PenFed Sucks

[JPatrick]

I gave up on PenFed many years ago for the same reasons that have already been mentioned here. Last week I finally withdrew $460 that had been waiting for me to say my final fair well.

 

[audreyh1]

I’m getting ready to close out the PenFed accounts. We stopped using the credit card a couple of months ago. Wasn’t worth the hassle - the Costco 4% cash back on gas is good enough. Now I need to get my cash out of there!

 

[RunningBum]

Wondering if I'm missing something. I'm still with PenFed. Free checking, with a little bit of interest. Premium online savings at 0.45%, which isn't awesome, but good enough to leave some short term cash there and be able to instantly transfer it to checking. 2% cash back with the cash rewards credit cards.

I guess it all looks good until you have a problem, then you find out, but that could be true with any bank. I had a credit card fraud issue a few years ago and that was handled quickly and well. A couple years ago I had a second credit card that I never used anymore and they were able to close that and transfer my credit limit to the cash back card.

Is there something better?

 

[aja8888]

I still have the 2% back CC and the Premier Savings account. Closed my CD's but it took them a month to transfer the funds to Schwab.

 

[tulak]

I closed my PenFed accounts earlier this year. I didn’t have much there and decided it was time.

 

[audreyh1]

Yeah, I’m looking forward to simplifying. Initially I opened a PenFed account to take advantage of some very nice CD deals. But over the past few years those have gone the way of the dodo. I also got the credit card because it was a chip card that had a PIN, but it turned out only to be marginally useful in Europe due to signature priority. Then there were many other times it just didn’t work in a kiosk for whatever reason. The First Tech PIN priority card has been far more reliable.

Pretty much the only thing we’ve used the last two years is the credit card giving 5% cash rewards for gas. And only buying gas with it.

 

[tulak]

I closed my FirstTech account a year ago, after being a customer since the mid-90s. I find that I really don’t need a chip/pin card. Apple Pay works well enough in a lot of countries and in rare cases (which I haven’t encounter yet), I can always figure out an alternative.

 

[daylatedollarshort]

PenFed's home loan rates used to be really good, but when I checked around earlier this year they weren't that competitive. The Costco Mortgage program lenders tended to have lower rates. Though we dropped two of those lenders after starting the application process due to poor customer service as well, but the third lender was smooth sailing.

 

[Chuckanut]

There seem to be two types of credit unions these days. One wants to be a customer friendly alternative to the Big Banks. The other wants to just like a Big Bank.

 

[braumeister]

I haven't closed my PenFed accounts for two reasons.

First the PF Visa I use mainly for gas is paying me well over $100 a year in cash rebates. That's enough to put up with a bit of complexity. It also has a high limit, which is nice in case I ever want that.

Second, it's my oldest credit card (since 1987) so closing it would probably be at least a temporary hit on my credit score.

 

[audreyh1]

The Costco VISA 4% cash back rewards on gas is awfully close so we finally stopped using the PenFed VISA - one less card to carry.

And hopefully in less than six months (knock on wood) we won’t even be buying gas anymore anyway except for the occasional rental car.

 

[REWahoo]

I haven't closed my PenFed accounts for two reasons.

First the PF Visa I use mainly for gas is paying me well over $100 a year in cash rebates. That's enough to put up with a bit of complexity. It also has a high limit, which is nice in case I ever want that.

Second, it's my oldest credit card (since 1987) so closing it would probably be at least a temporary hit on my credit score.

^ This.

A high limit plus with our RV travel our cash back PenFed card pays us ~$300 a year. Last year was an exception of course, but I'm hoping that was a one off.

 

[CaptTom]

Another 5% gas card user here. I selected that after they tried to switch me to "points" and I had to choose only one category for my cash back. Now the cards sit in our cars and never gets used for anything else. Their loss. I assume some salesman for the "points" company got the big wigs at PenFed drunk and convinced them that was a good thing. I almost left then.

Another stupid PenFed trick is the requirement to keep $5 in a "regular" savings account in order to get the "premium" account. I'm sure it costs them far more than $5 a year to maintain that account. But as posted above, the premium account is as good a place as any to keep some excess cash while the CD rates are so low.

