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03-04-2018, 09:55 AM
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#21
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Thinks s/he gets paid by the post
Join Date: Dec 2004
Location: Minneapolis
Posts: 4,455
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Our 5 year CD at Penfed will due in 1/31/19. I am thinking about rolling over to a one-year CD @2.07% when it is due. There are plenty of time before making any kind of decision.
__________________
May we live in peace and harmony and be free from all human sufferings.
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03-04-2018, 10:00 AM
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#22
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Thinks s/he gets paid by the post
Join Date: Mar 2012
Posts: 3,931
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Quote:
Originally Posted by Spanky
Our 5 year CD at Penfed will due in 1/31/19. I am thinking about rolling over to a one-year CD @2.07% when it is due. There are plenty of time before making any kind of decision.
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You'll likely be able to get 2.5%-2.75% at the time for one year.
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03-04-2018, 10:02 AM
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#23
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2003
Location: Florida's First Coast
Posts: 7,723
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Quote:
Originally Posted by njhowie
You'll likely be able to get 2.5%-2.75% at the time for one year.
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Only time will tell. I think a lot of us here are in the same boat. It pays for us to keep and eye out and inform each other.
I think between us here on the ER and Boggleheads Forums, combined we probably own a fair chunk of PenFed... It would be somewhat amusing to see how much we had combined in PenFed 3% CDs.
__________________
"Never Argue With a Fool, Onlookers May Not Be Able To Tell the Difference." - Mark Twain
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03-04-2018, 10:32 AM
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#24
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2004
Location: Laurel, MD
Posts: 8,327
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Quote:
Originally Posted by Earl E Retyre
If anyone opens up one of these CDs please post back your experience.
I am a little leery since often times if it sounds too good to be true then something is not right. I am not even aware of a 3%, 5 year CD (presently) so 4% seems out of the ordinary.
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I kinda skipped over this since I'm not in one of the listed states and don't wish to join another association just to get this deal. Rates are on the rise in general, after all. Curiosity go the best of me so I finally followed the link to get some details....I'm very surprised no one mentioned this requirement:
Deal Summary: 64-month Certificate Special, 4.00% APY, $500 minimum deposit of new money, per member deposit limit of $250k new money and $100k existing money.
So by the time you put 100k in at some lower rate, it dilutes the higher rate down to something well below what's available elsewhere.
No Thanks.
__________________
...with no reasonable expectation for ER, I'm just here auditing the AP class.Retired 8/1/15.
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03-04-2018, 10:53 AM
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#25
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2014
Location: Spending the Kids Inheritance and living in Chicago
Posts: 17,094
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Quote:
Originally Posted by jazz4cash
....
Deal Summary: 64-month Certificate Special, 4.00% APY, $500 minimum deposit of new money, per member deposit limit of $250k new money and $100k existing money.
....
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To me, this means you are limited to 100K of money already at the bank (in checking account for example) and a limit of $250K of money from some other institution.
So If you have $150K at that CU, in a checking account or some other CD you can break, you can only put $100K towards the 4% CD.
__________________
Fortune favors the prepared mind. ... Louis Pasteur
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03-04-2018, 11:15 AM
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#26
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Thinks s/he gets paid by the post
Join Date: Aug 2014
Location: Chicago West Burbs
Posts: 3,018
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Funny how it can be interpreted differently. I see it as $350K maximum. $250K from new (outside) money + $100K from money already in the CU. BTW, That is beyond the NCUA protected account limits of $250K (for single owner).
(edit) It probably is $250k max combined. And then there is the fine print: "Fees could reduce earnings."
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03-04-2018, 11:35 AM
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#27
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Thinks s/he gets paid by the post
Join Date: Jan 2013
Posts: 3,413
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Looks like PenFed is taking notice. Per Deposit Accounts, they are offering a 2.07 percent 1 year CD now. Minimum is only $1,000.
ETA: 18 months at 2.22 percent and 2.33 percent for a two year term.
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03-04-2018, 11:48 AM
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#28
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 38,145
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I’m not ready to commit to 5 years yet. And most of my CDs are coming due at year end, although most of them are short term no penalty.
__________________
Retired since summer 1999.
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03-04-2018, 11:54 AM
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#29
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Thinks s/he gets paid by the post
Join Date: Dec 2004
Location: Minneapolis
Posts: 4,455
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Quote:
Originally Posted by CRLLS
Funny how it can be interpreted differently. I see it as $350K maximum. $250K from new (outside) money + $100K from money already in the CU. BTW, That is beyond the NCUA protected account limits of $250K (for single owner).
(edit) It probably is $250k max combined. And then there is the fine print: "Fees could reduce earnings."
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I think it means $250K limit for a new account. If you already have an amount, the amount is limited to $100K for this deal. Thus, the maximum is limited to $250K.
__________________
May we live in peace and harmony and be free from all human sufferings.
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03-04-2018, 12:01 PM
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#30
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Thinks s/he gets paid by the post
Join Date: Mar 2012
Posts: 3,931
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Quote:
Originally Posted by audreyh1
I’m not ready to commit to 5 years yet. And most of my CDs are coming due at year end, although most of them are short term no penalty.
