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Opening a Long-Distance CD at PenFed - A Personal Story

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Pentagon Federal Credit Union

Do you still do all of your banking at local brick-and-mortar branches?

In the past your brick-and-mortar banks may have been good enough. By searching around your area, you were probably able to find a CD with a rate comparable to internet CD rates. This is much less common in today’s interest rate environment. That is what DA reader, Elise Eliot, found out. PenFed’s 5-year CD rate was much higher than any CD rate that was locally available to her. Consequently, she decided to go with PenFed which had no nearby branches.

I know Elise is not alone. I’ve seen reports from other DA readers who have always banked locally open their first long-distance CD at PenFed. I wouldn’t be surprised if there are others considering PenFed over their local banks or credit unions. To help them, I asked Elise if she could summarize her experience opening a CD at PenFed. Elise graciously agreed to share her experience, and I’m very appreciative of her write-up. She describes the difficulties that can happen with wire transfers and opening a CD in the name of a trust. Below is her write-up:

With the economy as such and the best options for the highest paying CDs no longer within driving distance, I had little choice but to opt for a financial institution where I would have to wire, mail, or overnight the money. With none of their locations anywhere in spitting distance, I trepidatiously chose PenFed because of their presently superior rates over any other bank or credit union in the USA.

I chose to wire my money across the country, but things did not go as smoothly as I would have liked. The first two CSR’s I spoke with at PenFed were not as knowledgeable as I needed them to be, to walk me through all the procedures. But after I asked to be transferred to a supervisor, I got incredibly lucky with a woman who really knew her stuff. I very carefully wrote down all her instructions. But when I then went to my local B of A to wire the money, the CSR’s there clearly did not understand the process. On their form where it asks for the recipient of the money, as opposed to putting my name in that spot, the CSR wrote in PenFed. Wrong!

So the next day when the money should have already been received by PenFed, I instead got a call from my own B of A branch saying the transfer did not go through because "You didn’t put down a beneficiary." Huh? Since when does a wire transfer require that information? After talking in circles with a cocky, know-it-all CSR, I hung up and called B of A’s main 800 number. That CSR understood what was at issue and graciously even credited me back the $25 wiring fee. Great! I wouldn’t have made that much in interest for the days I lost anyhow, I’m sure.

But alas, things were still not settled.

When the money finally did arrive at PenFed there were more hoops to jump through. I then had to call them with instructions to now change the name on my just-opened CD to the name of my trust. They don’t have any system in place to do this initially, so it has to be done in stages.

So now it’s 2 days later…

I had heard from the PenFed CSR’s that they will backdate the interest to the date they receive the money and you state your intention to open the CD. But it wasn’t as easy as all that, and it became enough of a hassle that I let it go.

To change your CD into the name of your trust there are three pages you must either scan, mail, or fax. I chose fax. The CSR advised me to call a few hours after I faxed to make sure the papers were received. They were. Whew.

A few days later a form came in the mail that you must sign to activate your account. Fortunately, a very thorough CSR had tipped me off to ignore this first correspondence, and wait for the second communication to arrive, because that one will have the name of the trust on it. She was correct. The second form arrived a few days later.

Despite the many steps in this process of opening a long-distance CD, I feel good that I did it, and especially about the rate. I did labor over the decision about going five years vs. seven, and only time will tell if I made the right choice. In the past I’ve always opted for the longest term and never regretted it. However, this time with the rates inching up, albeit slowly, seven years seemed too long for a 3.00% rate. Five years from now though, I do hope there is a rate that will entice me to stay with PenFed. That is always much easier than moving your money around!

Even though there were complications, Elise was successful in opening the PenFed CD. She’ll now be earning much more interest than she would be earning from her local banks or credit unions.

If you’re still considering PenFed CDs, you shouldn’t wait too much longer. These top CD rates may not last after January.

For more information on PenFed and PenFed CDs, please refer to my posts, Four Important Points about PenFed’s CDs and IRA CDs, PenFed Comes Through With New Top CD Rates and Insuring Large Deposits at PenFed.


  Tags: Pentagon Federal Credit Union, CD rates

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Comments
80 Comments.
Comment #1 by slacker (anonymous) posted on
slacker
well i'm glad i didn't have all those problems i opened mine in well under an hour online and had penfed take the money out of my checking account went smooth as glass...........

