Dedicated to Deposits: Deals, Data, and Discussion

Happy New Year! PenFed Raises CD Rates for January

POSTED ON BY

Pentagon Federal Credit Union
Update 1/05/2010: I received info from my PenFed contact about the rollover CD rates. Please refer to this new post for the details.

Happy New Year! Thanks to everyone for reading, and let's hope that 2010 has some improvements for us savers.

Pentagon Federal Credit Union did increase some of its CD rates for January, but I'm afraid they're 25 basis points lower than what I was told by my PenFed contact. Perhaps they had more members agree to renew their CDs than what they had planned. Nevertheless, the new rates are competitive. They went up 50 basis points for terms of 3, 4 and 5 years. Unfortunately, the 7-year rate went down by 25 basis points. Below is the summary of PenFed long-term CD rates as listed at the PenFed Money Market Certificate page as of 1/01/2010:
  • 3.00% APY 3 year
  • 3.25% APY 4 year
  • 3.50% APY 5 year
  • 3.75% APY 7 year
I'm currently unable to confirm the renewal rates. I would think those who were early to participate in PenFed's Certificate Reservation Offer should be getting rates 50 basis points higher than the above rates. I'm hoping this will also apply to those who were late to participate since I was told of these higher rates by my PenFed contact and by two PenFed CSRs. It may just be 25 basis points higher than the above rates. I had one CD that matured today, and I had set it to renew. I logged in this morning, and it still hasn't rolled over to the new CD. When I receive renewal rate info, I'll be sure to update this post. Please leave a comment if you receive info on this.

Update 6:00pm 1/1/10:

I called PenFed today, and I have some new info based on my conversation with the PenFed CSR. However, I should note that the CSR didn't know much. I sent an email to my PenFed contact to find out what happened and who will be eligible for what rates. I don't expect a reply until Monday at the earliest.

I again logged into my PenFed account. The CD that matured today still shows the old CD rate and term. According to the CSR, the new rate and term should show up tomorrow after the holiday.

I'm assuming that those who were able to participate in the November Rollover Subscription Promotion (before it was canceled) should get the rates that PenFed listed which are 50 basis points higher than above. I'll know more when I receive the reply.

For those who missed the November Rollover Subscription Promotion but had set their CDs to rollover (like me), there is a question about what rates we'll get. According to the CSR, we'll just get 25 basis points over the listed rates which comes out to 4% 7yr, 3.75% 5yr, 3.50% 4yr and 3.25% 3yr. I told my PenFed contact that I and many of my readers were informed by PenFed reps that the rates would be 25 basis points higher. I'm hoping we'll be able to get those rates.

It appears the Board of Directors decided in December for the lower rates. The CSR didn't know much more.

PenFed Certificate Details

For more details about PenFed's CDs and joining PenFed, please refer to this PenFed review post. Details of the CDs are available in the second page of PenFed's account application. A few important details to note:
  • Early withdrawal penalty for the terms of 3 to 5 years is 180 days of dividends (all dividends if redeemed before 180 days from issue date)
  • IRA CDs available with the same rates
  • IRA CD holders over 59½ can avoid most of the early withdrawal penalty (see see post)
Note, there's no grace period. However, the early withdrawal penalty for the first 180 days is not 180 days of interest but just the interest earned from the issue date. So if you change your mind about renewal a couple of days after the CD matures, you should be able to do an early closure and lose only those couple of days of interest. Many banks don't pay interest during the grace period if you don't renew. So this PenFed feature is no worse.

Membership

PenFed makes it easy for anyone to join and open accounts online. If you don't qualify based on military, employer or family, you can become eligible by joining the National Military Family Association (NMFA). Please refer to How to Join Overview Page for details. Joining NMFA and Penfed can be done at the same time all online. The yearly membership for NMFA is $20, but your membership in the association does not need to be maintained to continue as a Penfed member. You can also be eligible to become a member of PenFed if you are an employee or volunteer of the American Red Cross (refer to this PenFed page).

Branch Locations

Accounts can be opened online, but for those who prefer branches, PenFed has branches in several parts of the country including Washington DC, Maryland, Virginia, New Jersey, New York, Colorado, North Carolina, Hawaii, Puerto Rico, Missouri and Texas.

