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PEN FED Share Certificates at it again
Old 12-27-2012, 09:00 AM   #1
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PEN FED Share Certificates at it again

PENFED FCU is now offering 1.5 percent 2 yr certificates and 1.75 percent 3 year certificates. Who would have thought that these rates would look attractive a few years ago.
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Old 12-27-2012, 09:27 AM   #2
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Originally Posted by jimnjana View Post
PENFED FCU is now offering 1.5 percent 2 yr certificates and 1.75 percent 3 year certificates. Who would have thought that these rates would look attractive a few years ago.
I've considered laddering these for the cash portion of our AA. Does anyone have any experience with them?
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Old 12-27-2012, 04:05 PM   #3
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i have used Penfed CDs for 5+ years ... no problems (except the current rates).
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Old 12-27-2012, 06:53 PM   #4
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I've considered laddering these for the cash portion of our AA. Does anyone have any experience with them?
They're a perennial favorite with this board's posters. Anyone can join PenFed.

We have our daughter's college fund in PenFed CDs, as well as a chunk of our ER portfolio's spending cash.

You need to be the type of investor who can do it all online through PenFed's website. It's an excellent website, but they've put all of their money into that and nothing into personal assistance. PenFed's customer service is as cheap as Vanguard, only the quality is even worse. They were completely unable to figure out how to handle my conservator's attempts to invest my father's money in their CDs-- twice.
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Old 12-28-2012, 10:51 PM   #5
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Penfed CDs (thanks to this board's recommendations) saved my butt during the Great Recession--I went to 20% stocks in early 2007 and put the rest of my taxable money in Penfed 7-year CDs paying 6.25%. It sure is going to be a shock in 2014 when the CDs mature and I'll have to reinvest in a low-rate environment, but I guess the bright side is that I won't have to pay as much in yearly tax on all the CD income.

The other good thing about Penfed is that you can funnel CD income into their money market fund and instantly transfer it to pay off a Penfed credit card (5% on gas, 3% on groceries, 1% on everything else, points redeemed as VISA debit card or Amazon gift card).
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Old 12-29-2012, 08:12 AM   #6
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Penfed CDs (thanks to this board's recommendations) saved my butt during the Great Recession--I went to 20% stocks in early 2007 and put the rest of my taxable money in Penfed 7-year CDs paying 6.25%. It sure is going to be a shock in 2014 when the CDs mature and I'll have to reinvest in a low-rate environment, but I guess the bright side is that I won't have to pay as much in yearly tax on all the CD income.

The other good thing about Penfed is that you can funnel CD income into their money market fund and instantly transfer it to pay off a Penfed credit card (5% on gas, 3% on groceries, 1% on everything else, points redeemed as VISA debit card or Amazon gift card).
I am still crying over a 5% CD I saw in late 07 but did not buy. I thought at the time 5% was not high enought to lock in for seven years. Where is that time machine?
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Old 12-29-2012, 08:38 AM   #7
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PFCU is the best. We have been with them for many years now, and have several CD's, credit card, and mortgage with them. Their customer service is fantastic!
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Old 12-29-2012, 10:47 AM   #8
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I am still crying over a 5% CD I saw in late 07 but did not buy. I thought at the time 5% was not high enought to lock in for seven years. Where is that time machine?
They had a 10 year 5% CD the first of 2011 that I jumped on. Of course that rate may not look so good a few years from now. I cried when my 6.25% CD matured a year or so ago. I elected a 5 year term when I could have locked it in for 7 years at the time.

Oh well......you just never know.
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Old 12-29-2012, 11:23 AM   #9
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Anything to look out for if I move some IRA cash to a new PenFed IRA? Bad/good/same-as-above experiences specific to IRAs, anyone?
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Old 12-29-2012, 11:28 AM   #10
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In addition to regular CDs we have ROTH and traditional CDs at PFCU. As I noted above, excellent service.
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