2
Comment #23 by Anonymous posted on
Anonymous
I agree. I have been with Penfed for years and have never had any problems like these.  When some small problem occurs, I call a CSR and it is resolved while I am still on the phone.  I do most everything with Penfed over the phone and have never run into any CSR who was not completely professional and polite.  The only things ever mailed to my home are the signature/beneficiary forms they require for each CD opened.  I just fill them out and mail them back.  I do not understand why that would be a problem for anyone.

3
Comment #2 by displeased (anonymous) posted on
displeased
Nightmare at Penfed.

I have had an account at PenFed for years and various certificates.

Two weeks ago I mailed them an IRA application and transfer paperwork and it still hasn't been processed.  A CSR who checked with their Alexandra IRA processing dept found out there are stacks of applications waiting to be processed and they are very behind.

I was told by a CSR before I mailed in the paperwork that as long as they receive the application while the 3% rate is still in effect, they will still honor the rate even if the funds come over after the 1st of next month.  But I have little confidence in Pen Fed at this point.

I have been calling daily and they send emails sto check status and promised to call me back but don't follow through.

Further, I mailed in change of beneficiary forms on several certificates a few weeks ago to a different address in Omaha and none of those have been processed yet.  They were mailed in multiple envelopes so they can't say it was all lost in the mail.  Again, CSR says "stacks and stacks of things waiting to be processed everywhere".

Seems to me PenFed is in way over their heads.  I wonder if they are paying overtime and having large numbers of employees stay to process this stuff after hours.  It doesn't seem that way.

Bottom line, I have loved PenFed for years but am now "rethinking" my relationship with them going forward.

7
Comment #6 by Anonymous posted on
Anonymous
actually a csr told me they have hired additional staff to process the overload

1
Comment #8 by Anonymous posted on
Anonymous
and the csrs got ojt!

2
Comment #9 by Anonymous posted on
Anonymous
This reminds me of what Lou commented about.  Transferring IRA funds to another institution is a real pain, but it generally pays off because you are normally doing it to get a higher rate.  A couple of tips to help expedite this procedure in the future.  Fax your transfer documentation, followup, and wire the funds.

2
Comment #21 by lou posted on
lou
I agree with your post but a Penfed supervisor advised me to have the other institution overnight the funds to the Penfed IRA Dept  because the wire dept at Penfed might get confused with an IRA transfer. Also, the IRA transfer form gives you the added flexibility of instructing Penfed to open an IRA certificate in the term as selected on the form. It is important the funds are payable to Penfed as a custodian for your IRA account, which is difficult to do with a wire.

Have you wired IRA money to Penfed as a transfer (not a rollover)? If you have, any tips on how to do it so the funds are attributed as an IRA transfer.

1
Comment #12 by Anonymous posted on
Anonymous
 Suggest you leave penfed and put your money with some bank paying you 1% for 5 years. Congrats in advance

2
Comment #16 by Anonymous posted on
Anonymous
With PenFed being the best game in town or out of town just now, where else are you going to get rates like theirs?  I have been a PenFed member for years, thanks to Ken, and from what I have gained over those years, I am willing to put up with a few glitches now and then.

9
Comment #3 by Anonymous posted on
Anonymous
You could establish a share account over the phone and do an ACH.  Wire transfers can be a hassle, since it's not that common for CSRs to work with them.

4
Comment #4 by Anonymous posted on
Anonymous
I had pretty good luck with my PenFed membership start up and account opening.  They allowed me to deposit funds ($100) by charging the dough to a credit card.  That gave me instant cred and presence with them, and I actually made $2 on the transaction since my CC offers me a 2% reward.

With my savings account open and funded, and with them having quickly given me my member number on the net, I easily wired a large sum of money into my savings account.  Then, on that same day, I went on line and opened a bunch of CDs, funding each from the money in my savings.  It was all painless.

6
Comment #5 by Alan posted on
Alan
I have always had superb service from Pen Fed.  As with any long distance banking relationship, however, things go much easier if you take a minute to avoid problems.  Pen Fed will set up an account in under 5 minutes over the phone and can fund the account with a small charge from a credit card or debit card.  Once that is done, you have your account number.  Use the account number (and their routing number) to establish an ACH relationship with you 'hub' account at another institution.  Once the Pen Fed account is verified by your hub bank (no phone calls required, just a test deposit/withdrawal of less than $1 done by the hub bank software), you can then have funds transferred into/out of your Pen Fed account by ACH with no hassles, and without the complication and cost of Wire Transfers.