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This is a good approach as the short-term CDs (1-3 years) have been escalating in yield extremely rapidly (in relative terms). 5-year has been slowly creeping higher, and 10-year has essentially done nothing.
Acknowledging that I have absolutely no idea how quickly the rates will continue to rise, or when they may stop, I'm just nibbling every time the rates nudge higher. I won't go all-in, nor put a major wad in to any single maturity at this time - that is, unless I get a terrific deal, which periodically happens. But to reiterate your view - there is little benefit to locking in a longer term rate at this time.
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03-04-2018, 01:28 PM
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#31
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2004
Location: Laurel, MD
Posts: 8,327
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Quote:
Originally Posted by audreyh1
I’m not ready to commit to 5 years yet. And most of my CDs are coming due at year end, although most of them are short term no penalty.
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NFCU 32 mo special (2.75 apy) is working out nicely for me. The term is less than 3 yrs and I can "reserve" the rate with only $50 and add to it later if better rates are not available when other certificates mature.
__________________
...with no reasonable expectation for ER, I'm just here auditing the AP class.Retired 8/1/15.
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03-04-2018, 01:30 PM
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#32
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2004
Location: Laurel, MD
Posts: 8,327
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Quote:
Originally Posted by Sunset
To me, this means you are limited to 100K of money already at the bank (in checking account for example) and a limit of $250K of money from some other institution.
So If you have $150K at that CU, in a checking account or some other CD you can break, you can only put $100K towards the 4% CD.
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Yeah, I mis-read it. Thanks for the clarification.
__________________
...with no reasonable expectation for ER, I'm just here auditing the AP class.Retired 8/1/15.
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03-14-2018, 01:34 AM
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#33
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Recycles dryer sheets
Join Date: Oct 2013
Posts: 82
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I was on the website, is that special gone? I can not find it.
Thank you
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03-14-2018, 03:35 AM
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#34
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Thinks s/he gets paid by the post
Join Date: Mar 2012
Posts: 3,931
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Quote:
Originally Posted by jazz4cash
NFCU 32 mo special (2.75 apy) is working out nicely for me. The term is less than 3 yrs and I can "reserve" the rate with only $50 and add to it later if better rates are not available when other certificates mature.
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In a couple months 2.75% for 24 months will be the rate everyone is offering.
Do not plow in to any single maturity in this environment - rates are racing higher.
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03-14-2018, 04:27 AM
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#35
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Recycles dryer sheets
Join Date: Sep 2016
Posts: 150
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Quote:
Originally Posted by jw72
I was on the website, is that special gone? I can not find it.
Thank you
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My daughter was going to move money there yesterday and it was no longer available.
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03-14-2018, 06:06 AM
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#36
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Thinks s/he gets paid by the post
Join Date: Jan 2014
Posts: 1,181
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Quote:
Originally Posted by jw72
I was on the website, is that special gone? I can not find it. Thank you
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This special ended COB Friday, 3/9. They are honoring the 4% rate if you got the application in before then and were still in the process of funding it.
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03-14-2018, 08:53 AM
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#37
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2011
Location: West of the Mississippi
Posts: 17,263
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I will miss my PenFed 3% CDs. They have given me bragging rights for nearly 5 years.
I would not go out five years at this point since it seems to me we are at the start of a steady increase in interest rates. It looks like we old folks will not be subsidizing the cheap mortgages for the youngster for much longer. Sorry kids.
Most likely I will be rolling my PenFed CD's into a ladder of 3, 6, 12 and 24 month CD's.
Keep in mind that I have been wrong about the direction of interest rates for nearly a decade. It seems I can't predict them any better than I can predict the stock market. Who would have guessed?
__________________
Comparison is the thief of joy
The worst decisions are usually made in times of anger and impatience.
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03-14-2018, 08:56 AM
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#38
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Thinks s/he gets paid by the post
Join Date: Mar 2013
Location: Southern California
Posts: 3,999
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Quote:
Originally Posted by Chuckanut
I will miss my PenFed 3% CDs. They have given me bragging rights for nearly 5 years.
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If I do a quick search for 5 year CDs on depositaccounts.com I see four credit unions just on the first page offering a 3% rate.
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03-14-2018, 09:07 AM
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#39
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2002
Location: Texas: No Country for Old Men
Posts: 50,021
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Quote:
Originally Posted by Chuckanut
I will miss my PenFed 3% CDs.
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PenFed 5 year CD rates are currently in the 2.7% range. I doubt the CU will be willing to hear the giant sucking sound of all those deposits being withdrawn at year end, so I expect (hope?) they will once again offer a year-end special on rates.
__________________
Numbers is hard
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03-14-2018, 07:21 PM
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#40
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Full time employment: Posting here.
Join Date: May 2013
Posts: 609
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I spent a week trying to reach them to ask a couple questions and got zero response to two phone calls and three message sent through their contact form. Good riddance. I’ll wait for rates to rise.
__________________
Saved 8 figures by my mid-40's as a professional bubble-spotter. Beware...the Fed creates bubble after bubble after bubble.
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