PenFed just raised their CD rates

[aja8888]

Lock in your savings with our LIMITED TIME OFFER!

1.00% APY for 3 years

1.25% APY for 5 years

1.50% APY for 7 years

Maybe ALLY will counter soon?

 

[Dtail]

Still not too excited over these rates.

 

[travelover]

PenFed can be a real PITA to deal with.

 

[aja8888]

PenFed can be a real PITA to deal with.

I'm sure they (and others) can. I had CD's with them over the last 7 years and never had a problem. I also had a car note and checking and savings accounts with them with no issues.

I had all kinds of problems with Vanguard and that's why my retirement funds are now at Schwab.

But the new rates are not that great.

 

[Jerry1]

There's no way I would lock in 1% for 3 years. Would need to look closely at the early cancelation clause.

 

[audreyh1]

PenFed can be a real PITA to deal with.

I closed all my accounts there earlier this year. Their CD rates haven’t been competitive for many years, plus they made the early withdrawal fees complicated and much less attractive than competitors.

 

[ShokWaveRider]

With close to 6% inflation, rates should be close 3% or 4% for medium term. The sooner "they" acknowledge the actual inflation rate the better.

 

[aja8888]

With close to 6% inflation, rates should be close 3% or 4% for medium term. The sooner "they" acknowledge the actual inflation rate the better.

"they" meaning all financial institutions? Or just PenFed?

 

[ShokWaveRider]

"they" meaning all financial institutions? Or just PenFed?

I meant the regulators.

 

[zaqxsw]

If you're managing a CD ladder with some of your assets, stay with 1 year at the max right now. Rates are going to improve. 1 year rates can equal 18 mo. to close to 3 year rates now:

https://www.depositaccounts.com/cd/

It's a pain. I ran an organized CD ladder of 6 separate 3 year CD's for over a decade with some of my liquid funds. I could cash out every 6 mos., and did once to pay off a new house just 3 months after buying it. Then rebalanced the ladder as others matured.

I had to give that up over a year ago. Now the "ladder" is just a jumble of short term CD's when the heavy hitter 3 year 3%+ ones come due. I keep my emergency fund balanced with maturing CD's. I might want a different house or a new car someday. You don't buy anything you can't pay cash for, except a house. You can argue that, but a family tradition for generations.

I avoid credit unions entirely now, and just buy from banks nationwide. Just too much of a hassle with credit unions for a few more dollars. I've never had a real problem with any rated bank, but didn't like a couple of their website formats.

 

[Aerides]

I'd be thrilled if Ally would raise their 11month no lock CD to even close to 1%, so if it makes others budge, great.

 

[pb4uski]

Still not too excited over these rates.

+1, especially given the possibility of higher rates.

I still keep $10.02 in my PenFed savings in the faint hope that they may someday offer attractive CD rates.

 

[Chuckanut]

+1, especially given the possibility of higher rates.

I still keep $10.02 in my PenFed savings in the faint hope that they may someday offer attractive CD rates.

Let me guess. The extra 2¢ is your Blow That Dough experience.

Having got rid of most of my bonds last year, I am not going to commit to 3+ years to get 1% on a CD. T-Mobile money looks better at this time.

 

[rk911]

Still not too excited over these rates.

+1. at this point in time and with inflation knocking on the door i wouldn't want to lock in for more than 12-mos

 

[mz44]

PenFed can be a real PITA to deal with.

Ditto. Tried to do an auto refi with them and gave up. Went to another credit union.

 

[jazz4cash]

The rates are not attractive but it’s very big news that they are at least going UP for a change. Thanks for posting.

 

[Montecfo]

TMobile Money. 1.00 percent FDIC insurance. No drama. No lockup.

So why would anyone do a 3 year, 1.00 percent CD? "Lock in" that generous rate?

 

[Amethyst]

It's strange, they didn't use to be that way. I joined in 2000 (while working at the Pentagon, funnily enough) and really liked them. Excellent CD rates, kindly customer service, and refinancing/HEL's were a breeze.

I noticed a shift to the dark side, customer-service-wise, sometime in the early-mid teens. In 2019, I was treated like absolute dirt on the phone - by a Mrs. Washington, who acted as if she were Martha herself.