13
Comment #7 by me1004 posted on
me1004
This sounds so familiar with opening accounts over the years when not going into the branch to do so. In fact, I have too often had even more hoops to jump through. 

I have never understood why it takes so much time to pen an account, even at a branch. When not at a branch, it can take out most of your day to get it done, between getting them money, sending forms back and forth, setting an incoing accoutn up in advance, boy. blah, blah.  

Yes, get into ALL the little details in advance, because you will have to have every duck lined up in a row to get it done that day.

3
Comment #10 by linmarie posted on
linmarie
I had a problem opening an account by phone.  I had called PenFed to ask a question and the CSR offered to open the account on the phone.  When I went online to check it, she had opened it for 4 years vs. the 5 years that I had requested.  I immediately sent them a message and the money has been taken out of the 4 year cd but is still setting in my share account.  When I called they said it would take a few days and is "in the process".     
 
In response to comment #2, I was told that an IRA trustee to trustee transfer rate could only be determined after the funds were received by PenFed

1
Comment #13 by hi (anonymous) posted on
hi
Well you could have just done an ACH, Elise!  Why would you bother with a wire??  Probably cost you fees as well. I opened 2 via ACH through both phone and the webpage........smooth with no problems.

2
Comment #15 by scottj posted on
scottj
For new customers they limit ACH amount, I remember when I opened my first certificate with them I wanted to do $100k but was limited to $25k transfers so opened 4. Like Elise I had a few bugs in getting opened under my trust, but the good news for her the hard work is now done and whenever I do a new certificate it takes about a minute online. I just request that they open in name of my trust they have on file and can now transfer in up to $999,999.00 at a time

3
Comment #14 by Stop Whinning (anonymous) posted on
Stop Whinning
I'm guessing all of you that have had "problems" with PenFed are not telling the whole story.....or only the way you see it. PenFed is awesome. Ok maybe they are a little backed up........But they are offering excellent rates so who cares? Stop whinning, crybabies. Go earn 0.005% somewhere else if you don't like them.

11
Comment #17 by paoli2 posted on
paoli2
#14  So you seem to think as long as "you" are not having a problem with Penfed that those of us who are must just be whinny "crybabies"?  You compassion for your fellow poster overwhelms me.  I am very grateful for the fact that Penfed has made 3% CDs available to us but that also means they need to make sure we get our CDs done the way "we" want them to be.  If they can't provide the needed service, they should make us aware that we have to put up with misinformation from some of their CSRs.  I am "still" waiting for them to finish "processing" something on one of my CDs from weeks ago.  Each day I check and nothing.  Boo hoo!!!  See Paoli cry and cry and cry!!  I guess I won't get a tissue from #14 that's for sure!

4
Comment #18 by Anonymous posted on
Anonymous
If someone is uncomfortable with any financial institution...one 
should look elsewhere.I have trouble with institutions that make
me jump through hoops that other institutions do not.I have had
great relations with PenFed. 

8
Comment #19 by Anonymous posted on
Anonymous
You think financial institutions have some obligation to set up their CD's the way "you" want them to be?  If they have not done things your way, why not take your business elsewhere instead of berating them for not doing everything they way "you" want them done?  Perhaps you have found a way to get the IRS to do things the way you want them done. Post how you did that.  Hard to believe that the whole world does not tailor itself to your wants and preferences.  I believe you posted something recently about how you would not bring your Penfed gripes to this blog.  Someone posted right after that that you would never be able to keep from doing it and they were correct.  Do you really have this much stress with everything you do?  If so, life must be a real slog for you.

12
Comment #20 by Anonymous posted on
Anonymous
#19,  That was a good one.  I wonder if the IRS gets hassled also.

5
Comment #24 by paoli2 posted on
paoli2
#19  Maybe you are so obsessed with me that you don't read the other posts about Penfed but I am not the only one who has problems with them it seems.  I also did keep my word to not post about Penfed but another poster asked for my input and I gave it out of courtesy to that poster.  If you don't like my posts why don't you buy a few comic books and read them instead!  BTW, to anyone else who is interested in why I have problems with Penfed, it is not about my trying to get things done MY way.  I am jumping thru hoops trying to follow everything they say must be done and do not ask for anything that any other customer does not have available to them.  As for the IRS, "I" am so cooperative with them that I once returned a check they sent me because of an error they said I made on my return and it turned out, "they" had made the error and I was NOT due the extra money.  I have no problems with the IRS because I find them much easier to deal with than certain CSRs at Penfed.  As for my life, the only "slog" in it is posters like yourself.  If you really don't want me to post why do you go to so much trouble to make sure that I do post?  Well, tax time is around the corner for me so you will have to find someone else to babble to.  Please notice the dates and times of my last two posts.  I did give you quite a rest so I did keep my word until you made sure I would have to respond.

