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PenFed 5yr CD at APY 3.04%
Old 04-17-2018, 09:30 AM   #1
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PenFed 5yr CD at APY 3.04%

I know and remember a lot of us took advantage of the PenFed 5 yr CD that was offered about 4 1/2 years ago. Just curious as to what others plan to do when they come due this fall or early winter? I have a local bank that currently is offering a 5 yr. Cd at 3.00%. It may still be there when my CD's come due in December of 2018 but I don't know if going out another 5 years in a rising interest rate environment is the wise thing to do.
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Old 04-17-2018, 09:32 AM   #2
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I might go out 2 years for 3%.

But, don't go by me. I have been consistently wrong about interest rates since 2010.
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Old 04-17-2018, 10:13 AM   #3
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Yep, I took advantage of that PenFed 3.04% CD 4 1/2 years ago also. When it comes due, I will probably just shop around for the best rate I can get on a CD with a term of around 2 years. My crystal ball says that interest rates are not going to rise all that much over the next couple years, but of course I could be all wrong. I wouldn't go out 5 years right now with a CD, though (unless I got a GREAT rate)..........too much can change in 5 years time.
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Old 04-17-2018, 10:35 AM   #4
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With PMMF getting 1.77% these days and bumping up several bps weekly, going out 5 years for just 3.04% isn't that attractive to me, but I bet others will like it.
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Old 04-17-2018, 10:38 AM   #5
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Don't overthink. Just get the best rates at the time. Be sure and read. What is the EWP.
If rates continue to rise. Just pay the penalty and get a new CD.
Some EWP are small. Some are "huge", so read the rules before you open a new CD!
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Old 04-17-2018, 10:57 AM   #6
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Probably put mine in my CapOne MM acct getting 1.5%, if I don't find something better. I don't want to lock it up for 5 years.
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Old 04-17-2018, 11:23 AM   #7
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Just like the equity side I don't try to time interest rates. New funds are added evenly to my rolling 5 year CD ladder. Who knows where interest rates will be in a few years?
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Old 04-17-2018, 01:18 PM   #8
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A 3% 5 year CD with a 6 month early term penalty sounds pretty good to me.
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Old 04-17-2018, 02:33 PM   #9
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A 3% 5 year CD with a 6 month early term penalty sounds pretty good to me.
and who has this right now
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Old 04-17-2018, 02:36 PM   #10
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and who has this right now
There are a couple credit unions near me that have 3% 60 month with a 1 time bump.
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Old 04-17-2018, 02:38 PM   #11
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and who has this right now
There are 8 credit unions on www.depositaccounts.com that have a 3% 5 year CD. I haven't checked the early term penalties on all of them, but I did open an account with Utah First, which does have the 6 month penalty.
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Old 04-17-2018, 02:40 PM   #12
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Don't overthink. Just get the best rates at the time. Be sure and read. What is the EWP.
If rates continue to rise. Just pay the penalty and get a new CD.
Some EWP are small. Some are "huge", so read the rules before you open a new CD!
old but very sound advice. PenFed EWP are amazingly harsh https://www.depositaccounts.com/bank...on-fcu/offers/
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Old 04-17-2018, 02:48 PM   #13
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There are 8 credit unions on www.depositaccounts.com that have a 3% 5 year CD. I haven't checked the early term penalties on all of them, but I did open an account with Utah First, which does have the 6 month penalty.
Thanks for the info. The EWP for Utah First is not listed but looks like Quorum also has 6mo. penalty. Most of the others look like a yr EWP.
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Old 04-17-2018, 03:19 PM   #14
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A local CU, not on depositaccounts or bankrate etc. Had a 2yr, 3% about six weeks ago. Advertised in the newspaper
I jumped on it. Freedom Cu, in PA.
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Old 04-17-2018, 03:43 PM   #15
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The PenFed early withdrawal penalty got complicated.

We’ll see what happens when mine mature in December. I’ll probably pull the cash back into the brokerage and look at CDs and t-bills from there.
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Old 04-17-2018, 04:35 PM   #16
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I also have CD's at Penfed @ 3.04%. Some maturing in December, some in January 2019. Hopefully rates will be a little higher by then, but I will likely reduce the maturity given the current state of the yield curve.
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Old 04-17-2018, 05:08 PM   #17
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I saw a billboard today for a local bank offering 2.2% savings account with min: $100. No term mentioned.
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Old 04-17-2018, 05:51 PM   #18
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I have an add-on CD at NFCU that will get me 2.7% for 20 months. I'll use that unless some better terms become available. Too early for me to get concerned.
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Old 04-18-2018, 06:07 AM   #19
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Quote:
Originally Posted by Ready View Post
A 3% 5 year CD with a 6 month early term penalty sounds pretty good to me.
Pro-rate the penalty as APY over the period being considered and then deduct it from what you've already received up to the point of terminating and/or the term of the new CD you are considering - depending on how you want to view the impact. I don't think it is a good deal. On the other hand, if we're talking about a no penalty CD, wonderful.

If there is a penalty and you believe there is the potential for needing to get out early, then it's more likely a better plan to just get a CD of a shorter term.
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Old 04-18-2018, 06:27 AM   #20
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Originally Posted by ripper1 View Post
I know and remember a lot of us took advantage of the PenFed 5 yr CD that was offered about 4 1/2 years ago. Just curious as to what others plan to do when they come due this fall or early winter? I have a local bank that currently is offering a 5 yr. Cd at 3.00%. It may still be there when my CD's come due in December of 2018 but I don't know if going out another 5 years in a rising interest rate environment is the wise thing to do.


My credit union this month has a 14 month CD at 3.0% and 24 month at 4.0%.
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