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PenFed 2.02% 5-yr CD
Old 10-03-2013, 08:14 AM   #1
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PenFed 2.02% 5-yr CD

Once again available. Terms are not as generous as they used to be, with a one year interest forfeit for early redemption, but still ...
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Old 10-03-2013, 09:13 AM   #2
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Its a lot better than a 5 year treasury, but not exactly thrilling. They must be worried about rate spikes to push the penalty up that much.
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Old 10-03-2013, 10:56 AM   #3
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Its a lot better than a 5 year treasury, but not exactly thrilling. They must be worried about rate spikes to push the penalty up that much.
That's a hint that going shorter term might be a good idea.

Ask me in two years...
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Old 11-12-2013, 11:50 AM   #4
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Thinking about the 2.02% APR 3-year, which has a 180 day early withdrawal penalty in lieu of 2016/2018 target date maturity bond funds that are part of my fixed income portfolio.

Higher yield (vs 0.8%/1.8%), no credit risk (+FDIC insurance) and no interest rate risk.

Am I missing anything? Never done business with PenFed - good experiences? Any bad experiences?
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Old 11-12-2013, 12:06 PM   #5
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I'm glad I have a Stable Value fund in my 457 account.

It's returning 2.6% (2.2% after expenses)
It grows tax deferred.
I can make withdrawals as soon as I leave my current job.

I have 11% of my portfolio in there right now to provide income from 52.5 to 59.5.
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Old 11-12-2013, 12:17 PM   #6
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Thinking about the 2.02% APR 3-year, which has a 180 day early withdrawal penalty in lieu of 2016/2018 target date maturity bond funds that are part of my fixed income portfolio.

Higher yield (vs 0.8%/1.8%), no credit risk (+FDIC insurance) and no interest rate risk.

Am I missing anything? Never done business with PenFed - good experiences? Any bad experiences?
They are fine for CDs.
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Old 11-12-2013, 12:21 PM   #7
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They are fine for CDs.
+1. They are not exactly the most technology-forward company, but my experience has generally been good.
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Old 11-12-2013, 12:32 PM   #8
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Once again available. Terms are not as generous as they used to be, with a one year interest forfeit for early redemption, but still ...
Should you be locking in 2.02% right now?
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Old 11-12-2013, 12:35 PM   #9
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Should you be locking in 2.02% right now?
Actually Pen Fed is running a CD special right now where they offer this rate on 3 and 4 year CDs. The 3 and 4 year flavors only have a 6 month interest penalty, which is a much more attractive deal IMO.
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Old 11-12-2013, 02:15 PM   #10
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I sold some short-term munis last week and used the proceeds for one of these 3 year CDs. Too good to pass up for near-term savings.
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