4
Comment #25 by Anonymous posted on
Anonymous
Gee, paoli can you just quit complaining.  It would be better for the rest of us, otherwise they will have to lower rates, to have the money to hire 2 or 3 CSRs that service you night and day.  Do you need them to fix you breakfast, tuck you in bed, and read you stories, also?  

14
Comment #22 by Anonymous posted on
Anonymous
I had a similar experience.  I have jumbo CD's at many banks, and PenFed has the most tedious process I have experienced, one that unfolds one letter or email at a time.  Their process is redundant and overly complicated. Just when you think you are done, you get another email or letter with a new request for information. Other banks keep it simple, and typically tell you everything you need to know at once.  Plus the application to open an account on their web site is clunky to begin with and doesn't work.  After I completed my application I received a message that I had to call them, and I had to redo everything over the phone with the CSR.  

6
Comment #27 by Anonymous posted on
Anonymous
Some of you posters that apparently are internet challenged should stay away from opening up Penfed CD's online.  Once you have an established share account with them, the opening of their certificates online can't take more than 2 minutes.  It is immediately added to your "My Accounts" listing under the main menu.  Their online system is probably the best one that I know of.

17
Comment #34 by Anonymous posted on
Anonymous
I agree with you based on my personal experience.  My study of computers commenced in 1962.  A number of years later I was designing them.  Through all the years I realized computers, for some folks, are just not "their thing".  Such people have other areas of expertise . . stuff I could never master.  But my weaknesses do not cause me to whine or complain about smarter folks in (whatever) disciplines.  Different people are good at different stuff.  This makes the world go 'round.

2
Comment #28 by Anonymous posted on
Anonymous
The only problem I have with Penn Fed is that if interest rate goes down between the time you submit instructions and payment is received they will not honor the higher rate.  If they could have a grace period of a couple of weeks between the time you open the account and they receive the check it would be most helpful, especially when it comes to trustee to trustee transfers.

4
Comment #29 by Anonymous posted on
Anonymous
PenFed has been great. We have 5yr. 20K/30K, 7yr.50K/50K. I created multiple CD's in case we want some cash down the road. I don't think we will but it's less painful to break a 20K than a larger 50K or 100K CD. I'm sure others do the same.

I discovered that large CD's (I'm not sure of their limit) are best created on the phone. Once I saw a deposit was in my share account I called and set up CD's. Deposits were old-fashioned cashier's checks sent via overnight mail. No problems.

PenFed established the CD's, mailed the paperwork for signatures and everything appears on the website. Brokered CD's (and we have a bunch) are much easier to purchase BUT they offer much less flexibility. Between our brokerage and PenFed we're quite happy. We terminated one of our local bank relationships as soon as we purchased CD's at PenFed. From our viewpoint, PenFed did a great job. Oh, and a BIG THANK YOU to Ken for making this information readily available.     

8
Comment #31 by Anonymous posted on
Anonymous
The more complex your account is set up (beneficiaries, trusts etc.) the more likely you are to have problems.  Doing things over the phone would be time consuming and would seem more conducive to errors.   I joined Penfed sometime ago.  Joined the association required.  My funding has been done by ACH with no problems.  After the 1st CD I could open ones greater that $25,000.  Once you fill in the form  (You have to get an online account) and set up the ACH on-line you will receive a form in the mail.. I set up the JROS on the form as noted and I guess that's where you would set up beneficiaries (You need their SSN's and DOB's on the form).  After you open a CD with Penfed  other CD's can be opened in minutes. I still find it odd that they are giving rates so much higher than other CU's and banks.  Remember the 3% rate is not guaranteed for 5 years.  PEnfed could go under and the NCUA would cover the principle and interest earned.  I doubt anyone that would take over Penfed would keep the rates (Or the NCUA would have to pay out).  Also,  Penfed is an open open CU  (A very open CU).  These rates could flag them as not really being a CU.  The government could also start taxing CU's which could be a problem for all CU's.  People are treating these rates like a gold rush.  With more reductions in QE rates my start going up.  I would use these rates and time frames in a CD ladder. 

