Featured Savings Rates

Popular Posts

Featured Accounts

PenFed May Hike 5- and 7-Year CD Rate in December


Update 12/01/13: It's official. PenFed is now offering 3% CDs (see post).

There is no official word yet, but there are reports from PenFed customer service reps that PenFed may be increasing its 5-year and 7-year CD yields in December to 3.00% APY. Currently, PenFed is offering 2.02% APY on its CDs with terms from 3 years to 7 years. A reader first emailed me this news today (Thanks!). He said he was in the process of opening a 3-year CD over the phone, and the phone rep told him that effective December 1st, the 5-year and 7-year CD yields will be 3.00%. The phone rep didn’t know what would happen to the rates of the shorter term CDs. I called PenFed, and the phone rep pretty much confirmed this news. However, she did warn that this news is not official. There’s no guarantee that the yield will be 3.00%.

It makes sense that PenFed would offer higher rates for its 5-year and 7-year CDs. Not only would you expect higher rates on longer-term CDs, but these longer-term CDs have a larger early withdrawal penalty than the shorter-term CDs.

Even though one would expect a higher rate on the 5-year and 7-year CDs, I didn’t expect 3%. That is way above the competition. The best internet bank 5-year CD rate is only 2.05% APY at CIT Bank and at GE Capital Retail Bank. The 3% doesn’t seem that high based on the brokered deposit market. At Fidelity you can get a 3.30% rate on non-callable 10-year CDs and a 2.70% rate on non-callable 7-year CDs.

If you already have opened a PenFed CD, you won’t have too much to lose if you decide to close the CD and open a new CD. You’ll just lose all interest from the initial date of the CD term. There’s no loss of principal. For a 3-year CD, the 180-day interest penalty doesn’t take effect until 180 days into the term. Before 180 days, the penalty is all of the interest earned. Please refer to my last week’s PenFed CD post for more details.

For more details about PenFed CDs and about how to join PenFed, please refer to my November 1st PenFed CD post.

Related Pages: CD rates, IRA rates

Related Posts

Shorebreak   |     |   Comment #1
I hope this comes true. I have certificates maturing in December and February. We shall see if the PenFed Board of Directors approves it. I'll believe it when I see it posted on their website.
Anonymous   |     |   Comment #2
Also have several CD's and several IRA CD's maturing Dec 28th and in Jan. They are at Pen Fed already. Want to wait to see if Navy will still allow adding money to existing IRA CD's with them after the first of the year. 
OldGuy   |     |   Comment #3
After reading this post, I'm wondering whether to go forward with plans to open a 3-year CD when funds become available to me on 11/25--or whether to wait until 12/1.  I took a look at the fine print in PenFed's  Money Market Share Certificate Agreement (it's all fine print), and saw that PenFed reserves the right to require 60-days' prior written notice of early withdrawals.  I recall that, when PenFed raised rates last year, readers here were able to break CDs opened in, say, November to take advantage of higher rates in December.  Has anyone ever had a problem doing this at PenFed?  Or is experience consistent with the post's suggestion that you can get away with it routinely just by being willing to forfeit earned interest? 
Anonymous   |     |   Comment #4
I just called PenFed and the rep. told me that he could neither "confirm nor deny" whether rates were going up, and he definitely could not confirm that the 5 and 7 year rates were going to 3%.  He said that nobody knows what the rates will be until they are told.  Since these conversations are recorded, I don't know why a rep. would say something like this, whether true or not, and risk losing their job.
Ally   |     |   Comment #5
Thanks Ken. You really look after your readers. We do appreciate it. 
cumulus   |     |   Comment #6
Ally #5 said it best, Ken repeatedly does it best; much
gratitude and recognition in order. Thank you.
Anonymous   |     |   Comment #7
I'd open the 3-year ASAP in case that special goes away. Then on Dec 1 you can fax or email instructions to terminate the 3-year, lose a few days interest, and open the 5-year.
lou   |     |   Comment #8
I know from past experience that the reps can know about the rates a few weeks before they become official. If a rep is telling a customer about an impending rate increase at Penfed, I would take it seriously. It would be surprising if it didn't happen.
paoli2   |     |   Comment #9
I just purchased two of the 4 year CDs at 2% so am not happy about them not telling me about this.  I just called Penfed and the guy I got told me the rep should not be giving out this information since it is not a fact at this time.  He did say if I wanted to try it, I could send them an email requesting them to close out the two CDs I just bought and put the money into my Penfed Savings.  If the rate increase goes through on 12/1, I can call them and get them to put the money into the 5 year Cds and there would not be a penalty since I just opened the CD.  I think I will do that since the amount is too much to risk losing 1% on. I just hope they do raise those rates!
Anonymous   |     |   Comment #10
If your unhappy with them, take your money to BoA and see what they offer you LOL.  At least you won't be unhappy with your lowly 2%.
paoli2   |     |   Comment #11
I just called Penfed again and the lady said I have to put in the email I will accept any penalty or they won't close the CDs.  At this time it is just a few dollars so I have to make up my mine about what to do.  I don't want to take 2% if I can get 3%.  It won't be 6 months of interest if I do it now.
OldGuy   |     |   Comment #12
CD rate-chasing can sure be frustrating, particularly for seniors .  But it sure beats living on the street.
Anonymous   |     |   Comment #13
I just closed a CD with Penfed this week and opened a new one.  I closed a 1.75 4 year CD that I opened in October, so I could get the 2.0 interest rate.  Lost a interest for the month or so, but will gain it back with the better rate.  No one told me about this new rates, so I will wait to see what occurs and if it is worth while closing and opening again.  
Shorebreak   |     |   Comment #14
The speculation has probably created a stampede of phone calls to PenFed customer representatives who probably would rather be assisting customers, stuck on hold, with other matters. Good-luck getting through in December if this rate increase does materialize. I just hope their website can take the increase in traffic.
paoli2   |     |   Comment #15
SB:  That is my biggest concern but it's a chance I have to take for the difference and the amounts.  I will send them the email now and hope for the best.
OldGuy   |     |   Comment #16
I just got out an envelope, turned it over and made a ballpark calculation on the back as to what I'd get if I closed every PenFed 3-year CD I'd opened more than six months ago (the APYs ranged from 1.60% to 1.85%) and reinvested the balances, after penalties. into 3% APY 5-year CDs and then left it there.  I'm not going to reveal what I got because it was such a rough calculation, but it seemed to make overwhelming financial sense to do it.

