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Old 03-04-2018, 10:55 AM   #21
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Originally Posted by ripper1 View Post
I currently have 5 yr. PenFed CD's coming due in December that are earning 3.04%. Have a local bank BMO Harris currently offering 5yr. CD's at 3%. I think you have to be an Illinois or Indiana resident. I know it is not December yet but I am wondering is it wise to do another 5yr. CD at 3%?
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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Old 03-04-2018, 11:00 AM   #22
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Originally Posted by Spanky View Post
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.
You'll likely be able to get 2.5%-2.75% at the time for one year.
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Old 03-04-2018, 11:02 AM   #23
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You'll likely be able to get 2.5%-2.75% at the time for one year.
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.
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Old 03-04-2018, 11:32 AM   #24
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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.
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.
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Old 03-04-2018, 11:53 AM   #25
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....

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.

....
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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Old 03-04-2018, 12:15 PM   #26
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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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Old 03-04-2018, 12:35 PM   #27
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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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Old 03-04-2018, 12:48 PM   #28
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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.
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Old 03-04-2018, 12:54 PM   #29
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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."
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.
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Old 03-04-2018, 01:01 PM   #30
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Iím 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.
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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Old 03-04-2018, 02:28 PM   #31
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Iím 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.
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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Old 03-04-2018, 02:30 PM   #32
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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.
Yeah, I mis-read it. Thanks for the clarification.
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Old 03-14-2018, 01:34 AM   #33
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I was on the website, is that special gone? I can not find it.
Thank you
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Old 03-14-2018, 03:35 AM   #34
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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.
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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Old 03-14-2018, 04:27 AM   #35
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I was on the website, is that special gone? I can not find it.
Thank you
My daughter was going to move money there yesterday and it was no longer available.
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Old 03-14-2018, 06:06 AM   #36
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I was on the website, is that special gone? I can not find it. Thank you
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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Old 03-14-2018, 08:53 AM   #37
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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?
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Old 03-14-2018, 08:56 AM   #38
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I will miss my PenFed 3% CDs. They have given me bragging rights for nearly 5 years.
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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Old 03-14-2018, 09:07 AM   #39
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I will miss my PenFed 3% CDs.
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.
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Old 03-14-2018, 07:21 PM   #40
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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. Iíll wait for rates to rise.
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