PenFed new savings rates

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Sheepdog
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PenFed new savings rates

Post by Sheepdog » Wed Nov 07, 2018 5:46 pm

PenFed is offering new saving certificate rates:
2.71% 1 year
3.3% 5 year
plus others

See https://www.penfed.org/accounts/certifi ... _-11302018
It's not what you gather, but what you scatter which tells what kind of life you have lived---Helen Walton

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HueyLD
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Re: PenFed new savings rates

Post by HueyLD » Wed Nov 07, 2018 5:49 pm

Penfed used to be a good place to invest in CDs.

But their EWP is bad enough to make their CDs unattractive if there is a possibility of early withdrawal.

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fortfun
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Re: PenFed new savings rates

Post by fortfun » Wed Nov 07, 2018 9:25 pm

Sheepdog wrote:
Wed Nov 07, 2018 5:46 pm
PenFed is offering new saving certificate rates:
2.71% 1 year
3.3% 5 year
plus others

See https://www.penfed.org/accounts/certifi ... _-11302018
Have you seen this?
3% and 4%.
I'm trying to figure out if this is a reliable bank.
https://www.gardensavingsfcu.org/notice-details.html

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weltschmerz
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Re: PenFed new savings rates

Post by weltschmerz » 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?

random_walker_77
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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: https://www.depositaccounts.com/cd/5-year-cd-rates.html

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

Gnirk
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Location: Western Washington

Re: PenFed new savings rates

Post by Gnirk » Wed Nov 07, 2018 10:52 pm

My Ally savings account acts as both my liquid savings and my “clearinghouse”. If I want the cash from a PenFed CD when it matures, I pull it from Ally to my Ally savings account. If I want to purchase funds at Vanguard, I have Vanguard pull from my Ally savings account.

rj49
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Re: PenFed new savings rates

Post by rj49 » Wed Nov 07, 2018 11:36 pm

Penfed used to have great rates and great service. Now they are just overwhelming with advertising and spam and security codes--nothing more frightening than being told by customer service I can't access my money without an obscure PIN I forgot about. I also looked for quotes for a mortgage and car loan, and they hounded me with emails for a year, and even a few months ago I got a statement for a savings account I closed years ago. So for me it's not worth chasing their rates, especially in a rising rate environment, when I can get 2.25% in VG Prime mmf with its ability to increase yield if interest rates continue to rise. It's like sitting in a long Costco gas line to save 5 cents a gallon or jumping around with multiple credit cards just to get an extra 1% in cash back, which for me would mean something like $100 a year, also not worth the hassles, and insignificant compared to stock market moves, impulse spending, and large purchases.

krafty81
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Re: PenFed new savings rates

Post by krafty81 » Thu Nov 08, 2018 1:15 am

I have to say I have been very happy with PenFed. I have mostly used their auto loans, even re-fi'ed to one on my second car. Good rates and no hassles. I am going to look at that CD.

TravelGeek
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Re: PenFed new savings rates

Post by TravelGeek » Thu Nov 08, 2018 1:30 am

weltschmerz wrote:
Wed Nov 07, 2018 10:22 pm
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 am hoping for a new special offer towards the end of the year to capture the CD money from five years ago. What was the going rate back then for five year CDs - maybe 1%? So how about another 2% above current rate offer ;)

JDDS
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Re: PenFed new savings rates

Post by JDDS » Thu Nov 08, 2018 2:23 am

TravelGeek wrote:
Thu Nov 08, 2018 1:30 am
weltschmerz wrote:
Wed Nov 07, 2018 10:22 pm
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 am hoping for a new special offer towards the end of the year to capture the CD money from five years ago. What was the going rate back then for five year CDs - maybe 1%? So how about another 2% above current rate offer ;)
+1

Nothing personal to them, I have no complaints, but the offer will have to be pretty good considering the increased EWP.

The shorter term 1 year competitive rate is likely part of a strategy to get new money so they're not as worried about outflows if they don't offer a great replacement rate.

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HueyLD
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Re: PenFed new savings rates

Post by HueyLD » Thu Nov 08, 2018 6:00 am

krafty81 wrote:
Thu Nov 08, 2018 1:15 am
I have to say I have been very happy with PenFed. I have mostly used their auto loans, even re-fi'ed to one on my second car. Good rates and no hassles. I am going to look at that CD.
Look at their EWP:

“PenFed’s Early Withdrawal Penalty (EWP) as follows:

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.”

rkhusky
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Re: PenFed new savings rates

Post by rkhusky » Thu Nov 08, 2018 7:34 am

HueyLD wrote:
Thu Nov 08, 2018 6:00 am
Look at their EWP:

“PenFed’s Early Withdrawal Penalty (EWP) as follows:

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.”
At least it doesn't look like you lose principal, unlike some other CD's. But, yes, you want to keep to maturity.

carolinaman
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Re: PenFed new savings rates

Post by carolinaman » Thu Nov 08, 2018 7:34 am

HueyLD wrote:
Thu Nov 08, 2018 6:00 am
krafty81 wrote:
Thu Nov 08, 2018 1:15 am
I have to say I have been very happy with PenFed. I have mostly used their auto loans, even re-fi'ed to one on my second car. Good rates and no hassles. I am going to look at that CD.
Look at their EWP:

“PenFed’s Early Withdrawal Penalty (EWP) as follows:

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.”
Wow! If my math is right, 30% withdrawal penalty of a 60 month CD would be 18 months interest. I have 60 month CDs with Penfed maturing in January. There is no way I would renew with that EWP.

MikeG62
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Location: New Jersey

Re: PenFed new savings rates

Post by MikeG62 » Thu Nov 08, 2018 7:52 am

HueyLD wrote:
Wed Nov 07, 2018 5:49 pm
Penfed used to be a good place to invest in CDs.

