Comments For: Happy New Year! PenFed Raises CD Rates for January
Anonymous - #2, Friday, January 1, 2010 - 8:54 AM CT
.
>> Pentagon Federal Credit Union did
>> increase some of its CD rates for
>> January, but I'm afraid they're
>> 25 basis points lower than what I
>> was told by my PenFed contact.
Indeed ... On 28th I was told by the rep that APY for 5yr CD will by 4.00% and for 7yr it will be 4.25%.
Too bad ... info given by the phone reps was different from what actually happened ... ( Won't be the first time that I've experienced this. )
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Anonymous - #3, Friday, January 1, 2010 - 9:08 AM CT
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>> Back in November I received an
>> e-mail from PenFed when I
>> reserved a certificate to roll
>> over on January 12th. The e-mail
>> confirmation from them stated an
>> APY of 4.00% on my five year
>> certificate when it rolls over.
Yes ... I also took advantage of the rate renewal in November. Immediately after each reservation the web-page (Main Menu --> Accounts) used to show the renewal certificate with a red "*", and towards the bottom of the page the info about the renewal used to come-up. ... Now when I see it, all of this is gone.
>> Now I'm wondering what's going on.
Indeed ... Me too.
If they do not full-fill the renewal deal they offered, it will be too bad ... Err ... Maybe I'll go with something a little more risky ... TLT, IEF and TLH.
.
Anonymous - #4, Friday, January 1, 2010 - 9:31 AM CT
Bait and Switch anyone.
Anonymous - #5, Friday, January 1, 2010 - 9:53 AM CT
I received a mail with a yellow leaflet insert that it said an extra 0,5% interest if I agree to renew my CD, on Thursday I received an E-Mail that it said to ignore the 0.5% it was mailed by mistake. They are reneging their initial commitment.
I will not renew it with them, my local CU has about the same rates for long term CDs.
Anonymous - #6, Friday, January 1, 2010 - 10:40 AM CT
.
Alas ... Based on the information that I got a PenFed rep, looks like they are going not going to keep the deal that was offered earlier for the rate-renewal.
So ... Analysis? ... Options?
My money was tied till the maturity. Therefore I could not have used it at PenFed or elsewhere until after maturity. When the certificate matures, I'll have a choice to accept a lower rate than what was offered, or find a rate that is equal or better elsewhere.
Hmm ... I am disappointed in PenFed ... if I get equal rate elsewhere then I'll go there rather than putting the funds at PenFed. ... Else ... maybe stay with PenFed with reluctance ... Else ... maybe go with something risky ... TLT, IEF and TLH.
USAA has okay rates ... maybe will consider those ...
.
Anonymous - #7, Friday, January 1, 2010 - 11:10 AM CT
Very uncharacteristic of PenFed.
This surely will give them a black eye if they do not honor their reserved certificate rates.
I will probably reluctantly stick with them because I have several accounts with them and they have been very good up to this possible goof.
Anonymous - #8, Friday, January 1, 2010 - 11:14 AM CT
Just went to Navy FCU's website. Their 7 year for $20,000 plus appears to be 4.00 APY, with 3.92 rate.
Anonymous - #9, Friday, January 1, 2010 - 11:16 AM CT
I just called Pen Fed after I noticed that they removed my reserved CD. They told me that the board of directors changed the rate and that it will be 3.00% for a 3 year CD. A bonus 0.25% would be added to the CD. I ask her who approved the reserved rates in November and I was told “the board of directors.” I asked her that once we locked in a rate how can either party change it? She asked me if I printed out the 3 year 3.50% rate. I said no, but I do have the confirming email that they sent to me for the 3.50% rate. She said that I should have no problem receiving the 3.50% rate and to make sure that I keep the email for proof. She also said that they have a list of everyone who did reserved their rates in November, but it is not in numerical order so she was unable to find mine quickly. My CD doesn’t renew until the end of the month so I will not be able to report back until then.
Let’s just hope they honor the rate that they gave to us in November. Otherwise, if they don’t, I suggest that everyone who reserved this rate call in and press them to give us the rate that we were promised and locked into. One simply can’t change a agreement midstream.
