PenFed 5yr CD at APY 3.04%

[ripper1]

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.

[Chuckanut]

I might go out 2 years for 3%.

But, don't go by me. I have been consistently wrong about interest rates since 2010.

[RAE]

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.

[mickeyd]

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.

[wolf]

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!

[RunningBum]

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.

[foxfirev5]

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?

[Ready]

A 3% 5 year CD with a 6 month early term penalty sounds pretty good to me.

[kaneohe]

Quote:

Originally Posted by Ready A 3% 5 year CD with a 6 month early term penalty sounds pretty good to me.

and who has this right now

[cbslc]

Quote:

Originally Posted by kaneohe and who has this right now

There are a couple credit unions near me that have 3% 60 month with a 1 time bump.

[Ready]

Quote:

Originally Posted by kaneohe 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.

[kaneohe]

Quote:

Originally Posted by wolf 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/

[kaneohe]

Quote:

Originally Posted by Ready 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.

[Henry Lili]

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.

[audreyh1]

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.

[copyright1997reloaded]

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.

[Bflotomny]

I saw a billboard today for a local bank offering 2.2% savings account with min: $100. No term mentioned.

[jazz4cash]

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.

[njhowie]

Quote:

Originally Posted by Ready 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.

[Al in Ohio]

Quote:

Originally Posted by ripper1 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%.