PenFed 2.02% 5-yr CD

[braumeister]

Once again available. Terms are not as generous as they used to be, with a one year interest forfeit for early redemption, but still ...

 

[brewer12345]

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.

 

[Gearhead Jim]

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...

 

[pb4uski]

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?

 

[nun]

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.

 

[brewer12345]

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.

 

[FIREd]

They are fine for CDs.

+1. They are not exactly the most technology-forward company, but my experience has generally been good.

 

[nun]

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?

 

[brewer12345]

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.

 

[mrfeh]

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.