Financial/NCUA Info

PenFed's ratings for safety and soundness are no longer the best, but they remain respectable: 4 stars (excellent) at BauerFinancial (based on 9/30/09 data) and 3 stars (performing) at Bankrate.com (based on 6/30/09 data).

PenFed is one of the largest credit unions in the US with $13.4 billion in assets and 889,874 members. It's federally insured by the NCUA (Charter # 227).
  Tags: New York, North Carolina, Hawaii, Texas, Virginia, Pentagon Federal Credit Union, Colorado, CD rates, Maryland, Missouri, New Jersey, IRA rates

Related Posts

Comments
59 comments.
Comment #1 by Anonymous posted on
Anonymous
Back in November I received an e-mail from PenFed when I reserved a certificate to roll over on January 12th. The e-mail confirmation from them stated an APY of 4.00% on my five year certificate when it rolls over.

Now I'm wondering what's going on.

1
Comment #2 by Anonymous posted on
Anonymous
.


>> Pentagon Federal Credit Union did
>> increase some of its CD rates for
>> January, but I'm afraid they're
>> 25 basis points lower than what I
>> was told by my PenFed contact.

Indeed ... On 28th I was told by the rep that APY for 5yr CD will by 4.00% and for 7yr it will be 4.25%.

Too bad ... info given by the phone reps was different from what actually happened ... ( Won't be the first time that I've experienced this. )


.

1
Comment #3 by Anonymous posted on
Anonymous
.


>> Back in November I received an
>> e-mail from PenFed when I
>> reserved a certificate to roll
>> over on January 12th. The e-mail
>> confirmation from them stated an
>> APY of 4.00% on my five year
>> certificate when it rolls over.


Yes ... I also took advantage of the rate renewal in November. Immediately after each reservation the web-page (Main Menu --> Accounts) used to show the renewal certificate with a red "*", and towards the bottom of the page the info about the renewal used to come-up. ... Now when I see it, all of this is gone.


>> Now I'm wondering what's going on.

Indeed ... Me too.


If they do not full-fill the renewal deal they offered, it will be too bad ... Err ... Maybe I'll go with something a little more risky ... TLT, IEF and TLH.


.

1
Comment #4 by Anonymous posted on
Anonymous
Bait and Switch anyone.

1
Comment #5 by Anonymous posted on
Anonymous
I received a mail with a yellow leaflet insert that it said an extra 0,5% interest if I agree to renew my CD, on Thursday I received an E-Mail that it said to ignore the 0.5% it was mailed by mistake. They are reneging their initial commitment.
I will not renew it with them, my local CU has about the same rates for long term CDs.

1
Comment #6 by Anonymous posted on
Anonymous
.


Alas ... Based on the information that I got a PenFed rep, looks like they are going not going to keep the deal that was offered earlier for the rate-renewal.


So ... Analysis? ... Options?

My money was tied till the maturity. Therefore I could not have used it at PenFed or elsewhere until after maturity. When the certificate matures, I'll have a choice to accept a lower rate than what was offered, or find a rate that is equal or better elsewhere.

Hmm ... I am disappointed in PenFed ... if I get equal rate elsewhere then I'll go there rather than putting the funds at PenFed. ... Else ... maybe stay with PenFed with reluctance ... Else ... maybe go with something risky ... TLT, IEF and TLH.

USAA has okay rates ... maybe will consider those ...


.

1
Comment #7 by Anonymous posted on
Anonymous
Very uncharacteristic of PenFed.

This surely will give them a black eye if they do not honor their reserved certificate rates.

I will probably reluctantly stick with them because I have several accounts with them and they have been very good up to this possible goof.

1
Comment #8 by Anonymous posted on
Anonymous
Just went to Navy FCU's website. Their 7 year for $20,000 plus appears to be 4.00 APY, with 3.92 rate.

