Update on PSECU’s Very Competitive Special CD Rates
The following was originally posted on 11/5/19.
I don’t have anything new to report on PSECU, but I thought a quick mention of PSECU’s CD Specials would be useful. I will mention them again later today when I publish the CD summary. As I was starting on the summary, I realized that the two PSECU CD rates are now way above the CD rates of other credit unions and banks. For anyone looking for mid-term CDs, these are excellent deals in today’s interest rate environment.
PSECU’s 24-month CD earns 3.00% APY. The next highest 24-month CD rate that’s nationally available is only 2.50% APY (at Home Loan Investment Bank). PSECU’s 36-month CD is even better at 3.25% APY. The next best 36-month CD rate is only 2.70% APY (at Dow Chemical Employees' Credit Union). Even PSECU’s 60-month CD is worth noting. It has a 3.00% APY which is now the only nationally available 5-year CD with a 3% APY.
Besides the high rates, PSECU’s CDs have a mild early withdrawal penalty (EWP). Here’s how the EWP is described in PSECU’s Certificates page:
If you withdraw money early from a 3 to 24 month certificate, you’ll lose 90 days’ worth of earnings on the principal amount you withdraw, whether or not the certificate has earned an initial dividend. If you withdraw money early from a 36 to 60 month certificate, you’ll lose 180 days’ worth of earnings on the withdrawn principal amount, whether or not the certificate has earned an initial dividend. Penalties are deducted from the certificate value and calculated at the certificate’s annual dividend rate.
This makes PSECU’s 24-month CD an especially good deal. Even if you close the CD early after one year, your net yield after the penalty would be 2.25%. That equals or surpasses the highest 1-year CD rates from most online banks. You can review the effective yields of PSECU’s CDs when closed early by using our CD Early Withdrawal Calculator.
PSECU’s CDs have an add-on deposit option, but it has several limitations. I have details of this feature in my October 26 blog post.
As I mentioned in my October 26th post on these PSECU’s CDs, I was told by PSECU that they intend to offer these specials through November. Of course, there’s no guarantee. The small print does say “Rates and information are subject to change at any time.” If the demand for these CDs is high enough, they may end these specials early. Fortunately, PSECU is a large credit union. It’s the 32nd largest credit union in the nation with assets in excess of $5.5 billion and deposits of almost $5 billion. That should reduce the odds that they will be forced to end the special rates early.
Also as I mentioned in my October 26th post, I was told by PSECU that their field of membership (FOM) now extends across the country. In the past I’ve been told that the FOM was limited to Pennsylvania residents. Hopefully, this nationwide FOM will continue. For details about how to qualify for membership, please refer to my October 26th post.
Lastly, thanks to all readers who have shared their experience with PSECU in the comments. You can read the recent comments in the October 26th blog post and in this Forum thread.
Yup, act now... 'cause even though this CU says that the rates are good 'til 11/30,
they could, if they really wanted to, pull them at any time. PSECU looks like the last
of the great CU rates where there aren't strict membership rules.
and deposit offerings are available NATIONALLY, not just to California.
(as posted by hwhiteco comment #53).
Founders CU has over 27 locations in South Carolina and considered one of the largest CU's in that state, allowing for a pretty significant base of investors that can apply for membership as Founders services almost all of South Carolina. These are just two new examples of existing CU offering that are available not posted in Ken's forum. If all chatters on this site researched and also posted two good deals they find not already posted, it would increase everyones chances of finding new offers that may suit their current investment needs.
I do not believe the management at PSECU bases their decisions on some website with a bunch of unknown, unrecognized, people with keyboards.
In case you didn't realize, 5 million is only about 1.5% of the total U.S. population.
No comparison. Secondly, if you look at the majority of CD deals posted in this blog they are, on average, in the 1-3 year range. The two CUs you mentioned have their most notable deals in the 5 year range ONLY. Most people who still need to spend some of their money at one point (and most readers of this blog, I'd wager) do NOT want to tie up their funds for that long.
Ken can't cover EVERYTHING ...& you can always post your own promo under the corresponding CU's information page.
You're welcome. And MY point was that the 'redundancy' (by the writer of this blog BTW, not OTHER posters) was intentional based on the criteria I mentioned earlier.
If there aren't enough local deals for you being posted here, I fail to see how reiterating PSECU's deals will UN-inspire others to post them.
