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Pen Fed CD Rate Drop

Thursday, March 1, 2012 - 8:24 PMPentagon Federal Credit Union - Details
Guess it had to happen.  New Pen Fed CD rates: 

4 year = 1.74% (was 2.00%) ; 5 year = 2.00% (was 2.25%) ; 7 year = 2.50% (was 2.75%)
5
JimMartin9JimMartin911 posts since
May 26, 2011
Rep Points: 58
1. Friday, March 2, 2012 - 7:13 AM
Pick your poison. PenFed at 2.5 for 7 or Dime at 2.25 for 5. If you believe rates have (finally) bottomed, the Dime offer is probably better. Given the current SEC yield on intermediate-term bond funds with durations at or about 5 years (2%, +/-), either is bond-fund-competitive. Indeed, any 5-year CD with a rate at or above 2% is a reasonable alternative to your garden-variety low-cost intermediate-term bond fund, and a much better alternative than an intermediate-term Treasury fund (where the risk is comparable). In the latter, SEC yields are much lower.
4
BozoBozo137 posts since
Feb 14, 2011
Rep Points: 937
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