1
Comment #9 by Anonymous posted on
Anonymous
I just called Pen Fed after I noticed that they removed my reserved CD. They told me that the board of directors changed the rate and that it will be 3.00% for a 3 year CD. A bonus 0.25% would be added to the CD. I ask her who approved the reserved rates in November and I was told “the board of directors.” I asked her that once we locked in a rate how can either party change it? She asked me if I printed out the 3 year 3.50% rate. I said no, but I do have the confirming email that they sent to me for the 3.50% rate. She said that I should have no problem receiving the 3.50% rate and to make sure that I keep the email for proof. She also said that they have a list of everyone who did reserved their rates in November, but it is not in numerical order so she was unable to find mine quickly. My CD doesn’t renew until the end of the month so I will not be able to report back until then.

Let’s just hope they honor the rate that they gave to us in November. Otherwise, if they don’t, I suggest that everyone who reserved this rate call in and press them to give us the rate that we were promised and locked into. One simply can’t change a agreement midstream.

1
Comment #10 by Anonymous posted on
Anonymous
"Let’s just hope they honor the rate that they gave to us in November. Otherwise, if they don’t, I suggest that everyone who reserved this rate call in and press them to give us the rate that we were promised and locked into."

That is exactly what I intend to do!

1
Comment #11 by Anonymous posted on
Anonymous
Talking to a CSR is a waste of time. You need something in writing before renewing, otherwise they can do what ever they feel like about the rates.
I sent a letter where I ask for confirmation of the rate before they lock it in.
I also received a yellow insert about the rates where it stated 0.5% extra, which was followed up with e-mail to ignore it.
Talking about a tease, give me a break. According to the letter the rates are not locked in unless you send a secure e-mail or certified letter in case it gets lost or they conveniently trash it.

1
Comment #12 by Anonymous posted on
Anonymous
I called. They were not cooperative. I will call again tomorrow.

1
Comment #13 by Anonymous posted on
Anonymous
I also received a yellow 3"x6" insert and it stated that the funds are limited for these special rates.
I guess they already fulfilled the fund for these rates. Good luck getting higher rates now.

1
Comment #14 by Anonymous posted on
Anonymous
Anonymous 11:56 AM, January 01, 2010 wrote:

"Talking to a CSR is a waste of time. You need something in writing before renewing, otherwise they can do what ever they feel like about the rates."

I do have something in writing. It's the email confirmation. Did you receive one? Incidentally, I never received an email from PenFed notifying me that they are canceling the reserve rate, so hopefully they will honor it.

PenFed has a very good reputation. I would find it hard to believe that they would risk that reputation by not honoring the rates that they promised to a relatively few number of people ("few" as far as the banking industry is involved). Their reserve offer did not last long, so they will not be out much by honoring the reserved rate.

1
Comment #15 by Anonymous posted on
Anonymous
To poster at 12:12 PM, January 01, 2010,
May be you got in before the special fund was filled. But, don't take my word for it, send secure e-mail or mail to receive confirmation, otherwise they can cancel you too.

1
Comment #16 by Anonymous posted on
Anonymous
To Poster at 12:18 PM, January 01, 2010

Thank you. I just sent them a secure email. Now I'll have to wait for the response.

1
Comment #17 by Anonymous posted on
Anonymous
Everyone one who visits this website needs to send an email to Pen Fed and let them know they cannot **** their customers like this!! Go to "contact us" on their website and send them a message whether you are a customer or not!! I just sent mine and I am not even a customer. There is strength in numbers, people!!

1
Comment #18 by Anonymous posted on
Anonymous
"Go to "contact us" on their website and send them a message whether you are a customer or not!!"

People, DON'T DO IT if you're not a PenFed customer. What a way to start the New Year, by LYING!

Isn't there enough dishonest people in this world already? Don't become another one.

1
Comment #19 by Anonymous posted on
Anonymous
Well, see what happens when a credit union expands their membership to just about everybody. Their 4 year and 5 year rates are not different than Qualtrust FCU in Texas, so what's the big deal? The one thing that's really upsetting is that the 7 year rate is no longer 4 percent. That was the breaking point. If you can't get 4 percent for a fixed long term rate without putting in a bunch of money, you are dead in the water going forward.