This is so crazy that I'm going to go back to watching JFK assassination documentaries on TV and forget about it until 12/1.  I was a senior in high school, sitting in my American History class, when I got the news over the PA system.  Where were you all?  
Anonymous   |     |   Comment #17
Keep calling penfed and make a stink about the rates and we won't get a higher rate.
Anonymous   |     |   Comment #18
I just opened two 3 year CD's at 2.0 with $10,000 in each.  Plus, a 4 year 2.0 CD with $10,000, all in this month.  I thought the 2.0 at 3 and 4 years was a good rate.  Now with 5 year going to 3.0, is it prudent to close all three accounts and move them to five years for the 3.0 rate?  Time to ponder during the Thanksgiving holiday and wait to see if the rates come true on December 1st.
Anonymous   |     |   Comment #19
It's CD rate chasers like you people that abuse the system and then complain that banks and CUs put too many restrictions on early withdrawals and increase the penalties. Being I have already committed on 3year/2% CD, I will hold that one until maturity and gamble that rates will be substantially higher in 3 years when it matures and not be locked into a 5year/3% CD with two more years before it's maturity date. 
paoli2   |     |   Comment #20
#19  It's easy to call names when you post Anonymously.  If what we are trying to do is so wrong, why is Penfed allowing us to close without an EWP.  I was just informed by the Penfed rep that I needed to fax them the closing request because it didn't have a signature.  I just got back from faxing it to them with a signature.  The money will still stay with Penfed except in my savings and if rates go up, I can transfer the funds to the higher CDs.  It's not like I am taking the money from Penfed.
Anonymous   |     |   Comment #21
One option is for the credit union to only accept new money...why would "they" offer a higher rate knowing that customers may cash out current CDs?  

All, have a great Turkey Day!
CC in CA
CC in CA   |     |   Comment #22
I'm also a "rate chaser" to an extent, but only for opening new CDs, and not closing ones I already have open.  My mom calls me whenever she has a CD coming due to find out what rates are available everywhere.

So far, I've only regretted opening a few CDs over the years, and I waited it out to the maturity date, at which time rates were actually lower than they had been at some points during the life of the CDs.

I just opened some new CDs at PenFed for the 3-year at 2% term, and I will be keeping them, regardless.  I'll also very happily open some new CDs at PenFed for the 5-year term if this 3% upcoming rate is for real (hope so).  I have one final CD at Chase bank that is maturing in December, so it will be just in time for me, as I do not like Chase at all, and they offer terrible rates on CDs.  That money will all go over to PenFed if the 3% is real.  Or, if there is no 3% in December, I'll put it in 2% for a 3-year term.  Either way, I'll be happy with that.  :-)
lou   |     |   Comment #23
If anyone is thinking about closing your CD, wait until Dec 1 to do it. There is no reason to close it today or to keep calling the C/R. You will know on Dec 1. Then you will most likely have 30 days to close your CD and open a new one.

Old Guy, I was in 7th grade and remember that day like it was yesterday.
Anonymous   |     |   Comment #24
Forget breaking existing CDs.  It may be time to consider rolling over IRA assets into potential 3% CDs in the face of upcoming rate increases in the bond market that will drive down NAV and significantly increase the holding period to break-even.  I for one am more interesting in 3-5 yr CDs for my bond portion of my overall portfolio, and 3% becomes an attractive entry point to get out of bonds.
paoli2   |     |   Comment #25
Lou:  What are you referring to about "30 days to open a new one".   If we close our CD we have to acknowledge in our letter to Penfed that we know we will pay a penalty by forfeiting all interest from day we opened it.  No penalty comes out of the principal but we still forfeit any interest earned.  I just closed mine today so I can have the funds available in my savings account at Penfed if the rates do go up and buy the new CDs on that day.  I never was told about any "30 day thing".
Anonymous   |     |   Comment #26
Has anyone done an analysis of the 2% 3 year vs. potential 3% 5yr. When would be breakeven and also factoring the penalty if closing the 5yr early?
OldGuy   |     |   Comment #27
Thanks for the info about your whereabouts on 11/22/1963, Lou.  I was trying to get readers' minds, including my own, off an event that hasn't occurred yet (a PenFed rate increase) and onto something that had.
lou   |     |   Comment #28
Paoli, Penfed generally does not change their rates during the month; so if they go to 3% on Dec 1, in all likelihood it will not change until Jan. I would not break your CD today, since the 3% rate is not guaranteed.