4
Comment #32 by Anonymous posted on
Anonymous
I have been trying to close some certificates, pay the 180 penalty, and open a five year 3% certificate for the past two weeks.  I have provided my signature stating that I understand and accept the penalty and yet they have not touched any of my low paying certificates.  Why!?!  Do they not want to lose the low paying certificate and replace them with higher ones? But I'm giving the a 180 penalty to do so. It seems that they are happy to take new money (which I added this month and they processed IMEDIATELY) but to convert some lower paying certificates to their 3% ones just aren't coming around.  I have been with them for many years and this is the first time that I tried to do such and they seem to be deliberating dragging their feet so they don't have to cancel one certificate and issue a higher one.  Did anyone else experience this problem?

4
Comment #33 by Anonymous posted on
Anonymous
I meant "180 day penalty" not "180 penalty."

2
Comment #35 by Anonymous posted on
Anonymous
Maybe you should stick with stocks and bonds to do your "trading" with.  Almost instantaneous.  I don't blame any bank or CU to put early CD redemptions on the back burner in favor of taking care of "new money" coming in.  All will be taken care of in due time.  It seems patience is rarer than high CD interest rates these days. 

5
Comment #36 by Anonymous posted on
Anonymous
Since they seem to be overload with paperwork, they need to create a system that would honor the rate and date of contact no matter when they get time to process opening CDs.

7
Comment #60 by scottj posted on
scottj
When I closed my brothers certificate it took  3 weeks to get done, but they did back date the certificate to the day I faxed in the request. I called a couple times during that period and they told me request received but they were backed up and it would get done, but on the last time I called they said it must have "fallen through the cracks" and she would make sure it got done that day and it was. Only problem is I asked they make sure the early withdrawal penalty went on 2013 1099 but it didnt 

2
Comment #102 by CC in CA (anonymous) posted on
CC in CA
Re: Comment #32...  I experienced EXACTLY the same problem back in December. I faxed in the closure of current CDs request, with a request to open one big new CD with the money. The CDs were closed, but the money sat in my savings for weeks. Finally (after several calls confirming my request for the new CD was "coded in the system", but then an email response that told me they had no record of my request to open a new CD with the proceeds), they opened the new CD, but they did NOT backdate it. So, I called again and had them cancel the new CD and open one that was backdated to the date of my request.

Today I am still considering closing a few more low-rate CDs at PenFed and combining them before February 1 just in case the rates drop.  But, I've been putting it off because of the incredible hassle back in December.

1
Comment #37 by Anonymous posted on
Anonymous
Most banks or credit unions require extra steps to open a CD in a Trust name. As I see it most of the problem was with you own bank and not PenFed. ou may have to be careful when you open a CD in Trust name re: the following. Most institutions will waive the early withdrawal penalty if the certificate owner dies before certificate maturity. You should ask what happens when the ownership is in a Trust name. Is it possible that since the Trust is the owner that the trust bene. may have to pay the early withdrawal fee upon your death to get the funds prior to certificate maturity? You should ask each institution what is their policy in this regard.

Bob

2
Comment #38 by Anonymous posted on
Anonymous
All I can say the is that I have taken advantage of this rate. I was also able to close a CD and to the EWP. I received the funds in a week. I did open a 3% CD with other funds. So they did fine with me. To close a CD all you have to do is fax a note with the account # and the fact you accept the penalty and sign it.

2
Comment #43 by sjkeidan posted on
sjkeidan
I had absolutely zero problems opening up and funding CDs at PenFed using only the internet. Additionally, their web site provides all procedural information I needed and when I log into my account all detailed information is available for my inspection. I also found that telephone representatives were very knowledgeable. This was the first time I opened long distance accounts (or even heard of PenFed) and was very pleased.

7
Comment #44 by linmarie posted on
linmarie
PenFed fixed the CD that I had opened by phone and initially put into a 4 year CD instead of the 5 year CD that I had requested.  It took several days but it was backed dated.  I wasn't whining went I made the post regarding the error made by the CSR opening the CD on the phone.  I just wanted to let others know to check your account and make sure it is the term that you requested.  I have opened several CDs online and they are accurate.  I understand that PenFed is busy and I'm not complaining.  We just have to be patient with them.

