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Old 01-04-2019, 06:33 AM   #21
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PenFed allows partial withdrawals, I believe. That compensates a tiny bit for their extraordinarily harsh early withdrawal penalties which amount to forfeiting up to 18 months of interest on a 5 year CD.
Thanks, Audrey. I did not know about the partial withdrawals. Will ask them about that. Maybe related to RMD. I agree the 1.5 year penalty is harsh. I said so to the rep, and he replied "Yeah, but you get to keep all the principal" lol
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Old 01-04-2019, 06:37 AM   #22
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I agree the 1.5 year penalty is harsh. I said so to the rep, and he replied "Yeah, but you get to keep all the principal" lol
I wonder how large the hit has been to PenFed's deposit base as a result of this change in policy and competitive rate availability elsewhere? I suspect it has been substantial.
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Old 01-04-2019, 07:03 AM   #23
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Thanks, Audrey. I did not know about the partial withdrawals. Will ask them about that. Maybe related to RMD. I agree the 1.5 year penalty is harsh. I said so to the rep, and he replied "Yeah, but you get to keep all the principal" lol
I must be wrong about this and partial withdrawal only applies to the IRA CDs.
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Old 01-04-2019, 07:07 AM   #24
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Looks like my strategy to wait until after the Fed FMOC meeting for "almost certainly" higher rates backfired on me..

Was seeing 3.1% on 2-yr brokered CDs at VG. Last I looked, these were back down to 2.9%. And looks like everything across the board has dropped in the past week or two.

Figures..but doesn't make a whole lot of sense, either, if we assume the Fed actually will do 2 rate increases in '19.
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Old 01-04-2019, 07:15 AM   #25
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VMMXX at 2.43% is still a good interim while playing the waiting game.
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Old 01-04-2019, 07:20 AM   #26
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Ad showed up in Mint today for a 2.45% savings account at CIT.

25K minimum to get that rate.

https://www.cit.com/cit-bank/tiered-...uilder-direct/
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Old 01-04-2019, 07:20 AM   #27
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Figures..but doesn't make a whole lot of sense, either, if we assume the Fed actually will do 2 rate increases in '19.
You shouldn't assume 2 rate increases in '19...that is so last week.

All of a sudden, consensus believes there is a pause coming with many believing no hikes in 2019.
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Old 01-04-2019, 07:26 AM   #28
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Just added a 5 yr through Ch Sch / Goldman Sachs CD @ 3.4%.
Sure wish Ally would move up from 3.10% on their 5 yr. But I don't look for it.
Will probably transfer the last of my IRA funds out of Ally today.
All they offer is a good 1 yr. and a 2% sav. They really have changed over the yrs.
Paid 150 day penalty to break from a 2% Ally 5 yr CD with 2.5 yrs to go on 12/31/18.
Unless I move to yet another institution 3.4% is as good as it gets for me on a 5 yr.
Have accounts with Ally, Charles Schwab, Navy Fed, Mountain America, and one other local credit union. Hate the thought of adding yet another institution to the rabble. Would think 5 should do it? with 750k to invest...
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Old 01-04-2019, 07:31 AM   #29
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You shouldn't assume 2 rate increases in '19...that is so last week.

All of a sudden, consensus believes there is a pause coming with many believing no hikes in 2019.

This is getting as convoluted as the stock market.
Good jobs numbers today could change next weeks % forcast.
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Old 01-04-2019, 07:39 AM   #30
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Just added a 5 yr through Ch Sch / Goldman Sachs CD @ 3.4%.
Sure wish Ally would move up from 3.10% on their 5 yr. But I don't look for it.
Will probably transfer the last of my IRA funds out of Ally today.
All they offer is a good 1 yr. and a 2% sav. They really have changed over the yrs.
Paid 150 day penalty to break from a 2% Ally 5 yr CD with 2.5 yrs to go on 12/31/18.
Unless I move to yet another institution 3.4% is as good as it gets for me on a 5 yr.
Have accounts with Ally, Charles Schwab, Navy Fed, Mountain America, and one other local credit union. Hate the thought of adding yet another institution to the rabble. Would think 5 should do it? with 750k to invest...
Still with Ally for now for savings, but they also offer the no penalty CD at 2.3%, so effectively that is their savings rate for true unused cash.
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Old 01-04-2019, 08:08 AM   #31
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You shouldn't assume 2 rate increases in '19...that is so last week.

