, and if rates increase, I will not have to wait a long time to take advantage of the increase. The price for this "insurance" is a lower yield on the shorter CDs you need to set up the ladder.
With the yield curve flattening now is as good of a time as ever to build a ladder (of CDs, treasuries, I Bonds, whatever combo makes the most sense).

I'm not sure I can see the advantage of establishing a ladder right now. With a flat or inverted yield curve, it seems as if there is little return reward for going out to 5 years (as an example). Also, I can't imagine many scenarios where rates will be lower this time next year.

Personally, I maintain a 5 year treasury ladder for the FI portion of my portfolio. Instead of rolling my January maturing bonds over into new 5 yr treasuries, I'm staying short at one year maturities this time. I know, this is market timing, but I just can't see committing to 5 year maturities with a flat yield curve and the slim chance that rates will drop over the next 12 months.
You can construct a ladder of any length you wish. It doesn't have to be five years. If you do not want the longer term CDs, you can have a 4-year ladder, or a 3-year ladder, etc.


I think if you read my post a little closer you will note the phrase "as an example".
Carl53
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Re: My PenFed 5 yr CDs are maturing

Post by Carl53 »

I suspect the new 2% Premium Online Savings offering is an attempt to stem the hemorrhaging in taxable CD funds bailing due to the onerous EWD penalties now associated with their CDs. Not sure if it enough for me to keep any of the funds at PF. Our first two CDs have successfully been transferred out upon maturity thus far, more to come. For an upcoming maturity of a larger IRA CD, they still offer the ability to partially utilize funds without penalty, but I don't think that extends to conversions. Also they have reduced the CD rates for IRA. Too much going against them, but for me they still have a little time to make a major improvement that might keep those funds with them as I have not signed the paperwork yet to initiate the transfer.
goaties
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Re: My PenFed 5 yr CDs are maturing

Post by goaties »

I set up a link from my brokerage account to PenFed for the express purpose of being able to do a pull from the brokerage side. If you try to push from the PenFed side, you run into the 5K daily limit. In retrospect, it was false economy as paying $20 for a wire would have allowed me to replace the PenFed CDs with Bank of India CDs paying 3.65%. Those CDs sold out in the time it took me to set up the link. Interest rates do seem to be dropping a bit, so if you're pulling out a lot of money, you might just pay the $20 and get 'er done. Looks like the best 5-year rate at my brokerage for non-callable is now 3.5%.
Carl53
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Re: My PenFed 5 yr CDs are maturing

Post by Carl53 »

goaties wrote: Fri Dec 14, 2018 6:39 am I set up a link from my brokerage account to PenFed for the express purpose of being able to do a pull from the brokerage side. If you try to push from the PenFed side, you run into the 5K daily limit. In retrospect, it was false economy as paying $20 for a wire would have allowed me to replace the PenFed CDs with Bank of India CDs paying 3.65%. Those CDs sold out in the time it took me to set up the link. Interest rates do seem to be dropping a bit, so if you're pulling out a lot of money, you might just pay the $20 and get 'er done. Looks like the best 5-year rate at my brokerage for non-callable is now 3.5%.
I have had no problem transferring expiring CDs greater than $5k to institutions that I previously linked to PenFed. Just selected transfer to the outside account upon maturity. The entire amount of funds showed up in the new institution on the 2nd business day after maturity.
goaties
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Re: My PenFed 5 yr CDs are maturing

Post by goaties »

Carl53 wrote: Fri Dec 14, 2018 7:26 am
goaties wrote: Fri Dec 14, 2018 6:39 am I set up a link from my brokerage account to PenFed for the express purpose of being able to do a pull from the brokerage side. If you try to push from the PenFed side, you run into the 5K daily limit. In retrospect, it was false economy as paying $20 for a wire would have allowed me to replace the PenFed CDs with Bank of India CDs paying 3.65%. Those CDs sold out in the time it took me to set up the link. Interest rates do seem to be dropping a bit, so if you're pulling out a lot of money, you might just pay the $20 and get 'er done. Looks like the best 5-year rate at my brokerage for non-callable is now 3.5%.
I have had no problem transferring expiring CDs greater than $5k to institutions that I previously linked to PenFed. Just selected transfer to the outside account upon maturity. The entire amount of funds showed up in the new institution on the 2nd business day after maturity.
Ah, I neglected to mention the salient point: I didn't realize I needed to set up a link from brokerage to PenFed until a day or two before maturity. I had a link FROM PenFed to the outside world, but that link was limited to 5K. Didn't know that before. Poor planning on my part. Learn from my mistakes.
hudson
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Re: My PenFed 5 yr CDs are maturing