2
Comment #54 by Anonymous posted on
Anonymous
Recent comments will soon suffer the fate of post # 11

3
Comment #61 by Anonymous posted on
Anonymous
I think every one who wants to comment on this site should have to register.  Then maybe it may help to eliminate the TROLLs and ABUSERs! 

2
Comment #62 by Roush posted on
Roush
Then maybe YOU should register yourself in order to set a perfect example.  :-)

3
Comment #63 by Anonymous posted on
Anonymous
My registering wouldn't help unless EVERYONE was REQUIRED to REGISTER.  Then I would be more than willing to register.

1
Comment #64 by Roush posted on
Roush
Aww shucks, I bet if YOU registered, the masses would follow suit and register too. So, why don't you take your own suggestion and give it a try so we can find out who you really are?  lol

2
Comment #65 by Anonymous posted on
Anonymous
Registering doesn't identify a person.  It just gives them another alias other than "Anonymous".

3
Comment #66 by paoli2 posted on
paoli2
#65  You are right.  I have registered but it allows us to use a fake ID such as my "Paoli2".  If posters at least had to use the same even fake ID each time they posted, one could keep track of who the members are and who the real "trolls" and troublemakers are. Being Anonymous allows them to pretend to be more than one poster and only Ken knows who they really are by their IP.  So they can never really hide from Ken if they truly mean to cause havoc on his webpage. 

3
Comment #67 by Anonymous posted on
Anonymous
What do you mean by "only Ken knows who they really are by their IP"?

3
Comment #68 by paoli2 posted on
paoli2
Not too long ago I was viciously attacked by another poster who tried to make me believe other DA posters were in agreement with him to get me off of DA.  I truly thought it was several posters and brought it to Ken's attention.  He was kind enough to check it out and shared with me that he knew this was the same poster who had given him problems for a long time and it was only "one" poster posting anonymously with different IPs.  He was going to a lot of trouble to hide himself.  I don't know what Ken did but somehow the poster disappeared when I told him we knew what he was doing and I was not leaving.  I have not heard from him for months until recently when this "new" anonymous poster seems to have the same dedication in getting me out of DA.  This poster can probably be identified if he/she is using the same IP or the same multiple IPs.  I only have one IP and I think so do most others here.  When a poster goes to that much trouble to "troll" a group, they are up to nothing but no good. 
I don't think Ken can know our true names or addresses.  I was just referring to how he can zone in on who is really causing problems on his DA. 

3
Comment #69 by Anonymous posted on
Anonymous
Thanks.
Just curious, since I know it's very easy to logon with different IPs.  Finding the true name of the person would require a lot of legal work (like NSA).

1
Comment #70 by paoli2 posted on
paoli2
#69  I'm sure it would and it probably would be expensive unless someone had just cause.  I sure don't think Ken would ever want to have to resort to anything like this just to find a troublemaking poster.  Any info he would get would certainly have to be kept confidential or his posters would not feel free to post on this site.  I have no idea who the one was who wanted me off in the past.  I was just glad I could have some peace from the poster so I could stay.  We all need to be confident that our true identities are always kept confidential when we post on any discussion group.

3
Comment #71 by Anonymous posted on
Anonymous
#70  I agree with your comment.

2
Comment #72 by Anonymous posted on
Anonymous
The last several comments made all good points.

However, my biggest concern would be that Ken would just shut this site down rather than put up with all the trolls and antagonists if they became too disruptive.

After all, he is providing us with a FREE and very INVALUABLE SERVICE.

Now here's another thought.  Make this a "paid for" membership site rather than ever shutting it down if it came down to that.

1
Comment #73 by paoli2 posted on
paoli2
Wouldn't it be sad that Ken would have to consider making this a "paid for" membership site because of one or two troublemakers?  I think he would lose a lot of members and especially any new members.  Remember we are on here looking to "save" money and the info on CDs can be found on other free sites.  What makes DA unique is that the posters help each other with additional information.  I think the best way to go is to find a way to stop the troublemakers.  My posts which are being targeted are usually on topic about the subject.  Targeting one poster should not be allowed just because you don't like the response.  Others post the same responses I post but yet I am the one who is targeted.  This type of behavior needs to be stopped.  I assure you if Paoli left today and never returned, the troll/trolls would just find someone else to target.  I don't think Ken would ever shut his DA down.  There are other better alternatives.

