PenFed Visa card for Gas program changing, now with a fee.

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mediahound
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PenFed Visa card for Gas program changing, now with a fee.

Post by mediahound » Wed Sep 04, 2013 7:26 pm

I just got an email stating that PenFed is starting to charge a $25. annual fee and lowering the 5% cashback on gas purchases to 3%.

I am on the program that automatically credits the rebate each month (I did not opt in to the points based system a while back when it was offered).

I don't think this card is worth keeping since I can get 3% cashback on gas on other non fee credit cards.

Do you agree that I should cancel the PenFed card?

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cflannagan
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Re: PenFed Visa card for Gas program changing, now with a fe

Post by cflannagan » Wed Sep 04, 2013 7:29 pm

mediahound wrote:I just got an email stating that PenFed is starting to charge a $25. annual fee and lowering the 5% cashback on gas purchases to 3%.

I am on the program that automatically credits the rebate each month (I did not opt in to the points based system a while back when it was offered).

I don't think this card is worth keeping since I can get 3% cashback on gas on other non fee credit cards.

Do you agree that I should cancel the PenFed card?
See http://www.bogleheads.org/forum/viewtop ... 2&t=118027 and http://www.bogleheads.org/forum/viewtop ... 2&t=121628

But the $25 annual fee!? That's new.

If this happens to me, I'm going to drop the Penfed card in a hurry. NONE of my cards has any annual fees, and I intend to keep it that way.

However, I haven't gotten notified by Penfed about the annual fee?

Louis Winthorpe III
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Re: PenFed Visa card for Gas program changing, now with a fe

Post by Louis Winthorpe III » Wed Sep 04, 2013 7:31 pm

Yes, I do. I'm switching from the PenFed card to the BofA 123 card for gas purchases.

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mediahound
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Re: PenFed Visa card for Gas program changing, now with a fe

Post by mediahound » Wed Sep 04, 2013 7:32 pm

cflannagan wrote:
mediahound wrote:I just got an email stating that PenFed is starting to charge a $25. annual fee and lowering the 5% cashback on gas purchases to 3%.

I am on the program that automatically credits the rebate each month (I did not opt in to the points based system a while back when it was offered).

I don't think this card is worth keeping since I can get 3% cashback on gas on other non fee credit cards.

Do you agree that I should cancel the PenFed card?
See http://www.bogleheads.org/forum/viewtop ... 2&t=118027 and http://www.bogleheads.org/forum/viewtop ... 2&t=121628

But the $25 annual fee!? That's new.

If this happens to me, I'm going to drop the Penfed card in a hurry. NONE of my cards has any annual fees, and I intend to keep it that way.

However, I haven't gotten notified by Penfed about the annual fee?
Maybe you have a loan or mortgage with PenFed? In their email, they say that is one way to retain a no fee on this credit card in addition to the 5% cashback on gas.

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cflannagan
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Re: PenFed Visa card for Gas program changing, now with a fe

Post by cflannagan » Wed Sep 04, 2013 7:35 pm

mediahound wrote:Maybe you have a loan or mortgage with PenFed? In their email, they say that is one way to retain a no fee on this credit card in addition to the 5% cashback on gas.
That could be it. I do have mortgage with Penfed, refinanced with them around April or so.

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wander
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Re: PenFed Visa card for Gas program changing, now with a fe

Post by wander » Wed Sep 04, 2013 7:36 pm

HOW YOU CAN AVOID THESES CHANGES
To avoid an annual fee, you can obtain a qualifying PenFed product:
Active checking account with direct deposit ($250 min.)
Money Market Certificate or IRA Certificate
Mortgage
Installment loan*
Equity Loan or Equity Line of Credit with a balance
HOW YOU CAN CONTINUE TO EARN 5% ON GAS PURCHASES
You may continue to enjoy 5% on gas purchases paid at the pump and avoid an annual fee by obtaining a qualifying PenFed product:
Active checking account with direct deposit ($250 min.)
Money Market Certificate or IRA Certificate
Mortgage
Installment loan*
Equity Loan or Equity Line of Credit with a balance

hsv_climber
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Re: PenFed Visa card for Gas program changing, now with a fe

Post by hsv_climber » Wed Sep 04, 2013 7:55 pm

IMHO, 5% will be discontinued next year to 3% no matter what other products you have. This has already been discussed in another bogleheads thread and on FW thread with respect to 5/3/1 card.

