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PenFed Money Market Certificate Rate Increase

Friday, November 1, 2013 - 7:39 AMPentagon Federal Credit Union - Details
PenFed has increased it's 3 and 4 year Money Market Certificate rates to a yield of 2.02 percent.

Money Market Certificates - PenFed
21
ShorebreakShorebreak2,371 posts since
Apr 6, 2010
Rep Points: 12,654
1. Monday, December 2, 2013 - 7:42 PM
Raised to 3.04 for 5 and 7 year accounts. Trying to break my 3 year 2.02 that I just opened last month we will see how this goes.
5
plowkingplowking20 posts since
Aug 19, 2010
Rep Points: 57
2. Monday, December 2, 2013 - 10:03 PM
Well I called got a very polite lady,who told me to write a signed letter explaing what i want to do and agree to penalty for early withdrawl and email it over.Since its been opened over 10 days they could not do this over the phone alone.Hope this gos well...
2
plowkingplowking20 posts since
Aug 19, 2010
Rep Points: 57
3. Tuesday, December 3, 2013 - 9:09 AM
Plowking:  You may know this already but they won't accept the signed letter unless you scan it or fax it to them.  I had to fax mine and everything went well once they got the fax.  They just charged any interest I would have earned for the few days the lower rate CD was in effect.  It's great that they allow this.
3
paoli2paoli21,142 posts since
Aug 10, 2011
Rep Points: 5,094
4. Tuesday, December 3, 2013 - 11:59 AM
Thank you, yes I wrote out a letter ,then potographed it and emailed it to the address the csr gave me ,no word yet...
4
plowkingplowking20 posts since
Aug 19, 2010
Rep Points: 57
5. Tuesday, December 3, 2013 - 5:57 PM
plowking:  They gave me a 24 -48 hour timeline to get my request done and it was closer to the 48 hours before they could do it.  If it has gone over 2 days and it still isn't completed you might want to give them a call and get a timeline from them as to when you can expect your request to be completed.  You know what they say "the squeeking wheel, gets the grease".  I'm so squeeky, I'm drowning in grease. :)
5
paoli2paoli21,142 posts since
Aug 10, 2011
Rep Points: 5,094
6. Wednesday, December 4, 2013 - 11:31 AM
when I opened my CD last month I messed it up online and opened it for the two year 1 percent I immediately called them and told them my error it took about 10 days and 20 phone calls but they did fix it for me all by phone.They closed my one percent CD for 2 years and opened 2 percent CD for 3 years,now I want to break that CD and lock in 3% for 7 years. They must think I'm crazyI wonder if they'll be coming out with a4 percent CD next month? :-D I should add that all requests must go through the Share department and this department has about five employees ,the customer service representatives can only pass on all request to the Share Department.CSR also told me they are swamped with all the request for these new certificates.
3
plowkingplowking20 posts since
Aug 19, 2010
Rep Points: 57
7. Wednesday, December 4, 2013 - 11:40 AM
Plowking:  We must be related.  20 phone calls??  Good for you, bad for Penfed.  Now let's see if "you" get blasted for all your calls to Penfed.  Seems like I wasn't the only one keeping them busy.  The fact that you had to call them 20 times means they were not doing what you needed or maybe you are related to Paoli.  :)  Don't worry about people thinking you are crazy.  It can come in handy when you need things done.
3
paoli2paoli21,142 posts since
Aug 10, 2011
Rep Points: 5,094
8. Friday, December 6, 2013 - 4:42 PM
well I may have exaggerated a bit maybe it was more like six calls. Anyway they close my 3 year and open me a7 year and only 1100 dollars in penalties not too bad.the customer service really is top notch
3
plowkingplowking20 posts since
Aug 19, 2010
Rep Points: 57
9. Friday, December 6, 2013 - 5:29 PM
$11.00 or $1100 in penalties?
3
AllyAlly778 posts since
Jan 16, 2010
Rep Points: 2,266
10. Sunday, December 8, 2013 - 11:19 AM
Hi,it was 11I wish it was 1.1 .:-)
3
plowkingplowking20 posts since
Aug 19, 2010
Rep Points: 57
11. Sunday, December 8, 2013 - 2:05 PM
PK,

"Trying to break my 3 year 2.02 that I just opened last month we will see how this goes."