OldGuy, it's hard to believe it has been 50 years since that fateful day. I was very disappointed because I had piano lessons after school that day, and I was hoping I wouldn't have to go, but the piano instructor thought otherwise.
QED   |     |   Comment #29
Thanks to Ken for keeping us up to date.  This is a pretty big deal.  Unless other financial institutions jump on board, PenFed will be in a position of, essentially and for all practical purposes, giving away money.  That's an unstable circumstance which cannot endure for long.  Would PenFed not, for example, attract nearly the same monetary inrush with a rate of, say, 2.5%.  At 3% they will create a stampede.  And pre-announcement just makes 12/1 prospects worse in this regard.

My most recently opened CD was a one year at 2%.  I'm OK standing pat on that.  But I have other, longer, CD's at a bit over 2% which do give pause.  Will have to take a look.  
Shorebreak   |     |   Comment #30
I'm still leery that this rate increase will occur, at the magnitude suggested, if it does happen at all. A national institution offering a yield of 3.00% on 5 and 7-year certificates is hard to justify given the Fed's current ZIRP and Treasury yields. How will PenFed fund such rates? Certainly not on auto loans at 1.99%. Perhaps on home equity loans, if there is such a high demand for that type of loan. Just as I posted before, "I'll believe it when I see it posted on their website". Meanwhile, I'll keep my powder dry.  I have never closed a certificate early and certainly don't intend to in this case.
OldGuy   |     |   Comment #31
Lou: I grew up in old "Chicago Tribune" country, meaning that JFK was quite unpopular in my community.  The prinicipal of my high school tried to keep classes going the rest of the day, but finally gave up because too many teachers and students were in shock, so we closed about an hour and a half early.
RickNP   |     |   Comment #32
Just keep in mind as you plan to close 36 month certificates for 5 and 7 year ones that you'd also be trading a 180 day early redemption penalty for 365 days if they offer an even better special in the next several years.
Anonymous   |     |   Comment #33
RickNP - excellent point, and they probably _will_ offer a better deal in the coming year(s)....much better....but  most of us can not time it. What to do, what to do.
paoli2   |     |   Comment #34
Lou:  Your post confuses me.  Penfed told me their rates would change on 12/1/13 so how do you get the 1/1/14 date?  That would make them change every two months.  I have already done what I had to do.  The CDs will be closed and put in the Penfed savings.  If they pull a stinker on us, I can always use the money and put it someplace else.  I'm tired of always playing it "safe" especially if I have a chance to get 3%.

lou   |     |   Comment #35
Paoli, read my post very slowly; it's not that hard to understand.
paoli2   |     |   Comment #36
Lou:   It's been one of those 2 2 makes 6 days for me so my brain may be off the beam.  I reread your post: 

Paoli, Penfed generally does not change their rates during the month; so if they go to 3% on Dec 1, in all likelihood it will not change until Jan. I would not break your CD today, since the 3% rate is not guaranteed.

If I am looking for 3% and Penfed "may" be going to 3% on the month of December 1st, why do I expect them to change it to 3% in January.?  It's not like I expect them to change in the middle of the month.  Read what Ken posted.  He is referring to 3% for December rates not January.  Where does Ken state anything about your January thing?  Maybe you have had a bad day too and posted it wrong. Why do I always have to me the one who is wrong??  Anyway, I have already bit the bullet so what happens is in the hands of destiny.  I still would like to know what you are trying to get across in your post.  It's not like you to post such confusing statements.
paoli2   |     |   Comment #37
Lou:  What does this mean to you?

"rep told him that effective December 1st, the 5-year and 7-year CD yields will be..."

Everything is about the 3% rate being effective for December.  When I called Penfed they said "if" the rates change, it will be on December 1st.  By January 1st everything can be changed again. 

I can read your post over and over but it still makes no sense to me.
Anonymous   |     |   Comment #38
I think Lou meant this:

1.  Do not cancel your CD until the rates officially becomes available on 12/1.  You can cancel at that point and they will place your initial CD deposit in the new CD rate.

2.  Do not cancel, in case the 12/1 rate rumor does not occur.  That the rates do not increase and stay the same as what Penfed is offering now.

3.  Penfed CD rates run from the first of the month to the last day of the month.  Therefore, if the rate does go to 3% on a five year CD.  The next Penfed rate change will not occur again until 1/1/14.