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pennstater2005
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Re: PenFed Visa card for Gas program changing, now with a fe

Post by pennstater2005 » Wed Sep 04, 2013 7:56 pm

Does anyone get grandfathered in or does this apply to all cardholders? I have not received a notice yet.
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stan1
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Re: PenFed Visa card for Gas program changing, now with a fe

Post by stan1 » Wed Sep 04, 2013 7:57 pm

Cash back is a gimmick, not an entitlement.
If you want to play the game be prepared to move on without whining when the rules are changed. :wink:

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JamesSFO
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Re: PenFed Visa card for Gas program changing, now with a fe

Post by JamesSFO » Wed Sep 04, 2013 7:59 pm

hsv_climber wrote:IMHO, 5% will be discontinued next year to 3% no matter what other products you have. This has already been discussed in another bogleheads thread and on FW thread with respect to 5/3/1 card.
Well that said, this is at least more understandable in terms of trying to segment meaningful users of the credit union from "cash back junkies". However, 5% seems unlikely to last.

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mediahound
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Re: PenFed Visa card for Gas program changing, now with a fe

Post by mediahound » Wed Sep 04, 2013 8:00 pm

I think I will drop this card.

I'm not buying as much gas as I used to now that I work from home and drive a Prius, so I can use another credit card that has no annual fee and gives 2% cash back on gas (Priceline Rewards Visa gives 2% on all purchases, Chase Amazon Visa gives 2% on gas, Amex Blue Cash Everyday gives 2% on gas). All of these have no annual fee.

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cflannagan
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Re: PenFed Visa card for Gas program changing, now with a fe

Post by cflannagan » Wed Sep 04, 2013 8:00 pm

stan1 wrote:Cash back is a gimmick, not an entitlement.
If you want to play the game be prepared to move on without whining when the rules are changed. :wink:
Don't troll up this thread. Thanks.

rec7
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Re: PenFed Visa card for Gas program changing, now with a fe

Post by rec7 » Wed Sep 04, 2013 8:01 pm

Now I am glad I took the $250 to change. It turned out to be a good move.

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mediahound
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Re: PenFed Visa card for Gas program changing, now with a fe

Post by mediahound » Wed Sep 04, 2013 8:07 pm

At least they waited until after the Summer when many likely took long road trips, myself included.

For me, the change doesn't actually take place until 10/26 so I won't cancel the card until just before then.

It was a good card while it lasted.

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mike143
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Re: PenFed Visa card for Gas program changing, now with a fe

Post by mike143 » Wed Sep 04, 2013 8:15 pm

stan1 wrote:Cash back is a gimmick, not an entitlement.
If you want to play the game be prepared to move on without whining when the rules are changed. :wink:
rec7 wrote:Now I am glad I took the $250 to change. It turned out to be a good move.
+1, I never cancel them. I just shelf them and if they cancel later, that's up to them.

Not really a gimmick. If you normally shop at Publix and another store opened that provided the same products and services at a lower price, would you note take your business there? Its just being a wise consumer. If you want to branch out more than one card than you can experience greater savings.
Nothing is free, someone pays...You can't spend your way to financial freedom.

DesertMan
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Re: PenFed Visa card for Gas program changing, now with a fe

Post by DesertMan » Wed Sep 04, 2013 10:38 pm

The Sallie Mae Rewards Card has 5% on gas and groceries, but there's a monthly cap. It's pretty reasonable though.

Edit: Oh, and bookstores. I wonder if Amazon counts?

https://www.salliemae.com/landing/WorldCreditCard/

Gleevec
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Re: PenFed Visa card for Gas program changing, now with a fe

Post by Gleevec » Thu Sep 05, 2013 12:14 am

Just cancelled my PenFed Visa.

Looking for new gas/grocery combo card. Will probably use Fidelity AmEX while figure out. Otherwise I use the Chase triple (CSP/Ink/Freedom). Any suggestions on a good replacement gas/grocery card?

tj
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Re: PenFed Visa card for Gas program changing, now with a fe

Post by tj » Thu Sep 05, 2013 12:39 am

I don't see a reason to cancel it, just product change it to another no-fee card.

winglessangel31
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Re: PenFed Visa card for Gas program changing, now with a fe

Post by winglessangel31 » Thu Sep 05, 2013 2:11 am

DesertMan wrote:The Sallie Mae Rewards Card has 5% on gas and groceries, but there's a monthly cap. It's pretty reasonable though.

