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]

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

and who has this right now

 

[cbslc]

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]

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]

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/banks/pentagon-fcu/offers/

 

[kaneohe]

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]

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]

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%.

 

[njhowie]

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

WOW!!!! Grab them!

 

[ShokWaveRider]

4% is my DREAM Lock up funds forever rate.

 

[jim584672]

Today the 5 year Treasury is at 2.72%.
Almost getting to the magic 3%, with no state income tax on it.

 

[ripper1]

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

What...where?

 

[ripper1]

4% is my DREAM Lock up funds forever rate.

Wow, and I remember passbook getting 5.5%