4.  Regardless of what the Penfed Rep stated on the phone.  No official rate will be known and available until 12/1.  Which at that time one can open a new CD, close a current Penfed CD and open a new one at the 12/1 rate, minus the penalty of earned interest, etc..

Lastly, I enjoy reading this site.  I throughly enjoy reading your comments and thoughts paoli2.  I am not trying to speak for Lou.  Just trying to help the communication process.  I have Penfed CD's and I will wait until 12/1 before deciding what to do to ensure what rates are officially being offered.
paoli2   |     |   Comment #39
#38  Whoever you are thank you for trying to explain this to me.  What you and Lou are both stating is exactly what I have been told by Penfed and understood.  The only difference is that I decided to get out of the CDs earlier than 12/1 for my own reasons.  I don't like the idea of leaving it in any longer than necessary even if it means I am just losing earned interest.  Maybe I am more paranoid about these institutions than the rest of you but once I decide I want out of the CDs I had, I don't want to take any chances they may come up with something that will cost me more if I don't get out now.  Worse comes to worse, I will take out all the funds on 12/2/13 and put them in one of the banks or cus offering 2% again.  I know I am not a "go with the flow" type of person but it's the way I am about my finances.  Thanks again for the information and trying to explain Lou's post to me.
Anonymous   |     |   Comment #40
Just a few days ago you stated that you don't cancel CDs early except for EMERGENCIES.  Seems this is money driven!
Anonymous   |     |   Comment #41
Isn't all CD decisions money driven?
Anonymous   |     |   Comment #42
Not per Paoli....
paoli2   |     |   Comment #49
Ok little "green" posters, you are all correct about me.  I did post I only cash in CDs for emergencies but I would really have to be dumber than even any of you think of me not to go for the 3% I have been dreaming of getting.  I would sell my horse (if I had one) to get as much of the 3% CDs as I could.  Maybe I need the extra money for emergencies you know nothing about.  You don't live in my life or know what I need my money for.  ALL of my emergencies are "Money Driven".  Are there other kind? 

You really shouldn't make fun of people you know nothing about.  I don't think any of you who joke about me could handle the stress I cope with in my life and all the people I help.   The compliments I get for the good that I do makes up for the jokes I read on here about "Paoli".  I am nothing like the "Paoli" you like to make fun of.  But if it brings you a bit of fun to do what you do, have a go at in.   Just don't ever expect me to meet your expectations.  I dance to my own music and I always dance alone.  Have a good evening. 
Anonymous   |     |   Comment #52
This green poster supports your comments Paoli2.  Might not agree with everything, but appreciate your sharing and thoughts.  As for having the guts to risk money, that is not me.  I work too hard to get it, so I am not going to risk it.  I will play along with CD rates and sleep at night knowing I still have it.  I might not be rich, but hoping to stay out of the poor house.  I find 12/1 to be very revealing.  Will Penfed go 3% on a CD?
Anonymous   |     |   Comment #53
Hey for those who think a 3% FDIC insured CD is no big deal, ask someone who has owned a gold fund for the past year: down 50%! For those who are woozy from stock market highs, it's a Fed-inspired bubble, so better get out while you can...and yes buy that silly 3-percenter ASAP!
Anonymous   |     |   Comment #54
Paoli is ok by me. I'm sure you do a lot of good......keep doing it.
Anonymous   |     |   Comment #56
Paoli your CD's are not risk free. First.....you're losing money with inflation. And second.....ask the bank depositors in Cyprus about "risk free". The government confiscated their money in deposit accounts. It will happen all over Europe, too.....and in USA.
paoli2   |     |   Comment #57
Old Guy:  Before I close up for the night, I wanted to reply to your post from earlier.  What I did was not an early withdrawal but they considered it a transfer of funds from the CDs to the savings account I have with them.  I still lose out on interest earned from day I opened CDs but no EWP.  If you have an account with Penfed you probably also have the necessary savings account for the $5.00.  I have never broken a CD before with Penfed but today no one said anything about having to give any notice.  They said the funds should be switched to my savings by tomorrow if all goes well.  I did have to fax them a letter requesting the closing so I could sign it.  They wouldn't accept an unsigned Email.
Rosedala   |     |   Comment #59
TO: <<Anonymous - #47, Friday, November 22, 2013 - 8:09 PM

Funny.....all of you dweebs salavating over 3%. How pathetic can you be????  3% is nothing. I have the guts to risk my money and I get big returns from it. You people make me laugh.>>

Must you bitterly criticize the posters?  Why???   So far you've shown that the ONLY pathetic entity here is YOU!!!  Also...keep busy, learn correct spelling for goodness sake!