Edit: Oh, and bookstores. I wonder if Amazon counts?

https://www.salliemae.com/landing/WorldCreditCard/
It's been discussed before. Amazon counted based on anecdotal evidence, AFAIRecall.

winglessangel31
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Re: PenFed Visa card for Gas program changing, now with a fe

Post by winglessangel31 » Thu Sep 05, 2013 2:15 am

mediahound wrote:I just got an email stating that PenFed is starting to charge a $25. annual fee and lowering the 5% cashback on gas purchases to 3%.

I am on the program that automatically credits the rebate each month (I did not opt in to the points based system a while back when it was offered).

I don't think this card is worth keeping since I can get 3% cashback on gas on other non fee credit cards.

Do you agree that I should cancel the PenFed card?
Can you snippet the email with the $25 annual fee declaration? Online there is no such thing: https://www.penfed.org/Form-1213-Visa-P ... -of-Terms/
https://www.penfed.org/Platinum-Cash-Rewards/

dbltrbl
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Re: PenFed Visa card for Gas program changing, now with a fe

Post by dbltrbl » Thu Sep 05, 2013 3:06 am

Wingless,
below is the email.



PenFed frequently evaluates the cost effectiveness of our products so that we can continually offer incredibly low rates to all our members. This evaluation has resulted in a change to your PenFed Platinum Cash Rewards Visa® Card and will be effective October 26, 2013.
Annual Fee

There will be a $25 annual fee assessed once a year on the anniversary date of your PenFed Platinum Cash Rewards Credit Card.

HOW YOU CAN AVOID THESES CHANGES
To avoid an annual fee, you can obtain a qualifying PenFed product:

Active checking account with direct deposit ($250 min.)
Money Market Certificate or IRA Certificate
Mortgage



Installment loan*
Equity Loan or Equity Line of Credit with a balance

Credit cards and unsecured lines of credit are not qualifying PenFed products.

YOUR RIGHT TO CANCEL YOUR ACCOUNT(S)
You can choose not to accept the changes in this notice by cancelling your account(s). Please call us at 800-247-5626, or send an email to OSC@Omaha.penfed.org with subject line: PenFed Cash Cancellation. You can also write, please include your full legal name, complete mailing address, and the last 4 digits of your credit card account number(s) and send the letter to:

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Re: PenFed Visa card for Gas program changing, now with a fe

Post by sperry8 » Thu Sep 05, 2013 3:42 am

Interesting. I have the PenFed card (the one where you get 5% cash back on gas) and I have not received an email (yet). I wonder if I will?
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pfrank
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Re: PenFed Visa card for Gas program changing, now with a fe

Post by pfrank » Thu Sep 05, 2013 4:12 am

tj wrote:I don't see a reason to cancel it, just product change it to another no-fee card.
If you don't cancel they will charge you $25 if you use it or not.

I will cancel and start using my AMEX Blue Cash Everyday Card.....no annual fee and 2% back at gas stations.

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mike143
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Re: PenFed Visa card for Gas program changing, now with a fe

Post by mike143 » Thu Sep 05, 2013 5:12 am

I do cancel cards that change to annual fees that surpass the cards usefulness.
Nothing is free, someone pays...You can't spend your way to financial freedom.

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Re: PenFed Visa card for Gas program changing, now with a fe

Post by TheOscarGuy » Thu Sep 05, 2013 5:59 am

sperry8 wrote:Interesting. I have the PenFed card (the one where you get 5% cash back on gas) and I have not received an email (yet). I wonder if I will?
Me neither! I hope I can get grandfathered into it, I really don't want to miss out on this card.

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Re: PenFed Visa card for Gas program changing, now with a fe

Post by nisiprius » Thu Sep 05, 2013 6:39 am

These deals always seem to be teasers, not worth the chasing. I fell for a Discover "Open Road" card a few years ago, it seemed so darned simple--5% back on every gas purchase up to a maximum of $5 a month, which was actually a decent fit for our car usage. We hadn't had it a year before they changed the terms of the deal; it was still 5% "cash back" but now it became extremely difficult to get the "cash back" rewards as cash back, i.e. to have it credited against your bill, rather than for buying a digital barbecue fork from their rewards partner. You could now redeem for "cash" only a minimum of $50, which, together with the $5/month cap, meant you had to wait at least ten months. And strangely enough, the website page where you were supposed to be able to do that had technical glitches, and I could never actually get it done online, I always ended up having to call a customer rep. And then they downgraded or discontinued it--I think to something like 1% on gas plus one of those rotating three-month crazy schemes.

Yes, I cancelled the card.