I saw the deal in October but was concerned I didn’t have enough time, and decided to wait until November to make sure the promo had not ended yet. Perhaps there are many others like me. If people here are upset about the publicity, could it be for self reasons - concerned that the add ons won’t be honored? I am thankful to Ken/DA and all fellow posters who make meaningful contributions.
Hey!.. thanks for the update.
I arbitrarily chose yesterday to apply for PSECU membership (thinking I had at least a little while to open the CD) & later received approval within 5 hours time. After reading your post this morning, I got on the phone w/PSECU for about a half hour;; then discovered that I didn't need to wait for the ATM card & could use mobile deposit to fund the CD with no hold on an initial $500.
Great contributory post! BTW, if you think Ken's blog is responsible for controlling the decisions of the largest Credit Union in all of PA, I think you're sadly mistaken. This deal has been mentioned on Hustlr's Money Blog, BankRate.com, etc., among others. Though I didn't feel it would end this quickly, I never really believed it'd go as far as Nov. 30th EITHER; which was my very first point.
I am not bothering with PSECU because I can get something similar at Keesler. And I try to resist new accounts unless I can't pass up a deal.
(3.20% jumbo, 3.10% for under $100k)
Keesler told me months ago their rate would continue and it has. I will probably buy another next month when one matures from NASA.
I'm not suggesting that having a trust is a bad idea if there is a legitimate reason to have one. And trusts do have their advantages. Just that assets in trust are harder, more time consuming and costlier (sometimes much costlier) to administer compared to assets not in trust. Attorney's never tell you about that when they are trying to sell you on executing a trust.
The people are good, but their online system could be better. Some of the instructions were misleading and there were two places in the process that had technical glitches and I had to call to get them resolved. I had to make a number of calls to get things straightened out and sometimes hold times were long, causing my online process to time out and I had to keep starting over (It was a Monday so that may have had some affect on the hold times). When I did call they acknowledged that these were known technical problems that many people encounter and they did get them straightened out for me on their end.
Overall, I give their CSRs an "A" but their online signup process a "B-" It took several hours to get everything done contrasted with the best online experience I've had that took minutes. As many FIs do, they used third party processors for their online process. My observation from experience is that they need to work on better integration with these processors' systems to get some of the kinks out.
I have all the paperwork in now. Now I'll find out how well they handle it.
It's really a cumbersome and basically useless way of doing things.
At the end of the process, it just creates PDF files that you have to print and physically sign anyway.
They don't offer an e-sign option. PSECU will only let you mail or fax the documents.
Most places let you upload the signed forms an attachment to secure email.
PSECU's secure email doesn't allow you to attach documents.
Usually, I just try to get PDF files of the IRA applications and transfer requests.
But, PSECU insisted that I use Ascensus.
The web app does provide some rudimentary editing.
It also lets you chose what term CD you want from what's currently available.
But other than that it's a really poorly designed application.
I'd give it a "F-".
Yes, they need a secure communications portal to upload documents. I mentioned that to them when I returned the transfer form by fax. They indicated that it's on their todo lost.
I don't want to overemphasize the issues I've had. There have been a few, but other than the debacle with the transfer form, they've all been pretty minor and they fixed them quickly. I'd call the transfer form problem moderate because it caused me to have to spend maybe a couple of hours on the phone altogether making about 10 phone calls to them and the other FI and waiting on hold before I found out they had made an error. That was not fun.
It's not over yet, but I'm hoping for smooth sailing from here on in.
Not sure if the above fits what you're looking for but below is some of what's posted there on PSECU's website. It's contained In the small print, beneath the "Rates for Certificates and IRAs" section & what's also listed further down below that, under the 1st FAQS question titled "Can I add money to my certificate over time" contains the following info pertaining to terms & conditions..
To begin with, PSECU's website indicates, one needs to setup their specific recurring ATS terms within 30 days after the certificate is purchased or lose it. Their operative word also seems to be "recurring". Possibly meaning unless one reduces the original amount properly in time, the very 1st time you miss the full amount of the original add on amount...it has not reoccurred, thereby "breaking-the-chain" & automatically stopping it (permanently). In other words, nowhere in the original terms does it clarify "Pausing" as an option. Their summary interpretation appears to be, you can reduce the add on amount if done properly, but you can never do the reverse, to ever increase it again. In conclusion, although I've seen posts pertaining to the selection of when the frequency of those add on time periods occur (which seems likely in addition to the amounts of the add on dollars...I did not notice any info on those terms at this particular website. Anything further, you may want to consider corresponding with PSECU by email so you have something in print?
