Pen Fed

[jIMOh]

I submitted an application for Pen Fed.

Is the $50 "share" I send to open an account a deposit into a savings account or a membership fee?

It was tough to decipher that.

 

[REWahoo]

A "share account" is what the credit union world calls a savings account. Your $50 will show up as an initial deposit in your new account. No 'membership fee' that I'm aware of...

 

[cantlogin]

If you are sending $50 to Pen Fed directly then it is an opening deposit. If You are sending it to some other organization for membership that qualifies you to join Pen Fed then it's some sort of membership fee. I think when I joined Pen Fed they required only 5 bucks to open an account.

Yeah, what REWahoo said.

 

[jIMOh]

A "share account" is what the credit union world calls a savings account. Your $50 will show up as an initial deposit in your new account. No 'membership fee' that I'm aware of...

Is there a monthly minimum balance to avoid fees? I only want the account to get loans (for cars and to refinance the house).

 

[REWahoo]

Is there a monthly minimum balance to avoid fees? I only want the account to get loans (for cars and to refinance the house).

No, but they do require you to keep a minimum of $5 in the account to keep it open.

 

[OAG]

What REW said. Additionally, you can get, in some cases, a bit of a reduction in interest rate (usually no more than .25%) if you have the "loan" set up for automatic debit from your checking, share, or MMA, with PENFED. They also have bill payer (free I think) available so you may want to consider some type of automatic deposit setup.

 

[Lusitan]

I opened a Pen Fed account a few months back in preparation for possibly taking out a mortgage with them as well. It's the worst website I've ever used. I haven't had to do much with it yet, but it's a shame, as I'd consider using them for short-term savings but it's just too darn clunky and confusing. Almost as if it were designed and maintained by the government ...

 

[REWahoo]

I opened a Pen Fed account a few months back in preparation for possibly taking out a mortgage with them as well. It's the worst website I've ever used. I haven't had to do much with it yet, but it's a shame, as I'd consider using them for short-term savings but it's just too darn clunky and confusing. Almost as if it were designed and maintained by the government ...

It is lousy - looks like it was designed in 1992 and never updated. But...they are at least thinking about making improvements as they sent me a survey asking what changes I'd like to see when they updated their site.

 

[ziggy29]

Heh -- good web sites cost money, and that could be money taken from future savings yields. Be careful what y'all ask for.

 

[FANOFJESUS]

Heh -- good web sites cost money, and that could be money taken from future savings yields. Be careful what y'all ask for.

That's right leave that website alone and bring back those 6.25% CD's.

 

[Texarkandy]

If you are sending $50 to Pen Fed directly then it is an opening deposit. If You are sending it to some other organization for membership that qualifies you to join Pen Fed then it's some sort of membership fee. I think when I joined Pen Fed they required only 5 bucks to open an account.
....

I just received an application for PenFed & it only requires $5 (I am automatically qualified for membership via my employment)

 

[wrigley]

If you don't specify paperless monthly statements, you will be charged a fee each month. If I'm not mistaken, I believe it's about $4.

Mike

 

[wrigley]

If you don't specify paperless monthly statements, you will be charged a fee each month. If I'm not mistaken, I believe it's about $4.

Mike

SORRY.......I was mistaken. The "PAPER STATEMENT FEE IS -0.50" a month!

Mike

 

[OAG]

Been using the web-site for years. Works fine for me but may be a bit bland for most and may take some getting used to. Yes they are trying to cut expenses with the monthly statements. I have a large one and back when they only mailed them out the postage alone ran about $2.50 a month. Frankly, I opted for email (actually now pdf files) at the first opportunity and hoped the $30 they saved on the postage would make it to one of my CD's - and I think it did as I have several of those 7 year 6.25% ones.

BTW Wigley you beat me to it on the statement fee; also some members are Grandfathered to receive the mailed statements free of the fee - I am one of them, but still like the on-line version.

 

[nickel]

We paid a $20 membership fee to the NMFA to qualify for membership in PenFed (didn't fit any of their other qualification criteria). Once we were in, however, we let the NMFA membership lapse. They only required a $5 initial deposit. We've had CDs there since 2004 -- coming due in January. Time to decide what to do.

 

[friar1610]

I recently joined PenFed because they had good CD rates. (I am a MOAA member, so was eligible.) I just had a bank CD come due and I found that for longer term CD's PenFed has some pretty good rates. But for 6 months, Navy FCU currently offers a 4% APY with a $10K minimum.

Rather than have money tied up in banks all over the country, I plan to stick with NFCU, PenFed and Discover Bank - whoever has the best rates at the moment.

One annoying thing about PenFed - they send out way to many emails and electronic newsletters. I'm going to have to put their address in my spamblocker if they keep it up. Only use the web site to check CD rates occasionally, so that doesn't concern me.

 

[brewer12345]

One annoying thing about PenFed - they send out way to many emails and electronic newsletters. I'm going to have to put their address in my spamblocker if they keep it up. Only use the web site to check CD rates occasionally, so that doesn't concern me.