Yes, I cancelled the card with an unused twenty or thirty bucks of "cash back" rewards on it. It would have taken us forever to build the "cash back" up to the $50 redemption value... unless we were to hurry out to Home Depot and buy a $1200 snowblower during a home-and-garden rewards period or something.
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DetroitRed
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Re: PenFed Visa card for Gas program changing, now with a fe

Post by DetroitRed » Thu Sep 05, 2013 11:16 am

PenFed has definitely changed.

In the past they gave 1.25% cash back on their Platinum Visa for many, many years (from at least the 1990s until about 2 years ago) and didn't engage in gimmicks and constant rebate rate changes. That's definitely changed.

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sperry8
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Re: PenFed Visa card for Gas program changing, now with a fe

Post by sperry8 » Thu Sep 05, 2013 3:45 pm

[quote="nisiprius"]These deals always seem to be teasers, not worth the chasing./quote]

I disagree - I joined the PenFed family to get access to this card at 5% cash back on gas - and had it for ~4 years. Over that time me and my father (I got him a card too) saved 5% on all our gasoline purchases (with no annual fee). That saved me and my Dad about $500 each per year. That's not chump change! All for free. So yea, I'll probably cancel it now (my Dad doesn't drive any more) and I recently sold my car and drive a lot less. So it's not even worth the annual fee to us anymore. But still, was great when we needed it and cash back meant it was automatic redemption.
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runner9
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Re: PenFed Visa card for Gas program changing, now with a fe

Post by runner9 » Thu Sep 05, 2013 4:07 pm

I searched our Sept 2 statement for our PenFed "Visa Platinum Cash Rewards Card" for any mention of this and there isn't one. Am I missing something?

We do have a 5/5ARM with them but plan to pay it off (hopefully) sometime in 2014. We have earned $80 back to date on the card.

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Re: PenFed Visa card for Gas program changing, now with a fe

Post by cflannagan » Thu Sep 05, 2013 4:38 pm

nisiprius wrote:These deals always seem to be teasers, not worth the chasing. I fell for a Discover "Open Road" card a few years ago, it seemed so darned simple--5% back on every gas purchase up to a maximum of $5 a month, which was actually a decent fit for our car usage. We hadn't had it a year before they changed the terms of the deal; it was still 5% "cash back" but now it became extremely difficult to get the "cash back" rewards as cash back, i.e. to have it credited against your bill, rather than for buying a digital barbecue fork from their rewards partner. You could now redeem for "cash" only a minimum of $50, which, together with the $5/month cap, meant you had to wait at least ten months. And strangely enough, the website page where you were supposed to be able to do that had technical glitches, and I could never actually get it done online, I always ended up having to call a customer rep. And then they downgraded or discontinued it--I think to something like 1% on gas plus one of those rotating three-month crazy schemes.

Yes, I cancelled the card.

Yes, I cancelled the card with an unused twenty or thirty bucks of "cash back" rewards on it. It would have taken us forever to build the "cash back" up to the $50 redemption value... unless we were to hurry out to Home Depot and buy a $1200 snowblower during a home-and-garden rewards period or something.
Definitely not teaser, especially when many of us were collecting 5% for more than 4 years.

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BrandonBogle
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Re: PenFed Visa card for Gas program changing, now with a fe

Post by BrandonBogle » Thu Sep 05, 2013 4:43 pm

I've been getting 5% cash back from PenFed since 2007 and currently still slated to get it. When it eventually changes for me, I'll move one and miss the card, but I won't be too upset or think it was a teaser. All Good Things...

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theduke
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Re: PenFed Visa card for Gas program changing, now with a fe

Post by theduke » Thu Sep 05, 2013 6:39 pm

I received my letter from PenFed today. I'm very disappointed. :(

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pennstater2005
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Re: PenFed Visa card for Gas program changing, now with a fe

Post by pennstater2005 » Thu Sep 05, 2013 6:59 pm

I just got off the phone with PenFed and no one gets grandfathered on this one. I cancelled my card.
“If you think nobody cares if you're alive, try missing a couple of car payments.” – Earl Wilson

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gnosis
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Re: PenFed Visa card for Gas program changing, now with a fe

Post by gnosis » Thu Sep 05, 2013 7:03 pm

I don't see it as a deal-breaker. If you spend $200/month on gas like I do, that's $120 cash back annually from the 5% cash back reward. If you pay the annual $25 fee, you effectively reduce your cash back reward to about 4%. That's still a great reward! If you just can't accept the thought of paying an annual fee, then you can open a $1,000 (minimum deposit) 6-month CD with them to get the fee waived. My choice is to keep things simple and just pay the annual fee. I'm still getting $100 cash back every year.

bigspender
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Re: PenFed Visa card for Gas program changing, now with a fe

Post by bigspender » Thu Sep 05, 2013 7:16 pm

Question, I already have a bunch of penfed cd's. Do I have to open up a new cd to avoid the yearly $25 fee.

