New at PenFed - 3% 5yr certificates

[Ready]

I could have done it online but she told me I would have to set up a "non Penfed" external transfer account and wait 3 days for them to ping back and forth with .50 cent pings (according to the rep). She told if I did it over the phone, I could do it immediately.
So...that's what I did.
Hope the rep knew what she was doing..

Hmmm...I just entered the bank's routing number and my account number and initiated the ACH. I've never done a transfer from that bank before. I wonder why we are getting such different information from different people who are calling them.

 

[FIREd]

How are you transferring large amounts into PenFed? PenFed limits incoming ACHs to $5000 a day and my banks won't let me send more than $10,000 a day to another institution.

I'm just doing this online, are you able to transfer larger amounts over the phone?

I was able to transfer higher amounts online via ACH.

 

[braumeister]

How are you transferring large amounts into PenFed? PenFed limits incoming ACHs to $5000 a day and my banks won't let me send more than $10,000 a day to another institution.

I'm just doing this online, are you able to transfer larger amounts over the phone?

I believe the $5K/day restriction is just for a normal transfer of cash from an outside account into one of your regular PenFed accounts.

The ACH routinely handles large transfers for things like this (opening a CD).

 

[RunningBum]

I believe the $5K/day restriction is just for a normal transfer of cash from an outside account into one of your regular PenFed accounts.

The ACH routinely handles large transfers for things like this (opening a CD).

I transferred 50K from VG into my checking account with no indication that it would be for a CD or anything else, so no, that's not a PenFed restriction. From there I transferred from my checking account to a new CD. I realize now I probably could've done it with one step, but I didn't. Perhaps I was able to do more because I pushed it from VG, rather than initiating the transfer from PenFed.

 

[audreyh1]

Perhaps Sue J was trying to transfer into her checking account before buying the CD.

You can do the transfer directly from another financial institution as part of opening the CD.

 

[FIREd]

I just opened another one of those CDs via Penfed's website. The ACH limit from my checking account at another bank was $999,999.99.

 

[Gatordoc50]

I just opened an account online. They stated that they were going to mail me account materials. I wonder if I have to wait for those prior to transferring funds.

 

[audreyh1]

I just opened an account online. They stated that they were going to mail me account materials. I wonder if I have to wait for those prior to transferring funds.

No you don't. At least not to initial the process.

And I think they mail you materials for each account you open - each CD is considered an account.

Any account is not considered "valid" until the mailed materials are signed and returned, but you can still open a CD or whatever.

 

[brewer12345]

I just opened an account online. They stated that they were going to mail me account materials. I wonder if I have to wait for those prior to transferring funds.

Nope. Pen Fed is a bit old fashioned about this. They will elt you transfer funds and set up an account, but they still want your physical signature on the documents. Not a big deal.

 

[NW-Bound]

I have been too lazy to get an account with PenFed, though I learned about it from this forum for quite a few years.

Well, it's OK, as it might just be that when I get to it, the rate would be even higher.

Mortgage rates are also going up. And today, bond ETFs get another drubbing.

I just noticed that Credit Union West in Arizona now has rates of 2.95% for 5 year CD's with $50K or more, and 3.2% for IRA CDs with $50K at 5 years as well. Maybe rates are finally rising?

 

[Sesq]

Hmm. I have a pen fed arm at 2.625% I was planning to eliminate next March when I come into a windfall (company stock). If these rates hold till then, even with a rate reset on the 5/5 ARM I come ahead by $5K. I'll still have to service the debt which I don't enjoy (but can afford), but math is math, if I have a contractual return greater than my contractual obligation I probably should take it. If rates continue to rise then I'd have additional opportunities to cash out these CD's and grab other products.

We'll see whether this offer is out there in March. . .

 

[sheehs1]

Hmmm...I just entered the bank's routing number and my account number and initiated the ACH. I've never done a transfer from that bank before. I wonder why we are getting such different information from different people who are calling them.

