PenFed - How to move money efficiently to Vanguard, Fidelity or Schwab?

[ShokWaveRider]

I know a lot of us have PenFed CDs maturing soon. I have a whopper (for us, $xxx,xxx.xx) maturing in late December and 2 more in late February 2019. I have them going into our savings account at maturity. I am thinking of moving the first one to Vanguard VMMXX till I make a Decision on what to do with it. It is Cash as opposed to an IRA. We do not have a checking account at Vanguard.

I guess I have some questions, before I break down an call both institutions:

1) Does an ACH Transfer have a limit on the amount of funds that can be moved into Vanguard, when initiated from Vanguard?
2) Should I set up the Vanguard external account in anticipation of the move
so Vanguard can suck the money out, as PenFed has a $5k push limit?

I do not want to lose too many days with no returns once it matures. I assume some folks here would have experience with this type of thing?

Thanks in Advance for your thoughts.

 

[audreyh1]

I have encountered no ACH transfer limits when initiated from Fidelity to PenFed - well Fidelity has a $100K limit per transfer/day with external accounts.

 

[njhowie]

1) Does an ACH Transfer have a limit on the amount of funds that can be moved into Vanguard, when initiated from Vanguard?

From Bogleheads:

I don't know if you mean ACH transfers to Vanguard or in general. But I had to transfer the proceeds of a CD to Vanguard (in excess of 100K). I wondered if there was a limit so I called Vanguard. The rep said the 100K was "well within" their transfer limits.

2) Should I set up the Vanguard external account in anticipation of the move
so Vanguard can suck the money out, as PenFed has a $5k push limit?

Yes.

What is the maximum amount I can transfer?

There is an incoming and outgoing transfer limit of $5,000 per day and $50,000 per rolling 30 day period for transfers you initiate at PenFed.

If you would like to deposit more funds into your account please contact your other bank and send us a Wire or initiate a transfer at your other bank.

To withdraw more funds please initiate a transfer at your other bank, or call us to send a Wire.

 

[ShokWaveRider]

Thanks this was very helpful.

 

[MomintheSouth]

And PenFed changed their rules back in 2015 re: penalties for cashing in those CD's early. No incentive to stay there any longer. Their rates are not as competitive as they used to be. We're gone from PF when these CD's mature.

 

[ShokWaveRider]

And PenFed changed their rules back in 2015 re: penalties for cashing in those CD's early. No incentive to stay there any longer. Their rates are not as competitive as they used to be. We're gone from PF when these CD's mature.

Where do you plan on going?

 

[Henry Lili]

And PenFed changed their rules back in 2015 re: penalties for cashing in those CD's early. No incentive to stay there any longer. Their rates are not as competitive as they used to be. We're gone from PF when these CD's mature.

Same here. Gone when these mature in early Drcember. Pulling the funds either to Schwab or Ally. Both already connected to Pen Fed.

 

[MomintheSouth]

Won't know where they are going exactly until late December and we see what the Fed does and if there is further upward movement in CD rates. Credit unions generally have much better CD rates than banks or even brokerage CDs. Time will tell.

 

[pb4uski]

My tentative plan is to have the proceeds from my PenFed IRA CDs go into my Penfed IRA savings account when they mature and then initiate a transfer with Fido or Vanguard to have them draw the total from PenFed and deposit it in my Fido or Vanguard IRA. Make sense?

 

[REWahoo]

Make sense?

Yep. That's also my plan.

 

[ShokWaveRider]

I am certainly thinking about it as the Author of this Thread.

 

[adrift]

2) Should I set up the Vanguard external account in anticipation of the move
so Vanguard can suck the money out, as PenFed has a $5k push limit?

If you are planning to do this with Vanguard, do it well in advance. Vanguard does suck at this. I'm trying to set this up from Vanguard and another bank. So far, it's been a big fail. This is all because of Vanguard. It's been over a week and I'm still not able to even initiate the transfer yet.

I'm a big Vanguard fan, but, they are testing my loyalty with this.

 

[ShokWaveRider]

If you are planning to do this with Vanguard, do it well in advance. Vanguard does suck at this. I'm trying to set this up from Vanguard and another bank. So far, it's been a big fail. This is all because of Vanguard. It's been over a week and I'm still not able to even initiate the transfer yet.

I'm a big Vanguard fan, but, they are testing my loyalty with this.

The last time I did it to my regular daily use Credit union it was not too bad. But I will take your advice and initiate it today, I still have plenty of time.

 

[ShokWaveRider]

OK I initiated the process today, I will report back when it is complete.

 

[ShokWaveRider]

OK That took all of 1 day to complete. All DONE as of 10:10am this morning. The experiences above must have had some other reasons causing the hold up.

 

[ripper1]

Connexus 1-5 yr share certificates

 

[Carpediem]

What do y'all do with the accounts you're moving money from? Close them? If so, does that typically involve paperwork or are you able to do it online/over the phone?

 

[ShokWaveRider]

What do y'all do with the accounts you're moving money from? Close them? If so, does that typically involve paperwork or are you able to do it online/over the phone?

Don't really know. You need to keep $5 in the saving account. So if you take everything else out, I suppose you can call them and close it.

 

[REWahoo]

Any other PenFed members seeing a larger than usual volume of emails touting the programs, benefits and value of PenFed CU? I've received several such messages over the past few weeks, leading me to believe they are trying to stem the tide on the outflow of deposits as their great-at-the-time CD promotion from five years ago matures.

I say goodbye and good luck. Change your early termination policy back to something reasonable and I might reconsider.

 

[audreyh1]

Any other PenFed members seeing a larger than usual volume of emails touting the programs, benefits and value of PenFed CU? I've received several such messages over the past few weeks, leading me to believe they are trying to stem the tide on the outflow of deposits as their great-at-the-time CD promotion from five years ago matures.

I say goodbye and good luck. Change your early termination policy back to something reasonable and I might reconsider.

Yeah - that new early termination policy soured me good.

I have been getting a lot of emails from them.

 

[braumeister]

Why are you being so cynical? I thought they were just trying to tell me how much they love me.

Yeah, I'm not surprised that they're feeling a bit desperate right now looking at all those big outflows.

 

[ShokWaveRider]

I am not overly worried about EWPs. I never put money into a CD that I will need prior to maturity. Even if it was 6 months EWP on a 3%+ CD, I still would not take it out.

Perhaps they are anticipating rates soaring in the foreseeable future and want folks to stay at a lower rate? Either way one should review one's circumstances before buying a long term CD.

 

[ShokWaveRider]

Yeah, I'm not surprised that they're feeling a bit desperate right now looking at all those big outflows.

They need to put their rates up then to make it worthwhile. I would re-invest mine if they were 4%+

 

[jetpack]

Why don't have set up each certificate to automatically transfer when it matures?

"Close the certificate and transfer the funds to one of my accounts (select account below)"

 

[ShokWaveRider]

Why don't have set up each certificate to automatically transfer when it matures?

"Close the certificate and transfer the funds to one of my accounts (select account below)"

Not so easy for registered funds moving to another institution. PenFed needs a hard signature. Perhaps it could be arranged in advance. But a few days here or there does not really make that much of a difference.

I just checked with Vanguard and they are not a bank so they have no routing number, so you cannot setup the auto transfer from PenFed to Vanguard. But there are no limits on either side when Vanguard initiates an ACH transfer.