1
Comment #20 by Anonymous posted on
Anonymous
Navy Credit Union has a one year certificate yielding 2.9%. Hurry!

1
Comment #21 by Banking Guy (anonymous) posted on
Banking Guy
I've updated the post with some info. I probably won't know much more until Monday at the earliest.

About Navy's 2.9% 12mo CD, I believe this is the Special EasyStart Certificate. Unfortunately, it has a lot of limitations and restrictions. From the small print:
$3,000 maximum balance. Only one Special EasyStart Certificate per member is allowed. Certificate owner(s) age 18 and older must have Direct Deposit of Net Pay (minimum $300 per direct deposit), a Navy Federal checking account, and a monthly automatic deposit of at least $15 within 90 days of the certificate issue date.

1
Comment #22 by Anonymous posted on
Anonymous
I received an insert in my PFCU statement (mid-December) notifying me of the .25% bonus program for ALL 3, 4, 5 an 7 year term rollovers effectiver 12/1 (not just for January). I called last week and the rep confirmed that the current 7 year rate was 4% and would be the same in January; so if I rolled over my 12/30 CD - I would get 4.25%.

Since I also have a CD due in January, I asked about the January rates and was told that although the 7 year CD rate was staying the same, the 5 year rate would go up to 3.75%. So if you add on the bonus of .25% for rollover- the 5 year CD would yeild 4% and the 7 year 4.25%.

Well, I checked the system today, and lo and behold my 12/30 CD rolled over but the 7 year rate was only 4%. I called and was told that PFCU decided not to honor the bonus program as outlined in the 12/1/09 insert (apparently it was an error and should have stated it was effective January 1). He also advised that although they would honor the bonus program for January rollovers, since the rates had declined unexpectedly, the bonus effectively just brought you up to December rates.

I insisted on speaking with the call center manager. The manager immediately contradicted the rep and said that PFCU was indeed honoring the bonus program for December rollovers (since they published it - they had to) BUT that the rate change for January had been made retroactive and entered in the system on 12/29 to ensure that any rollovers on 12/29 or thereafter got the January lower rates. Therefore, I had received a 3.75% rate + .25% bonus for a total of 4% for my rollover CD. He admitted that the reps had not been informed of these changes in a timely manner and so they may have communicated erroneous information. He blamed the problematic communications and mix up on technical problems with their reservation program which forced them to quickly reconsider rules/rates . He said he undertood why folks were upset but that the CU had the right to change terms without notice.

1
Comment #23 by rjm (anonymous) posted on
rjm
Im presuming the email they sent me on 11/21 is still valid.

Your Certificate Has Been Reserved

Congratulations! You have reserved your Money Market certificate. There is nothing to do now but make sure the funds are available on your funding date. You probably never thought it would be so easy to get a great deal.

The certificate details are as follows: Term: 3 Year
Open Date: January 9, 2010
Maturity Date: 9, 2013
Dividend Rate: 3.440%
APY Rate: 3.49%
------
Im not going to worry about it unless I end up getting anything LESS than the above.

1
Comment #24 by Anonymous posted on
Anonymous
Chill people !!Be patient , This too shall pass.There is just not a lot cd investors can do right now . The 6 month interest penalty is a good deal if you want to get out of a 5yr cd should rates go up .
I remember back when the standard rate for pass book savings at any bank was 5.25%. people would kill for that now .

1
Comment #25 by rjm (anonymous) posted on
rjm
Another thing regarding penfed, they are REDUCING the cashback on their visa from 1.25% to 1.00% effective Feb 1. The notice came with my last card statement.

1
Comment #26 by Anonymous posted on
Anonymous
I guess the cashback bonus rate could not be sustained. Pity, they kept stressing that rate as a reason for switching to their card versus the other bank cards. Now, it's all the same and better not to make another application and open another card account.

1
Comment #27 by Anonymous posted on
Anonymous
How sad is it that Bernake has us fighting like cats and dogs for a stinking 1/4 percent bump in rates.

I guess most here have 100's of thousands on the line or they wouldn't worry so much about it.

1
Comment #28 by rjm (anonymous) posted on
rjm
The 5% on gas + 2% on groceries & walmart will keep me carrying this card but I wont be using it for anything else after Jan 31.

