Except for the 7-year term, PenFed's CD rates are not too competitive now, so I decided not to renew. When I opened these CDs, PenFed allowed me to specify that the funds be transferred at maturity into my PenFed shares savings account. That occurred as promised last week.
My plan to pull funds from PenFed was to initiate an ACH transfer from my Ally savings account. However, I found the following in PenFed's Regular Share Account Disclosure:
Transfers by means of ACH to other financial institutions are not permitted.
So I had to change my plans to transfer the money. Fortunately, this limitation is not listed in either PenFed's checking account or money market savings account disclosures. PenFed's Money Market Savings Account requires only $25 to open and it has no monthly fees, so I opened this account online. I funded it with money from my PenFed savings account. I then had to create a link to this account from Ally Bank.
When the CD matured and the funds were automatically transferred into my PenFed savings account, I logged in and did an internal transfer to the money market account. I then did the ACH pull from Ally Bank.
This is the same exact thing I had to do when my Navy FCU CDs matured last year. Like PenFed, Navy FCU has the same restriction on ACH withdrawals from its savings account. I didn't learn about this restriction until I noticed that my ACH transfer to my GMAC Bank account was reversed. GMAC Bank showed the money was deposited, but the next day it was transferred back to my Navy FCU account. Luckily, I wasn't charged any fees for this. Once I realized about this problem, I opened a Navy FCU money market account which is very similar to what PenFed offers. I was then able to transfer the money to my GMAC account as I described above for PenFed.
In summay, if you're planning to pull funds from a savings account by initiating an ACH transfer from another bank, make sure it's allowed by the bank or credit union.
To review my other PenFed posts, please refer to my PenFed page. They still have a 4% 7-year CD, and they continue to offer a great deal on a cash-back credit card.