"4.00% APY. Do I have your attention?"

[CRLLS]

Funny how it can be interpreted differently. I see it as $350K maximum. $250K from new (outside) money + $100K from money already in the CU. BTW, That is beyond the NCUA protected account limits of $250K (for single owner).

(edit) It probably is $250k max combined. And then there is the fine print: "Fees could reduce earnings."

 

[Another Reader]

Looks like PenFed is taking notice. Per Deposit Accounts, they are offering a 2.07 percent 1 year CD now. Minimum is only $1,000.

ETA: 18 months at 2.22 percent and 2.33 percent for a two year term.

 

[audreyh1]

I’m not ready to commit to 5 years yet. And most of my CDs are coming due at year end, although most of them are short term no penalty.

 

[Spanky]

Funny how it can be interpreted differently. I see it as $350K maximum. $250K from new (outside) money + $100K from money already in the CU. BTW, That is beyond the NCUA protected account limits of $250K (for single owner).

(edit) It probably is $250k max combined. And then there is the fine print: "Fees could reduce earnings."

I think it means $250K limit for a new account. If you already have an amount, the amount is limited to $100K for this deal. Thus, the maximum is limited to $250K.

 

[njhowie]

I’m not ready to commit to 5 years yet. And most of my CDs are coming due at year end, although most of them are short term no penalty.

This is a good approach as the short-term CDs (1-3 years) have been escalating in yield extremely rapidly (in relative terms). 5-year has been slowly creeping higher, and 10-year has essentially done nothing.

Acknowledging that I have absolutely no idea how quickly the rates will continue to rise, or when they may stop, I'm just nibbling every time the rates nudge higher. I won't go all-in, nor put a major wad in to any single maturity at this time - that is, unless I get a terrific deal, which periodically happens. But to reiterate your view - there is little benefit to locking in a longer term rate at this time.

 

[jazz4cash]

I’m not ready to commit to 5 years yet. And most of my CDs are coming due at year end, although most of them are short term no penalty.

NFCU 32 mo special (2.75 apy) is working out nicely for me. The term is less than 3 yrs and I can "reserve" the rate with only $50 and add to it later if better rates are not available when other certificates mature.

 

[jazz4cash]

To me, this means you are limited to 100K of money already at the bank (in checking account for example) and a limit of $250K of money from some other institution.

So If you have $150K at that CU, in a checking account or some other CD you can break, you can only put $100K towards the 4% CD.

Yeah, I mis-read it. Thanks for the clarification.

 

[jw72]

I was on the website, is that special gone? I can not find it.
Thank you

 

[njhowie]

NFCU 32 mo special (2.75 apy) is working out nicely for me. The term is less than 3 yrs and I can "reserve" the rate with only $50 and add to it later if better rates are not available when other certificates mature.

In a couple months 2.75% for 24 months will be the rate everyone is offering.

Do not plow in to any single maturity in this environment - rates are racing higher.

 

[SonofCohoes]

I was on the website, is that special gone? I can not find it.
Thank you

My daughter was going to move money there yesterday and it was no longer available.

 

[MBSC]

I was on the website, is that special gone? I can not find it. Thank you

This special ended COB Friday, 3/9. They are honoring the 4% rate if you got the application in before then and were still in the process of funding it.

 

[Chuckanut]

I will miss my PenFed 3% CDs. They have given me bragging rights for nearly 5 years.

I would not go out five years at this point since it seems to me we are at the start of a steady increase in interest rates. It looks like we old folks will not be subsidizing the cheap mortgages for the youngster for much longer. Sorry kids.

Most likely I will be rolling my PenFed CD's into a ladder of 3, 6, 12 and 24 month CD's.

Keep in mind that I have been wrong about the direction of interest rates for nearly a decade. It seems I can't predict them any better than I can predict the stock market. Who would have guessed?

 

[Ready]

I will miss my PenFed 3% CDs. They have given me bragging rights for nearly 5 years.

If I do a quick search for 5 year CDs on depositaccounts.com I see four credit unions just on the first page offering a 3% rate.

 

[REWahoo]

I will miss my PenFed 3% CDs.

PenFed 5 year CD rates are currently in the 2.7% range. I doubt the CU will be willing to hear the giant sucking sound of all those deposits being withdrawn at year end, so I expect (hope?) they will once again offer a year-end special on rates.

 

[RenoJay]

I spent a week trying to reach them to ask a couple questions and got zero response to two phone calls and three message sent through their contact form. Good riddance. I’ll wait for rates to rise.

 

[audreyh1]

I will miss my PenFed 3% CDs. They have given me bragging rights for nearly 5 years.

I would not go out five years at this point since it seems to me we are at the start of a steady increase in interest rates. It looks like we old folks will not be subsidizing the cheap mortgages for the youngster for much longer. Sorry kids.

Most likely I will be rolling my PenFed CD's into a ladder of 3, 6, 12 and 24 month CD's.

Keep in mind that I have been wrong about the direction of interest rates for nearly a decade. It seems I can't predict them any better than I can predict the stock market. Who would have guessed?

I know! And at least my Andrews CDs will be 3 year CDs by the time 3% might be a common offering for shorter terms.

 

[Chuckanut]

If I do a quick search for 5 year CDs on depositaccounts.com I see four credit unions just on the first page offering a 3% rate.

Thanks. Perhaps I won't miss my 3% CDs as much as I thought.

 

[jazz4cash]

When my Penfed CDs mature I'll be able to roll them over to NFCU @ 2.7 for 20 months if nothing better is available.

 

[audreyh1]

Thanks. Perhaps I won't miss my 3% CDs as much as I thought.

Well, I'm hoping for higher rates than that when/if I buy 5 year CDs next.

Well - maybe I shouldn't hope for higher rates!

I don't think I'm going to be in the market for longer CDs anyway for a while.

 

[Ready]

It took me a bit of research but I looked at the four credit unions currently offering a 3% rate on a 5 year CD. Of the four, three of them have a one year or greater early termination penalty. The one exception is Utah First Credit Union. They are offering a 3% 5 year CD with a 180 day early termination penalty.

This looks like it's currently the best deal available. With only a 6 month penalty, I would not hesitate to lock into a 3% rate. If rates go up significantly, no big deal to pay them 1.5% to get out so I can reinvest at a higher rate.

DH opened an account with them yesterday and said they were very friendly and responsive, and the process to establish an account online was very simple.