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12-30-2004, 10:00 AM
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#1
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Thinks s/he gets paid by the post
Join Date: Mar 2004
Posts: 2,341
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PFCU CD Alert
Just visited their site and their 5 year CD jumped back up to 5.25% APY with a 6 month early withdrawal penalty.
I put a nice chunk of money in their 5 year 5.25% last Feb/2004.
Then they dropped the rate to either 3.50% or 3.75% APY, I believe in April.
Now it's up again. Real manic depressive org.
I am wondering if that CD rate is still a good place to park some IRA money still?
https://www.penfed.org/index.asp
MJ
__________________
I look to the present moment because that's where I live my life.
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12-30-2004, 10:37 AM
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#2
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Full time employment: Posting here.
Join Date: Sep 2003
Posts: 902
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Re: PFCU CD Alert
Thanks MJ. I too took advantage of the 5.25% rate last spring. I'm going to put some in again. I see it is effective today until 1/26/2005.
By the way, I was able to gain access to PenFed by joining the National Military Family Association. I paid $20 last spring to join NMFA. At the time I asked PenFed if I must remain a dues paying member of NMFA in order to remain with PenFed. I don't. Once I'm a PenFed member, I remain so.
I have been happy with them - no problems encountered to date. They do require that you contact them every six months to verify your address; that's in the fine print. If you don't, they say that they will zing you with a fee. That is a strange requirement, but I handle it sending an email in January and July. That has worked fine. I suspect their military members move a lot, and they don't want to be tracking people down.
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12-30-2004, 02:29 PM
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#3
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Full time employment: Posting here.
Join Date: Nov 2003
Posts: 578
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Re: PFCU CD Alert
Tempting......but I think that 5 years in today's world is a looong time. Considering the state of economy, deficits, dollar, I am a little hesitant to lock-in for 5 years. However, after reading this, I sold all of my short-term bonds in my taxable account with the goal of re-investing into some type is fixed security that is less interest-rate sensitive. Not a lot of choices unless I commit to this type of "short term" instrument. What are my other choices?? ER'd at 52, now 54 and need to supplement pension with something in this account for next 6 years.
Do anyone else see 5 years as "long" today??
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12-30-2004, 02:59 PM
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#4
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Re: PFCU CD Alert
I see 5 years as a very long time in terms of my
remaining enjoyable life span. It does not concern me
in terms of investing my "forever money" though. I think I am out 25 years on some stuff. I do not expect to have to
worry about what to do at maturity.
JG
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12-30-2004, 03:01 PM
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#5
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Re: PFCU CD Alert
Quote:
Tempting......but I think that 5 years in today's world is a looong time. Considering the state of economy, deficits, dollar, I am a little hesitant to lock-in for 5 years. However, after reading this, I sold all of my short-term bonds in my taxable account with the goal of re-investing into some type is fixed security that is less interest-rate sensitive. Not a lot of choices unless I commit to this type of "short term" instrument. What are my other choices?? ER'd at 52, now 54 and need to supplement pension with something in this account for next 6 years.
Do anyone else see 5 years as "long" today??
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If there is only a 6 month early withdrawal penalty, the 'long' issue is non-existent.
The requirements for joining seem a bit odd though. Since this was supposedly 'related' to the military, I figured since I served 4 years active duty in the Navy, I would be eligible, but it looks like you have to join some right-wing organization to be admitted
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12-30-2004, 03:04 PM
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#6
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Re: PFCU CD Alert
If joining a right-wing organization is required,
my qualifying should be more or less automatic.
JG
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12-30-2004, 03:34 PM
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#7
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Thinks s/he gets paid by the post
Join Date: Mar 2004
Posts: 2,341
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Re: PFCU CD Alert
Quote:
They do require that you contact them every six months to verify your address; that's in the fine print.
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Thanks I know. I believe that accessing your account via the internet also works. I don't recall speaking to them for over 6 months.
Quote:
I'm going to put some in again. I see it is effective today until 1/26/2005.
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Unfortunately, I can't take advantage of this CD for my regular account as I nearly maxed out the 100K NCUA insurance. That's why I was asking about the rates for IRA so I might sock away some more money there.
MJ
__________________
I look to the present moment because that's where I live my life.
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12-30-2004, 07:30 PM
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#8
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Full time employment: Posting here.
Join Date: Dec 2004
Posts: 714
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Re: PFCU CD Alert
Cut-Throat, I agree with you ... seems to me the big "risk" is that in the year I pull the cash out early (if and when we do), I've made roughly 2.125% on our cash, instead of 5.25% ... about equal to or better than most MMA's. Feels like a no lose.
Wouldn't know about it, but for the tips here. Thanks.
Craig
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12-30-2004, 09:02 PM
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#9
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Thinks s/he gets paid by the post
Join Date: Dec 2003
Posts: 4,459
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Re: PFCU CD Alert
Quote:
Unfortunately, I can't take advantage of this CD for my regular account as I nearly maxed out the 100K NCUA insurance.
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If you're married, you can get up to $400K coverage. $100K for you, $100K for the spouse, and $100K each for a joint account.