Anonymous - #10, Friday, January 1, 2010 - 11:40 AM CT
"Let’s just hope they honor the rate that they gave to us in November. Otherwise, if they don’t, I suggest that everyone who reserved this rate call in and press them to give us the rate that we were promised and locked into."
That is exactly what I intend to do!
Anonymous - #11, Friday, January 1, 2010 - 1:56 PM CT
Talking to a CSR is a waste of time. You need something in writing before renewing, otherwise they can do what ever they feel like about the rates.
I sent a letter where I ask for confirmation of the rate before they lock it in.
I also received a yellow insert about the rates where it stated 0.5% extra, which was followed up with e-mail to ignore it.
Talking about a tease, give me a break. According to the letter the rates are not locked in unless you send a secure e-mail or certified letter in case it gets lost or they conveniently trash it.
Anonymous - #12, Friday, January 1, 2010 - 1:57 PM CT
I called. They were not cooperative. I will call again tomorrow.
Anonymous - #13, Friday, January 1, 2010 - 2:10 PM CT
I also received a yellow 3"x6" insert and it stated that the funds are limited for these special rates.
I guess they already fulfilled the fund for these rates. Good luck getting higher rates now.
Anonymous - #14, Friday, January 1, 2010 - 2:12 PM CT
Anonymous 11:56 AM, January 01, 2010 wrote:
"Talking to a CSR is a waste of time. You need something in writing before renewing, otherwise they can do what ever they feel like about the rates."
I do have something in writing. It's the email confirmation. Did you receive one? Incidentally, I never received an email from PenFed notifying me that they are canceling the reserve rate, so hopefully they will honor it.
PenFed has a very good reputation. I would find it hard to believe that they would risk that reputation by not honoring the rates that they promised to a relatively few number of people ("few" as far as the banking industry is involved). Their reserve offer did not last long, so they will not be out much by honoring the reserved rate.
Anonymous - #15, Friday, January 1, 2010 - 2:18 PM CT
To poster at 12:12 PM, January 01, 2010,
May be you got in before the special fund was filled. But, don't take my word for it, send secure e-mail or mail to receive confirmation, otherwise they can cancel you too.
Anonymous - #16, Friday, January 1, 2010 - 3:54 PM CT
To Poster at 12:18 PM, January 01, 2010
Thank you. I just sent them a secure email. Now I'll have to wait for the response.
Anonymous - #17, Friday, January 1, 2010 - 5:09 PM CT
Everyone one who visits this website needs to send an email to Pen Fed and let them know they cannot screw their customers like this!! Go to "contact us" on their website and send them a message whether you are a customer or not!! I just sent mine and I am not even a customer. There is strength in numbers, people!!
Anonymous - #18, Friday, January 1, 2010 - 5:55 PM CT
"Go to "contact us" on their website and send them a message whether you are a customer or not!!"
People, DON'T DO IT if you're not a PenFed customer. What a way to start the New Year, by LYING!
Isn't there enough dishonest people in this world already? Don't become another one.
Anonymous - #19, Friday, January 1, 2010 - 6:02 PM CT
Well, see what happens when a credit union expands their membership to just about everybody. Their 4 year and 5 year rates are not different than Qualtrust FCU in Texas, so what's the big deal? The one thing that's really upsetting is that the 7 year rate is no longer 4 percent. That was the breaking point. If you can't get 4 percent for a fixed long term rate without putting in a bunch of money, you are dead in the water going forward.
Anonymous - #20, Friday, January 1, 2010 - 6:14 PM CT
Navy Credit Union has a one year certificate yielding 2.9%. Hurry!
Banking Guy - #21, Friday, January 1, 2010 - 6:28 PM CT
I've updated the post with some info. I probably won't know much more until Monday at the earliest.
About Navy's 2.9% 12mo CD, I believe this is the Special EasyStart Certificate. Unfortunately, it has a lot of limitations and restrictions. From the small print:
$3,000 maximum balance. Only one Special EasyStart Certificate per member is allowed. Certificate owner(s) age 18 and older must have Direct Deposit of Net Pay (minimum $300 per direct deposit), a Navy Federal checking account, and a monthly automatic deposit of at least $15 within 90 days of the certificate issue date.
