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Friday is Last Day for PenFed's 6 Percent CDs


Update 10/13/07: The 3, 4, 5 and 7 year CD rates are now 5% APY.

I've just confirmed with a customer service rep that this Friday (Oct 12th) will be the last day to open the 6% Money Market Certificate. Pentagon Federal Credit Union (PenFed) started offering these 6.00% APY certificates on September 27th. Usually, the rates last for a month, but this time they were only going to offer them until they reached their deposit target.

These certificates have a yield of 6.00% APY for terms of 3, 4, 5 and 7 years. The minimum deposit is $1,000. For detailed information about these CDs and joining PenFed, please refer to this previous post.

The easiest way to open and fund the CD is by doing it online. I describe the ways to fund the CD in my last PenFed post. If you're a new member, the only problem with this is that your ACH transfer is limited to $25K. You should be able to do multiple online applications with each having a $25K ACH transfer. The customer service rep said you can also open the CD by phone and fund it with a wire transfer initiated by your bank. PenFed does not place any restrictions on wire transfers.

Thanks to the readers who mentioned this end date in the comments and emails.
Related Pages: CD rates, IRA rates

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Anonymous   |     |   Comment #1
Can one open a penfed account and get a CD on the same day ? If I need to wait for the account openeing materials, I'll miss the friday deadline
Duck   |     |   Comment #2
No when I opened my account last year over phone I was able to ach to fund both the share acount and cd at same time if you dont have a retired military with benefits( Thanks Uncle Bernie) you will also have to charge to join that assoc.(can't remember name)Banking Guy was talking about in his post just look back. too bad about friday though I have another cd coming next week would have liked to take advantage of another cd guess I will take that country for 5.65 Thanks Banking Guy
Anonymous   |     |   Comment #3
Regarding 2:36 am's question, yes you can become a member and open a CD all in the same day...and entirely online. That's what I did, which included joining the military families assn. as a requirement for membership. In fact, after creating one CD last week, I did 3 more yesterday at $25,000 each through ACH transfer from another bank. PenFed's own ACH transfer limit for new CDs is $25K per, but you can do multiple CDs. There is no limit if you push money in from another bank. But I was afraid that might take too long and go past the end of this offer. By using their ACH system, the CD is created immediately even though the transfer of actual funds occurs later--Tallguy in L.A. Thanks to BankGuy for this very good opportunity.
Anonymous   |     |   Comment #4
I emailed Penfed with this inquiry which stated in part:

"On the basis of your ad for a CD special which stated "Effective Date September 27, 2007 - October 31, 2007" I arranged to have funds from a maturing CD wired to Penfed on 10-24-2007 for the purchase of a $30,000 - 3 year CD"

I recieved an answer which stated:

"I have looked at the marketing for our certificate rates and I am sorry, I am unable to find where we stated the rate was effective until October 31st."

"If you received any marketing or a news letter stating the rate was good until October 31st please provide a copy or a link and we can have the information reviewed by a manager for a possible exception"

If you saw this ad please email "Pentagon Federal Member Service"
Re: Omissions question

Anonymous   |     |   Comment #5
Ref Rep Shirley's comment: How about the Rep asking the manager for the exception - I'm sure MGT there are well aware that it was only 5 or 6 days ago that Oct 31 was taken off the web.

We all know that!!!
Mario   |     |   Comment #6
New rate is 5.00% APY for the 3, 4, 5, and 7 year certificates starting today, Saturday, per Penfed's website.