Dedicated to Deposits: Deals, Data, and Discussion

Tips for Those with PenFed CDs Maturing in February

POSTED ON BY

Pentagon Federal Credit Union

As I reported in late January, PenFed took the unusual step to have two CD rate schedules for February. One of the rate schedules is for new CDs, and most of the rates are much lower than the January rates. This rate schedule is posted on PenFed’s website. The other rate schedule is for PenFed CDs that are maturing in February and are being renewed. This rate schedule isn’t publicly disclosed. Hopefully, PenFed is informing customers who have CDs maturing in February. Since this info isn’t listed on PenFed’s website, a few readers asked if I could find out more details. So I called PenFed yesterday and received the details.

First, the February rates for renewed CDs are in fact the same as the posted January rates (except for the 1-year CD rate which is higher in February). Below is a listing of those rates:

PenFed rates only for CDs being renewed in February:

  • 3.04% APY 7-year CD
  • 3.04% APY 5-year CD
  • 2.22% APY 4-year CD
  • 2.02% APY 3-year CD
  • 1.41% APY 2-year CD
  • 1.16% APY 1-year CD
  • 0.30% APY 6-month CD

These rates apply to both regular and IRA CDs that are being renewed in February.

Unfortunately, there are limitations. There can be no change in the maturing CD balance. No money can be added and no money can be withdrawn for the renewed CD. However, you can change the term of the CD. For example, if you had a 3-year CD that’s maturing in February, you can change the term to 5 or 7 years and still get the 3% rate.

One reader left the following comment about his/her PenFed CD that matured on February 3rd:

I also had a certificate which matured on Feb 3, I changed the term to 7 yr and it renewed at 3.04 APY. I didn't have to call, either

When I’ve opened PenFed CDs in the past, I typically choose the option to have the maturing CD automatically deposited into my PenFed savings account. I always thought that would be the best option in case I forget about the maturity date. However, this is an example when it’s not the best option. If you have PenFed CDs that are maturing in February, and you want to renew them with the January rates, make sure you change this option to renew instead of "transfer to savings". According to the CSR, this is all you have to do to ensure you get the January rates. Based on the comment, this does in fact seem to be the case. Nevertheless, it wouldn’t hurt to check with the CSR before the maturity date.

For information about PenFed, its CDs and how to join the credit union, please refer to my PenFed post on February CD rates.

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

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Comments
7 comments.
Comment #1 by Anonymous posted on
Anonymous
As I posted in an earlier PenFed thread, it worked for me without any direct contact with a CSR.  My CD matured on Feb 2 and automatically renewed at the higher Jan. rate.  I also had changed the CD to a longer term.   Just another plus for PenFed and their service.

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Comment #2 by Anonymous posted on
Anonymous
Same here. Left my certificate in place, changed the maturity date on line and got the 3.04 APY.  However, I did not receive any prior info from PENFED on this "courtesy" rate.  I thank Ken and posters for being on top of this.

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Comment #3 by Anonymous posted on
Anonymous
Other credit unions could learn a lesson from Pen Fed. Pen Fed has always treated our family well and let us know of deals when we called. I like to hear of a credit union taking care of their customers instead of like most places only having deals for NEW customers. 

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Comment #4 by Anonymous posted on
Anonymous
They sent me a flyer in the mailer, but this was in January and stated rates effective Jan 1 and subject to change.  The flyer wasn't really spelling out how long the rates would be in effect.  If someone's not reading this blog they may miss out.  Thank you Ken for pointing this offer out at the end of January.

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Comment #5 by Anonymous posted on
Anonymous
So today I got in the mail renewal  notice for 3 IRA certificates maturing on March 16. I wonder if they will extend this into March?

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Comment #7 by CC in CA (anonymous) posted on
CC in CA
I received a maturity notice in the mail, too, for a CD maturing in March. I, too, wonder if these rates will still be in effect.  Sure would be nice!  Otherwise, I will cash out the CD and move the money to Navy Federal C.U. (as long as they're still offering 3% over there). Would rather leave it at PenFed, but I am a rate-chaser when it's a 5 year or longer term (which is usually what I choose).

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Comment #11 by Anonymous posted on
Anonymous
As to Navy Federal...suggest one review the comments on their of service

3
Comment #12 by Anonymous posted on
Anonymous
Stay away from Navy Federal.  They don't acknowledge Vets for their service to our country.

1
Comment #6 by Ricochet posted on
Ricochet
Unfortunately, there are limitations. There can be no change in the maturing CD balance. No money can be added and no money can be withdrawn for the renewed CD.
KEN..Does this mean you cant withdraw accrued interest?



 

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Comment #8 by Anonymous posted on
Anonymous
Why are you asking Ken? Why aren't you asking PenFed and sharing the answer here for the benefit of everyone?

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Comment #9 by paoli2 posted on
paoli2
I have always been told that any interest is always available to us to withdraw so how can Penfed hold on to the interest?  I think Penfed is referring to the principal when they state "no money can be withdrawn for the renewed CD".  All it takes is one phone call Ricochet to get their answer.

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Comment #14 by Anonymous posted on
Anonymous
Penfed is not "holding on" to anybody's interest.  You can take your interest when the CD matures if you wish.  You just cannot get the special renewal rate for the CD.  They are giving a generous renewal rate.  They are under no obligation to change the rules to satisfy any of their members.  That is not the way the world works.

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Comment #15 by Anonymous posted on
Anonymous
paoli, if you don't like their service just take your business to BOA.  We don't need you single handedly causing an institution to lower rates to hire the 10 CSRs to coddle you 24/7.

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Comment #10 by Anonymous posted on
Anonymous
I have had my interest automatically withdrawn monthly and placed in my regular share Acct. leaving just the CD's principle intact. The CD was renewed in Feb. at the higher January rate.  The accrued interest on the day the CD matured was also withdrawn.

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Comment #13 by bbug posted on
bbug
Even if you can't withdraw the matured interest, you could withdraw it the day before the maturity date.

3
Comment #17 by Anonymous posted on
Anonymous
Does anyone know if these renewal rates will continue in March???

1