Anonymous - #22, Friday, January 1, 2010 - 6:52 PM CT
I received an insert in my PFCU statement (mid-December) notifying me of the .25% bonus program for ALL 3, 4, 5 an 7 year term rollovers effectiver 12/1 (not just for January). I called last week and the rep confirmed that the current 7 year rate was 4% and would be the same in January; so if I rolled over my 12/30 CD - I would get 4.25%.
Since I also have a CD due in January, I asked about the January rates and was told that although the 7 year CD rate was staying the same, the 5 year rate would go up to 3.75%. So if you add on the bonus of .25% for rollover- the 5 year CD would yeild 4% and the 7 year 4.25%.
Well, I checked the system today, and lo and behold my 12/30 CD rolled over but the 7 year rate was only 4%. I called and was told that PFCU decided not to honor the bonus program as outlined in the 12/1/09 insert (apparently it was an error and should have stated it was effective January 1). He also advised that although they would honor the bonus program for January rollovers, since the rates had declined unexpectedly, the bonus effectively just brought you up to December rates.
I insisted on speaking with the call center manager. The manager immediately contradicted the rep and said that PFCU was indeed honoring the bonus program for December rollovers (since they published it - they had to) BUT that the rate change for January had been made retroactive and entered in the system on 12/29 to ensure that any rollovers on 12/29 or thereafter got the January lower rates. Therefore, I had received a 3.75% rate + .25% bonus for a total of 4% for my rollover CD. He admitted that the reps had not been informed of these changes in a timely manner and so they may have communicated erroneous information. He blamed the problematic communications and mix up on technical problems with their reservation program which forced them to quickly reconsider rules/rates . He said he undertood why folks were upset but that the CU had the right to change terms without notice.
rjm - #23, Friday, January 1, 2010 - 7:25 PM CT
Im presuming the email they sent me on 11/21 is still valid.
Your Certificate Has Been Reserved
Congratulations! You have reserved your Money Market certificate. There is nothing to do now but make sure the funds are available on your funding date. You probably never thought it would be so easy to get a great deal.
The certificate details are as follows: Term: 3 Year
Open Date: January 9, 2010
Maturity Date: 9, 2013
Dividend Rate: 3.440%
APY Rate: 3.49%
------
Im not going to worry about it unless I end up getting anything LESS than the above.
Anonymous - #24, Friday, January 1, 2010 - 7:36 PM CT
Chill people !!Be patient , This too shall pass.There is just not a lot cd investors can do right now . The 6 month interest penalty is a good deal if you want to get out of a 5yr cd should rates go up .
I remember back when the standard rate for pass book savings at any bank was 5.25%. people would kill for that now .
rjm - #25, Friday, January 1, 2010 - 7:39 PM CT
Another thing regarding penfed, they are REDUCING the cashback on their visa from 1.25% to 1.00% effective Feb 1. The notice came with my last card statement.
Anonymous - #26, Friday, January 1, 2010 - 10:06 PM CT
I guess the cashback bonus rate could not be sustained. Pity, they kept stressing that rate as a reason for switching to their card versus the other bank cards. Now, it's all the same and better not to make another application and open another card account.
Anonymous - #27, Friday, January 1, 2010 - 10:39 PM CT
How sad is it that Bernake has us fighting like cats and dogs for a stinking 1/4 percent bump in rates.
I guess most here have 100's of thousands on the line or they wouldn't worry so much about it.
rjm - #28, Saturday, January 2, 2010 - 3:43 AM CT
The 5% on gas + 2% on groceries & walmart will keep me carrying this card but I wont be using it for anything else after Jan 31.
I am grandfathered in on a paypal debit card that gives me 1.5% back but the downside of course is the money must be there, interest free upfront, so no float.
Frankly, many of my 1% cashback deals will probably just go toward my reward checking accounts with 12transaction minimums.
In cold weather, its just not worth it to stand out in the cold hitting multiple gas stations.
I sent penfed an email but they havent responded. I will contact the president if they try to cheat me out of the 3.49% they promised me. Even though its a small amount, its bad faith.
Anonymous - #29, Saturday, January 2, 2010 - 6:52 AM CT
.