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12-31-2004, 03:06 AM
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#10
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Thinks s/he gets paid by the post
Join Date: Sep 2002
Posts: 1,173
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Re: PFCU CD Alert
It seems like this rate is pretty good compared to others even though it is for 5 years. If you didn't need the money for at least 18 months wouldn't you be better off paying the 6 month penalty (after 18 months) as compared to getting say an 18 month rate? At Ent Federal credit union this rate is 1.84%.
Of course they also have a 1-yr CD for 3.25%
JDW
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12-31-2004, 03:16 AM
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#11
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Thinks s/he gets paid by the post
Join Date: Mar 2004
Posts: 2,341
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Re: PFCU CD Alert
Quote:
If you're married, you can get up to $400K coverage. $100K for you, $100K for the spouse, and $100K each for a joint account.
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Thanks but I am single. Best I can ever do is $100k personal + $100K IRA.
Can I setup a joint account for my multiple personalities? 8) :
MJ
__________________
I look to the present moment because that's where I live my life.
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12-31-2004, 06:41 AM
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#12
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Re: PFCU CD Alert
This is just slightly off topic, but has anyone else noticed that you can almost always beat the "best rates" at
bankrate.com with just a little bit of effort?
JG
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12-31-2004, 07:33 AM
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#13
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Re: PFCU CD Alert
Quote:
This is just slightly off topic, but has anyone else noticed that you can almost always beat the "best rates" at
bankrate.com with just a little bit of effort?
JG
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Yes, and I didn't have to look farther than calling a few local banks.
Do you know if http://bankrate.com has a financial relationship with the banks it lists? I see on their web site a form which banks can use to apply for registration. The form doesn't reveal if bankrate.com makes money from banks it lists at its web site.
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12-31-2004, 08:10 AM
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#14
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Thinks s/he gets paid by the post
Join Date: Mar 2004
Posts: 2,341
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Re: PFCU CD Alert
Don't forget that PFCU is a credit union and Bankrates.com does not list CUs currently.
Also for the last 8 months, PFCU had a dismal rate of either 3.50 % or 3.75% for the 5 year CD.
MJ
__________________
I look to the present moment because that's where I live my life.
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01-04-2005, 07:40 AM
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#15
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Re: PFCU CD Alert
MJ.
Actually, you can use bankrate.com to get credit union rates- it takes a little bit of extra work, but under "Savings" click on the credit union link and follow the links to find the so-called best CD rates. I noticed that PFCU was not listed..... even though it had better rates than any of the other credit unions. Interesting.
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01-04-2005, 11:18 AM
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#16
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Thinks s/he gets paid by the post
Join Date: Mar 2004
Posts: 2,341
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Re: PFCU CD Alert
Quote:
MJ.
Actually, you can use bankrate.com to get credit union rates- it takes a little bit of extra work, but under "Savings" click on the credit union link and follow the links to find the so-called best CD rates. I noticed that PFCU was not listed..... even though it had better rates than any of the other credit unions. Interesting.
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Thanks. The PFCU rates just went up so maybe they haven't caught up yet, though another CU in my area offering 4.60% isn't included either and they have had this rate for many months. I guess you get what you pay for.
MJ
__________________
I look to the present moment because that's where I live my life.
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01-06-2005, 04:53 AM
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#17
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2003
Posts: 18,085
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Re: PFCU CD Alert
Anyone looked at the safety of PFCU? How good is NCUA insurance compared with FDIC?
__________________
"All animals are equal, but some animals are more equal than others."
- George Orwell
Ezekiel 23:20
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01-06-2005, 05:32 AM
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#18
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Re: PFCU CD Alert
I just called Penfed and was inquiring about their 5 Year CD's. I had asked the question if it was better to buy 10- $5,000 CDs instead of 1 - $50,000 CD.
If you needed $5,000 cash, you would only have to pay the Penalty on 1 $5,000 CD instead of the entire $50,000 CD.
There is a minimum invest of $1,000. Their seems to be no advantage to Purchasing 1 CD over multiple ones. I'm thinking $5,000 would be the highest I would want to go.
Anyone else have any thoughts on this?
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01-06-2005, 06:02 AM
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#19
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2003
Posts: 18,085
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Re: PFCU CD Alert
CT, aside from any headaches related to account administration, sounds pretty reasonable.
BTW, I decided to satisfy my own curiosity about PFCU by looking at their latest call report. Penn Fed looks pretty healthy, makes plenty money, and if they ever converted to a bank, I'd be thrilled to be a shareholder.
__________________
"All animals are equal, but some animals are more equal than others."
- George Orwell
Ezekiel 23:20
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01-06-2005, 06:34 AM
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#20
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2003
Posts: 18,085
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Re: PFCU CD Alert
Quote:
Brewer,
Thanks for the comments!
Another Big Benefit at Penfed is that you can put your CD purchases on a Credit Card. They are treated just like a Purchase and not An Instant Cash Transaction!
After my Purchases this week, I'll get another First Class Ticket to Alaska ! *(Much better than a toaster! )
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Wow! Cool. I just submitted the joint application, so hopefully I will get the whole thing turned around in time to buy some 5 year paper at current rates. I wonder why they are hitting the ask right now. Perhaps part of a hedging program if rates rise? Their loan rates are very attractive, FWIW.
__________________
"All animals are equal, but some animals are more equal than others."
- George Orwell
Ezekiel 23:20
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