I have no idea either.

 

[Sue J]

I was using the PenFed site to transfer from an outside bank into my PenFed share account and it limited me to $5000. Maybe if I had just initiated the CD and used ACH directly to the CD the limit would not have applied. I'm combining funds from a few different places, so that's why I thought I'd direct it all to the share account first. That's ok, I'm just taking a few days to make multiple transactions.

I already had to call and make a correction. I opened a CD online, expecting to be offered the option to make it a Roth IRA and it never had that option and made it a regular CD. They were very helpful and told me the correction would happen by tomorrow or Friday. That was the only one that will be a Roth IRA, the rest will be regular ones.

 

[audreyh1]

Maybe if I had just initiated the CD and used ACH directly to the CD the limit would not have applied.

Yes - I think that's the trick.

 

[Debinnov a]

FYI,

I funded my CD's with cashiers checks from two banks. It took about forty-eight hours or so for it to be deducted from my bank account. So not unusual that it is still showing in your account afterwards. FYI

Deb

 

[audreyh1]

I love ACH!

(as long as someone doesn't use it against me!)

 

[Free To Canoe]

Got my CD started 2 days ago. I see the process is finally finished. I guess they were backed up with requests. Broke a CD with a pittance yield and go me one of those 5yr, 3% jobbers. Since I was already a member and my funds were already there, it was easy.

I am thankful for this and the other benefits of hanging out at ER.org!

 

[frank]

just opened two cd's for fairly large amounts and did it online. ach to the cd's easy peasy.
one minute and my account showed I had the two cd's listed.

 

[audreyh1]

Got my CD started 2 days ago. I see the process is finally finished. I guess they were backed up with requests. Broke a CD with a pittance yield and go me one of those 5yr, 3% jobbers. Since I was already a member and my funds were already there, it was easy.

I am thankful for this and the other benefits of hanging out at ER.org!

Same here! Major benefit of this group.

Folks on this forum have been crowing about PenFed for years. And I was planning to open a checking account with debit card and a chip and pin credit card sometime next year anyway.

But this got me off my butt! The funds had been slated for high-quality short to intermediate term bond funds, none of which can beat that 3% rate at the moment.

Hmmm - next time we buy a car we might take a look at their auto loans instead of paying cash for the entire amount?

 

[powerplay]

I just opened an account with PF by calling them up. It worked great and I then logged on and registered and set up my online access. They also funded the 2 CD's I wanted to open. I was allowed to use a credit card for the donation to military family org and opening account amount. Very different from 8-10 years ago when I tried to open account online but didn't have a debit card for the donation and no other form of payment was accepted at the time.

Thanks to this forum I was motivated to move some money over to PF for these CD's.

 

[bmcgonig]

Can we do this with tax deferred money? I.e., transfer between Ira accounts?

 

[sheehs1]

Yep..money ACH swiped out of my accounts today into the CD's I set up. It only took 2 days for the ACH to be effective.

Penfed makes it easy once you have the member account set up.

 

[Debinnov a]

Can someone tell me how the ACH between banks works? If I want to transfer money from PNC to Penfed, what is the process? That sounds much easier than cashiers check!

 

[audreyh1]

Can someone tell me how the ACH between banks works? If I want to transfer money from PNC to Penfed, what is the process? That sounds much easier than cashiers check!

It is much easier!

When you go to open a CD, and they ask you how to fund it, you select "transfer funds from another financial institution" and then enter the bank's (ACH) routing number and your account number. These two numbers appear on the bottom left of your checks. That's all PenFed needs.

You don't have to actually do anything at PNC Bank - by giving PenFed the routing and account numbers, PenFed has all it needs to initiate the transfer on your behalf.

ACH is a type of electronic funds transfer (EFT) that usually has low or no fee - depending on who initiates it. More about ACH Automated Clearing House - Wikipedia, the free encyclopedia

 

[Debinnov a]

Wow, that is too easy! Thanks