TO THE REST:  Not to change the subject but anyone knows how I can recover my personal avatar?  Thanks.  :o)
Rosedala   |     |   Comment #60
Sorry about my avatar P.S.  It reappeared!  :-)
OldGuy   |     |   Comment #61
Paoli2: Thanks.  i have a different analysis of the question of "withdrawal" versus "transfer," but it's all legal stuff and anyway ends up in the same place you got to in closing your CD.
Anonymous   |     |   Comment #62
Here's the deal for the poster #59.  The S and p 500 has had an average gain of 3.5% since 2000.  A lot of folks here are older, so they don't want to risk.  3% guaranteed looks pretty good.  Once the fed stops monetizing debt, the stock market will crumble.  If they continue, inflation will rise.  Just look at the price of health insurance.  That is inflation for an older folk.  Have you guys seen the Price to Earnings ratios on a lot of these companies.  Bubble is written all over this stuff.  CPI inflation this year is about 1.8% or so, so the 3% helps these older folks safely keep their purchasing power.  Its a rough world out there.  We have this garbage government stealing our wealth not through taxes but also through inflation with this private banking cartel,the FED, printing money to keep the banksters propped up.  They should have all been allowed to go bankrupt in 2008.  So what if a bunch of rich people lost all their money.
paoli2   |     |   Comment #68
#62 "So what if a bunch of rich people lost all their money."    That's a terrible attitude to have.  Do you think the posters on DA are looking for higher rates just so they can become "poorer"!  Since when is it a crime to be rich?  The rich do a lot of good with their money and they have the companies that give the rest of the people jobs.  Life would be hell if everyone were poor.  Here's to the RICH getting even richer!
Anonymous   |     |   Comment #70
#68.... I agree with the other poster, what if the rich people invested in the banks lost their money instead of the taxpayer bailing them out. You don't see a problem with that? I don't care if the rich get rich as long as I the taxpayer isn't bailing them out... you invest in a bank and it goes under you should lose your money, what is wrong with that?
paoli2   |     |   Comment #71
#68  So it's ok for the rest of us to get our money back with FDIC insurance but you just want the "Rich" to lose everything if they invest in the very bank which we are doing business with.  Nothing wrong with that except if we didn't have the Rich to invest in our banks we just might not have very many banks to do business with.  My point is that the Rich know they are taking risks with their money and they accept that.  My gripe is about people making nasty remarks about them just because they are rich.  It's a type of discrimination and I don't like discrimination.
TaxQ   |     |   Comment #63
I live in a state which does not have a PenFed branch.  So I'll be opening this account either online or over the telephone.  So I am assuming that my new account will default to the PenFed Office of their choice.

The State I live in has State Income tax.  Does anyone know if I'll also have to pay state income tax to the State that PenFed is located in?

Thanks in advance.

Anonymous   |     |   Comment #64
No.  You do not owe any state income tax to the state in which PennFed is located.
Anonymous   |     |   Comment #65
Oh yes.....again we see the small people on here squealing about how the world is going to end and the stock market is going to crash and burn. I'm tired of it. If I had listened to you doomsdayers 2 years ago .......I would have made some useless 1% on my money. No......I had the guts to risk it and guess what? I'm up over 60%!!!!!!! So you small people can go ahead and think the world is coming to an end and earn your little 2% on CD's. You people are probably the same ones I see in the grocery store that get all giddy when you find a can of tuna that is a nickel cheaper than another brand.....and the ones that fling themselves on the ground when they hear change drop. Sad.
Anonymous   |     |   Comment #67
#65.... What you need to realize is some people don't like risk, pretty simple to understand if you try.I bought the vti index fund in 2009 at $33.00 it is now $93.00 and that is without dividends reinvested but I would rather have a 5% cd, hardly any risk.... that I like. 
paoli2   |     |   Comment #69
#65   Was that really "you" next to me in the supermarket yelling at the poor cashier because she overcharged you for your can of soup by 6 cents??? :)  You can bet that was "me" watching the register tape to make sure my 25 coupons got put in correctly.  I apologized to the long line of people waiting behind me for the wait but this is a "Paoli eat dog" world we are living in and I will do what it takes to survive.  Be sure to wave to me next time we meet in the supermarket.  You can recognize me by all the coupons I am holding in my hands.  Have a nice day Groucho!
Anonymous   |     |   Comment #66
I seriously doubt they will raise to 3%. All of this is just rumor and I have no idea why Ken is even posting this. Look at all the frenzy this has created just on here......62 comments.......and for what? Probably nothing. All because some CSR said something??? Come on.
Anonymous   |     |   Comment #72
"They should have all been allowed to go bankrupt in 2008.  So what if a bunch of rich people lost all their money." This is what he said and he is 100% correct imo.
paoli2   |     |   Comment #73
#72  So what you both are really against is taxpayer bailouts for everything.  It's not really a "Rich" people thing.  I don't know too many really "poor" people who are CEOs of the companies which end up needing bailouts.  I am against a lot of taxpayer bailouts too especially when it is due to the stupid actions of the people running the company.  You know what they say "Don't hate the sinner, hate the sin". :)
Shorebreak   |     |   Comment #74
Re: The post by Anonymous - #65, on Saturday, November 23, 2013 at 9:05 AM

This poster is hilarious. It's better than the comedy channel. Perhaps this Donald Trump Jr. is getting bored tabulating his mega-earnings and has come to advise the "small people" on how to make a fortune in their spare time. Oh well, there's one on every website. I thank this troll for today's entertainment. Cheers Mr. Anonymous 65.
Anonymous   |     |   Comment #75
When I refered to the rich I meant the bankers.  They made derivative and mortgage bets, they lost the bet, are in sleep with congress, and got the taxpayers to bail them out from their bad bets.  No moral hazard involved.  Now the middle class is poorer.  Just look at your healthcare costs.  I don't know one person who is paying less for healthcare next year than in 2008.  The federal reserve creates inflation by printing money out of thin air.  If people found out what really goes on there would be a riot.  I know I'm right.  And those rich bankers do nothing for society.


