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Old 12-02-2013, 12:01 PM   #21
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Ahem. Worth double checking on PenFed. Tried to buy a certificate several times online last night without success (maybe Penfed is using Amazon's cloud-based servers blended with ACA software?). Did contact a very helpful Penfed phone person who got me signed right up and took my bank routing and account numbers to fund the certificate. Today the new certificate is shown when I sign on and look at my main menu accounts. Unfortunately it is shown as a three year 2.02% certificate. 5 minutes on hold - high call volume - and phone guy Andrew is getting it sorted as I type.

Bottom line, trust but verify.
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Old 12-02-2013, 12:10 PM   #22
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Ahem. Worth double checking on PenFed. Tried to buy a certificate several times online last night without success (maybe Penfed is using Amazon's cloud-based servers blended with ACA software?). Did contact a very helpful Penfed phone person who got me signed right up and took my bank routing and account numbers to fund the certificate. Today the new certificate is shown when I sign on and look at my main menu accounts. Unfortunately it is shown as a three year 2.02% certificate. 5 minutes on hold - high call volume - and phone guy Andrew is getting it sorted as I type.

Bottom line, trust but verify.
I suspect they are getting flooded with cash.
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Old 12-02-2013, 12:13 PM   #23
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Volume!

Consumer loans?
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Old 12-02-2013, 12:14 PM   #24
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I need to do some rebalancing by selling equities and may want to go with CDs rather than putting more money into bonds. However, I would really prefer to wait until next year when my taxes are lower to incur capital gains. Does anyone have some thoughts on whether these 3% rates are likely to stick around next year, go up, down, etc?

They seem significantly higher than everyone else, so it's hard to know what to make of it right now.
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Old 12-02-2013, 12:19 PM   #25
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Thanks for posting this. I jumped on this offer to replace a 1.85% 3yr-CD maturing in January.
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Old 12-02-2013, 12:21 PM   #26
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I need to do some rebalancing by selling equities and may want to go with CDs rather than putting more money into bonds. However, I would really prefer to wait until next year when my taxes are lower to incur capital gains. Does anyone have some thoughts on whether these 3% rates are likely to stick around next year, go up, down, etc?

They seem significantly higher than everyone else, so it's hard to know what to make of it right now.
Pen Fed used to offer a year end special with above market rates. This may be what they are doing. If so, no guarantees the rate will be around for long. How about borrowing to fund the CD and then liquidating equities in early january to pay off the loan?
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Old 12-02-2013, 12:56 PM   #27
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Thanks for the heads-up. I had a chunk of cash sitting around so bought two 5 yr CDs this morning. I might even look at some of my existing CDs at Penfed to see if it would make sense to cash them out and get back in at 3%.
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Old 12-02-2013, 03:45 PM   #28
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Originally Posted by Ready View Post
I need to do some rebalancing by selling equities and may want to go with CDs rather than putting more money into bonds. However, I would really prefer to wait until next year when my taxes are lower to incur capital gains. Does anyone have some thoughts on whether these 3% rates are likely to stick around next year, go up, down, etc?

They seem significantly higher than everyone else, so it's hard to know what to make of it right now.

This is where a low rate HELOC (tax deductible) would come in handy. Would work as a bridge. The last time (2010) PenFed had a 5% 10 Year CD program - it was great while it lasted but we have not seen 5% FDIC/NCUA CD's since then to my knowledge. Wher rates go from here is anyone's guess.
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Old 12-02-2013, 03:55 PM   #29
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Thanks for this. Going to try and break up into a bunch of $1000 and $2000 accounts so I don't take a bath on the entire thing if I need to withdrawal....
Does Pen Fed offer partial withdrawal?
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Old 12-02-2013, 08:59 PM   #30
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Thanks for posting this. I jumped on this offer to replace a 1.85% 3yr-CD maturing in January.