So, although I'm not happy with them, I've made my peace with PenFed. I won't sing their praises like I used to, but I'll use them when it's convenient for me.

 

[audreyh1]

I closed my FirstTech account a year ago, after being a customer since the mid-90s. I find that I really don’t need a chip/pin card. Apple Pay works well enough in a lot of countries and in rare cases (which I haven’t encounter yet), I can always figure out an alternative.

It’s true that we are able to use ApplePay for many if not most things in Europe now. But I still find the FirstTech MasterCard super reliable for unmanned kiosks for transportation purchases in various European countries, so I will maintain the card for a while.

 

[braumeister]

It’s true that we are able to use ApplePay for many if not most things in Europe now. But I still find the FirstTech MasterCard super reliable for unmanned kiosks for transportation purchases in various European countries, so I will maintain the card for a while.

Same here.

I've also seen a few cases where a clerk doesn't know how to set Apple Pay up on their terminal, so to avoid a tedious delay I just use this card instead. It's always nice to have options.

 

[audreyh1]

Yes, smaller shops etc., they are not always set up for Apple Pay. And it really depends on the country or if you are in an urban area, etc.

 

[jazz4cash]

Still pretty satisfied with PF. Just off the sugar rush of those 5% 10 yr CDs I can’t be mad at ‘em. They did close the branch I used but found another one not too far away. Customer service was excellent when I moved all that CD money to Fido. Fido screwed it up (a first for me at Fido) and PF fixed it. Now I only use premium savings and 5% cash back on gas Visa. I did get a whopping $200 bonus for opening a checking account and putting $500 there.

 

[Go-NoGo]

Happy with my PF visa, they pay for my Global entry every five years and pay $100 in airline incidentals every year.

 

[RAE]

Pretty much the only thing we’ve used the last two years is the credit card giving 5% cash rewards for gas. And only buying gas with it.

I mostly just use PenFed these days for the 5% cash reward VISA card, which I also use mainly for gas. As far as I know it is still the best card for gas, so I'll stick with it unless/until they change it.

 

[tulak]

It’s true that we are able to use ApplePay for many if not most things in Europe now. But I still find the FirstTech MasterCard super reliable for unmanned kiosks for transportation purchases in various European countries, so I will maintain the card for a while.

I canceled mine because they started charging a fee. I don’t remember the details, but decided it was easier to close.

I don’t doubt that it’s reliable in some cases, but for me it’s a rarity so when they charged me a fee, I decided it was time to move on. Kinda like PenFed. I’m trying to simplify my accounts.

 

[ownyourfuture]

I’m not sure if the OP’s note is really a reflection on PenFed or just on the gradual decline of customer service in general. I’m finding that it’s a rare exception when I receive really good customer service these days.

THIS!

 

[Alex The Great]

It is true that PenFed service and quality of products are in decline.
I've been a long term customer with PenFed. I used to have a mortgage many years ago and their rates were more than competitive.
Currently, I cannot find even a phone number to call on their web site. All they offer is a chat which does not work.
I still have a few credit cards with them and $500 in advantage checking, to maintain 2% cash back on Power Rewards Card. Those cards are handy abroad, as they do not carry FTF. There are just a few credit cards around which does not charge FTF and still pay 2% cash back.
I do have their card which pay 5% cash back for gas. But I also have Chase Freedom and Discover which pay 5% cash back for gas on rotating schedule.
Almost forgot: I also have a Pathfinder Penfed credit card which pay for Global Entry and this is another reason I'm still with them.

 

[RunningBum]

Currently, I cannot find even a phone number to call on their web site. All they offer is a chat which does not work.

https://www.penfed.org/contact-us has phone numbers.

 

[Alex The Great]

https://www.penfed.org/contact-us has phone numbers.

Thank you, it looks like they have a phone number back which is definitely a good news.

 

[Chuckanut]

I canceled mine because they started charging a fee. I don’t remember the details, but decided it was easier to close.

I don’t doubt that it’s reliable in some cases, but for me it’s a rarity so when they charged me a fee, I decided it was time to move on. Kinda like PenFed. I’m trying to simplify my accounts.

1st Tech has a fee for their Mastercard?