New at PenFed - 3% 5yr certificates

[Dreamer]

Thanks. I called up yesterday and bought some of these CDs. She also showed me where to print the forms to have 2 Roth IRAs CDs transferred to Penfed. I need to get those completed and call tomorrow to see if our credit union accepts faxed copies.

 

[Chuckanut]

How do people like the PenFed app?

 

[Sue J]

The app isn't slick or beautiful, but it gets the job done. You can see transaction history and transfer between accounts.

 

[Debinnov a]

The app isn't slick or beautiful, but it gets the job done. You can see transaction history and transfer between accounts.

Is this an android or apple app? I couldn't find it in google store?

 

[Sue J]

Mine is an Apple iPad app, there is also one for iPhone.

Or this is their mobile site -
https://smartphone.penfed.org/PFOL_Mobile/Logon.aspx?bhcp=1

 

[FIREd]

The app isn't slick or beautiful, but it gets the job done. You can see transaction history and transfer between accounts.

I agree. It's pretty basic but functional.

 

[tmm99]

i just noticed the new rates on penfed certificates (cds). I don't know if the shorter terms have also increased rates, but i'm certain that the 3% is new.

https://www.penfed.org/money-market-certificate/?wt.ac=1197

5 year and 7 year are at 3%. Early withdrawal penalties apply.

thank you!!!

 

[tmm99]

Yes, but a $15.00 donation to their favorite charity makes you an instant member.

Or ever donated blood for Red Cross.

 

[audreyh1]

thank you!!!

Yes, I think we all are feeling quite grateful to Sue J for the heads up last week.

 

[Sue J]

You're welcome!

I've gotten plenty of very good advice here so I'm glad to make a contribution. I'm not a very sophisticated investor, although I've ventured into some Vanguard funds. A nice 3% CD for the extra "mattress money" is an easy decision.

This was another find that I posted in 2010 -
http://www.early-retirement.org/forums/f28/penfed-cd-reservation-offer-51751.html

Ah, the good old days of 5%!

 

[FIREd]

You're welcome!

I've gotten plenty of very good advice here so I'm glad to make a contribution. I'm not a very sophisticated investor, although I've ventured into some Vanguard funds. A nice 3% CD for the extra "mattress money" is an easy decision.

This was another find that I posted in 2010 -
http://www.early-retirement.org/forums/f28/penfed-cd-reservation-offer-51751.html

Ah, the good old days of 5%!

I bought some of those 10-yr 5% CDs back in 2010 (thanks again for the FYI!). I wasn't sure it was a smart move at the time because a lot of people expected inflation to pick up, but it has paid off so far. Thanks to that Penfed offer, my CD ladder with an average maturity of 5.4 years still yields a decent 4%.

 

[CoolChange]

Or ever donated blood for Red Cross.

Is this serious or sarcastic? Did donating blood make me a member of the Red Cross?

I used to donate fairly regularly. But, they became reluctant to take my blood due to my international travel [-]a few[/-] many years ago. I am sure I did not keep anything they gave me to verify that I had given blood.

 

[tmm99]

Is this serious or sarcastic? Did donating blood make me a member of the Red Cross?

I used to donate fairly regularly. But, they became reluctant to take my blood due to my international travel [-]a few[/-] many years ago. I am sure I did not keep anything they gave me to verify that I had given blood.

No, I am completely serious. As soon as Sue said it was PenFed who had 5yr CD for 3%, I called them although I thought you had to have been in the military or something similar.

When I said I am not sure if I belong to any organization, one thing the rep asked me was exactly that (If I ever donated blood for Red Cross), as well as if I have donated money to Red Cross (which I have done in the past, so I said I had donated money to Red Cross in the past). I asked if I needed to produce the receipt (which would have taken me time since I used my mileage on the card that I have already closed to do the donation), she said No. Even if you haven't done either of these things, I think the rep said all you had to do was to pay $15 to become a member. (I could be wrong, but in the old days, they had tigher restrictions on who can become a member...)

 

[REWahoo]

Anyone willing to donate $15 or $20 to a charity can become a member of PenFed Credit Union. Click "Help me join another way" on this PenFed web page: https://netmember3.penfed.org/NetMember/Forms/OpenAccounts/Eligibility.aspx?MEMBERSHIP

 

[Chuckanut]

Thanks. I opened up a 5 year CD with money sitting around earning about 0.095%.

