Dedicated to Deposits: Deals, Data, and Discussion

PFFCU Again Changes Eligibility Requirements for the Worse

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The Police and Fire FCU (PFFCU) in Philadelphia has again added new limits on who can qualify to join the credit union. PFFCU continues to offer a 4.00% APY 5-year CD and a 3.00% APY 3-year CD (Update: These CD rates just fell by 50 basis points), so unfortunately, fewer people will now be able to take advantage of these hot CD deals. For a little while anyone in the country could qualify to join PFFCU by becoming a member of Weavers Way Cooperative Association. In early July, PFFCU limited credit union membership to only Co-op members who are residents of PA, NJ or DE. PFFCU has again changed this. Co-op members must now be residents of Pennsylvania. Here's how PFFCU's members group list was changed:

Old

Weavers Way Cooperative Association
--must be a resident of PA, NJ or DE

New

Weavers Way Cooperative Association
--must be a resident of Pennsylvania

Thanks to the reader who mentioned this news in the comments. The reader also had a good point in that PFFCU could further narrow this. Those in PA who are looking for long-term CDs may not want to wait too long to join PFFCU. Based on how PFFCU has changed this, I wouldn't be surprised if this gets furthered narrowed to Philadelphia.

This is very frustrating to savers who just want a decent return on their hard earned savings. Why would PFFCU make such a change? A reader in my last PFFCU post gave his opinion which makes sense:

Sadly it isn't that surprising. Like most banks and credit unions I am sure PFFCU is awash in liquidity and deposits these days and doesn't have a profitable way to put hugely increased deposits to work.

Perhaps they think it makes more sense for them to offer better rates to a smaller group than have to cut their rates to the point that they remain solvent as a much larger institution. Because, let's face it, most of the rate chasers that bring in money from far away don't become potential loan customers.

I just started a forum thread about an American Banker article which describes how many banks are "drowning in deposits".

For those in Pennsylvania and who are interested in these hot CD deals, please refer to my PFFCU review for more details about the credit union and these CDs.

  Tags: Police and Fire Federal Credit Union, Pennsylvania, CD rates, IRA rates

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Comments
9 comments.


Comment #2 by Anonymous posted on
Anonymous
If you check PFFCU's latest rate chart dated July 29, 2010 the CD apy's you mention in your blog have dropped by a half of percent.  The chart on their  homepage is not updated yet.

3
Comment #3 by Anonymous posted on
Anonymous
i had applied a few weeks ago completed app on line and mailed in forms,  have not received anything back yet.

3
Comment #4 by Jo (anonymous) posted on
Jo
I am a resident of PA, but am gonna stick with Erie General Electric FCU. I've got toes and fingers crossed in the hope that their reward checking rate won't come down from 5.12%. I don't live in Erie, but I do a good bit of shopping up there. I'll also be able to do my banking there as well; otherwise, the only true caveat about the credit union is that it doesn't offer bank to bank transfers....Glad I have USAA checking as my main checking for budgeting purposes.....and transfers.

3
Comment #7 by pjaskate posted on
pjaskate
I was able to establish membership at PPFCU on 7/20/10 and mailed a $5000 check for a deposit. I waited a few days for the check to clear and tried to apply for the 60 month 4% CD but was told that my funds would not be available until 8/5/10 because I was a new member. Today I tried to purchase the CD but to my dismay the rate drop 1/2% while they put a hold on my deposit. Very frustrating...

2
Comment #8 by J.M. class of '65 (anonymous) posted on
J.M. class of '65
I pay no attention to anonymous complaints.  Often these are disgruntled past or present candidates for fop offices. 

1
Comment #9 by StuckPA (anonymous) posted on
StuckPA
No biggie,place isn't what it's cracked up to be anyway. Limited locations in shady neighborhoods,always crowded,always a hold on cashing checks even for members(or me anyway)^ Only possible advantage I see is overdraft protection is slightly better than banks.

2