But their EWP is bad enough to make their CDs unattractive if there is a possibility of early withdrawal.
Agree with this.

I have used Pen Fed CD's in the past, but not recent past. I now keep only a small token amount in one of their CD's simply to get the higher cash back rate (5% on gas) on their old VISA CC (token amount qualifies me as preferred customer).

I have used them in the past for a HELOC and have many friends who have taken out mortgages with them. IMHO, they shine with competitive rates on loans (not so much as a place to hold excess cash).
Real Knowledge Comes Only From Experience

TigerNest
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Re: PenFed new savings rates

Post by TigerNest » Thu Nov 08, 2018 8:09 am

For comparison, Marcus (Goldman Sachs' consumer bank) is offering 2.55% 1-year and 3.1% 5-year.

They also have a 13 month 'no withdrawal penalty' CD for 2.15%. And the online savings account is currently at 2.05%.

I've held CDs with both, but recently just started investing in US Treasuries. The 1-year Treasury rate is now 2.71%, but they're exempt from state taxes, which increases the after tax yield.

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Oak&Elm
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Re: PenFed new savings rates

Post by Oak&Elm » Thu Nov 08, 2018 8:12 am

Or you could go with Live Oak Bank
90 day ewp
2.75% one year CD $2,500 minimum
3% two year CD $2,500 minimum
Been with this bank for over a year, highly recommend them

tj
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Re: PenFed new savings rates

Post by tj » Thu Nov 08, 2018 12:55 pm

MikeG62 wrote:
Thu Nov 08, 2018 7:52 am
HueyLD wrote:
Wed Nov 07, 2018 5:49 pm
Penfed used to be a good place to invest in CDs.

But their EWP is bad enough to make their CDs unattractive if there is a possibility of early withdrawal.
Agree with this.

I have used Pen Fed CD's in the past, but not recent past. I now keep only a small token amount in one of their CD's simply to get the higher cash back rate (5% on gas) on their old VISA CC (token amount qualifies me as preferred customer).

I have used them in the past for a HELOC and have many friends who have taken out mortgages with them. IMHO, they shine with competitive rates on loans (not so much as a place to hold excess cash).
A CD is not necessary. I have $25 in a money market account for this purpose.

hudson
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Joined: Fri Apr 06, 2007 9:15 am

Re: PenFed new savings rates

Post by hudson » Thu Nov 08, 2018 2:09 pm

carolinaman wrote:
Thu Nov 08, 2018 7:34 am
I have 60 month CDs with Penfed maturing in January. There is no way I would renew with that EWP.
Me too...except mine is in Dec. Penfed is out. I'd rather go with Vang. Intermed. Muni....VWIUX... which is distributing around 2.8%...or maybe a brokered CD like

949763VK9 Wells Fargo Bk N A Sioux Falls S D ....which is paying 3.55% for 5 years

MikeG62
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Location: New Jersey

Re: PenFed new savings rates

Post by MikeG62 » Thu Nov 08, 2018 3:17 pm

tj wrote:
Thu Nov 08, 2018 12:55 pm
MikeG62 wrote:
Thu Nov 08, 2018 7:52 am
HueyLD wrote:
Wed Nov 07, 2018 5:49 pm
Penfed used to be a good place to invest in CDs.

But their EWP is bad enough to make their CDs unattractive if there is a possibility of early withdrawal.
Agree with this.

I have used Pen Fed CD's in the past, but not recent past. I now keep only a small token amount in one of their CD's simply to get the higher cash back rate (5% on gas) on their old VISA CC (token amount qualifies me as preferred customer).

I have used them in the past for a HELOC and have many friends who have taken out mortgages with them. IMHO, they shine with competitive rates on loans (not so much as a place to hold excess cash).
A CD is not necessary. I have $25 in a money market account for this purpose.
Really, this applies to the Platinum Cash Rewards VISA?

Interesting...I was told by a rep at Pen Fed I needed either an active checking account or, absent that, at least $1,000 in a certificate. I'll have to call them when my current certificate matures.

Thanks for the heads-up.
Real Knowledge Comes Only From Experience

tj
Posts: 2204
Joined: Thu Dec 24, 2009 12:10 am

Re: PenFed new savings rates

Post by tj » Thu Nov 08, 2018 4:07 pm

MikeG62 wrote:
Thu Nov 08, 2018 3:17 pm
tj wrote:
Thu Nov 08, 2018 12:55 pm
MikeG62 wrote:
Thu Nov 08, 2018 7:52 am
HueyLD wrote:
Wed Nov 07, 2018 5:49 pm
Penfed used to be a good place to invest in CDs.

But their EWP is bad enough to make their CDs unattractive if there is a possibility of early withdrawal.
Agree with this.

I have used Pen Fed CD's in the past, but not recent past. I now keep only a small token amount in one of their CD's simply to get the higher cash back rate (5% on gas) on their old VISA CC (token amount qualifies me as preferred customer).

I have used them in the past for a HELOC and have many friends who have taken out mortgages with them. IMHO, they shine with competitive rates on loans (not so much as a place to hold excess cash).
A CD is not necessary. I have $25 in a money market account for this purpose.
Really, this applies to the Platinum Cash Rewards VISA?

Interesting...I was told by a rep at Pen Fed I needed either an active checking account or, absent that, at least $1,000 in a certificate. I'll have to call them when my current certificate matures.

Thanks for the heads-up.
Yes I have the platinum cash rewards and I had opened the money market account years ago for that reason. The platinum cash rewards isn't even marketed anymore, so who knows if any of those supporting products are still needed.

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