Remember, not only are taxes a tax, inflation is a tax also.  And to the poster who dumped all their money in 2008 into the market, you are making it up.  Nobody has forsight to when markets go up or down.  In fact, I didn't see your post in 2008 to buy buy buy and back up the truck.  And lastly, elderly people are trying to make their money last the rest of their lives, and they don't want the 2008 risk of a 50% drop, they would have to eat cat food if that happened, and that is if they are lucky.
Anonymous   |     |   Comment #76
That criminal Reuben under Bill Clinton worked on nullifying Glass-Steagel, which now let the banks make derivative bets.  The derivatives came to roost, BOA, CHASE, Citibank, Goldman, ALL BANKRUPT in 2008.  And what happens, the congress bails those criminals out at the taxpayer expense.  Just disgusting, and nobody knows this.


The fed creates inflation when it prints money and the government taxes our wages to fund this welfare-warfare state.  The Dems and Repubs are all the same.  The Dems get their welfare, and Repubs get their warfare, it is a symbiotic relationship.  And what do they put in the news?  That crackhead Toronto Mayor.  Who cares about that fat pig. 
Anonymous   |     |   Comment #77
Have any of you people heard of diversification? I'm not a big fan of stocks but I never take my money out of the market and I always add when ever the market dumps. I have stocks, CDs, ee bonds and i bonds NOT all of one or the other, it's called diversification. You know what the problem is with being completly out of the stock market, you have to watch it go up like this without benefiting at all.
Shorebreak   |     |   Comment #78
Re: Anonymous - #77, Saturday, November 23, 2013 - 3:15 PM

You are right on the mark for people that are saving for retirement. A balanced, well diversified portfolio is undoubtedly the proper long-term savings vehicle. John Bogle, founder and retired CEO of The Vanguard Group, is no dummy and has advocated precisely this type of strategy for decades. Unfortunately, many people cannot accept the risk of any principle fluctuation in their nest egg. They can't sleep with the anticipation that the markets may correct, adjust or even crash on any given day. Enduring perhaps a decade, or more, of historically low interest rates may be a price they are willing to pay. That said, each situation is different for every individual. As one ages, becoming less accomodating of principle fluctuation risk is perhaps a prudent investment philosophy. I find myself, like it or not, currently in that zone of life.
Anonymous   |     |   Comment #83
#78... I am at that time in my life also, I saved enough money and now all I need is a decent CD rate. I only have 20% in the stock market and yes it fluctuates but that is the name of that game when I was youger I had much more in the market.
Shorebreak   |     |   Comment #79
I remember back in the inflationary early 1980's when my Father would open and close money market accounts on a regular basis, all over town, because one bank was offering two percent more on their account than the one he currently had funds in. Thank goodness the internet wasn't invented then. He would have been online 24/7, and probably had passed away at a much earlier age.
paoli2   |     |   Comment #80
Sb I think you are wrong about the theory about your father.  If he had had the internet he might still be here.  Active people tend to live longer lives than those who just sit and watch tv all day.  Sounds like he was actively involved in his finances so his brain would have been active all day with the internet.  I have gotten up after midnight just to recheck things I wanted to do on the computer which I didn't have time to do during the day.   I think sleep is a waste of time.  We get to do that for eons once we cross over and until we return.  So I like to spend my living time being active. 
Shorebreak   |     |   Comment #81
"Sb I think you are wrong about the theory about your father."

Oh great. Now some stranger knows my Father more than I did. I give up!
paoli2   |     |   Comment #82
Oh Creeps!  When did DA become so one-sided?  I am just giving my theory of how I think things are.  Of course if you took a vote, I would surely be 100% wrong.  I was just giving my opinion.  I was not insulting you or your father.  Since when am I "some stranger"??  I have been posting for years but of course we all know that my posts tend to cause more anger no matter what I say.  I said nothing about knowing your father.  It's just how "I" feel about life in general.   I did not say you didn't know your father.  I was referring to how I feel about "a theory".   It was the THEORY I was speaking about NOT your dear father. 

I guess your team isn't winning on the football game today and you are taking it out on me.  Fine!  Just a normal day for me in this group. 
Anonymous   |     |   Comment #84
In my earlier post #77 I said I never take my money out of the market, what I meant to say is I never am completely out of the market, I do sell from time to time but I always have something in.

