Join Early Retirement Today
Reply
 
Thread Tools Display Modes
PENFED Rates Change 6%
Old 09-27-2007, 04:46 AM   #1
Thinks s/he gets paid by the post
OAG's Avatar
 
Join Date: Jun 2006
Location: Central, Ohio, USA
Posts: 2,635
PENFED Rates Change 6%

Penfed has 6% APY Certificates from 3 years and up as of today 9/27/07.
__________________
Vietnam Veteran, CW4 USA, Retired 1979
OAG is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 09-27-2007, 07:11 AM   #2
Thinks s/he gets paid by the post
 
Join Date: Jan 2006
Posts: 4,172
Thanks for the alert.
kaneohe is offline   Reply With Quote
Old 09-27-2007, 07:43 AM   #3
Thinks s/he gets paid by the post
retire@40's Avatar
 
Join Date: Feb 2004
Posts: 2,670
The fed cuts rates and PenFed increases their payout rates. I don't get it.
__________________
No man is free who is not master of himself. --- Epictetus
Enjoy Yourself (It's Later Than You Think). --- Guy Lombardo
retire@40 is offline   Reply With Quote
Old 09-27-2007, 12:21 PM   #4
Moderator Emeritus
Nords's Avatar
 
Join Date: Dec 2002
Location: Oahu
Posts: 26,855
Quote:
Originally Posted by retire@40 View Post
The fed cuts rates and PenFed increases their payout rates. I don't get it.
We've debated this before, with Brewer postulating that PenFed is adjusting the duration of their portfolio by offering more money for longer maturities.

They jumped a whole percentage point over their old rates, and they're matching Navy Federal's (no longer available) deal of 6% APY for 10 months. NFCU's current highest rate is 5.30% APY for seven years. So maybe there's some arch-rival competitiveness in this too.

As people start having to confront rising ARM payments, I bet a lot of them will find PenFed to be an attractive source of mortgage refinancing. So perhaps PenFed is also trying to pile up the cash in anticipation of a pile-up of new customers. Even at a mortgage APY of 6.01% a non-profit can make a lot of money from the volume.
__________________
*

Co-author (with my daughter) of “Raising Your Money-Savvy Family For Next Generation Financial Independence.”
Author of the book written on E-R.org: "The Military Guide to Financial Independence and Retirement."

I don't spend much time here— please send a PM.
Nords is offline   Reply With Quote
Old 09-27-2007, 09:01 PM   #5
Full time employment: Posting here.
 
Join Date: Aug 2005
Location: Far NW 'burbs of Chicago
Posts: 897
A couple of months ago, Penfed eliminated the provision that members over 59 1/2 years old could take distributions from their IRA certificates, without penalty. Certificates issued before the change are grandfatherd for one withdrawl/flip.

The "no penalty" provision made the Penfed CD's a no-lose deal. If rates stay the same or go down, congratulate yourself on being so brilliant. If rates go up, just flip the certificate into one at the new higher rate.

AFAIK, no other institution offers that provision at this time. Did I miss something?

Also, I didn't check what the penalty is at Penfed for withdrawing from one of the new certificates. Is there an easy way to calculate the circumstances where it is still worthwhile to take the penalty, in return for a new higher rate?
Gearhead Jim is offline   Reply With Quote
Old 09-27-2007, 10:07 PM   #6
Full time employment: Posting here.
 
Join Date: Sep 2006
Posts: 608
Cool ! I thought they normally didn't roll out the great
rates 'til January. Christmas came early this year.

But you still wanna limit your deposits there to $100K,
right (because of the FDIC insurance cap) ?
JohnEyles is offline   Reply With Quote
Old 09-27-2007, 10:12 PM   #7
Thinks s/he gets paid by the post
73ss454's Avatar
 
Join Date: Oct 2004
Location: LaLa Land
Posts: 4,693
Not sure but if your married you can put one in DW's name, one in your name and one in both names. Can someone confirm this?
73ss454 is offline   Reply With Quote
Old 09-27-2007, 10:29 PM   #8
Thinks s/he gets paid by the post
twaddle's Avatar
 
Join Date: Jun 2006
Posts: 1,703
You can do $400K without too much sweat: $100K each for you and spouse, and then $200K for a joint account.