How did you purchase a CD in December, if your 1.85% 3-yr CD is maturing in January ?
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Old 12-02-2013, 09:03 PM   #31
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Even though I don't really need more CDs, I could not resist. Jumped in for a taste of 3% risk free. I broke my modest CD amount into 4 pieces so I could break relatively small amounts if need be. Been buying 5 year CDs for at least 10 years and never had to break one yet, but its nice to have options.
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Old 12-02-2013, 09:41 PM   #32
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How did you purchase a CD in December, if your 1.85% 3-yr CD is maturing in January ?
I borrowed from my emergency fund and will put the money back when the 3yr CD matures next month.

I also redeemed a low yielding CD at Ally this morning and rolled the money into another one of those 3% 5yr CDs at Penfed bringing my CD ladder yield back over 4%.
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Old 12-02-2013, 10:21 PM   #33
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I feel so silly. I completely should have divided my $$$ into more than just two five year CD's (approx $175K each) - just in case. I fully intend NOT to need the money, but since the interest/result would be the same whether two CD's or five CD's - it would have been the smart thing to do. Oh well... I'm just starting to learn about all of this - hopefully I won't blow this whole early retirement thing!

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Old 12-03-2013, 05:05 AM   #34
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I feel so silly. I completely should have divided my $$$ into more than just two five year CD's (approx $175K each) - just in case. I fully intend NOT to need the money, but since the interest/result would be the same whether two CD's or five CD's - it would have been the smart thing to do. Oh well... I'm just starting to learn about all of this - hopefully I won't blow this whole early retirement thing!

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I believe they give you 7 days to change your mind. May just pay to give them a call to break the amounts down.
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Old 12-03-2013, 10:26 AM   #35
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Even though I don't really need more CDs, I could not resist. Jumped in for a taste of 3% risk free. I broke my modest CD amount into 4 pieces so I could break relatively small amounts if need be. Been buying 5 year CDs for at least 10 years and never had to break one yet, but its nice to have options.
Man - you guys are putting the fire under me!

This could replace some short/int-term bonds in my retirement fund which aren't paying out as high a rate at the moment.

But first I have to open an account!!!
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Old 12-03-2013, 10:31 AM   #36
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Thanks for posting about these PenFed CD's. I just routed money into 4 of these Cetificates! I did it over the phone (opened and funded). 3% is the best I've seen!
Had opened an account years ago, never used it until now.
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Old 12-03-2013, 11:33 AM   #37
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According to bankrate.com, the next highest yielding 5 year CD is with "Virtual Bank", at 2%. The PenFed rate is 50% higher than the next highest rate. I find this highly unusual, and something tells me it may go away soon. Perhaps they are trying to attract money to the bank, but I suspect it will come in very quickly, and once they reach the amount they were looking for, I expect they will withdraw the offer. I still think it may be a while before we see 3%+ rates widely available again from banks or credit unions.

I took all of my emergency savings that was not already in CDs and transferred it to PenFed this morning. I already have a car loan with them, so it was pretty easy to do. Funny thing is my car loan is only at 1.99%. I can't even justify paying it off early with the money I had in local savings with these CD rates available.
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Old 12-03-2013, 11:41 AM   #38
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According to bankrate.com, the next highest yielding 5 year CD is with "Virtual Bank", at 2%. The PenFed rate is 50% higher than the next highest rate. I find this highly unusual, and something tells me it may go away soon. Perhaps they are trying to attract money to the bank, but I suspect it will come in very quickly, and once they reach the amount they were looking for, I expect they will withdraw the offer. I still think it may be a while before we see 3%+ rates widely available again from banks or credit unions.
I have had the same thoughts. I see people shrieking about 3% all over the interwebs, so I imagine the hot money is pouring in. They will likely pull the plug on this before the end of the month.
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Old 12-03-2013, 12:05 PM   #39
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Hmmmm.... maybe I should call them and split up the CD's a bit more.... now I'm scrambling to see if any other free money. If the rates will only hold out until my company sale closes (hopefully by end of January), that would be sweet as I will have alot more to invest.

Fingers crossed!

Deb
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Old 12-03-2013, 02:01 PM   #40
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I have had the same thoughts. I see people shrieking about 3% all over the interwebs, so I imagine the hot money is pouring in. They will likely pull the plug on this before the end of the month.
I asked about this and the rep I had said the rate would be there until the end of January. That said...they could pull it at any time.
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