ALSO - previous comments have mentioned that the credit union is good, reps are good, but opening process is a bit problematic. They are NOT a SHARED BRANCH participant, so you may have to use SNAIL MAIL for funding unless you can wire. I do not normally get checking, but since they do not do shared branch and limited ACH, the checking option may come in handy when it come to maturing CD funds (in taxable accounts, of course).
THANK YOU, KEN, for this site, and to all those that help by posting specials and specifics on transaction details. This is such a wonderful resource.
That's not my experience at all. I've had no problem transmitting funds via ACH, using the website of an external institution. PSECU's website's ACH capabilities may be "limited", but, in my experience, they have not placed limits on external transfers to PSECU. It is misleading to state that the options are limited to snail mail or wire.
ETA
It's probably worth mentioning that, as an Alliant member, I sometimes experience same day ACH funds movement. But this is not the rule and cannot be relied upon. Reliable overnight ACH at Alliant, though, has been happening for me for well over a decade.
For others... You have to have one of these direct deposited to the new checking account to qualify for the bonus (as well as meeting the other requirements).
"...paychecks, Social Security payments, and pension payments."
If you don't receive any of those you can't qualify.
Funds allocated to POD beneficiaries are not subject to probate.
I'm not sure I know what you mean by "easy to get out of."
If you mean can you get your money out of an account with beneficiaries just as easily as you can get it out of an account without beneficiaries the answer is yes.
The beneficiaries have no ownership or control of the account while the account owner is still living. The owner(s) have complete control of the account and it works the same as any other individual or jointly owned account.
It's important to distinguish between two different things here. An account with beneficiaries is sometimes called a "Poor Man's Trust." It isn't the same as a formal trust that is prepared by an attorney that some of the conversation here is about.
One option is to have an account titled in your name with beneficiaries. Another option is to have an account titled in the name of a formal trust for which there is a trust document usually prepared by an attorney. Two different things, but some of the benefits are similar. They each have their pros and cons.
Thank You for that.
Same personal info required for both the *beneficiaries and *joint owner accounts?
SS# ect.
You do not have to provide them with things like copies of the beneficiaries driver's license or other such documentation. Just basic identifying information.
I Appreciate your taking time to reply so well on our comments.
or slam the door shut to only "preferred" membership ie. State employees
I would imagine PSECU will be coming out with much clearer directives pertaining their Add-on CDs. It would be nice if it were soon and in print.
Any other questions?
You will have to follow-up on your own. If you can't get it all set up by Nov.30 it is too late.
https://www.depositaccounts.com/banks/pennsylvania-state-employees-cu/offers/#p21632
(copy and paste)
There is a reason most banks and credit unions do not guarantee additional deposits at old interest rates.
I hope this change to previously promised essentials does not presage other changes to account specifics and terms.
Rate change may lower but a .25 lower on a 3yr is still ok.
It is an addon, not to be ignored in this climate
However, this is normally restricted to the amount of the RMD for that specific IRA account.
I'm in the process of opening an IRA with them now.
If you try to do more than that, you might get dinged.
But, you'd have to contact them to find-out for sure.
Because of the recent rate change, it may end-up in an IRA savings account.
And, the money will go right back-out to an add-on I have somewhere else with a better rate.
While most waive (by contract, not by law), it I submit they are not legally compelled to do so.
I've sent an email to the NCUA about if there's any regulations for credit unions regarding RMD's and IRA CD's.
I didn't make a big effort to start yet another account with a new FI, because I have several add-on CDs already established with other FIs. Surely they won't ALL try to renege on the add-on commitments they've made to us - hopefully? Right? (Yikes!)
GTE Financial may flip-flop again on their "now you see it, now you don't" add-on CDs.
All of the other add-on CDs that I know of have rates too low to be worthwhile.
Unless, the FED keep cutting rates - or, goes negative on us.
The official policy is that they will open the CD with the rate that's valid when the cash is received.
I was able to open a couple of CD's with taxable money and "beat the clock" on those.
However, I've got an IRA CD in process (literally, the check is in the mail).
The online IRA application said that if the rate was no longer available you would be contacted.
However, when I printed-it out, that statement wasn't included.
So, I gave the specific instructions to dump the thing in an IRA savings account if the rate changed.
