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Old 01-26-2014, 02:19 PM   #261
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As noted in a prior post, I just invested in six "CD's" for five years. I suppose it's a play on words and I got caught up in it also. Today I accessed the website and for the first time noticed that those certificates are called "money market certificates" and not "CD's". I looked all over the site and could not find the words Certificate of Deposit. I don't care as long as those certificates are insured (and they are by the National Credit Union Assoc) but I for one will stop referring to those certificates as CD's. They are MMC's
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Old 01-27-2014, 08:32 AM   #262
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Any word on if PenFed will continue these rates into Feb?
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Old 01-27-2014, 08:36 AM   #263
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Just talked with them, they said the new rate sheet should be out by Friday, or Saturday at the latest.
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Old 01-28-2014, 07:57 PM   #264
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Well, I waited til the 11th hour almost, but just joined today as a member for a contribution and a $5 share balance. In all, took about 20 minutes, but I already have the certificates in my account online.

Interestingly, they asked for permission to run a credit report because of money laundering and terrorism risks. Also, I was asked if I'd be interested in information about car loans, and I said sure, though I'm not in the market for a new car just yet. About an hour later, I received an email from _Enterprise_ saying they had heard from a partner credit union that I may be interested in purchasing a new car and offered their services.
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Old 01-28-2014, 08:33 PM   #265
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Well my money that I was sending to Penfed (this is from an IRA) at Vanguard left Vanguard middle of last week but hasn't yet shown up at Penfed. I'm thinking it should be there any day now....
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Old 01-28-2014, 09:03 PM   #266
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Well my money that I was sending to Penfed (this is from an IRA) at Vanguard left Vanguard middle of last week but hasn't yet shown up at Penfed. I'm thinking it should be there any day now....

Dang, I'm cutting it close. My check left Vanguard Monday. I hope it makes it by the end of the week.
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Old 01-28-2014, 11:58 PM   #267
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There aren't many places to keep cash now that earn 3% (that's a sad thing to say!). If you want to keep cash for 5+ years, then you can keep it in a <1% money market account now and hope for better later, or you can lock in 3% and not worry about managing that money for the next 5 years.

We got our certificate worked out last week after using the web, the phone, and the USPS.
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Old 01-29-2014, 11:14 AM   #268
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I'm a huge fan of RE notes: we are carrying the paper on two places we sold right now at 7%, as well as having a couple short term loans to flippers at 10 and 12%. We are entertaining a sale offer on some small old units that would bring 6% with an early repayment penalty in the contract. We also lost a year's worth of living costs when we went through a company that invested our money in RE loans for us. We have money in PenFed MMCs also.
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Old 01-29-2014, 11:33 AM   #269
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Finally got my certificates squared away. Used ACH from another credit union (no fees ) to penfed. Never used ACH before.

Had one sort of glitch. I had conflicting answers from different penfed CSR's about whether I could break up my initial ACH transfer into smaller certificates. Ended up with multiple certs, so all is well.
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Old 01-29-2014, 03:41 PM   #270
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Originally Posted by Spanky View Post
Does Pen Fed offer partial withdrawal?
If it is an IRA, yes.

Quote:
(2) Partial withdrawals may be made, subject to early withdrawal penalties as described in paragraph (g) below, providing the requested withdrawal amount does not reduce the original issue below a minimum of $1,000 for 1-, 2-, 3-, 4-, 5-, or 7-year IRA Certificates, in which case the funds will be transferred to the IRA Share account.
Quote:
(3) Exceptions. The penalties described above will not be applied if the withdrawal is made:
...
(iv) If the owner has reached age 59 and takes a partial withdrawal
A few days ago, my 6.25% 7-year PenFed Certificate matured.

I'm currently 57. I confirmed with two separate CSR's that once I turn 59, I can take a partial withdrawal without penalty.

Based on this, I chose the 7-year Certificate instead of the 5-year. I'm only tying up $1,000 to insure the 3% rate for years 6 and 7.
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Old 01-29-2014, 08:50 PM   #271
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If it is an IRA, yes.

A few days ago, my 6.25% 7-year PenFed Certificate matured.

I'm currently 57. I confirmed with two separate CSR's that once I turn 59, I can take a partial withdrawal without penalty.

