New at PenFed - 3% 5yr certificates

[John Galt III]

Is the online process at PenFed straightforward when opening more than one CD?

I have already opened an account with PenFed, and I'll be using external funding with ACH for the cd's.

These will all be non-IRA regular taxable cd's.

Thanks

 

[sheehs1]

Is the online process at PenFed straightforward when opening more than one CD?

I have already opened an account with PenFed, and I'll be using external funding with ACH for the cd's.

These will all be non-IRA regular taxable cd's.

Thanks

It was straightforward for me John Galt III. I opened 4 at the same time. NO problem with limits or anything but I'd had a share account for a couple of years (only $5.00 in it...never funded it with anything else0.

 

[Willers]

I opened a number of non-IRA CD's and was able to do it all online without any issues. You do have the already mentioned paperwork come to you to sign, but it was very easy.

 

[Lyle]

I purchased 4 CD's over the phone 2 days ago. No problems. Customers service was helpful and it was quick and easy.

 

[JOHNNIE36]

I just purchased six CD's today. Simple and easy so far. I talked to three different agents at PenFed at different times and they couldn't have been more helpful. The whole process of PenFed electronically requesting the funds from my bank is in the works but might take a couple days. I heard this is a normal time frame as I have made transfers myself electronically and it has taken three days. Keeping my fingers crossed. PenFed agent said the 3.04% rate is good through January 31.

I asked PenFed about doing an IRA rollover from my bank to them and they said it is not a problem. Just call them when the time comes (March). They agreed that it is better for me to stay out of that process (rollovers) and use them as the custodian.

 

[jazz4cash]

That's different. Every time you open a CD with PenFed, you will have to sign and return a certificate agreement, whether you are a new client or not. It's a bit old school but really no bother at all. It has nothing to do with ACH transfers.

That has not been my experience. They mailed me a confirmation notice but nothing that I had to sign and mail back. I have been a member for many years. I keep an IRA share account open with $2 in it. I went into the branch with a check from my 401k payable to "Penfed Trustee IRA" with "FBO: My Name" in the memo section and marked "Rollover". They used an IRA Voucher Form #734 ....took 10 min. The deposit showed up immediately in my IRA share account and the following day the CD was established. The form has multiple lines if you wish to purchase individual CDs. I had looked all over thier website for the correct form and only found the form for new IRAs. When I got back home I checked again and sure enough the voucher was in the forms section.

 

[FIREd]

That has not been my experience. They mailed me a confirmation notice but nothing that I had to sign and mail back. I have been a member for many years. I keep an IRA share account open with $2 in it. I went into the branch with a check from my 401k payable to "Penfed Trustee IRA" with "FBO: My Name" in the memo section and marked "Rollover". They used an IRA Voucher Form #734 ....took 10 min. The deposit showed up immediately in my IRA share account and the following day the CD was established. The form has multiple lines if you wish to purchase individual CDs. I had looked all over thier website for the correct form and only found the form for new IRAs. When I got back home I checked again and sure enough the voucher was in the forms section.

If you open the CD in person at the branch (where they can check your ID), the procedure is probably different. I opened a dozen CDs online with Penfed over the past 3+ years, and had to sign and mail back the CD agreement form every single time.

 

[Newventurer]

Interesting, I opened the required share account with $5.00 and was told that I could only transfer a maximum of $25,000 a day, so I had to do multiple transfers over multiple days. I have received a few of them but am missing one. Need to check with them next week.

 

[Hermit]

That has not been my experience. They mailed me a confirmation notice but nothing that I had to sign and mail back. I have been a member for many years. I keep an IRA share account open with $2 in it. I went into the branch with a check from my 401k payable to "Penfed Trustee IRA" with "FBO: My Name" in the memo section and marked "Rollover". They used an IRA Voucher Form #734 ....took 10 min. The deposit showed up immediately in my IRA share account and the following day the CD was established. The form has multiple lines if you wish to purchase individual CDs. I had looked all over thier website for the correct form and only found the form for new IRAs. When I got back home I checked again and sure enough the voucher was in the forms section.

Thanks for the document jazz4cash. I'll use it when I get the transfers straightened out with my 401k.

 

[kaneohe]

If you open the CD in person at the branch (where they can check your ID), the procedure is probably different. I opened a dozen CDs online with Penfed over the past 3+ years, and had to sign and mail back the CD agreement form every single time.

IRA CDs, perhaps because the titling can only be in individual name, you don't have to send anything back. Taxable account CDs, perhaps because you can title as jt, trust, etc. you have to send a form back.

 

[JOHNNIE36]

As noted in a prior post, I just invested in six "CD's" for five years. I suppose it's a play on words and I got caught up in it also. Today I accessed the website and for the first time noticed that those certificates are called "money market certificates" and not "CD's". I looked all over the site and could not find the words Certificate of Deposit. I don't care as long as those certificates are insured (and they are by the National Credit Union Assoc) but I for one will stop referring to those certificates as CD's. They are MMC's

 

[jetpack]

Any word on if PenFed will continue these rates into Feb?

 

[Newventurer]

Just talked with them, they said the new rate sheet should be out by Friday, or Saturday at the latest.

 

[Sarpy]

Well, I waited til the 11th hour almost, but just joined today as a member for a contribution and a $5 share balance. In all, took about 20 minutes, but I already have the certificates in my account online.

Interestingly, they asked for permission to run a credit report because of money laundering and terrorism risks. Also, I was asked if I'd be interested in information about car loans, and I said sure, though I'm not in the market for a new car just yet. About an hour later, I received an email from _Enterprise_ saying they had heard from a partner credit union that I may be interested in purchasing a new car and offered their services.

