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Update on PenFed's CD Reservation Promotion - New End Date

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When I logged into my PenFed account today, I noticed that PenFed has reduced the reservation period for its Watch It Grow CD promotion that includes a 5.00% 10-year CD. The Certificates Reservation Page now states:

Reservation Period: 8/16/2010 - 9/30/2010 or until the promotion amount is depleted

The end date used to be 10/31/2010. The page also lists the total funds available as of 9/28/2010, and it shows over $136 million. I called PenFed to verify this. From what I was told, the 10/31 date was actually wrong, and it should have always been September 30th.

If you were planning to wait to October to make your CD reservations, it's time to change plans and do it before October. From the information that I received from PenFed, you can cancel the reservation with no penalty if you decide you need the money before the special CDs are funded in January.

I first posted on this PenFed Watch It Grow CD promotion in August. Unfortunately, the promo is intended only for existing members with certificates maturing in October. There was an issue at the start of the promo that allowed those who didn't qualify to reserve these CDs. According to my PenFed contact, "It is PenFed’s intent to honor all online certificate reservations made by these individuals prior to the September 4, 2010 interface fix."


  Tags: Pentagon Federal Credit Union, CD rates

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Comments
16 Comments.
Comment #1 by Mike C (anonymous) posted on
Mike C
You recommend First Choice Bank today, but they don't have FDIC insurance for interest bearing accounts.

2
Comment #2 by Anonymous posted on
Anonymous
Called PenFed twice earlier this month (after the 4th) and both reps told me that I could add new money to my expiring CDs. 

When I called today to move the money over, the new rep told me "no, they were wrong".   I couldn't believe that both previous reps were wrong so I called yet again today and also got a "no".

Wow.  I wish they could train their employees properly.  I spent a fair amount of time lining up the money to transfer to PenFed...all for nothing

4
Comment #3 by Anonymous posted on
Anonymous
I'm a long-time PenFed user, but boy they are coming off as a bunch of amatuers on this.

Forget the "glitch" that allowed some reservations to occur, I can see IT issues.  Still:

1)  If they only wanted to honor the paper promo terms from the beginning, why didn't they at least copy the boiler-plate langauge from the insert they sent out, so they could at least theoretically warn anyone stumbling upon this online? There was specific terms, but they could have easily made sure all terms were consistant and thorough.  This was just an inexcusable mistake, and essentually forced them to honor all online reservations.

2)  How can you **** up the end date of the promo both on paper and online?  Particularly when you only mention that the only reason it could end early is if you run out of the pot of money, and that's not even close to the case?  And for only one month's worth of dates you're going to give yourself a black eye for the clients who qualify and are taking steps to move money in anticipation?

3)  Why was this promo aimed at a narrow range of the membership anyway, leaving the majority unable to take part in it?  Especially valuable members who have funds and accounts but weren't "lucky" (and luck is the overriding key of this promo, as it could not have been predicted in any form) enough to happen to have a CD maturing in the period.

4)  All this while they have had a history of ****ing up and ending terms/agreements before (see this January's CD promo debaucle).  And for those who think they should be greatful PenFed didn't cancel reserved CDs, #1 would seem to prevent them from doing what they probably wanted to do legally.

I hope other members are going to be more diligent like I am when board elections come around as well as using our rights to question the leadership's competency and philosophy going forward.

13
Comment #4 by smokeboat (anonymous) posted on
smokeboat
Don't worry, everyone Penfed wants to get the deal will get it....this is military business as usual. 

1
Comment #5 by Anonymous posted on
Anonymous
Smokeboat is smoking something. 

1
Comment #6 by Anonymous posted on
Anonymous
I reserved CDs of 25 and 50 grand, more that I had maturing.

In fact I have none maturing in Oct, only Sept.

I emailed PenFed, and apparently my reserved CDs will

still be able to be opened, eventhough I didn't follow the official terms.

We shall see if this changes.

3
Comment #7 by anter posted on
anter
i don't have a CD with penfed, can i still get this deal?

1
Comment #8 by Anonymous posted on
Anonymous
I totally agree with #2: PenFed does not train their representatives and it takes forever to find out the "truth"...the only problem is that they do not want to be held responsible for the mistakes that those representatives who are supposed to REPRESENT PenFed made. This is causing a lot of wasted time and money for us, and little is done on their side to compensate for the errors/mistakes they made.

4
Comment #9 by lou posted on
lou
I am sure I understand why posters 2 and 3 think they need to transfer money to Penfed now. My understanding is that the money does not need to be at Penfed until 3 days prior to the funding date of the reservation, which can't take place before Jan 1, 2011.

1
Comment #10 by lou posted on
lou
In the previous post I meant to say, " I am not sure I understand why poster 2 and 3 ................

1
Comment #11 by Anonymous posted on
Anonymous
@lou,

   (I am poster #2):  I was trying to add NEW money to my account.   In other words, I am eligible for the 5% rate for my current maturing CD ($100K) but I wanted to add an additional 100K to that CD. 

  My point was that I was told (twice) that this was allowed, and then, when I was about to pull the trigger to move the new funds in, I was told that NO new money could be added.

   You are right, however, that the money need not be there until Jan 1st...but, well, the point is moot.

2
Comment #12 by lou posted on
lou
@ Poster #2  Are you saying that you already had a $100,000 reservation for the 5% CD and you wanted to add money to your expiring CD to increase the reservation. Wouldn't the system allow you to change the reservation without adding the new money to your account.

1
Comment #14 by Anonymous posted on
Anonymous
hi,

 

I reserved 3 5% CD at beginning of the month and all went Ok.

just checked my account web online and I can see 3 new CD as pending with Open
Date 01/01/2011.

 

I'm confused as some wants to transfer new money in penfed already!!!

Isn't new / old money will be needed by 01/01/2011? why to transfer it now?

 

tnx

1
Comment #15 by lou posted on
lou
@tnx   At the beginning of the month, you must have made reservations for 3 certificates. They are now pending until they are funded on 01/01/2011. You don't need the funds in the account until a couple of days before the funding date. I would imagine that there isn't anything saying to transfer the funds now.

3
Comment #16 by Anonymous posted on
Anonymous
I'm a PFCU member, but didn't have my existing certifs maturing this fall -- not until next year. But back when the promo was first announced, I was able to go to the PFCU web site and reserve a bunch of the promo CDs to fund in Jan 2011... Checked again yest. and all my reservations still intact. And I was able to edit my existing reservations, including changing the desired terms on a couple of them. But I could no longer see any link for creating a NEW reservation.

So it seems people who don't have existing PFCU CDs maturing this fall already have been locked out from making any new reservations.... 

But for members who DO have PFCU CDs maturing this fall, about the new deadline, I'm wondering, does that mean Sept. 30 is the absolute cutoff.... or will the cutoff be later, since they don't appear to have reached their funding amount limit as of yet?

 

1
Comment #17 by Anonymous posted on
Anonymous
@lou,  I wnet back just now and was able to accomplish what I wanted to do.  You were correct in your last post.

1