You don't have to answer this unless you want to; but $1.1K penalty is less than one month?

 

 
1
51hh51hh1,461 posts since
Jan 16, 2010
Rep Points: 6,351
12. Sunday, December 8, 2013 - 10:59 PM
I'm dyslexic, just shy of a month would have made about 17 if kept in all month. My point was that penfed did keep their word and only keep my accrued interest as penalty . I really trust this credit union...
3
plowkingplowking20 posts since
Aug 19, 2010
Rep Points: 57
13. Monday, December 9, 2013 - 10:58 PM
I have 3 IRA's due at the end of the month and one next month. Because I will start my RMD next year the customer service said nothing has changed and like my husband before he passed and the boys who I disclaimed his IRA's to I would be able to take my RMD out of a long term CD without penalty. Today I received a discloser stating if redeemed before 365 days all interest would be forfeited and after 365 interest for the proceeding 365 would be forfeited. I wonder if this means just closing the IRA CD and not leaving $1000 in the IRA CD as in the past? Anyone had any explanation on this? I will call tomorrow.  
2
AllyAlly778 posts since
Jan 16, 2010
Rep Points: 2,266
14. Tuesday, December 10, 2013 - 10:23 AM
I called Pen Fed. They said you cannot withdraw from a Roth IRA without a penalty. If you are taking your RMD there is no penalty on a RMD or a bigger withdrawal or transfer but must keep $1000 in the original  traditional IRA CD. I forgot to ask if you could still do this if you were 

59 1/2. 
2
AllyAlly778 posts since
Jan 16, 2010
Rep Points: 2,266
15. Tuesday, December 10, 2013 - 11:26 AM
#14  I think you can find the answer to your question here:

http://www.ehow.com/about_6505795_roth-ira-withdrawal-information.html

I have never had a Roth IRA but it seems they also have the 59 1/2 age rule for withdrawals.
2
paoli2paoli21,142 posts since
Aug 10, 2011
Rep Points: 5,094
16. Tuesday, December 10, 2013 - 12:19 PM
Thanks. I posted that wrong. I should have said I have never taken a withdrawal from a Roth IRA (except to get a higher rate). The new Pen Fed no longer allows this for a new Roth IRA. I have contributed to a Roth for me and a spousal Roth for my husband since 1998 and have done some conversions while still staying below the amount to keep from paying for the higher Medicare premiums. I will try to proof read my postings.  