2
Comment #75 by Anonymous posted on
Anonymous
I'm curious if Ken get some form of compensation for  the advertisements that are on this website?

2
Comment #74 by weiss800 (anonymous) posted on
weiss800
I have dealt with PenFed both in terms of IRAs, car loans and mortgages.  I have never find them to be anything but honest, courteous, and trying to help the customer.  Any errors/issues have been resolved to my satisfaction.  Enough said.

4
Comment #79 by paoli2 posted on
paoli2
Posters:  On a different note, I wanted to share something interesting which you can find in the PENFED Membership Disclosures booklet.  It is on page 20 under "Joint Share Account Agreement" in the first paragraph.  It makes it clear that BOTH Joint Owners own the Account jointly etc. and payments can go to anyone of them jointly.  When I asked the CSR recently about this, this was when she insisted the Joint Owner must become a Member to fully take charge of the account and I made my spouse a member.  It seems their own Disclosure info says quite the opposite. On page 23 in paragraph 11 it states that the joint owners "each" have full authority and powers to act on the account.  Nothing is written about both having to be Members of Penfed.  I did not have a chance to read it until today but I recommend that anyone wanting to do business with Penfed get a copy and read their rules and not depend upon their CSRs for information.   It is a very informative  booklet and if you have questions, I think you stand a better chance of getting them answered in the booklet than by some of the CSRs I have encountered. 

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Comment #80 by Anonymous posted on
Anonymous
The CSR's that _you_ have encountered were probably more concerned as to how they could get away fron you and would likely say just about anything in order to get you off the phone. Know what I mean?...and can you really blame them?

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Comment #81 by Anonymous posted on
Anonymous
I think the difference is one of practicality versus legality. Legally, joint owners are joint owners as defined by law. CU membership, however, enables one to transact business with the CU in a normal manner. A non-member, joint-owner surviving spouse holds legal rights to accounts but not membership rights.

I assume that upon death a surviving, non-member joint account holder would simply join as a member and transact their business accordingly. Becoming a member in advance saves time and trouble. THANK YOU for bringing this matter to our attention!  

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Comment #82 by Anonymous posted on
Anonymous
It may mean that if you are a JROS and the survivor is not a member of the CU that the CD will be closed and the funds sent to you

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Comment #83 by paoli2 posted on
paoli2
#82  Did you miss the point that it's about my no longer being alive?  Where would they send the funds to me except my new burial address? :)  They actually thanked me today for calling them and reminding them to finish processing my hubby's new membership as per my our request.  They had forgotten to finish it because they said they are so busy.  I have learned great patience from my encounter with Penfed believe it or not. 

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Comment #86 by Anonymous posted on
Anonymous
Exactly...very nice/eloquently summarized - you must be an attorney/consultant.  Also, it's clear that, in order to maximize NCUA insurance, each joint owner must also be a CU member...so as #81 states, just save the time and hassle by making sure all owners are CU members now rather than later.  Esp. with PenFed, it's not difficult to become a member.

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Comment #87 by Anonymous posted on
Anonymous
BTW comment 86 was in reply to comment 81

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Comment #88 by DA (anonymous) posted on
DA
I don't see what the big deal is of having the joint owner also a member.  Just open a $5.00 account.  Done.  End of discusion!!!

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Comment #89 by paoli2 posted on
paoli2
#88  The big deal is that Penfed STILL can't get it correct!  They have my paperwork but admitted yesterday, they "forgot" to complete it and the new hires did it wrong.  They have to correct it again!  They want another 48 hours to try to do it right.  It might be the "end of discussion" once they get it done right but until they do, it won't be for me.  If you think I am the only one having problems with them, you are living in a dream world.  What should have been a simple procedure is not simple these day with Penfed.  I am sick of hearing "they are new hires" so they are actually excusing the mistakes.  Maybe you should go to work for them since you seem to know how simple the procedure I am trying to get done should be.

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Comment #90 by DA (anonymous) posted on
DA
Now you see why they are paying 3%.  The extra 1% is for you putting up with them and their newbies.  Was it really worth it?