Dunno for sure, but I would imagine that they would let you change your email preferences to stop the non-account info from coming.

 

[Nords]

One annoying thing about PenFed - they send out way to many emails and electronic newsletters. I'm going to have to put their address in my spamblocker if they keep it up. Only use the web site to check CD rates occasionally, so that doesn't concern me.

There's either a website button or it could be handled by a phone call. I only get a notification when a statement's been posted.

Among USAA, NFCU, PenFed, and a local bank (Territorial Savings) PenFed is far & away the highest 30-year fixed mortgage interest rate at 5.375%. But if that's the worst complaint I have...

 

[jblack]

The PenFed mortgage rates do tend to jump around quite a bit. When I asked the person helping me do our new mortgage earlier this year he said a lot of it will simply depend on their recent volumes and if they can handle the extra demand.

Between yesterday and today the 15yr rate dropped 0.25 back down to 4.625 (DW and I are refinancing from a 30yr).

Anyways, can't complain too much. I finally pulled the trigger and locked in the new rate with the quick online app.

 

[Dave J]

It is lousy - looks like it was designed in 1992 and never updated. But...they are at least thinking about making improvements as they sent me a survey asking what changes I'd like to see when they updated their site.

My Dec. 2008 Newsletter said the were coming out with an upgrade to the website in Jan. 2009.

Hope it makes everyone happy.

Also, an attachment told that they are offering a .25% bonus on CD renewals if you set it up to automatically renew.Started Dec 1 and can be changed without notice. Good on 3,4 5 and 7 year certificates only.
Hope they don't lower the rates the first of the year as I have a bunch of 5 year 5 1/4% CD coming due in Jan-March.

 

[brewer12345]

The PenFed mortgage rates do tend to jump around quite a bit. When I asked the person helping me do our new mortgage earlier this year he said a lot of it will simply depend on their recent volumes and if they can handle the extra demand.

Between yesterday and today the 15yr rate dropped 0.25 back down to 4.625 (DW and I are refinancing from a 30yr).

Anyways, can't complain too much. I finally pulled the trigger and locked in the new rate with the quick online app.

And the 10 year was down to 4.5 today, which is the first time in recent months I can remember seeing it at less than the 15.

Bear in mind that on the fixed rate loans this is all driven by the yields investors demand to hold Fannie and Freddie paper. Pen Fed doesn't keep many (maybe not any) of the fixed rate loans, they simply make the loan and immediately ship it off to Fannie or Freddie. Where they have some leeway is in their adjustable rate loans, although I suspect these are somewhat market-driven as well. So when you see mortgage rates change every day, it is simply the flopping around of the agency MBS market being reflected in the rates.

 

[friar1610]

I don't know for sure, but I would imagine that they would let you change your email preferences to stop the non-account info from coming.

There's either a website button or it could be handled by a phone call. I only get a notification when a statement's been posted.

Yup; you're both right; just took care of it.

 

[brewer12345]

Well, I guess pen fed has become swamped. Noticed today that they are now charging a 1% origination fee on all fixed rate loans, which I believe is new.

 

[bright eyed]

Hm- I also just opened my account to get my auto loan...

When I got the paperwork in the mail - the papers seemed to say there is a fee for the account unless I have $500 in there OR direct deposit - if not there are fees? Perhaps that's just the checking and not the savings? I only looked at it briefly, will take a closer look.

I also joined the military org to get the account, used a credit card for the membership fee and it automatically asks you to set up $ for your account, without thinking i added $ to the application from the credit card and it's considered a cash advance from my credit card company! I looked back and there is a warning that some cc's will do that, but of course I didn't see that until it was too late...

 

[jblack]

Well, I guess pen fed has become swamped. Noticed today that they are now charging a 1% origination fee on all fixed rate loans, which I believe is new.

The orgination fee is new and they are swamped, or so they say. Here's the email I got a few days after I completed the online app a week ago.

Thank you for choosing Pentagon Federal Credit Union for your home refinancing needs! As you can imagine, our volume is very high right now due to the recent drop in mortgage rates. With all of the excitement the new rates have caused, and our membership’s desire to do business with Pentagon Federal Credit Union, our refinances are now averaging from 45 to 60 days to close.

Don’t let this concern you, though, as you have already taken a big step towards completing your refinance by locking in your interest rate. You are now locked at 4.625% on a Fixed rate 15 year mortgage, which will be valid for a 90-day period. Because your rate is locked, you no longer have to worry about rate fluctuations. We want to apologize in advance for this delay, and we really appreciate your patience during this busy time.

The processor assigned to your application will be in contact with you as soon as possible, but this contact could take one to two weeks. Until you have been contacted, please keep this note as your verification that your rate has been locked. All members will be contacted as quickly as possible, in the order we received their application, in order to provide the highest level of member service that we can. To help our staff get through these calls as efficiently as possible, we ask that you limit your incoming calls to the mortgage department, until you have been contacted by your processor.

Thank you again for your understanding during this unprecedented level of volume, and we really look forward to working with you soon.
Pentagon Federal Credit Union
Mortgage Department