And looking at HEL's, I see they now insist you not pay off the loan for 3 years, instead of the 2 they used to require.

PenFed can be a real PITA to deal with.

 

[The Cosmic Avenger]

It's strange, they didn't use to be that way. I joined in 2000 (while working at the Pentagon, funnily enough) and really liked them. Excellent CD rates, kindly customer service, and refinancing/HEL's were a breeze.

I noticed a shift to the dark side, customer-service-wise, sometime in the early-mid teens. In 2019, I was treated like absolute dirt on the phone - by a Mrs. Washington, who acted as if she were Martha herself.

And looking at HEL's, I see they now insist you not pay off the loan for 3 years, instead of the 2 they used to require.

Sounds very much like my experience with USAA, except that their phone support has remained quite good. But their offers and even what CSRs were allowed to help with was drastically cut back on over about the same period of time, which is why I've moved a lot of our business to Fidelity.

 

[calmloki]

Remember the days when ER.org had the holy trinity? Vanguard, Penfed, and what - Costco? Firecalc?

For a number of years I had a no-cost security blanket - a mortgage with Penfed and CDs with Penfed that paid a tiny amount more interest than the mortgage charged. Figured if "something" happened that gave me a cash stash that could be tapped, whereas if I paid off the mortgage I'd be stuck trying to convert house siding and fixtures to cash. Remember Penfed offering to lower our house interest at least once while offering a reduced, but still greater than mortgage rate, CD. Heady times.

Finally paid off the mortgage as it just bugged me to have debt, but by that time the cash stash had grown. Still: raise a glass to Penfed - still a member and keep a couple unused credit cards open with them.

 

[HawkeyeNFO]

PenFed has really gone downhill in the past several years. They used to be one of the best, but last week I went into the branch and talked to some reps on the phone, and they were either poorly trained, incompetent, or both. Their rates are no longer competetive either. I no longer recommend them to anyone.

 

[Time2]

For those who want a higher rate, but also with a limit on how much they can put in look into ibonds. Looks like 6.67% no risk. But a couple of drawbacks. Minimum 1 year hold time. Three months of interest deduction if withdrawn before 5 years, so, 6.67%, 6.67%, 6.67%, 6.67%, 5%. Not really so bad. Or 5% for that one year hold. Also you can only invest $10,000 per person, plus kids, but then it's their money. Wait until Nov. for higher rates.

Here's a video describing it, with a lot of negativity, but maybe not for your reasons.

 

[Amethyst]

I know perfectly well what you meant, but it still struck me like, "And they'll also accept first-born children."

Also you can only invest $10,000 per person, plus kids,

 

[RetiredAndLovingIt]

TMobile Money. 1.00 percent FDIC insurance. No drama. No lockup.

So why would anyone do a 3 year, 1.00 percent CD? "Lock in" that generous rate?

I just signed up for an account. Is there any limits to how much I can park there?
I have about 30K that I don't want to tie up due to pending purchases so planning to use it as a savings account. Not a fan of mobile banking though so hopefully I can manage the account using my laptop
$300 a year isn't much but double what I'm getting elsewhere.
Any downside that I need to be aware of?

 

[RetiredAt55.5]

For those who want a higher rate, but also with a limit on how much they can put in look into ibonds. Looks like 6.67% no risk. But a couple of drawbacks. Minimum 1 year hold time. Three months of interest deduction if withdrawn before 5 years, so, 6.67%, 6.67%, 6.67%, 6.67%, 5%. Not really so bad. Or 5% for that one year hold. Also you can only invest $10,000 per person, plus kids, but then it's their money. Wait until Nov. for higher rates.

Here's a video describing it, with a lot of negativity, but maybe not for your reasons.

So, his big gripe is having money in too many places, and then the spouse managing all the money dies.

He does have a point, but that ship has already sailed for me, since I already have a treasury direct account with ibonds so I will add to it.

My spouse does not, so I'm leaning to just doing 10k per year.

I guess it's time I create a document with all our money and account logins, etc. But, if I do that, what's one more Treasury direct account?