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Comment #91 by paoli2 posted on
paoli2
It is obvious that I am not the only DA member who is having these problems with Penfed.  Do you really expect any of them to share their problems here when they can read how uncaring their fellow poster is to their problems?  When I was getting over 12% for CDs they always had people who knew what they were doing.  The errors they are making should not occur, newbie or oldbie.  I have better things to do with my time than having to call them.  Your sarcastic is not funny but unfortunately, not unexpected.

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Comment #92 by DA (anonymous) posted on
DA
It's not "sarcastic" but reality.  I'm offended by your comment.  You should learn the difference.  Banks and CUs don't care any more.  They have the Feds to bail them out whenever.  Also, they can get all the money they want for Zero interest. from the taxpayers.

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Comment #93 by paoli2 posted on
paoli2
Why are you offended at my comment when we both seem to feel the same about what is going on?  I was just making a statement about the negative reactions I get just because I share my problems with Penfed.  Unless you are one of the ones who has given me a bad time about it, you have nothing to be offended about.  I would not have been referring to you.  I was not meaning to offend you personally.

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Comment #94 by Anonymous posted on
Anonymous
There you go causing trouble again. Sheesh, chill-out already!

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Comment #95 by paoli2 posted on
paoli2
Sheeeesh!!  Now I cause trouble by apologizing??  Some of you must stay in wait all day just to pounce whenever you can.  YOU go take a hot bath! 

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Comment #97 by Roush posted on
Roush
Now there she goes again....paoli once again at the the center of a disagreement of her own accord....it certainly doesn't take much to wind her up. So pathetic and distracting to the topic at hand. IMO, of course.

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Comment #99 by paoli2 posted on
paoli2
#96  I thought you were being sarcastic and I do apologize if I misunderstood your remark.  BTW, you are telling me who you really are by your post.  Do you really want to do that?  I still have all my faculties and an excellent memory so you might want to check what you write before sending.  The "cemetery" remark gave you away. :)   Why do you think I have millions of dollars??  I sure wouldn't  have to be looking for more CDs if I did.   Now I am done with you.  I will not respond to your future posts and I do hope you will control yourself and "try" not to post to me. 
BTW, I have never played Bingo and don't intend to when I get to be your age.  Is that what you do?  I am too busy doing taxes, finances, and other work for my family. 
#98  Were you looking in the mirror when you wrote your post?  You do know you are breaking Ken's rules by calling me names.. 
#97  The topic at hand I thought was Penfed.  I was posting about Penfed so why are my remarks always distracting unless I said something positive about them?   
To ALL of my friends on DA, well maybe one, I thank you for standing by me and giving me the confidence to continue on being Paoli.  To the rest of you who get so much enjoyment from having someone to poke at each day, I will say "nothing lasts forever".  You will have to poke at each other for a while.  I do have a life and other more important responsibilities.

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Comment #100 by Anonymous posted on
Anonymous
I'm still having problems with opening a CD at Penfed in a trust name.

I applied for a trust money market account at the end of December and it took nearly 3 weeks for them to open it.  I then wired the money directly to the trust money market account with no problems.

Next, I carefully went online and transferred the money from the trust money market account to a new CD.  It never entered my mind that the CD was not titled in the same way as the money market account it came from.  Next day, I see the CD is in the individual account name, not the trust.

I call immediately.  I'm told I have to wait for the snail mail paperwork to arrive, then correct it and mail it back.  So far, I'm still waiting.   It's very stressful, because I'm opening this account for a relative in poor health, and things could get complicated if they were to suddenly pass.

I was told on the phone that any CDs opened in trust name have to be phoned in, not done online.

I've been investing in CDs at Navy Fed for several years in trust name and always was able to do everything online, and never had these types of problems.

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Comment #101 by scottj posted on
scottj
I have had my accounts at Penfed in my trust name for 6 years, even after you fill out the paperwork it will still show online as an individual account. What you can do which I did is call them and request they send you out a new copy of the certificate showing your trust name 

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Comment #103 by Anonymous posted on
Anonymous
PenFed EWP?  if I opened a 5 or 7 year CD two years ago, is the EWP the same as existing terms?  I know sometimes banks will change EWP terms but grandfather older accounts under the older more favorable terms?  Currently, I believe it's a 12 month interest only penalty, but thinking it might have been only 6 months some time earlier???  I could call PenFed but thought I'd throw it out here....

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