PFCU Alert

[MJ]

PenFed (PFCU) 3, 4, 5 year CD rates are currently at 5.83% 6% APY

Nice if you're interested in some laddered CDs.

[Nords]

Quote:

Originally Posted by vagabond PenFed (PFCU) 3, 4, 5 year CD rates are currently at 5.83%* 6% APY Nice if you're interested in some laddered CDs.

Dammit, time to do the math with NFCU's 5% five-year CD, purchased just 13 months ago.

That didn't take long...

[lazyday]

Amazing they're able to offer more than 100 basis points over Treasuries.

And, you can even withdraw early with a 6 month interest penalty, or apparently no penalty in IRA if over 59.5.

This is really tempting to me, but would only be a tiny part of my portfolio since I'm only 10% fixed income, and want most of that to be liquid. Would be a nuisance in a stock market crash to withdraw, pay penalty, and wait for the transfer to complete so I can buy equities.
PFCU also "reserves the right to require a written notice of up to 60 days of intention to withdraw from your IRA Share account" but I'm not sure if that applies to the certificates, which don't seem to be in the Share account?

I'll probably stick to a mix of T-bills and TIPS for now (perhaps moving to all TIPS, or to TIPS+short term Treasuries, depending on rates) but think these can make great sense for many people. Especially those over 57 or so years old.