We'll see what happens this week when they finally receive the funds.
If they don't honor the old rate, you've got the option of just putting it in a savings account and then move it out to somewhere with a better rate.
And, I didn't even have to nag them about it.
Why say what you don't mean?
"Rates and information are subject to change at any time."
Everybody knows that once a CU meets it's funding goals they shut the thing down.
Heck, this thing has been around since August.
I've seen other CU's kill the deals in less than a week.
At least they had the integrity to honor anything in-process.
They didn't have to do that.
If you bothered to ask, their normal policy is for the rate to be set on the day of funding.
So, you should have known there was the risk of that no happening.
That's why I give places clear instructions to dump the funds received in a savings account if the rate deal is no longer in effect.
Well anyway, you can finally stop talking about it.
The talk will most likely still go on with issues like "my money was in transit", what now.
Our certificate rates were decreased on Saturday, November 9 at 5 p.m. EST.
We will honor current rates for 24-month certificate and 36-month certificate requests for new membership applications submitted before November 9 at 5 p.m. We will also honor prior rates for 24-month certificates and 36-month certificates if you call us before November 30 to open a certificate.
Rates are subject to change at any time. We strive to help all members reach their financial goals through every stage of life.
If you have any questions, please call us at 800.237.7328, extension 3036.
Thank you for your membership.
Sincerely,
Your Team at PSECU
.....not that terrible that PSECU read about how much we liked this deal now, is it? No, didn't think so.
'Ending' of this deal was intended to get people to either sh*t or get off the pot. Apart from the obvious premise that these deals don't last forever, anyone thinking otherwise is delusional.
Could mean Twice a week
Could be Bi-weekly twice each month. But what happens with a Five (5) week month. ?
Gather a stern definition.
So, I created two CD's with overlapping bi-weekly transfers to get the equivalent of weekly.
In this case, bi-weekly means every other week (probably to fit in with bi-weekly payrolls).
This could get annoying because it won't necessarily be the same two days each month.
I'll just have to wait and see how it works.
However, PSECU sent the following email on 11/11/19, to those who had became members before the rate cuts on 11/9/19:
"Our certificate rates were decreased on Saturday, November 9 at 5 p.m. EST.
We will honor current rates for 24-month certificate and 36-month certificate requests for new membership applications submitted before November 9 at 5 p.m. We will also honor prior rates for 24-month certificates and 36-month certificates if you call us before November 30 to open a certificate.
Rates are subject to change at any time. We strive to help all members reach their financial goals through every stage of life.
If you have any questions, please call us at 800.237.7328, extension 3036.
Thank you for your membership.
Sincerely,
Your Team at PSECU
You are receiving this message because you are a PSECU member. We occasionally send messages to our members containing information on PSECU products, services, promotions and enhancements that may be of interest."
Called today to have ATS added to my CDs and the nice CSR treated me like her only customer, even after what must have been a long day for her. After the call, I could see the ATS accurately reflected in my account online. This is the best experience when I had to call a FI.
PSECU should have all trust accounts registered as a trust account and be documented and available to see online whenever a member logs in. If they don't they need to change this policy. PSECU needs to show its a trust account as thats the proof in their records the account has been registered as a trust..and most importantly proof to the customer the account has Trust Registration for NCUA.
I'd suggest more on "Only the available funds will be drawn" but each of us has to play the odds
on what is seen in the ongoing posts. Those who got in last will have the advantage of hindsight.
"won’t constitute an ‘increase’ if you revert to the higher specified amount later."
I agree if done complete by next ATS
Ken, in his update earlier today, wrote:
"This may not apply to all members."
My own contact with the PSECU Certificate Administrative Department last week confirmed all members, who were members on November ninth and even people in process on that date, will be eligible to apply for the higher rate CDs right up until November 30. The operative word there is "all".
Did I receive bad information? Are there exceptions even if you were already a member on the ninth or had your membership in process on that date?
ETA
To clarify, I do understand that there could exist persons who had no contact whatsoever with PSECU on or prior to the ninth, but whose first contact subsequent to the ninth could by now have resulted in them having become members. I realize that rather small number of members would not be eligible at all for the higher rate certificates. But the overwhelming majority of us are not in that situation.
Ken is the Eye and the Omega but not the Everything.
"The rep of any financial institution" certainly may be wrong, but if you pay attention, on average it is more accurate than comments here.