Earlier on November 20, 2009 at 11:15 I wrote the following at link:
http://bankdeals.blogspot.com/2009/11/certificate-and-credit-card-deals-at.html
Err ... overall I guess PenFed is cutting it a little too close.
They are offering 5/1 and 5/5 ARM at 4.50% ... and they are offering 5 year CDs for 4.00%.
... So if one were to pair-up the CD assets that CU is borrowing from depositors, and the ARM assets that the CU is lending to the debtors, then the spread is too little ...
I know ... I know ... the pairing up does not go hand-in-hand like that ... however there is a loose link between the assets the CU gets from depositors and the assets it lends out to the debtors.
... Should be interesting to see how the thing plays out ...
Hmm ... Looks like it is not playing too well for the folks (myself included) who made the 'reservation'.
.
Anonymous - #30, Saturday, January 2, 2010 - 10:00 AM CT
If you look at the fine print on the yellow leaflet you will see the disclaimer:
"....and subject to change.....
Anonymous - #31, Saturday, January 2, 2010 - 10:04 AM CT
To poster above mine, yes I just noticed that, which means they can change the rates, conditions to what ever they want and there is nothing we can do.
Anonymous - #32, Saturday, January 2, 2010 - 10:21 AM CT
I just called the PFCU and a CSR told me (after consulting with a supervisor) that I would receive the 3.49%, 3YR CD rollover when my certificate matures this coming week.
This is because I had received the confirmation email of the reservation back in November when I called to reserve the certificate rollover rate.
Anonymous - #33, Saturday, January 2, 2010 - 10:58 AM CT
I reserved, but never received a confirmation. It looks like I'm out of luck. I will be pulling my money out.
Anonymous - #34, Saturday, January 2, 2010 - 2:34 PM CT
This is the second time that PenFed confirmed that I will receive the reserved rate. Below is an email that I received today:
"Thank you for contacting Pentagon Federal Credit Union.
The certificate is scheduled to renew and the reserved rate will be applied.
If you need further assistance, please contact us."
So, it looks like the reserved rates will be honored.
Anonymous - #35, Saturday, January 2, 2010 - 2:51 PM CT
.
I called one more time ... Inquired about the 'reservation' ... the CSR asked me to hold on ... after some 4 minutes of so she came back ... told me that she had to access some 'other' system ... and that my certificates will receive the 'reservation' rate ... What a mess!
PenFed has handled this in a slip-shod manner.
So ... will wait and see if they indeed come thru or not.
.
rjm - #36, Saturday, January 2, 2010 - 11:11 PM CT
They responded to my email....
Thank you for contacting Pentagon Federal Credit Union.
Our records indicate that you did successfully reserve the CD to renew at a higher rate. Upon the maturity of the certificate we will adjust the new certificate to the reserved rate.
-------
So as expected, I will be getting the 3 years at 3.49%.
Anonymous - #37, Sunday, January 3, 2010 - 12:27 AM CT
To Anonymous who posted on 8:39 PM, January 01, 2010
I have an account that is close to the FDIC maximum insured limit, so a fractional rate change is over 1 thousand dollars interest out the window for me.
Anonymous - #38, Sunday, January 3, 2010 - 1:48 AM CT
I have a confirmation e-mail re certificate reservation for a January rollover, so I MIGHT get the rate offered during that program (3.5% APY for 3 years).
However, I find Penfed's handling of communications regarding this whole thing disgraceful for an institution supposedly owned by its members.
Penfed's initial CSR feedback saying they cancelled the reservation program due to technical issues sounds like pure BS. In fact, the only way I even found out about the decommitment was by reading this blog ... Penfed never sent any communication about withdrawing the offer.
It's clear that Penfed is still giving inconsistent responses regarding whether they will honor the original certificate reservation rates.
I've become uncomfortable with even a 3.5% APY for 3 years and I'm not going to renew. I think I can do better with conservative investments like preferred shares of companies with stable investment grade credit ratings ... riskier and more work to manage, but likely worth it with many utilities paying around a 7% dividend.
If rates start going up, I'll sell the shares and switch back into a CD.
I can still add money to my 2-year add-on CD at Northwest FCU at 3.75% APY ... it matures in Feb 2011.