Shorebreak   |     |   Comment #85
Re: Anonymous - #83, Saturday, November 23, 2013 - 6:01 PM

You have the right position staying 20% in the markets to catch the upside. The downside won't hurt you too much, and if you have stop-loss orders it will be less of a downside. Kudos.
Anonymous   |     |   Comment #86
Just wanted to post the 86th comment. Wow 86 comments! This is a great site! No way we'll reach 100 comments though. Too bad cuz if this reaches 100 comments, the Dow will hit 16,500! Then we can all get rich by investing in an inverse 3x ETF shorting the Dow! Me, I don't need 86 comments to tell me a 3% guaranteed insured return for letting PenFed or similar use my money for 5 years is a good deal these days. I'm in!
paoli2   |     |   Comment #87
#86  Want to see that Dow soar with 100 comments?.  I'll reply to Shorebreak again and within minutes you can get your other 13 comments.  :)   Nah!  SB probably has some money in stocks and I could be making him rich too.  Too bad.  You'll have to be content with your 3% CD IF we truly are fortunate and it comes thru for us next week.  I sure wish I lived closer to one of Penfed's branches.
Anonymous   |     |   Comment #88
I'm not close to a branch, the first time I just opened a savings account and wired my money in from where ever it wass at the time.
Anonymous   |     |   Comment #89
I do not live in a state where Penfed is located, but I have a savings account, HEL, CD's, and credit cards with them.  They have a great option to my local bank.  Glad I am a penfed member and curious to see the rates on 12/1.
Anonymous   |     |   Comment #91
I've been a pen fed member for a long time, they used to really have high rates but then not so good and lately they are coming back. Around the first of the year pen fed usually comes out with a good rate, at least in the past they did. You can just set up a transfer from your bank to pen fed, I keep some money at americn express in their .85 savings account and then I can transfer from there to pen fed or anywhere else I have a transfer set up with.


That's 91
Anonymous   |     |   Comment #92
I'm a Kansas Jayhawker.....and just remember this Jayhawker predicted it........I predict they will not raise to 3% and not even all that close to 3%. I don't see why they would when the competition is nowhere close to that. Besides.....remember that is for 5-7 years......why tie up your money that long? That's a risk if rates go up. I like the raise your rate CD's. Don't be so hasty, folks. 3% is not very much.....and that's for a long, long time. 
Anonymous   |     |   Comment #93
Paoli reminds me of John Candy's character in "Planes, Trains and Automobiles"..........somewhat annoying.......but a good person with a big heart.


We always watch that the Wednesday night before Thanksgiving......with a few drinks and a warm fire.  Look forward to it every year.....and it never gets old.
Anonymous   |     |   Comment #94
That's 94 comments! Can't believe it! Maybe Ken will post #96! BTW the long term brokered CDs listed on Vanguard and Fidelity have actually gone down a bit this week, seems strange...
Anonymous   |     |   Comment #95
Geez I meant 95 but now its 96 lol.
Anonymous   |     |   Comment #96
No, I'm #96 you're #95
Anonymous   |     |   Comment #97
I have my doubts that pen fed will raise their rate to 3% especially after Paoli called them 100 times. hehe
paoli2   |     |   Comment #101
#97:  I only called them one time about the 3% rate.  All of my other calls were in reference to getting my two new CDs closed and how best to do it.  Does everything always have to be Paoli's fault?  If we don't get that rate it could be Ken's fault for doing such a big write up on it now that he has so many new people reading this group.  He could have just sent his senior members PMs and let them get the word out to the rest of us little by little.  Now the entire world will know and Penfed will be flooded with millions of calls.  Yep!  It's Ken's fault.  Paoli is free and clear now.  I think we need to have a secret password from Ken to be able to see his CD list.  Strangers and peekers should not be allowed to see the CDs until they are dependable members.   It's just a suggestion but who listens to Paoli anyway?
Anonymous   |     |   Comment #98
They'll probably lower it to 1%, thanks Paoli.
paoli2   |     |   Comment #99
Hey Folks.  A certain poster calls "me" strange and I'm compared to some big fat actor in a movie I never saw and you wonder why I have a reaction to what you say about me?  Big I am not but I do have a good heart and am very forgiving or I would have left DA long ago.  (Well, maybe not.  I still need my CDs :) )

Now I would like to share some new info about Penfed.  I am a bit ticked off with them right now.  All day they have assured me they would close the two CDs I got on the 19th and put the money in my savings account with them like I requested in my faxed, signed letter to them on the 22nd.  Today when I called the rep said they close at 11 PM but it would definitely be done before they closed today.  I just got off the phone with them because nothing was showing up on the computer.  Guess what?  They went home and didn't do it!   I asked the rep to speak to a supervisor and he came back and told me she said she would get it done for me tomorrow (Sunday).  They are in Eugene, Oregon and she said the branch who was supposed to do it didn't get it done, so she will do it instead.

I am not used to Penfed not following through on things like this.  The reason I am sharing this with you is that many of you have been telling me I should have waited until I knew the rates were going up before closing the CDs.  I didn't want to wait until the last minute because if rates do go up and one can contact Penfed, I would have had to wait on them closing the other CDs and putting the money in my share account plus open new CDs for me.  That would take longer and tie up the lines longer for others trying to get in.  This way I can get my CDs and fund them at the same time.  If any of you are in my same position, I suggest you try to get as much done ahead of time before the day you want to get the new CDs.   I do hope that supervisor keeps her word and closes my CDs and transfers the funds to their savings account tomorrow for me.   If not, it will truly change the way I feel about Penfed.

