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Did the Pentagon FCU drop its rates?
Old 11-15-2006, 02:08 PM   #1
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Did the Pentagon FCU drop its rates?

I remember that they were competitive for a while.

Now their MM "Certificates" (I'm assuming that's their name for a CD) are around 4.25% for 12-months...

What gives?
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Re: Did the Pentagon FCU drop its rates?
Old 11-15-2006, 02:10 PM   #2
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Re: Did the Pentagon FCU drop its rates?

Um, while you weren't looking, interest rates generally dropped.
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Re: Did the Pentagon FCU drop its rates?
Old 11-15-2006, 02:32 PM   #3
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Re: Did the Pentagon FCU drop its rates?

OK, thanks.
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Re: Did the Pentagon FCU drop its rates?
Old 11-15-2006, 04:41 PM   #4
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Re: Did the Pentagon FCU drop its rates?

I noticed today that I saw an ad for ING Direct that was tauting APY rates of 4.4%. I just scratched my head on that one. A while back ING seemed to always be on the other side of the current rate bubble. I guess that got burned and had to back off. PFCU must have also found itself in the same place.

With 5.1%, I'll just stay with Vanguard and the old reliable PMMF.
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Re: Did the Pentagon FCU drop its rates?
Old 11-15-2006, 06:16 PM   #5
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Re: Did the Pentagon FCU drop its rates?

Quote:
Originally Posted by mickeyd
I noticed today that I saw an ad for ING Direct that was tauting APY rates of 4.4%. I just scratched my head on that one. A while back ING seemed to always be on the other side of the current rate bubble. I guess that got burned and had to back off. PFCU must have also found itself in the same place.

With 5.1%, I'll just stay with Vanguard and the old reliable PMMF.
I can beat 5.1% in one phone call at any number of local banks.

JG
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Re: Did the Pentagon FCU drop its rates?
Old 11-15-2006, 06:27 PM   #6
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Re: Did the Pentagon FCU drop its rates?

1) i've read elsewhere that PFCU tends to offer its best cd rates at year end; current rates for 3+yrs are 5.3+%
2) i expect that ING has attracted sufficient deposits to keep it happy, and no longer needs to be a rate leader.
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Re: Did the Pentagon FCU drop its rates?
Old 11-16-2006, 01:27 AM   #7
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Re: Did the Pentagon FCU drop its rates?

My local credit union is still offering 5.3 to 5.7% APY for CD's all the way from 7 months to 5 years. Plus 0.25% if you have a checking account there. They must be slow to react to the drop in interest rates.
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Re: Did the Pentagon FCU drop its rates?
Old 11-16-2006, 08:33 AM   #8
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Re: Did the Pentagon FCU drop its rates?

Quote:
Originally Posted by Mr._johngalt
I can beat 5.1% in one phone call at any number of local banks.

JG
With daily availability?

Not likely
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Re: Did the Pentagon FCU drop its rates?
Old 11-16-2006, 08:48 AM   #9
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Re: Did the Pentagon FCU drop its rates?

Quote:
Originally Posted by saluki9
With daily availability?

Not likely
Absolutely. Totally liquid.

JG
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Re: Did the Pentagon FCU drop its rates?
Old 11-16-2006, 09:09 AM   #10
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Re: Did the Pentagon FCU drop its rates?

Seems as if all CD rates have been dropping the past several months.
My CU is no exception.
They "claim" that CD rates are based on treasuries; guess they've been dropping.
I've gone round and round about this with the guy that is the pres. of my CU - to no avail.
Does anyone understand why treasuries have been going down ? Can anyone explain?
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Re: Did the Pentagon FCU drop its rates?
Old 11-16-2006, 09:21 AM   #11
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Re: Did the Pentagon FCU drop its rates?

Nope, nobody can give you a ulletproof explanation for why treasuries do anything. But rates have been dropping for the last several months.
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Re: Did the Pentagon FCU drop its rates?
Old 11-16-2006, 10:19 AM   #12
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Re: Did the Pentagon FCU drop its rates?

Quote:
Originally Posted by brewer12345
Nope, nobody can give you a ulletproof explanation for why treasuries do anything. But rates have been dropping for the last several months.
Probably a big longshot, but it could have anything to do with China announcing they were going to "offload" their treasuries through various currency markets??
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Re: Did the Pentagon FCU drop its rates?
Old 11-16-2006, 10:43 AM   #13
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Re: Did the Pentagon FCU drop its rates?

Quote:
I can beat 5.1% in one phone call
LOL...Not bad, they pay you over 5% just for calling them?
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Re: Did the Pentagon FCU drop its rates?
Old 11-16-2006, 02:16 PM   #14
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Re: Did the Pentagon FCU drop its rates?