National Credit Union Administration - Share Insurance

And for Jim: the break-up penalty is 6 months interest for most terms, and a full year for 7-year term.
__________________
Emancipated from wage-slavery since 2002
twaddle is offline   Reply With Quote
Old 09-28-2007, 03:34 AM   #9
Full time employment: Posting here.
DRiP Guy's Avatar
 
Join Date: Nov 2006
Posts: 548
Quote:
Originally Posted by retire@40 View Post
The fed cuts rates and PenFed increases their payout rates. I don't get it.
I did; bought in last night .

I also got the 6.25% last year. It is hard to beat the end of year Pen Fed offering.
DRiP Guy is offline   Reply With Quote
Old 09-28-2007, 03:36 AM   #10
Full time employment: Posting here.
DRiP Guy's Avatar
 
Join Date: Nov 2006
Posts: 548
Quote:
Originally Posted by Gearhead Jim View Post
I didn't check what the penalty is at Penfed for withdrawing from one of the new certificates.
I also didn't this time on the 3 yr I bought, but last time on the 1 yr. it was pretty dang near perfect -- only penalty for early withdrawal was loss of that quarter's interest, and future interest. Pretty sweet deal.
DRiP Guy is offline   Reply With Quote
Old 09-28-2007, 02:22 PM   #11
Thinks s/he gets paid by the post
OAG's Avatar
 
Join Date: Jun 2006
Location: Central, Ohio, USA
Posts: 2,635
About $425K there and all is NFCU Insured. My acct, her account, our account and her IRA and my IRA. 60% are at 6% or better rates, including 100% of IRA funds at 6.25%, and maturing over the next 7 years (through 2014). DW will start RMD's next year and I will start in 2011. We have been members of PFCU for over 32 years and they have almost always had the best rates on CD's, not to mention good rates on personal loans, car loans and mortgages.
__________________
Vietnam Veteran, CW4 USA, Retired 1979
OAG is offline   Reply With Quote
Old 09-28-2007, 08:09 PM   #12
Dryer sheet wannabe
 
Join Date: Apr 2007
Posts: 15
Do you know if it is possible to buy these in a brokerage (IRA) account or do they have to be held in a Penfed account?

thanks

Sid
__________________
I always wanted to be a procrastinator.
sidney is offline   Reply With Quote
Old 09-29-2007, 02:23 PM   #13
Thinks s/he gets paid by the post
 
Join Date: Mar 2004
Posts: 2,341
I wish I could put in a couple of 100K but alas, I am maxed out with the NCUA.
Being single with no children, the last time they had the 6% offering, I made my 3 brothers beneficiaries to increase my deposits 3 fold.

I have been trying to find CUs that would match PFCU but so far no luck.

Oh well.


MJ
__________________
I look to the present moment because that's where I live my life.
MJ is offline   Reply With Quote
Old 09-29-2007, 04:47 PM   #14
Thinks s/he gets paid by the post
twaddle's Avatar
 
Join Date: Jun 2006
Posts: 1,703
Yup, adding a POD beneficiary is probably the easiest way to increase your insurance level. PenFed let's you designate a beneficiary at application time, but if you want to put them in a joint account, you need to send back additional paper work.
__________________
Emancipated from wage-slavery since 2002
twaddle is offline   Reply With Quote
Old 09-29-2007, 08:22 PM   #15
Full time employment: Posting here.
Darryl's Avatar
 
Join Date: Mar 2007
Posts: 577
Thanks R Wood. Your post was the last straw I just applied for membership at Penfed so I can jump on this.