I am grandfathered in on a paypal debit card that gives me 1.5% back but the downside of course is the money must be there, interest free upfront, so no float.

Frankly, many of my 1% cashback deals will probably just go toward my reward checking accounts with 12transaction minimums.

In cold weather, its just not worth it to stand out in the cold hitting multiple gas stations.

I sent penfed an email but they havent responded. I will contact the president if they try to cheat me out of the 3.49% they promised me. Even though its a small amount, its bad faith.

1
Comment #29 by Anonymous posted on
Anonymous
.


Earlier on November 20, 2009 at 11:15 I wrote the following at link:

http://bankdeals.blogspot.com/2009/11/certificate-and-credit-card-deals-at.html


Err ... overall I guess PenFed is cutting it a little too close.

They are offering 5/1 and 5/5 ARM at 4.50% ... and they are offering 5 year CDs for 4.00%.

... So if one were to pair-up the CD assets that CU is borrowing from depositors, and the ARM assets that the CU is lending to the debtors, then the spread is too little ...

I know ... I know ... the pairing up does not go hand-in-hand like that ... however there is a loose link between the assets the CU gets from depositors and the assets it lends out to the debtors.


... Should be interesting to see how the thing plays out ...


Hmm ... Looks like it is not playing too well for the folks (myself included) who made the 'reservation'.


.

1
Comment #30 by Anonymous posted on
Anonymous
If you look at the fine print on the yellow leaflet you will see the disclaimer:

"....and subject to change.....

1
Comment #31 by Anonymous posted on
Anonymous
To poster above mine, yes I just noticed that, which means they can change the rates, conditions to what ever they want and there is nothing we can do.

1
Comment #32 by Anonymous posted on
Anonymous
I just called the PFCU and a CSR told me (after consulting with a supervisor) that I would receive the 3.49%, 3YR CD rollover when my certificate matures this coming week.

This is because I had received the confirmation email of the reservation back in November when I called to reserve the certificate rollover rate.

1
Comment #33 by Anonymous posted on
Anonymous
I reserved, but never received a confirmation. It looks like I'm out of luck. I will be pulling my money out.

1
Comment #34 by Anonymous posted on
Anonymous
This is the second time that PenFed confirmed that I will receive the reserved rate. Below is an email that I received today:

"Thank you for contacting Pentagon Federal Credit Union.

The certificate is scheduled to renew and the reserved rate will be applied.

If you need further assistance, please contact us."

So, it looks like the reserved rates will be honored.

1
Comment #35 by Anonymous posted on
Anonymous
.


I called one more time ... Inquired about the 'reservation' ... the CSR asked me to hold on ... after some 4 minutes of so she came back ... told me that she had to access some 'other' system ... and that my certificates will receive the 'reservation' rate ... What a mess!

PenFed has handled this in a slip-shod manner.

So ... will wait and see if they indeed come thru or not.


.

1
Comment #36 by rjm (anonymous) posted on
rjm
They responded to my email....

Thank you for contacting Pentagon Federal Credit Union.

Our records indicate that you did successfully reserve the CD to renew at a higher rate. Upon the maturity of the certificate we will adjust the new certificate to the reserved rate.
-------
So as expected, I will be getting the 3 years at 3.49%.

1
Comment #37 by Anonymous posted on
Anonymous
To Anonymous who posted on 8:39 PM, January 01, 2010

I have an account that is close to the FDIC maximum insured limit, so a fractional rate change is over 1 thousand dollars interest out the window for me.

1
Comment #38 by Anonymous posted on
Anonymous
I have a confirmation e-mail re certificate reservation for a January rollover, so I MIGHT get the rate offered during that program (3.5% APY for 3 years).

However, I find Penfed's handling of communications regarding this whole thing disgraceful for an institution supposedly owned by its members.

Penfed's initial CSR feedback saying they cancelled the reservation program due to technical issues sounds like pure BS. In fact, the only way I even found out about the decommitment was by reading this blog ... Penfed never sent any communication about withdrawing the offer.

It's clear that Penfed is still giving inconsistent responses regarding whether they will honor the original certificate reservation rates.

