Dedicated to Deposits: Deals, Data, and Discussion

Update on PenFed's CD Reservation Promotion

POSTED ON BY

Pentagon Federal Credit Union

Update: The reservation period is now scheduled to end on 9/30/2010.

It has been over a month since I first reported on PenFed's Watch it Grow CD promotion which offers special CD rates of up to 5.00% APY. As I mentioned, this promo was intended for only a select portion of the PenFed membership. However, PenFed's online interface had some issues which allowed PenFed members who didn't qualify to participate in the promo. PenFed eventually removed these backdoor methods to participate. There were worries that PenFed may decide not to honor the CD reservations made by those who didn't qualify. To help ease these worries, I emailed my PenFed contact. I'm happy to report that they do plan to honor these CD reservations. Here is an excerpt of the reply that I received:

The main intention of the Watch it Grow CD promotion allows existing members with certificates maturing in October to have the opportunity to open a new certificate in January 2011 at a higher rate on a 5, 7 and 10-year certificate.

The issue that existed on our online interface that allowed folks to participate in the promotion even though they did not meet the promotional criteria was rectified by our IT team earlier this month. It is PenFed’s intent to honor all online certificate reservations made by these individuals prior to the September 4, 2010 interface fix.

If you have any concerns about your PenFed CDs, you should give PenFed a call. If the PenFed's Members Service Representative is unable to handle your problem, you can request to speak with a supervisor.

As I mentioned, the backdoor methods to participate have been closed. So it appears that only those who have maturing PenFed CDs will be able to participate. However, it will only last until 10/31/10 or until PenFed reaches its reservation target of $240 million. I just logged into my PenFed account to check how much money has been reserved. As of this morning, $148,637,726 is still available for the promotion.

I also confirmed with my PenFed contact the 10-year CD early withdrawal penalty. As I reported in my previous post, the penalty is the same as the 7-year CD penalty: up to 365 days of dividends. For those who don't qualify for this offer, you may have a chance to open PenFed's new 10-year CD in January. I was told January is the target month to make this 10-year CD public, but it could be delayed. The rate won't be known until the Board makes the decision before the launch date.

PenFed's CD rates fell in September, but its 5-year and 7-year CD rates remain very competitive. Please refer to my PenFed CD review for more details.


  Tags: Pentagon Federal Credit Union, CD rates, IRA rates

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Comments
12 Comments.
Comment #1 by Anonymous posted on
Anonymous
Thanks for the info.  Your blog is a great resource!

13
Comment #2 by Anonymous posted on
Anonymous
Thanks a bunch! your website provide a great of information

6
Comment #3 by Anonymous posted on
Anonymous
mine are still there (i stumbled upon them and apparently didn't "qualify" for them baesd on the intended target audience), however looks like they can't be modified any more.

1
Comment #4 by lou posted on
lou
In that I turned down a number of CD deals that are no longer available, I fully expect Penfed to not renege on any of their certificate reservations. A Penfed supervisor told me there is no way that would happen; otherwise, I would have lost a significant amount of money passing up these other opportunities. In addition, I could not find anything in writing that would allow Penfed to rescind these reservations.

3
Comment #5 by Anonymous posted on
Anonymous
Ken, what about those who opened additional certificates between sept 4th and Sept. 18? 

if those who used the "add a certificate" button and created new certs during that time, will Penfed honor those, too?

 

3
Comment #6 by Anonymous posted on
Anonymous
When I click on my reservation I get the following message, "Our records indicate that you do not have a certificate maturing within the promotional period or you have already used your maturing certificate in this promotion."  Does this mean they will cancel my reservation or that I can't make any more?

1
Comment #7 by Anonymous posted on
Anonymous
No they will honor reservation

1
Comment #8 by Anonymous posted on
Anonymous
This issue of who qualifies seems clarified, but I am still wondering about the amount issue. Some people reserved CDs for amounts in excess of their maturing CD, as I did. Was this issue part of the recent dialog with Penfed? I'd love to know if the reservations with higher amounts will be honored. Thanks in advance if anyone knows!

2
Comment #9 by Anonymous posted on
Anonymous
This is excellent news!  I reserved a sizable CD in August and wasn't sure they would honor it.  It's like finding money on the sidewalk.   Many thanks to PenFed and this site.

7
Comment #10 by Anonymous posted on
Anonymous
I called PenFed this morning regarding the 10 year 5% CD and was told that since I did not have a CD maturing in October, I would not be eligible. However, the Customer Rep put me on hold and came back to tell me that there is another way to qualify. I had to 1) open a share deposit account (which entails becoming a member and pay $20) and 2) fund the account. After this, PenFed will make the reservation.

Based on the info given, the account was opened (paid $20) plus $5 to fund the deposit account, I called to proceed with the reservation. The lady this time told me that she had to manually open it for us but since it was under my husband's name, she would have to get my husband to speak with her. My husband called back and was told that he could not reserve it because he did not have a maturing CD.

I spoke with Dave Wells (assistant manager at the Omaha office) and he said he couldn't and wouldn't do anything. Spoke with Angelique (manager at the Oregon office) who told me that "she will not make an exception" even though I had acted upon the information given me by PENFed Representative. And she added "this conversation is not going any further than this."

I find it very interesting that over my many years of banking experience, I have yet to encounter a bank (credit union) that is so rigid in its policies. The only thing they were willing to do is say "All we can do is apologize for human error". The tone of speech was condescending and quite rude. They were mad at me for knowing about the 10-year 5% CD saying that I should not have even called in the first place for it since they did not advertise it. Ludicrous. I had to explain to them that we live in the digital age!

 

 

3
Comment #11 by lou posted on
lou
To anonymous #10  If you had been reading this thread and Ken's posts, you would have known that you do not qualify for this promotion. Do not blame Penfed for your lack of knowledge. I can understand why they are irritated with you. it is too bad you got belligerent with them, as it probably gives them less incentive to do these type of promotions in the future. Stay informed and you may qualify for the next promotion.

3
Comment #12 by rjm (anonymous) posted on
rjm
Wow, I didnt bother reserving any because I figured they would all be rejected.

I did reserve mine for the amount of my expiring Oct CD but had one expire this month and they wouldnt let me do anything with it.

1