Post by hudson »

I have one 5 year CD expiring in Dec....another in January. Penfed does have a 5 year 3.50% CD. Here are the early withdrawal rules for 5 year CDs:

2) Certificates Having a Term Greater Than Six
Months.
a) If redeemed within the first year, all dividends
will be forfeited.
b) If redeemed thereafter, but prior to the maturity
date, the early withdrawal penalty will equal 30%
of what would have been earned if the certificate
had been held to maturity, not to exceed total
dividends earned

3) Exceptions. The penalties described above
will not be applied if the redemption is made:
a) Subsequent to the death of any holder of the
certificate;
b) As a result of the voluntary or involuntary
liquidation of the credit union.


I would go with Penfed if their penalty wasn't so stiff.
I'll likely pass on Penfed and will initiate a pull from Vanguard. Once there, I'll just drop it in VWIUX or go with a 3.5% brokered CD.
I'll also look at laddering, but I don't put much stock in interest rate predictions or projections.
I'll also take a look at KevinM's contributions. I'll see what he's buying. He's the one that influenced my move to Penfed 5 years ago.

UPDATE: On Dec. 12th KevinM was appearing to favor 3 year CDs: viewtopic.php?p=4256200#p4256200
Last edited by hudson on Mon Dec 24, 2018 6:40 pm, edited 1 time in total.
Prudence
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Re: My PenFed 5 yr CDs are maturing

Post by Prudence »

hudson wrote: Fri Dec 14, 2018 10:56 am I have one 5 year CD expiring in Dec....another in January. Penfed does have a 5 year 3.50% CD. Here are the early withdrawal rules for 5 year CDs:

2) Certificates Having a Term Greater Than Six
Months.
a) If redeemed within the first year, all dividends
will be forfeited.
b) If redeemed thereafter, but prior to the maturity
date, the early withdrawal penalty will equal 30%
of what would have been earned if the certificate
had been held to maturity, not to exceed total
dividends earned

3) Exceptions. The penalties described above
will not be applied if the redemption is made:
a) Subsequent to the death of any holder of the
certificate;
b) As a result of the voluntary or involuntary
liquidation of the credit union.


I would go with Penfed if their penalty wasn't so stiff.
I'll likely pass on Penfed and will initiate a pull from Vanguard. Once there, I'll just drop it in VWIUX or go with a 5.5% brokered CD.
I'll also look at laddering, but I don't put much stock in interest rate predictions or projections.
I'll also take a look at KevinM's contributions. I'll see what he's buying. He's the one that influenced my move to Penfed 5 years ago.

UPDATE: On Dec. 12th KevinM was appearing to favor 3 year CDs: viewtopic.php?p=4256200#p4256200
What's VWIUX?
fsrph
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Location: Pa.

Re: My PenFed 5 yr CDs are maturing

Post by fsrph »

dcb wrote: Wed Dec 12, 2018 4:45 pm I have a considerable amount of money in 5 CD's all maturing on the same date in January in a tIRA fund with PenFed. I would like to transfer it all back to my IRA with Vanguard (initially into a prime MM fund) as quickly as possible after the maturity date. What would be the best procedure for getting this done? Should I initiate contact with PenFed and tell them what I want then let Vanguard know the money is coming, or should I contact Vanguard and let them take care of it all. Or none of the above or something else.

dcb
Just initiate the transaction from Vanguard, I did this with a substantial amount of money and it was fine.