I've become uncomfortable with even a 3.5% APY for 3 years and I'm not going to renew. I think I can do better with conservative investments like preferred shares of companies with stable investment grade credit ratings ... riskier and more work to manage, but likely worth it with many utilities paying around a 7% dividend.

If rates start going up, I'll sell the shares and switch back into a CD.

I can still add money to my 2-year add-on CD at Northwest FCU at 3.75% APY ... it matures in Feb 2011.

1
Comment #39 by Anonymous posted on
Anonymous
I made my cd reservation back in November with the then higher rates. This morning I looked at my cd and I only received the 0.25% bonus, not the original 4.00% for a five year. It appears they are not honoring their original offer.

1
Comment #40 by Anonymous posted on
Anonymous
What's with all their confusion and mis-communications within the PenFed's organization?

This inconsistency at PenFed is very disturbing to me. I have over the NCUA insurance limit on deposit with them in my IRA account. I had faith in them up until now. Now I am having some doubt and getting a little apprehensive about being over the NCUA insurance limit on deposit in my IRA account.

1
Comment #41 by Anonymous posted on
Anonymous
.


>> riskier and more work to manage,
>> but likely worth it with many
>> utilities paying around a 7%
>> dividend

Indeed ...

Are you going for individual utilities or mutual fund?


.

1
Comment #42 by Anonymous posted on
Anonymous
.


BTW, USAA has 7yr CD with APY 3.85%. PenFed has the same with 3.75%.

As far as the CD laddering portion for 7yr term is concerned, I'll be going to USAA.

I have established ACH transfer "link" from USAA, so that I get fund from my PenFed checking over to USAA. Will have PenFed move proceeds into Checking from CD upon maturity and go from there ... the full process should take about 10 days.


.

1
Comment #43 by Anonymous posted on
Anonymous
Everything income investors need to know.Free but you need to register. www.quantumonline.com > special lists > IPO's of preferreds and income securitys. Keep in mind even high rated investment grade preferreds will fluctuate in price.During the recent market unpleasantness some of my preferreds lost 60% to 70% of thier value. They have now recovered and I could sell them for some nice capital gains. Right now cd's have to be looked at as just capital preservation.

1
Comment #44 by Anonymous posted on
Anonymous
"Right now cd's have to be looked at as just capital preservation."

I'm afraid you're right. Good point. Interest rates today won't even keep up with inflation let alone produce income to live on.

Oh! Thats right, the Feds say there is "0" or even negative inflation. That's why social security recipients will not receive a cost of living adjustment. What world are the Feds living in?

1
Comment #45 by Anonymous posted on
Anonymous
" What world are the Feds living in? "
In almost bankrupt country with printed money to cover the politicians' created deficit.

1
Comment #46 by Anonymous posted on
Anonymous
.


>> Interest rates today won't even
>> keep up with inflation let alone
>> produce income to live on.

Err ... What inflation?

With COLA for 2010 at zero, there is no inflation seen anywhere.


.

1
Comment #47 by Anonymous posted on
Anonymous
.


>> What world are the Feds living in?

I'm afraid they are living in the same exact same world, as was created by the people for the people.

If fact, the people (indirectly) created the FED, and gave them the necessary powers, and charged them with managing the monetary policy for the people's world.


.

1
Comment #48 by Anonymous posted on
Anonymous
"Err ... What inflation?

With COLA for 2010 at zero, there is no inflation seen anywhere."

IN THE REAL WORLD in which most of us live in.

But apparently not in your world or the Fed's, with the selective statistics and calculations they use to come up with their phony inflation numbers.

1
Comment #49 by Anonymous posted on
Anonymous
.


>> But apparently not in your world
>> or the Fed's, with the selective
>> statistics and calculations they
>> use to come up with their phony
>> inflation numbers.

They? ... Who are they?

Perhaps you mean BLS! And even the BLS is created (indirectly) by the people for the people.

Looks like you are blaming the a) FEDs and b) Social Security Administration and c) Bureau of Labor Statistics, but not yourself and the people ... Maybe you need to look into the mirror and pass the blame (if any) to the guy/gal you see in there. After you are done with that, start tracing the family-tree and pass along the blame (if any) to the forefathers/mothers who help create this world of the people.