I am going to get more money to them in the next few days. However, since I am a new account the ACH transactions are limited to $50 a day. So, I have to call them and have PenFed initiate the transfer into a new CD. For some reason they do not trust me to deposit my money into their system.

 

[rbmrtn]

Thanks. I opened up a 5 year CD with money sitting around earning about 0.095%.

I am going to get more money to them in the next few days. However, since I am a new account the ACH transactions are limited to $50 a day. So, I have to call them and have PenFed initiate the transfer into a new CD. For some reason they do not trust me to deposit my money into their system.

When you open the CD online they can transfer directly from your account, you give then the account number and routing number. I didn't have any limitations when I did that.

 

[audreyh1]

Open the certificate and transfer the funds directly there from an outside account. Don't try to go through the PenFed checking account.

 

[Amethyst]

Gee, look at our excitement over 3% for 5 years! The thought of interest on savings staying below 3% for five more years is rather depressing. Unless it also means inflation stays low too.

Amethyst

 

[powerplay]

Gee, look at our excitement over 3% for 5 years! The thought of interest on savings staying below 3% for five more years is rather depressing. Unless it also means inflation stays low too.

Amethyst

It might be depressing to think that interest rates may not increase beyond the 3% in the next 5 years, but I am quite happy with the current CD offer at Pen Fed.

 

[REWahoo]

The thought of interest on savings staying below 3% for five more years is rather depressing. Unless it also means inflation stays low too.

+1

I cannot imagine the economic circumstances that would result in high inflation and low interest rates. Holding rates low while inflation rages would be pouring fuel on the flames - literally.

 

[Chuckanut]

Thanks for the advice. Soon I will be raking in the big $$'s thanks to PenFed and all this good advice.

Sue J, you are a legend in your own time. I can see the headlines now in the Wall Street Journal:

Sue J single handedly responsible for dramatic income rise in retired population.

Web poster adds hundreds of thousands of dollars to retirees' net worth.

 

[calmloki]

....

Sue J single handedly responsible for dramatic income rise in retired population.

Web poster adds hundreds of thousands of dollars to retirees' net worth.

Hundreds of thousands? You mean in the retirees as a group or are those retirees choking horses with the roll of bills they are putting into certificates?

Now here's something I'm considering: Let's say I have a $100k 5/5 mortgage on my house that I took out with PenFed 1.5 years ago. The interest rate on that is 3%.

PenFed is offering their current no cost 5/5 home loan for 2.625%, though there are extra hoops a current PenFed mortgage holder has to jump through (middle of last year you had to borrow $50k more than the current loan and the new loan had to be 80% LTV). If one could meet PenFed's conditions for a 5/5 loan is there any reason NOT to make a new 5/5 loan, paying less interest than one is making on the certificates and moving the payoff date out another year or so? $375 interest savings/$100k/year?

 

[sheehs1]

No, I am completely serious. As soon as Sue said it was PenFed who had 5yr CD for 3%, I called them although I thought you had to have been in the military or something similar.

When I said I am not sure if I belong to any organization, one thing the rep asked me was exactly that (If I ever donated blood for Red Cross), as well as if I have donated money to Red Cross (which I have done in the past, so I said I had donated money to Red Cross in the past). I asked if I needed to produce the receipt (which would have taken me time since I used my mileage on the card that I have already closed to do the donation), she said No. Even if you haven't done either of these things, I think the rep said all you had to do was to pay $15 to become a member. (I could be wrong, but in the old days, they had tigher restrictions on who can become a member...)

All I had to say when I opened the membership account a few years ago (thanks to this forum) was "my father was in the Korean war".

My response was to the customer service rep asking me if anyone in my family was military or had served in the military.

 

[calmloki]

All I had to say when I opened the membership account a few years ago (thanks to this forum) was "my father was in the Korean war".

My response was to the customer service rep asking me if anyone in my family was military or had served in the military.

They must have eased up - my Navy service during the Vietnam unpleasantness didn't qualify me, but a contribution to the Military Families group did.

 

[sheehs1]

They must have eased up - my Navy service during the Vietnam unpleasantness didn't qualify me, but a contribution to the Military Families group did.

I just checked my original paperwork and I opened the Share Account in October of 2009. So either they have eased up as you said calmloki or the financial crisis had them relaxing their criteria at that time. Hard to imagine with your Navy service, you had to make an additional contribution.