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Old 12-03-2018, 05:26 AM   #701
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Have CD rates always been screwey like this? Places like ALLY offering basically the same 2.6-2.7% rate on a 12 mo as they do for a 2 or 3 year CD? And credit unions offering anywhere from 2.35% to 3.82% on a 5 yr. depending where you look? CIT 2.25% on a savings account, 2.5% on an 18 month and 1.7% on a 5 year CD? Also, some credit unions offer higher CD rates than brokered CD's?Just surprised.

Interest rates are moving in response to the Fed raising rates.
There is nothing that says they have to move in a coordinated fashion.
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Old 12-03-2018, 06:44 AM   #702
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Within the same organization though?
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Old 12-03-2018, 08:15 AM   #703
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Ok, Thanks MJ. I finally found it buried in the scroll. Good eye! It does seem to conflict with the document I found but I agree you are good to go with your plan. I have one coming due also so this may be helpful to me.
I just got off with PFCU IRA and I misunderstood their early partial withdrawal policy for those over 59 1/2. You can only do an EW without penalty if it is a partial distribution. You CANNOT do a partial direct transfer to another institution with incurring a EWP. The only option is to do a once a year indirect rollover without incurring an EWP. Again this is for a early withdrawal before maturity.
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Old 12-03-2018, 08:24 AM   #704
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Looks like PenFed is getting more aggressive in anticipation of the mass exodus in the next 2 months.

3 Year up to 3.05% APY
5 Year up to 3.5% APY
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Old 12-03-2018, 08:41 AM   #705
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Within the same organization though?

Absolutely. An institution will have different projections of their cash needs. With rates rising they might be inclined to bump their short term but not their long term rates or visc versa. The rates don't move in sync across an institutions maturity dates. Case in point is the common practice of having 3/6/9month CD rates lower than their savings account.
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Old 12-03-2018, 08:53 AM   #706
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I just noticed some disturbing verbiage in the membership agreement for Mountain America Federal Credit Union:

"Common Features On All Accounts
Nature of Dividends. The Credit Union pays dividends from current income and available earnings, after required transfers to reserves at the end of the dividend period, thus dividends are not guaranteed. The Dividend Rate and Annual Percentage Yield set forth in the Schedule are prospective rates and yields the Credit Union anticipates paying for the applicable dividend period."

I did a quick Internet search and noticed this disclosure is not uncommon among credit unions. Has anyone else noticed this? Do you think the payment of dividends is insecure as it sounds?
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Old 12-03-2018, 09:29 AM   #707
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Looks like PenFed is getting more aggressive in anticipation of the mass exodus in the next 2 months.

3 Year up to 3.05% APY
5 Year up to 3.5% APY
Yeah, but there are lots of 3.5%+ CDs out there so unless someone wants to keep their money at Penfed I don't see 3.5% as stemming the tide at all.
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Old 12-03-2018, 09:35 AM   #708
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Yeah, but there are lots of 3.5%+ CDs out there so unless someone wants to keep their money at Penfed I don't see 3.5% as stemming the tide at all.
Unless one is happy with PenFed. However I am tempted to move all our assets to Fidelity and consolidate.
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Old 12-03-2018, 09:37 AM   #709
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+1 It isn't that I am unhappy with PenFed but if there is no significant economic benefit I would rather have things consolidated at Vanguard and Fidelity.
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Old 12-03-2018, 09:38 AM   #710
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I just noticed some disturbing verbiage in the membership agreement for Mountain America Federal Credit Union:

"Common Features On All Accounts
Nature of Dividends. The Credit Union pays dividends from current income and available earnings, after required transfers to reserves at the end of the dividend period, thus dividends are not guaranteed. The Dividend Rate and Annual Percentage Yield set forth in the Schedule are prospective rates and yields the Credit Union anticipates paying for the applicable dividend period."

I did a quick Internet search and noticed this disclosure is not uncommon among credit unions. Has anyone else noticed this? Do you think the payment of dividends is insecure as it sounds?
My "Mountain America CU" CD's has paid its monthly div. like clockwork.
Used to have the absolute best 5 yr rates going. Just bumped the last of my one time bump 5y r CD's up to 3.51 a couple months ago. Would add more there, but am maxed out.
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Old 12-03-2018, 09:44 AM   #711
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I did a quick Internet search and noticed this disclosure is not uncommon among credit unions. Has anyone else noticed this? Do you think the payment of dividends is insecure as it sounds?


Yes I’ve noticed it and no I don’t think it sounds insecure at all. There are resources to check the health of financial institutions like depositaccounts.com.
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Old 12-03-2018, 09:44 AM   #712
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+1 It isn't that I am unhappy with PenFed but if there is no significant economic benefit I would rather have things consolidated at Vanguard and Fidelity.
I am considering the same with Fidelity, In fact I have started a new thread to try and get some sage advice.....

http://www.early-retirement.org/foru...ml#post2151085
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Old 12-03-2018, 12:32 PM   #713
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+1 It isn't that I am unhappy with PenFed but if there is no significant economic benefit I would rather have things consolidated at Vanguard and Fidelity.
+2

Have been moving ladder rungs from PenFed to Fido for ~2 yrs now, and will roll last PenFed rung to Fido in Jan 2019. Will still maintain small PenFed share balance for membership purposes.
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Old 12-03-2018, 06:18 PM   #714
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PFCU's IRA certificates have a very liberal no penalty partial early withdrawal policy for those 59 1/2 and over, besides mandatory RMD, of course. Are there other banks/CUs with similar policies?
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Old 12-03-2018, 06:23 PM   #715
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Consolidating at Fido looks more appealing since it is amazingly complicated to direct transfer IRA funds between institutions and rollovers are limited to one/12 months ( or is it one/ yr). I will probably keep the CU accounts I have but transition to Fido as opportunity presents. Fido has good online form filling tools to xfer funds.
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Old 12-04-2018, 02:20 PM   #716
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Thoughts on Navy Federal Credit Union 40 month 3.5% IRA CD? I'm retired and fixed income Cds are majority of income. Better than my past 3% Pen Fed cds. Have more $$$ to hold for possible upcoming higher rates as well.
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Old 12-04-2018, 02:24 PM   #717
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Thoughts on Navy Federal Credit Union 40 month 3.5% IRA CD?
Been eyeing those myself as a new home for my PenFed IRA CDs. I'm not a NFCU member (yet) but I've not heard any negative feedback on them.
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Old 12-04-2018, 04:14 PM   #718
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My mistake, the Navy Fed IRA CD is 40 months 3.75% and may be an add on, and has $150k cap.
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Old 12-04-2018, 04:36 PM   #719
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The NFCU 40 month @ 3.75 apy does allow additional deposits. It only requires $50 to open the CD. I always open these add-on CDs just to reserve the option to load them up as other CDs mature. I don’t expect this will be around long.
Edit: Thanks for the tip. I was looking yesterday and this was not posted.
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Old 12-04-2018, 04:45 PM   #720
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The NFCU 40 month @ 3.75 apy does allow additional deposits. It only requires $50 to open the CD. I always open these add-on CDs just to reserve the option to load them up as other CDs mature. I don’t expect this will be around long.
Edit: Thanks for the tip. I was looking yesterday and this was not posted.
How long do you have to add on?
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