 

[Katsmeow]

Well my money that I was sending to Penfed (this is from an IRA) at Vanguard left Vanguard middle of last week but hasn't yet shown up at Penfed. I'm thinking it should be there any day now....

 

[tulak]

Well my money that I was sending to Penfed (this is from an IRA) at Vanguard left Vanguard middle of last week but hasn't yet shown up at Penfed. I'm thinking it should be there any day now....

Dang, I'm cutting it close. My check left Vanguard Monday. I hope it makes it by the end of the week.

 

[scrinch]

There aren't many places to keep cash now that earn 3% (that's a sad thing to say!). If you want to keep cash for 5+ years, then you can keep it in a <1% money market account now and hope for better later, or you can lock in 3% and not worry about managing that money for the next 5 years.

We got our certificate worked out last week after using the web, the phone, and the USPS.

 

[calmloki]

I'm a huge fan of RE notes: we are carrying the paper on two places we sold right now at 7%, as well as having a couple short term loans to flippers at 10 and 12%. We are entertaining a sale offer on some small old units that would bring 6% with an early repayment penalty in the contract. We also lost a year's worth of living costs when we went through a company that invested our money in RE loans for us. We have money in PenFed MMCs also.

 

[John Galt III]

Finally got my certificates squared away. Used ACH from another credit union (no fees ) to penfed. Never used ACH before.

Had one sort of glitch. I had conflicting answers from different penfed CSR's about whether I could break up my initial ACH transfer into smaller certificates. Ended up with multiple certs, so all is well.

 

[adrift]

Does Pen Fed offer partial withdrawal?

If it is an IRA, yes.

(2) Partial withdrawals may be made, subject to early withdrawal penalties as described in paragraph (g) below, providing the requested withdrawal amount does not reduce the original issue below a minimum of $1,000 for 1-, 2-, 3-, 4-, 5-, or 7-year IRA Certificates, in which case the funds will be transferred to the IRA Share account.

(3) Exceptions. The penalties described above will not be applied if the withdrawal is made:
...
(iv) If the owner has reached age 59½ and takes a partial withdrawal

A few days ago, my 6.25% 7-year PenFed Certificate matured.

I'm currently 57½. I confirmed with two separate CSR's that once I turn 59½, I can take a partial withdrawal without penalty.

Based on this, I chose the 7-year Certificate instead of the 5-year. I'm only tying up $1,000 to insure the 3% rate for years 6 and 7.

 

[jazz4cash]

If it is an IRA, yes.

A few days ago, my 6.25% 7-year PenFed Certificate matured.

I'm currently 57½. I confirmed with two separate CSR's that once I turn 59½, I can take a partial withdrawal without penalty.

Based on this, I chose the 7-year Certificate instead of the 5-year. I'm only tying up $1,000 to insure the 3% rate for years 6 and 7.

That was very clever....Thanks for posting. I never thought of trying to do that and I am in almost exactly the same situation as you (6.25 certificate matured today). I just checked Penfed online (9;50pm) and they have not rolled the current certificate over so I was able to change the maturity to 7yrs. I had a missing rung in my CD ladder at 6 yrs so now it is filled, assuming they honor the after hours change request.

 

[Ready]

The check that Vanguard mailed on Friday showed up at PenFed today. However, when I logged in to my account, the check showed it was deposited into an IRA Share Account, which is basically just a savings account at a very low interest rate. I had requested a 5 year CD at 3%. The person on the phone put in the request to transfer the funds into a CD and assured me it would take effect as of today, but it could take a few days before the transfer takes place because they are backlogged.

So, the lesson here is to check the web site and make sure they post the check into the type of account you really requested. Otherwise you might earn a much lower rate than you expected.

Speaking of rates, the agent confirmed they will not know the new rates until February 1st.

 

[jazz4cash]

The check that Vanguard mailed on Friday showed up at PenFed today. However, when I logged in to my account, the check showed it was deposited into an IRA Share Account, which is basically just a savings account at a very low interest rate. I had requested a 5 year CD at 3%. The person on the phone put in the request to transfer the funds into a CD and assured me it would take effect as of today, but it could take a few days before the transfer takes place because they are backlogged.

So, the lesson here is to check the web site and make sure they post the check into the type of account you really requested. Otherwise you might earn a much lower rate than you expected.

Speaking of rates, the agent confirmed they will not know the new rates until February 1st.

I think this is normal. My experience has been all deposits for IRA CDs go into an IRA share account and then get moved into the requested CD's. I took my check into the branch and the deposit showed up immediately in my IRA share account and the CD showed up the following day. I would not worry at all, but I would check back to verify the funds eventually make there way into the requested CDs. I keep an IRA savings account open with a few dollars in it to facilitate this process.

 

[Ready]

I think this is normal. My experience has been all deposits for IRA CDs go into an IRA share account and then get moved into the requested CD's. I took my check into the branch and the deposit showed up immediately in my IRA share account and the CD showed up the following day. I would not worry at all, but I would check back to verify the funds eventually make there way into the requested CDs. I keep an IRA savings account open with a few dollars in it to facilitate this process.

OK, that makes me feel better - thanks!

 

[tulak]

I think this is normal. My experience has been all deposits for IRA CDs go into an IRA share account and then get moved into the requested CD's. I took my check into the branch and the deposit showed up immediately in my IRA share account and the CD showed up the following day. I would not worry at all, but I would check back to verify the funds eventually make there way into the requested CDs. I keep an IRA savings account open with a few dollars in it to facilitate this process.

I wonder if these means funds that PenFed receives Friday won't actually be used to purchase CDs on Friday? My funds are still somewhere between Vanguard and PenFed and I'm guessing that they'll show up on Friday. The check was sent from Vanguard on Monday. I'm hoping if that's the case, I can still get the 3% rate. I'll probably try calling PenFed tomorrow to get an update.