Anonymous - #39, Sunday, January 3, 2010 - 6:37 AM CT
I made my cd reservation back in November with the then higher rates. This morning I looked at my cd and I only received the 0.25% bonus, not the original 4.00% for a five year. It appears they are not honoring their original offer.
Anonymous - #40, Sunday, January 3, 2010 - 6:57 AM CT
What's with all their confusion and mis-communications within the PenFed's organization?
This inconsistency at PenFed is very disturbing to me. I have over the NCUA insurance limit on deposit with them in my IRA account. I had faith in them up until now. Now I am having some doubt and getting a little apprehensive about being over the NCUA insurance limit on deposit in my IRA account.
Anonymous - #41, Sunday, January 3, 2010 - 10:42 AM CT
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>> riskier and more work to manage,
>> but likely worth it with many
>> utilities paying around a 7%
>> dividend
Indeed ...
Are you going for individual utilities or mutual fund?
.
Anonymous - #42, Sunday, January 3, 2010 - 11:03 AM CT
.
BTW, USAA has 7yr CD with APY 3.85%. PenFed has the same with 3.75%.
As far as the CD laddering portion for 7yr term is concerned, I'll be going to USAA.
I have established ACH transfer "link" from USAA, so that I get fund from my PenFed checking over to USAA. Will have PenFed move proceeds into Checking from CD upon maturity and go from there ... the full process should take about 10 days.
.
Anonymous - #43, Sunday, January 3, 2010 - 11:08 AM CT
Everything income investors need to know.Free but you need to register. www.quantumonline.com > special lists > IPO's of preferreds and income securitys. Keep in mind even high rated investment grade preferreds will fluctuate in price.During the recent market unpleasantness some of my preferreds lost 60% to 70% of thier value. They have now recovered and I could sell them for some nice capital gains. Right now cd's have to be looked at as just capital preservation.
Anonymous - #44, Sunday, January 3, 2010 - 12:00 PM CT
"Right now cd's have to be looked at as just capital preservation."
I'm afraid you're right. Good point. Interest rates today won't even keep up with inflation let alone produce income to live on.
Oh! Thats right, the Feds say there is "0" or even negative inflation. That's why social security recipients will not receive a cost of living adjustment. What world are the Feds living in?
Anonymous - #45, Sunday, January 3, 2010 - 1:10 PM CT
" What world are the Feds living in? "
In almost bankrupt country with printed money to cover the politicians' created deficit.
Anonymous - #46, Sunday, January 3, 2010 - 1:23 PM CT
.
>> Interest rates today won't even
>> keep up with inflation let alone
>> produce income to live on.
Err ... What inflation?
With COLA for 2010 at zero, there is no inflation seen anywhere.
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Anonymous - #47, Sunday, January 3, 2010 - 2:06 PM CT
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>> What world are the Feds living in?
I'm afraid they are living in the same exact same world, as was created by the people for the people.
If fact, the people (indirectly) created the FED, and gave them the necessary powers, and charged them with managing the monetary policy for the people's world.
.
Anonymous - #48, Sunday, January 3, 2010 - 2:07 PM CT
"Err ... What inflation?
With COLA for 2010 at zero, there is no inflation seen anywhere."
IN THE REAL WORLD in which most of us live in.
But apparently not in your world or the Fed's, with the selective statistics and calculations they use to come up with their phony inflation numbers.
Anonymous - #49, Sunday, January 3, 2010 - 2:15 PM CT
.
>> But apparently not in your world
>> or the Fed's, with the selective
>> statistics and calculations they
>> use to come up with their phony
>> inflation numbers.
They? ... Who are they?
Perhaps you mean BLS! And even the BLS is created (indirectly) by the people for the people.
Looks like you are blaming the a) FEDs and b) Social Security Administration and c) Bureau of Labor Statistics, but not yourself and the people ... Maybe you need to look into the mirror and pass the blame (if any) to the guy/gal you see in there. After you are done with that, start tracing the family-tree and pass along the blame (if any) to the forefathers/mothers who help create this world of the people.
.
Anonymous - #50, Sunday, January 3, 2010 - 3:18 PM CT
Why don't you do yourself a favor and find another blog Snippy!
Try angryoldmen.com
Anonymous - #51, Sunday, January 3, 2010 - 4:26 PM CT
Perhaps too much Eggnog for him.