After a chart posting in the WSJ of those stepping out of the workforce are more retirees in the last 2 years instead of discouraged workers, I think that the unemployment rate may be heading down and the interest rates may be going up within the next year or two. I wanted to stay flexible. 
3
AllyAlly778 posts since
Jan 16, 2010
Rep Points: 2,266
17. Tuesday, December 10, 2013 - 1:03 PM
Ally, can someone contribute to a Roth IRA if they aren't working?  We stopped all our IRA contributions many years ago when DP was early retired.  I only worked after that for a few months and never bothered with the IRAs for myself.  Maybe you have been able to contribute so much for so long because you worked for a good bit of your married life.  Just wondering how it works.  Thanks.
2
paoli2paoli21,142 posts since
Aug 10, 2011
Rep Points: 5,094
18. Tuesday, December 10, 2013 - 1:18 PM
Only funds earned income from working can be put in any kind of IRA. But funds from a traditional IRA can be converted to a Roth IRA if you qualify even when you are not working. But income tax has to be paid on the funds you convert and in some cases it isn't always the best thing to do. In my situation because I live on SS alone and do not need the funds and want to leave them tax free I am trying to convert some every year. It is only a good idea if you pay taxes from income outside of the IRA and in many cases especially for us older people is not a good idea to do this unless it is used as an estate planning tool. You have to run the numbers. Just like retiring early, it is not best for all. 
4
AllyAlly778 posts since
Jan 16, 2010
Rep Points: 2,266
19. Tuesday, December 10, 2013 - 2:33 PM
#18  Thanks for info.  I have too much other needs for my income without using it to pay taxes for a Roth. That would have been more sensible for me, years ago.  Will stick with what I have.
3
paoli2paoli21,142 posts since
Aug 10, 2011
Rep Points: 5,094
20. Sunday, December 15, 2013 - 3:05 PM
Well spoke to soon,they did fix my new account.but noticed today they also decided to convert my 10 year 5% CD into o 3% 7 year also and and penilize me 10k . I have called and the csr has admitted their error hope they can fix this.:'(:'(:'(:O:O:O
3
plowkingplowking20 posts since
Aug 19, 2010
Rep Points: 57
21. Monday, December 16, 2013 - 11:09 PM
Well admitting there error the fixed it very fast, 1 day after i spotted it.Even gotta a call from a rep...Thank you Penfed! Considering I almost had a stroke!
2
plowkingplowking20 posts since
Aug 19, 2010
Rep Points: 57
22. Tuesday, December 17, 2013 - 10:16 AM
Have 3 IRA CD's maturing on the 28th of this month. Converting one to a Roth and then getting a CD. Has to be done by the end of the year. Hope everything goes OK. Had so many at the end of the year because of Pentagon's previous policy increasing rates the last few days of Dec. The 28th is on a Sat it only making things more "time is of the essence". Posting will show on Monday and be converted Tuesday and hopefully the CD will be done that day also. Will be calling to make sure.
2
AllyAlly778 posts since
Jan 16, 2010
Rep Points: 2,266
23. Tuesday, December 17, 2013 - 11:38 AM
Now Ally, don't go crazy with the Penfed phone calls. "I" have more calls to make to them and need to get thru. :) I will try to make mine this week so you can do your think later. Thanks!
2
paoli2paoli21,142 posts since
Aug 10, 2011
Rep Points: 5,094
24. Tuesday, December 17, 2013 - 12:21 PM
I won't be calling until the 30th and 31st.
2
AllyAlly778 posts since
Jan 16, 2010
Rep Points: 2,266
25. Wednesday, December 18, 2013 - 9:04 PM
I will be opening certificates on the 26th or 27th. As long as the money is at PenFed, I am sure it will be okay.
1
loulou521 posts since
Aug 3, 2010
Rep Points: 3,239
26. Wednesday, December 18, 2013 - 10:55 PM
#25 lou-- Actually it's OK even if the money is NOT at Penfed! They will
open the CD at application time and start paying you interest on the
opening date (yup, that's right BEFORE the deposit occurs at Penfed).  I
have  done this more than once with Penfed.
1
cumuluscumulus297 posts since
Jan 16, 2010
Rep Points: 1,374
27. Wednesday, December 18, 2013 - 11:29 PM
Cumulus, is there a maximum dollar limit for this convenience?
1
loulou521 posts since
Aug 3, 2010
Rep Points: 3,239
28. Thursday, December 19, 2013 - 2:19 AM
#25 Pen Fed will debit your account for the CD except for IRA's. That is not legal as yet. Hopefully Congress will change those laws. Think like everything else they do lately they have to get enough money from the lobbyists before they will do anything. Money speaks. 
3
AllyAlly778 posts since
Jan 16, 2010
Rep Points: 2,266
29. Thursday, December 19, 2013 - 9:12 AM
Penfed is like no other institution I have ever dealth with.  I opened 2 new CDs with them this week and they are paying me interest as of the day of opening and when I looked at my bank account, they still had not transferred the money into the CDs.  It seems as long as the info is on the books and you have given them permission to take the money for the CDs, they consider the CDS up and running and pay the interest even tho it isn't funded yet.  Very nice of them to do it this way.
4
paoli2paoli21,142 posts since
Aug 10, 2011
Rep Points: 5,094
30. Thursday, December 19, 2013 - 7:44 PM
#27 lou
> Cumulus, is there a maximum dollar limit for this convenience?
>
lou, I didn't state the whole story (it was late); deal is as long as
the money is somewhere that they can do ACH on it you can do this. I
have all my non-Penfed accounts defined as external accounts at Penfed
so I never have an issue regarding the ACH; Penfed allows you a huge
number of external accounts (430).  As far as I know there's no limit
on the amount transferred---although I seem to remember other DA members
mentioning being limited.  Most I've transferred is $65K; I've been a
Penfed member since 2007.  Hope this is helpful.
2
cumuluscumulus297 posts since
Jan 16, 2010
Rep Points: 1,374
31. Thursday, December 19, 2013 - 9:25 PM
$25K limit for new members up to six months.  Then it can be a large amount.
2
51hh51hh1,461 posts since
Jan 16, 2010
Rep Points: 6,351
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