All of a sudden, consensus believes there is a pause coming with many believing no hikes in 2019.
Except today after the strong jobs report. Now we’re back to possible raises again!
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Old 01-04-2019, 08:42 AM   #32
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I'm planning on withdrawing the money from some 1.8 % cd's and taking the 6 month penalty and reinvesting in Penfed cd's for the 3.5 % 5 year term. Penfed says I don't have to contact my other bank/credit union in order to do the ACH transfer. I just give Penfed the routing number of my bank/credit union, and my checking or savings acct number there, make sure I have enough cash in the account, and they make it happen. No passwords needed. I just enter some personal identifying details in the phone tree system when I call Penfed. I'm already a member of Penfed, and I'll be requesting the transfer over the phone. I assume the ACH algorithm will verify IP addresses of Penfed and my bank, and who knows what else to make sure it is a legit transfer. Sound right? I have no reason to doubt Penfed, just asking, sort of out of curiosity. Thanks
PenFed makes it easy to set up an external account. It may take a couple or three days for an ACH transfer though. PenFed has to send 2 small cents (less than $1.00 each) transactions to the external account. Once those small transaction amounts appear in your external account, all you need to do is hit the "verify" button on PenFed screen, enter the amounts that posted and you are done in terms of setting the external account up.
When I wanted to ACH the interest that had earned on my CD's the last 5 years to my external account (leaving the principle to reinvest), after doing one ACH transfer that took 5 business days, I ended up doing a wire transfer for the remaining amount. It would have taken me forever to transfer out in $5,000 increments. The wire was done within 12 hours. Pen Fed has a limit of $5,000 for each ACH transfer out. Not sure if that is the same for ACH transfers in as I can not remember what I did 5 years ago. But I think they accepted the large amounts without a hitch. There is a fee in both directions for a wire transfer. Was surprised my external account bank charged me to receive the wire-$15.00 and Pen Fed charged me $20.00. Although I should not have been surprised.
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Old 01-04-2019, 09:37 AM   #33
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To fund a CD at PenFed I was never constrained by their ACH limit. They pulled $25K (the size I bought for each CD) at a time from my bank account - no established link was required.
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Old 01-04-2019, 10:11 AM   #34
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To fund a CD at PenFed I was never constrained by their ACH limit. They pulled $25K (the size I bought for each CD) at a time from my bank account - no established link was required.
That is interesting audreyh1 because I was.
I also had to do the same when transferring my accumulated interest out of Pen Fed to a newly established external account.
It wasn't a problem. Just took time.
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Old 01-04-2019, 02:09 PM   #35
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I now initiate all transfers to/from PenFed at my brokerage. This avoids the annoyingly small PenFed ACH limits.

However - those initial PenFed CD purchases. They pulled from my bank.
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Old 01-04-2019, 02:40 PM   #36
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Got it audreyh1. I was using a bank account. I'll have to consider my brokerage account in the future!
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Old 01-05-2019, 05:42 AM   #37
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Brokered 5 YR CD's sold out yesterday at Charles Schwab. Must have got the last one. LOL LOL
1st time I have seen this.........From dozens to 0.
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Old 01-05-2019, 07:09 AM   #38
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^^^^^^^^^^ They have at Vanguard too.


Columbia Credit Union (WA/OR) 30-Month CD Earns Up To 3.60% APY

Limited to Washington / Oregon States
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Old 01-05-2019, 07:25 AM   #39
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Brokered 5 YR CD's sold out yesterday at Charles Schwab. Must have got the last one. LOL LOL
1st time I have seen this.........From dozens to 0.
Indeed - similar at Fidelity. On Monday there was a total of only 45 new issue CDs available across all maturities. It had gotten up to 115 at one point during the week, but now back down to 65 total. Only three 5-years left - one each at 3.2% (call protected), 3.6% (callable), and a JPM step-up starting at 3.0%. Only two remaining for 10-years at 3.45% and 3.55%.

It's a similar case with secondary market offerings - significantly less available for longer maturities and the yields have come down. Top yield is 3.75% for 10 to 15 year maturity. A few weeks ago I was able to pick some up at 3.9%-4.1%.

It appears that folks are beginning to panic and grab whatever they can get.
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Old 01-05-2019, 07:43 AM   #40
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...
Columbia Credit Union (WA/OR) 30-Month CD Earns Up To 3.60% APY
Limited to Washington / Oregon States
Ooo! Ooo! Now if it can just last through the month - we have a chunk at Ally in a $1000 bonus savings account that could move here real happily. Want to be real sure we get qualified for the $1000 Ally bonus though.
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