Anyway, I just buy gas rarely for backup car as the car I mainly use is a testla anyway.

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wander
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Re: PenFed Visa card for Gas program changing, now with a fe

Post by wander » Thu Sep 05, 2013 9:09 pm

gnosis wrote:I don't see it as a deal-breaker. If you spend $200/month on gas like I do, that's $120 cash back annually from the 5% cash back reward. If you pay the annual $25 fee, you effectively reduce your cash back reward to about 4%. That's still a great reward! If you just can't accept the thought of paying an annual fee, then you can open a $1,000 (minimum deposit) 6-month CD with them to get the fee waived. My choice is to keep things simple and just pay the annual fee. I'm still getting $100 cash back every year.
If you do not have their qualify products, you will no longer get 5% rebate for gas but will get 3% instead.

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gnosis
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Re: PenFed Visa card for Gas program changing, now with a fe

Post by gnosis » Thu Sep 05, 2013 9:48 pm

dbltrbl wrote:Wingless,
below is the email.



PenFed frequently evaluates the cost effectiveness of our products so that we can continually offer incredibly low rates to all our members. This evaluation has resulted in a change to your PenFed Platinum Cash Rewards Visa® Card and will be effective October 26, 2013.
Annual Fee

There will be a $25 annual fee assessed once a year on the anniversary date of your PenFed Platinum Cash Rewards Credit Card.

HOW YOU CAN AVOID THESES CHANGES
To avoid an annual fee, you can obtain a qualifying PenFed product:

Active checking account with direct deposit ($250 min.)
Money Market Certificate or IRA Certificate
Mortgage



Installment loan*
Equity Loan or Equity Line of Credit with a balance

Credit cards and unsecured lines of credit are not qualifying PenFed products.

YOUR RIGHT TO CANCEL YOUR ACCOUNT(S)
You can choose not to accept the changes in this notice by cancelling your account(s). Please call us at 800-247-5626, or send an email to OSC@Omaha.penfed.org with subject line: PenFed Cash Cancellation. You can also write, please include your full legal name, complete mailing address, and the last 4 digits of your credit card account number(s) and send the letter to:
This is the same letter I received today, and it said nothing about the rewards being reduced to 3%. :confused

winglessangel31
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Re: PenFed Visa card for Gas program changing, now with a fe

Post by winglessangel31 » Fri Sep 06, 2013 1:18 am

wander wrote:
gnosis wrote:I don't see it as a deal-breaker. If you spend $200/month on gas like I do, that's $120 cash back annually from the 5% cash back reward. If you pay the annual $25 fee, you effectively reduce your cash back reward to about 4%. That's still a great reward! If you just can't accept the thought of paying an annual fee, then you can open a $1,000 (minimum deposit) 6-month CD with them to get the fee waived. My choice is to keep things simple and just pay the annual fee. I'm still getting $100 cash back every year.
If you do not have their qualify products, you will no longer get 5% rebate for gas but will get 3% instead.
Also, if you spend less than $250/month on gas, you could just get the SallieMae for $0 annual fee with 5% points back.

SPG8
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Re: PenFed Visa card for Gas program changing, now with a fe

Post by SPG8 » Fri Sep 06, 2013 7:28 am

dbltrbl wrote:Money Market Certificate
What is the qualifying Money Market Certificate?

I got my letter last night and was resigned to cancelling, but another poster suggested a $1,000.00 CD qualifies (is this the Money Market Certificate?).

We probably get $200 cash-back annually, which is directly credited to the account. If I can cough up a grand to avoid the $25 annual fee and keep the 5% back on gas, that still seems like a pretty good deal.

Thanks

rkhusky
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Re: PenFed Visa card for Gas program changing, now with a fe

Post by rkhusky » Fri Sep 06, 2013 8:20 am

gnosis wrote:I don't see it as a deal-breaker. If you spend $200/month on gas like I do, that's $120 cash back annually from the 5% cash back reward. If you pay the annual $25 fee, you effectively reduce your cash back reward to about 4%. That's still a great reward! If you just can't accept the thought of paying an annual fee, then you can open a $1,000 (minimum deposit) 6-month CD with them to get the fee waived. My choice is to keep things simple and just pay the annual fee. I'm still getting $100 cash back every year.
Buying the CD is like getting an extra 2.5% tax free interest on the $1000. (At least I think it is tax free.)