It's been traumatic watching the posts on Penfed & NFCU and not participating in some of the excellent deals you guys have been doing.
__________________
I highjacked a rainbow and crashed into a pot of gold - Bon Jovi
Darryl is offline   Reply With Quote
Old 09-29-2007, 10:00 PM   #16
Full time employment: Posting here.
mountaintosea's Avatar
 
Join Date: Aug 2006
Posts: 564
Hey I have a question for you members who have been using PenFed for a while. What is this quarterly inactivity fee they impose if there is no activity on the account for one year? I perused their service fee statement but could not find anything. Obviously if I'm only using it for the CD rate, it will be inactive for 3 years. Any comments?
mountaintosea is offline   Reply With Quote
Old 09-29-2007, 10:37 PM   #17
Moderator Emeritus
Nords's Avatar
 
Join Date: Dec 2002
Location: Oahu
Posts: 26,855
Quote:
Originally Posted by mountaintosea View Post
Hey I have a question for you members who have been using PenFed for a while. What is this quarterly inactivity fee they impose if there is no activity on the account for one year? I perused their service fee statement but could not find anything. Obviously if I'm only using it for the CD rate, it will be inactive for 3 years. Any comments?
I've been with PenFed for 13 months (since 31 Aug 06) and they haven't complained. I've had at least one CD on deposit with them continuously since then.

Maybe "inactivity" refers to not having any funds on deposit.

I bet they only use that fee if they feel that they're being unfairly taken advantage of. I'd balance the quarterly fee against their CD rates, but if I was getting nickeled&dimed then I'd be outta there in a heartbeat. I'm pretty sure I'm just one of millions of curmudgeonly old phart military veterans activist customers who'd ditch them without a backward glance.
__________________
*

Co-author (with my daughter) of “Raising Your Money-Savvy Family For Next Generation Financial Independence.”
Author of the book written on E-R.org: "The Military Guide to Financial Independence and Retirement."

I don't spend much time here— please send a PM.
Nords is offline   Reply With Quote
Old 09-30-2007, 04:53 AM   #18
Thinks s/he gets paid by the post
OAG's Avatar
 
Join Date: Jun 2006
Location: Central, Ohio, USA
Posts: 2,635
Montaintosea: I have been a member for 32 years (but at NFCU only about 1.5 years). NEVER charged any type of fee for inactive accounts. I have set up accounts for kids and grandkids, and those accounts, more or less, lie dormant (will ease transfer of funds, when the time comes, where they are beneficiaries on some of my other accounts/CD's there). Cheap estate management!
__________________
Vietnam Veteran, CW4 USA, Retired 1979
OAG is offline   Reply With Quote
January
Old 10-01-2007, 10:47 AM   #19
Recycles dryer sheets
Dogcliff's Avatar
 
Join Date: Feb 2004
Posts: 52
January

Quote:
Originally Posted by JohnEyles View Post
Cool ! I thought they normally didn't roll out the great
rates 'til January. Christmas came early this year.
Anyone believe that there may still be a killer New Years offering (6.? %)?

dc
Dogcliff is offline   Reply With Quote
Old 10-01-2007, 12:04 PM   #20
Thinks s/he gets paid by the post
OAG's Avatar
 
Join Date: Jun 2006
Location: Central, Ohio, USA
Posts: 2,635
Maybe!
__________________
Vietnam Veteran, CW4 USA, Retired 1979
OAG is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
PenFed IRA change Gearhead Jim FIRE and Money 5 07-15-2007 10:12 AM
What is your opinion of PenFed? wildcat FIRE and Money 63 07-10-2007 11:40 AM
PenFed qbkatran FIRE and Money 1 01-01-2006 10:17 PM
Penfed Rates for Jan 27-Feb 23 ESRBob FIRE and Money 13 01-28-2005 04:33 AM
Penfed Heads-up Bob_Smith FIRE and Money 8 02-26-2004 01:33 PM

» Quick Links

 
All times are GMT -6. The time now is 10:37 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2024, vBulletin Solutions, Inc.