Anonymous - #52, Monday, January 4, 2010 - 7:44 AM CT
Re my post regarding preferred shares of companies with investment grade ratings ...
I have a portfolio of individual issues, a mixture of utilities, telecom and financials. Examples include XCJ, BBT.PR.B and CCW.
However, I also have PSK which is an ETF with a diversified portfolio of preferreds with a yield of 8.42% with a management expense ratio of 0.45%. I've got a limited amount of PSK because it's pretty heavy on financials.
I agree that quantumonline.com is an excellent resource for researching these issues.
Make sure you look at some charts for the past two years before you buy anything so you understand the potential volatility of the share prices. Even quality stuff got killed during the crisis.
For example, a pipeline MLP like EEP (currently yielding 7.38%) was down 50% back in March 2009, but it's come all the way back to pre-crisis levels.
You don't need to lose much capital to wipe out all your dividends and more, so make sure you understand the risks.
Anonymous - #53, Monday, January 4, 2010 - 9:50 AM CT
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>> However, I also have PSK which is
>> an ETF with a diversified
>> portfolio of preferreds with a
>> yield of 8.42% with a management
>> expense ratio of 0.45%. I've got
>> a limited amount of PSK because
>> it's pretty heavy on financials.
Indeed ... With top holdings like 1) Barclays Bank Plc, 2) State Street Institutional Liquid Reserves 3) HSBC Holdings Plc 4) Credit Suisse Guernsey 5) Deutsche Bk Contingent Cap Treasury this looks quite heavy in financials, and foreign financials at that!
Also PSK looks like a relatively new spider - inception date 9/16/2009 with quarterly dividends ... Hmm ... will keep it on watch-list.
Recently I went into TLT, TLH and IEF. I trade currencies (XRU, FXM, FXA, CYB, BZF, SZR) and gold GLD and GLL (both on long and short side) on-and-off.
Will be interesting to watch (and possibly trade) PSK as well.
Thanks.
.
Anonymous - #54, Monday, January 4, 2010 - 11:38 AM CT
Can we get back on the subject matter of this topic, PenFed CDs?
Has anyone heard anything new from PenFed and their CD rates particularly on "reserved CDs" for January renewals?
Anonymous - #55, Monday, January 4, 2010 - 12:37 PM CT
I asked them why my certificate reservations I made on Nov 20th disappeared from my account. Here's the response I got.
Thank you for contacting Pentagon Federal Credit Union.
This promotion has been removed from PenFed Online. If your certificate it set
to rollover and you have enrolled in the promotion, you should still receive the
advertised rate. We apologize for any confusion and inconvenience this has
caused.
Anonymous - #56, Monday, January 4, 2010 - 2:09 PM CT
I did the early cd reservation in Nov. It renewed on 1/2 and on 1/3 had the +0.25% listed. Today it has the Nov. rate at +0.50%. Perhaps a systems error due to the 2 promotions?
Anonymous - #57, Monday, January 4, 2010 - 2:45 PM CT
I sent an e-mail directly to the Board of Directors. Just got the following reply from the Chairman:
"All members who participated in the Certificate Reservation program and whose certifictes roll-over in January will have their reservations honored. You will receive the advertised rate from that promotion: 3 yr/3.50%, 5 yr/4% and 7 yr/4.25%."
Anonymous - #58, Monday, January 4, 2010 - 4:17 PM CT
Thank you people very much for your replies. One of my CDs matures on 1/12 and I reserved a 5 year roll-over certificate back in Nov. and had received a confirmation by e-mail back then.
I have not called PenFed. I will wait and see. But I am more confident now about receiving the confirmed 4.00% APY.
Anonymous - #59, Saturday, January 9, 2010 - 8:48 PM CT
I had an account with PenFed. They told me all i needed to deposit was $5 to open an account. I deposited the money but after 1 month they took the money away from my savings and closed my account. Crooks.
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Anonymous - #1, Friday, January 1, 2010 - 7:09 AM CT
Back in November I received an e-mail from PenFed when I reserved a certificate to roll over on January 12th. The e-mail confirmation from them stated an APY of 4.00% on my five year certificate when it rolls over.
Now I'm wondering what's going on.