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coachz
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Re: PenFed Visa card for Gas program changing, now with a fe

Post by coachz » Fri Sep 06, 2013 8:39 am

cancelling my card too.

tj
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Re: PenFed Visa card for Gas program changing, now with a fe

Post by tj » Fri Sep 06, 2013 10:23 am

why are you guys cancelling? Why not just product change to one of their no-fee cards? Having a no-fee card with chip and no international fee is still useful going forward.

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coachz
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Re: PenFed Visa card for Gas program changing, now with a fe

Post by coachz » Fri Sep 06, 2013 10:27 am

i'm going use my amex blue preferred for everything including gas (3%) and get a free card visa card like the quicksilver one that is 1.5% on everything else unless you have a better recommendation please.

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Re: PenFed Visa card for Gas program changing, now with a fe

Post by White Coat Investor » Fri Sep 06, 2013 10:27 am

I got my notice yesterday. I think the easiest option for me is to open a $1000 2 year CD at 1%, and keep the 5% card without the fee.
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Re: PenFed Visa card for Gas program changing, now with a fe

Post by White Coat Investor » Fri Sep 06, 2013 10:28 am

gnosis wrote: This is the same letter I received today, and it said nothing about the rewards being reduced to 3%. :confused
Look at the back of the paper.
1) Invest you must 2) Time is your friend 3) Impulse is your enemy | 4) Basic arithmetic works 5) Stick to simplicity 6) Stay the course

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Re: PenFed Visa card for Gas program changing, now with a fe

Post by White Coat Investor » Fri Sep 06, 2013 10:34 am

gnosis wrote:I don't see it as a deal-breaker. If you spend $200/month on gas like I do, that's $120 cash back annually from the 5% cash back reward. If you pay the annual $25 fee, you effectively reduce your cash back reward to about 4%. That's still a great reward! If you just can't accept the thought of paying an annual fee, then you can open a $1,000 (minimum deposit) 6-month CD with them to get the fee waived. My choice is to keep things simple and just pay the annual fee. I'm still getting $100 cash back every year.
I earned nearly $400 on this card last year, all on gas. That's worth a little effort to hold on to the card. I shudder a little when I think about how much I spent on gasoline when 5% is $400. Maybe I need to reconsider a Prius....
1) Invest you must 2) Time is your friend 3) Impulse is your enemy | 4) Basic arithmetic works 5) Stick to simplicity 6) Stay the course

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Re: PenFed Visa card for Gas program changing, now with a fe

Post by coachz » Fri Sep 06, 2013 12:20 pm

I use my amex blue preferred for everything i can because of 6% on groceries and 3% on gas and 1% other. It costs me $75 a year but the groceries make it so i'm basically getting 4% back on groceries when i subtract the $75. So I'll use it on gas and get 3% and have a no fee visa for the amex rejecters. The quicksilver is 1.5% so that is the best I see atm and it won't be use as my primary card.

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Re: PenFed Visa card for Gas program changing, now with a fe

Post by guitarguy » Fri Sep 06, 2013 12:51 pm

EmergDoc wrote:I got my notice yesterday. I think the easiest option for me is to open a $1000 2 year CD at 1%, and keep the 5% card without the fee.
This sounds like a good option. Having part of one's E-Fund in a CD is usually an acceptable way to go right? Could get penalized if you need to take it out early would be the only drawback that I can see. We keep $12-15k in our Ally savings account for an E-Fund. Taking $1k out of there and sticking it in a PenFed CD seems like the way to go.

We currently get around $200-225 back in cash annually. Cutting to 3% and adding the $25 fee would cut that in half (almost). Seems like sticking $1k in a PenFed CD would be an easy fix to keep the card as is.

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Re: PenFed Visa card for Gas program changing, now with a fe

Post by coachz » Fri Sep 06, 2013 1:03 pm

Seems to me like 1% return is -1.5% real return in a 2.5% inflation rate economy. How is that a good idea ?

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Re: PenFed Visa card for Gas program changing, now with a fe

Post by guitarguy » Fri Sep 06, 2013 1:15 pm

coachz wrote:Seems to me like 1% return is -1.5% real return in a 2.5% inflation rate economy. How is that a good idea ?
If the money was designated for cash reserves anyway...it's not much different. Online savings accounts are earning around 1%...

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