Quote:
Originally Posted by FinanceDude
Probably a big longshot, but it could have anything to do with China announcing they were going to "offload" their treasuries through various currency markets??
That would have the opposite effect. A country like China dumping their supply of treasuries (or even indicating they would) would cause treasury yields to rise, not fall.

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Re: Did the Pentagon FCU drop its rates?
Old 11-16-2006, 02:21 PM   #15
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Re: Did the Pentagon FCU drop its rates?

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Originally Posted by saluki9
That would have the opposite effect. A country like China dumping their supply of treasuries (or even indicating they would) would cause treasury yields to rise, not fall.
I agree.....but the Fed was quick to point out this would have NO adverse effect on Treasury yields..........so wonder what's up
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Re: Did the Pentagon FCU drop its rates?
Old 11-16-2006, 02:31 PM   #16
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Re: Did the Pentagon FCU drop its rates?

Quote:
Originally Posted by Mr._johngalt
I can beat 5.1% in one phone call at any number of local banks.

JG
A bank MMF over 5.1%.......wow! Care to offer specific details?

Best I've seen is 6% on 7yr CD at Navy Fed CU on 20k (i think) minimum
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Re: Did the Pentagon FCU drop its rates?
Old 11-16-2006, 02:34 PM   #17
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Re: Did the Pentagon FCU drop its rates?

Quote:
Originally Posted by FinanceDude
I agree.....but the Fed was quick to point out this would have NO adverse effect on Treasury yields..........so wonder what's up
Seems obvious to me that the bond market is pricing in a solid chance of a recession next year.
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Re: Did the Pentagon FCU drop its rates?
Old 11-16-2006, 03:10 PM   #18
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Re: Did the Pentagon FCU drop its rates?

Quote:
Originally Posted by Mr._johngalt
Absolutely. Totally liquid.
Quote:
Originally Posted by jazz4cash
A bank MMF over 5.1%.......wow! Care to offer specific details?
Yep, this is definitely doable. My Dad has been getting much better than advertised CD rates for years, and in a form that is totally liquid. I go online and find the highest advertised 5 year CD rate I can find. He goes in and meets with the President of the local bank and negotiates from there. He almost always gets more than the highest rate I could find (never less), and always far more than the rate the bank says they pay. And he has a standing agreement that he can withdraw as much as he wants, anytime he wants, plus one bump-up if rates go higher (or he could just pull the money and go elsewhere if he finds a better deal). He has been doing this for around 10 years. Last time the banker told him, "Jeez, Bill, I already gave you the 'good-ole-boy" rate, and the Catholic rate (they go to the same church)... you're killing me here!". And that's how it goes - lots of good natured banter and feigned angst. So Dad kept grinding until he agreed to give him what he was asking - a 5 year CD rate in a totally liquid form. If the banker had just given in right away, my Dad probably would have been disappointed.

When it comes right down to it, when given a choice of not getting the money, or paying more for it, the bank (so far) has preferred to have the money. There's an inefficiency there that very few exploit.

Anyone could do this, but few probably do. It takes a certain personality to enjoy it. I think my Dad gets a bigger charge out of negotiating the deal than making the extra money. It takes him 5 minutes to negotiate the deal, and then he has a cup of coffee and shoots the bull for a half hour or so - discussing local gossip, commiserating about the priest who is wasting money on a big church remodeling nobody wants, and so on. Then he goes home and calls me to tell me what he got. It's the old rural way of doing business.
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Re: Did the Pentagon FCU drop its rates?
Old 11-16-2006, 08:43 PM   #19
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Re: Did the Pentagon FCU drop its rates?

My credit union is still paying 5.98% APY on a 5-yr CD. (Foothills credit union in Lakewood, CO) The board seems to meet infrequently, and depending on where rates are headed, you can either get a good deal or a bad one. I just locked up a 1, 2 and 3 year CD last week. Next time they revise I'll guarantee they are lower.

Brewer - I agree about the bond market. Seems everyone is counting on a recession next year (that housing market is looking really ugly - http://www.buildingonline.com/news/v...ubcategory=127).

So the next question begs...put new found money in the market now while its still running up, or wait in MMs and CDs until we see what happens?
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Re: Did the Pentagon FCU drop its rates?
Old 11-16-2006, 09:06 PM   #20
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Re: Did the Pentagon FCU drop its rates?

BoB_Smith

OK if you guys say so, but sounds a bit more complicated than "a single phone call" that JG mentioned. Im probably just outta my league on this one.
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