Thoughts on buying Penfed 3% CDs

[REWahoo]

Are the credit union CDs also insured up to $250k per account?

Yes. The NCUA insurance coverage is essentially the same as FDIC coverage for banks.

 

[aja8888]

Well, it looks like PenFed has had my $100K for 6 days now (days from when I saw the deduction from my Schwab account). I'll give them the weekend but by Tuesday, if it is not showing as available in my already opened IRA, I will be calling them.

Last year I had a $50K CD with Ally @ 2.4% that I had since it was offered. This was in my taxable account. We ended up buying a newer house this Fall (somewhat unplanned purchase) and had not sold the other home so funds to buy the newer one, paying cash, were just short by ~$15K. I had to break the Ally CD and even though the penalty was two months interest, I was not happy to do that.

So you never know what can come up. I believe I will by a set of $10K 3%'ers in the IRA so if the need is there to pick up a higher rate, I will not have to liquidate the whole mess.

 

[Katsmeow]

So you never know what can come up. I believe I will by a set of $10K 3%'ers in the IRA so if the need is there to pick up a higher rate, I will not have to liquidate the whole mess.

Doesn't PenFed offer partial early withdrawals from IRA CD's if you are over 59 1/2? I thought I saw that somewhere.

 

[aja8888]

Doesn't PenFed offer partial early withdrawals from IRA CD's if you are over 59 1/2? I thought I saw that somewhere.

Honestly, I don't know but will be looking into that, thanks.

 

[REWahoo]

Well, it looks like PenFed has had my $100K for 6 days now (days from when I saw the deduction from my Schwab account).

My funds were transferred from Vanguard on 12/20 and my CD's showed up yesterday (12/27) with a 12/23 effective date.