Francis
"Success is getting what you want. Happiness is wanting what you get." | Dale Carnegie
fsrph
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Re: My PenFed 5 yr CDs are maturing

Post by fsrph »

Carl53 wrote: Fri Dec 14, 2018 6:24 am I suspect the new 2% Premium Online Savings offering is an attempt to stem the hemorrhaging in taxable CD funds bailing due to the onerous EWD penalties now associated with their CDs. Not sure if it enough for me to keep any of the funds at PF. Our first two CDs have successfully been transferred out upon maturity thus far, more to come. For an upcoming maturity of a larger IRA CD, they still offer the ability to partially utilize funds without penalty, but I don't think that extends to conversions. Also they have reduced the CD rates for IRA. Too much going against them, but for me they still have a little time to make a major improvement that might keep those funds with them as I have not signed the paperwork yet to initiate the transfer.

I tried online to put the Penfed CD's proceeds in the 2% savings account. Couldn't find a way to do it. Called Penfed and the 2% savings account is only available with NEW (outside) money. Can't even keep your CD proceeds in the 2% account. I don't remember reading that anywhere.

Francis
"Success is getting what you want. Happiness is wanting what you get." | Dale Carnegie
sport
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Re: My PenFed 5 yr CDs are maturing

Post by sport »

fsrph wrote: Fri Dec 14, 2018 11:27 am Called Penfed and the 2% savings account is only available with NEW (outside) money.
My bank also has offers for "new money". The rates they pay on "old money" are terrible. So, I responded by withdrawing the "old money" and took it elsewhere. It seems that banks try to take advantage of their customers, given the opportunity. :annoyed
hudson
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Re: My PenFed 5 yr CDs are maturing

Post by hudson »

Prudence wrote: Fri Dec 14, 2018 11:20 am
What's VWIUX?
Sorry...VWIUX is Vanguard's Intermediate Term Muni.

https://investor.vanguard.com/mutual-fu ... file/vwiux

VWIUX...TTM or trailing twelve months yield is 2.9%
HIinvestor
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Re: My PenFed 5 yr CDs are maturing

Post by HIinvestor »

The 2% PenFed premium savings on money new to PenFed has just raised the maximum they will give the 2% per acct on from $100k to $250k. They do have some quirks like a max of $10k/day up to $50k/30 day rolling period for ach online transfers but you can use paper checks for greater amounts.

We have one PenFed branch in our state open to the public, so drove down there to deposit a check to add to my online transfers.

PenFed has a tollfree call center—no phones at local branches. I’m going to keep my money there until Fidelity is ready to offer us another retention bonus and then transfer funds to our Fidelity acct.

None of our other local financial institutions have 2% interest on savings accts.
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flamesabers
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Location: Rochester, MN

Re: My PenFed 5 yr CDs are maturing

Post by flamesabers »

Hayden wrote: Tue Dec 11, 2018 11:04 amDo you think I should move the money, either to brokered CDs or Total Bond Market fund, or just let them renew at 3.5%?
Unless you want to consolidate your accounts for simplicity sake or move the money into tax-advantaged accounts (i.e. IRA or savings bonds), I would suggest letting the CDs renew since you don't need the money for the next few years.
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Wiggums
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Re: My PenFed 5 yr CDs are maturing

Post by Wiggums »

Hayden wrote: Wed Dec 12, 2018 10:55 am
sport wrote: Tue Dec 11, 2018 11:30 am I prefer having my CDs mature at staggered dates, aka a CD ladder. That way, they all do not mature at a time when the rates are low, and if rates increase, I will not have to wait a long time to take advantage of the increase. The price for this "insurance" is a lower yield on the shorter CDs you need to set up the ladder.
Maybe that's what I should do. Is the CD ladder still the best idea if this is money I dont need and probably won't touch for 30 years?
I’d let the cds renew or do the cd ladder
TravelGeek
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Re: My PenFed 5 yr CDs are maturing

Post by TravelGeek »

My 5 yr CDs all matured, and I moved the money out to Ally (CDs) and Vanguard (Treasury MM). I now have about $90 left in the PenFed savings account and need to decide if I want to keep that account open in case of future interesting CD offers or close it to simplify my financial life. I also set up PayPal to link to that PenFed account to limit my exposure to unauthorized withdrawals, so I would have to change that, too. Then again, maybe PayPal wouldn’t even notice (I don’t really use it more than once a year or so).
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