.

1
Comment #50 by Anonymous posted on
Anonymous
Why don't you do yourself a favor and find another blog Snippy!
Try angryoldmen.com

1
Comment #51 by Anonymous posted on
Anonymous
Perhaps too much Eggnog for him.

1
Comment #52 by Anonymous posted on
Anonymous
Re my post regarding preferred shares of companies with investment grade ratings ...

I have a portfolio of individual issues, a mixture of utilities, telecom and financials. Examples include XCJ, BBT.PR.B and CCW.

However, I also have PSK which is an ETF with a diversified portfolio of preferreds with a yield of 8.42% with a management expense ratio of 0.45%. I've got a limited amount of PSK because it's pretty heavy on financials.

I agree that quantumonline.com is an excellent resource for researching these issues.

Make sure you look at some charts for the past two years before you buy anything so you understand the potential volatility of the share prices. Even quality stuff got killed during the crisis.

For example, a pipeline MLP like EEP (currently yielding 7.38%) was down 50% back in March 2009, but it's come all the way back to pre-crisis levels.

You don't need to lose much capital to wipe out all your dividends and more, so make sure you understand the risks.

1
Comment #53 by Anonymous posted on
Anonymous
.


>> However, I also have PSK which is
>> an ETF with a diversified
>> portfolio of preferreds with a
>> yield of 8.42% with a management
>> expense ratio of 0.45%. I've got
>> a limited amount of PSK because
>> it's pretty heavy on financials.

Indeed ... With top holdings like 1) Barclays Bank Plc, 2) State Street Institutional Liquid Reserves 3) HSBC Holdings Plc 4) Credit Suisse Guernsey 5) Deutsche Bk Contingent Cap Treasury this looks quite heavy in financials, and foreign financials at that!

Also PSK looks like a relatively new spider - inception date 9/16/2009 with quarterly dividends ... Hmm ... will keep it on watch-list.

Recently I went into TLT, TLH and IEF. I trade currencies (XRU, FXM, FXA, CYB, BZF, SZR) and gold GLD and GLL (both on long and short side) on-and-off.

Will be interesting to watch (and possibly trade) PSK as well.

Thanks.


.

1
Comment #54 by Anonymous posted on
Anonymous
Can we get back on the subject matter of this topic, PenFed CDs?
Has anyone heard anything new from PenFed and their CD rates particularly on "reserved CDs" for January renewals?

1
Comment #55 by Anonymous posted on
Anonymous
I asked them why my certificate reservations I made on Nov 20th disappeared from my account. Here's the response I got.

Thank you for contacting Pentagon Federal Credit Union.

This promotion has been removed from PenFed Online. If your certificate it set
to rollover and you have enrolled in the promotion, you should still receive the
advertised rate. We apologize for any confusion and inconvenience this has
caused.

1
Comment #56 by Anonymous posted on
Anonymous
I did the early cd reservation in Nov. It renewed on 1/2 and on 1/3 had the +0.25% listed. Today it has the Nov. rate at +0.50%. Perhaps a systems error due to the 2 promotions?

1
Comment #57 by Anonymous posted on
Anonymous
I sent an e-mail directly to the Board of Directors. Just got the following reply from the Chairman:

"All members who participated in the Certificate Reservation program and whose certifictes roll-over in January will have their reservations honored. You will receive the advertised rate from that promotion: 3 yr/3.50%, 5 yr/4% and 7 yr/4.25%."

1
Comment #58 by Anonymous posted on
Anonymous
Thank you people very much for your replies. One of my CDs matures on 1/12 and I reserved a 5 year roll-over certificate back in Nov. and had received a confirmation by e-mail back then.

I have not called PenFed. I will wait and see. But I am more confident now about receiving the confirmed 4.00% APY.

1
Comment #59 by Anonymous posted on
Anonymous
I had an account with PenFed. They told me all i needed to deposit was $5 to open an account. I deposited the money but after 1 month they took the money away from my savings and closed my account. Crooks.

1