Recommendations for transfer of funds from expiring PF Certificates

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Recommendations for transfer of funds from expiring PF Certificates

Post by Carl53 » Thu Nov 08, 2018 7:51 am

In another ongoing thread some comments were made about transferring out proceeds of existing expiring PenFed CDs.
Re: PenFed new savings rates
Post by random_walker_77 » Wed Nov 07, 2018 10:45 pm

weltschmerz wrote: ↑Wed Nov 07, 2018 10:22 pm
I haven’t checked around, help me out, are these good rates these days?

We’re coming up on the 5 year anniversary of the great PenFed CDs of 2013, so they may be trying to keep people from cashing out. I checked their ACH policy, they only let you pull out $5000 per day. How else are people getting their money out? With old school paper checks?
The 1 yr is pretty competitive, and for good measure, approx matches the 1 yr treasury rate. The 5 yr, not so much, as other 5 yr CDs seem better:

For ACH, rather than push out from penfed, pull from vanguard. Vanguard allows you to pull in surprisingly large sums from banks via ACH. On the other hand, at these rates, if you have large sums, you might think about paying for a wire. $100K @ 3% x 4 days = $32
I have both IRA and taxable CDs with PenFed that will be expiring soon and are considering what to do with them. I can move them at expiration to existing PF savings and IRA savings accounts other than rolling them over to new CDs that have onerous EWPs. From there I could use Vanguard to pull the taxable to a linked Vanguard MM account.

I looked at linking my VG IRA accounts with the PF IRA savings accounts. Looks like I can from VG perspective, however, VG says it will make a couple of small deposits in the PF IRA savings account. Not sure if that would cause problems.

Vanguard also has forms to transfer IRA assets from other institutions. I have done this in the past and found the process somewhat difficult but eventually achieved a transfer.

I see that PF also offers an option to transfer to non-PF accounts CD balances at maturity. They just ask for routing and account numbers and whether the account is checking or savings. Would savings be the appropriate choice if it is going to a brokerage account (IRA or not)? Not sure if they are going to try a confirmation of the financial link like VG was going to do with the small deposits or not.

I am looking for recommendations based on your experiences for seemless transfer of the CD balances, should I decide to do transfers out.

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