Based on this, I chose the 7-year Certificate instead of the 5-year. I'm only tying up $1,000 to insure the 3% rate for years 6 and 7.
That was very clever....Thanks for posting. I never thought of trying to do that and I am in almost exactly the same situation as you (6.25 certificate matured today). I just checked Penfed online (9;50pm) and they have not rolled the current certificate over so I was able to change the maturity to 7yrs. I had a missing rung in my CD ladder at 6 yrs so now it is filled, assuming they honor the after hours change request.
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Old 01-29-2014, 09:06 PM   #272
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The check that Vanguard mailed on Friday showed up at PenFed today. However, when I logged in to my account, the check showed it was deposited into an IRA Share Account, which is basically just a savings account at a very low interest rate. I had requested a 5 year CD at 3%. The person on the phone put in the request to transfer the funds into a CD and assured me it would take effect as of today, but it could take a few days before the transfer takes place because they are backlogged.

So, the lesson here is to check the web site and make sure they post the check into the type of account you really requested. Otherwise you might earn a much lower rate than you expected.

Speaking of rates, the agent confirmed they will not know the new rates until February 1st.
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Old 01-29-2014, 09:31 PM   #273
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The check that Vanguard mailed on Friday showed up at PenFed today. However, when I logged in to my account, the check showed it was deposited into an IRA Share Account, which is basically just a savings account at a very low interest rate. I had requested a 5 year CD at 3%. The person on the phone put in the request to transfer the funds into a CD and assured me it would take effect as of today, but it could take a few days before the transfer takes place because they are backlogged.

So, the lesson here is to check the web site and make sure they post the check into the type of account you really requested. Otherwise you might earn a much lower rate than you expected.

Speaking of rates, the agent confirmed they will not know the new rates until February 1st.
I think this is normal. My experience has been all deposits for IRA CDs go into an IRA share account and then get moved into the requested CD's. I took my check into the branch and the deposit showed up immediately in my IRA share account and the CD showed up the following day. I would not worry at all, but I would check back to verify the funds eventually make there way into the requested CDs. I keep an IRA savings account open with a few dollars in it to facilitate this process.
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Old 01-29-2014, 09:38 PM   #274
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I think this is normal. My experience has been all deposits for IRA CDs go into an IRA share account and then get moved into the requested CD's. I took my check into the branch and the deposit showed up immediately in my IRA share account and the CD showed up the following day. I would not worry at all, but I would check back to verify the funds eventually make there way into the requested CDs. I keep an IRA savings account open with a few dollars in it to facilitate this process.
OK, that makes me feel better - thanks!
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Old 01-29-2014, 09:56 PM   #275
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I think this is normal. My experience has been all deposits for IRA CDs go into an IRA share account and then get moved into the requested CD's. I took my check into the branch and the deposit showed up immediately in my IRA share account and the CD showed up the following day. I would not worry at all, but I would check back to verify the funds eventually make there way into the requested CDs. I keep an IRA savings account open with a few dollars in it to facilitate this process.

I wonder if these means funds that PenFed receives Friday won't actually be used to purchase CDs on Friday? My funds are still somewhere between Vanguard and PenFed and I'm guessing that they'll show up on Friday. The check was sent from Vanguard on Monday. I'm hoping if that's the case, I can still get the 3% rate. I'll probably try calling PenFed tomorrow to get an update.
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Old 01-29-2014, 10:58 PM   #276
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My funds that Vanguard sent last week showed up today in an IRA Share account. From what others have said, I believe it starts there and then gets transferred to the certificate. I'll keep checking back on it.
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Old 01-29-2014, 11:32 PM   #277
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Somewhere in this long thread I believe someone mentioned PenFed has in the past offered these special CD rates once or twice a year. Does anyone recall if they've ever bumped the rate even higher right after a special offer expires?
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Old 01-30-2014, 06:45 AM   #278
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FYI: C/R Told Me Penfed Will Be Lowering Their Certificate Rates For New Money - Pentagon Federal Credit Union
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Old 01-30-2014, 10:57 AM   #279
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Yee-haa, 3% will be available for renewals! I was just talking to Mom about a CD they have maturing in February at PF.
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Old 01-30-2014, 03:30 PM   #280
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Thanks for posting that! Didn't want to have buyer's remorse, you know.
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