They should have been able to do the transaction as they agreed to do it.  We'll see what tomorrow holds for me.
Anonymous   |     |   Comment #100
Now for sure they're not going to raise rates, Paoli, you have a funny way of showing you don't like to break CDs.
Anonymous   |     |   Comment #102
I'm not sure what you are talking about but I just opened a 2% 3 year cd at pen fed and I'm not planning on breaking it I'll just open a new 3% cd if it happens.
Anonymous   |     |   Comment #103
You turned on Ken pretty quick there didn't you? lol!
paoli2   |     |   Comment #104
It has nothing to do with turning on Ken.  I greatly admire and respect him for what he has done for us but I won't have some of you use the excuse to turn on me if the 3% falls through when I'm not the one who told the entire world about it.  Just the title of his article is so huge I don't need glasses to read it.  I know he was only trying to help us but some things should be special and not for the entire universe to read.  The Aliens will  probably be calling Penfed from Mars!  Ok so I have had too much sardines and my brain is not on the beam tonight.  I am going to bed and let you just yak about how terrible I am while I am asleep.  (Unless I decide to get up and type some letters later, so be nice.)
Anonymous   |     |   Comment #105
A reporter in New Mexico just said there was a transmission at approximately 9:57 pm est requesting information on the PenFed 3% CD and it is under investigation because the frequency used is restricted to SETI.
Anonymous   |     |   Comment #106
Paoli you need to lighten up, don't take everything so serious.
Anonymous   |     |   Comment #107
You are funny though, I mean that in a nice way.
Anonymous   |     |   Comment #108
Does PenFed let you add-on to their CDs if it's an IRA? NavyFed does, even to otherwise normal, non-Add-On CDs. That way, if it's, say, a 5yr CD, you can add your yearly IRA contribution to it without having to open up a new one each time. If PenFed had a 3% rate now that allowed you to add funds for IRA CDs like NavyFed, I'd consider it. But probably not if the answer is no...
paoli2   |     |   Comment #109
Hi Guys and Gals.  Guess what?  Penfed is "Down for Maintenance" and I was told that when this happens the reps can't get into our accounts either or even "open CDs for us" if we wanted any.  We have to wait until they get back on line.  She said they usually do Maintenance on Sundays.  Guess what day the 1st is?   Oh well.  I will just have to wait it out to see if they kept their word to me and finally followed through on my faxed request.  All sites go down for maintenance but I thought the reps still had access to our accounts over the phone.   Learn something new every day when it comes to finances.
Shorebreak   |     |   Comment #111
PenFed posted Friday that site/account access would be down for a few extra hours on Sunday for otherwise normal maintenance. I was going to post it in the forum but felt it was such a minor matter that no one would really care. So I didn't.
Anonymous   |     |   Comment #112
paoli2, since you are posting your obviouse displeasure with PenFed, why don't you just close your accounts with them and take your business elsewhere?  That is what any rational person would do if they didn't like the banck or CU they were doing buiness with.
Shorebreak   |     |   Comment #114
Re: Anonymous - #108,Sunday, November 24, 2013 - 1:29 AM

"Does PenFed let you add-on to their CDs if it's an IRA?"

Couldn't find anything to answer that question for you on their website. I doubt it,  otherwise they would have probabaly promoted that feature under the IRA products section. I hate to advise this, but you might want to "call PenFed and ask". Good luck.
paoli2   |     |   Comment #115
SUCCESS!!   After an email to Penfed about how I felt about being "lied" to and my lost confidence in them, within minutes, BOTH of my CDs were closed and the totals are now in my Penfed Share Savings account.  I received a letter of apology from Penfed and I sent them my appreciation and thanks for following through on my request.  It seems what I was just told was "not possible on a Sunday" was possible after all.  Now if and when they hopefully change their rates on the 1st, my funds can quickly be transferred to the better paying CDs or whatever other CDs I decide to use them for. 

Many people in this group can mock me and call me names but it is because of people who let institutions know what problems their customer service reps cause, they can be corrected, and maybe others won't have to be treated the way I was.  Maybe if we had more "loons" who were willing to stand up for their rights, the rest of us would have less anxiety in our lives. 

HAVE A NICE DAY even to the person or persons who think of me as a "loon"!     :)
Anonymous   |     |   Comment #117
Lou and Shorebreak,

When I was in the fifth grade, I still remember when my principal came into my room and announced the assasination of JFK.  I also remember watching live TV when they were transferring Oswald and Ruby shot him. 
OldGuy   |     |   Comment #119
I also saw Ruby murdering Oswald on live TV.  I thought the world had gone beserk.
Anonymous   |     |   Comment #120
Care to share your penfed info paoli2?  Thanks in advance.
paoli2   |     |   Comment #123
#120  Please forgive me but I have no idea who you are.  I won't share anything that can possibly can back to any of those who spend their time trying to humiliate me and call me such mean names.  You seem very smart from what I have read of your posts.  I think if you try hard, you can figure it out on your own.  I hope you do because I don't want you not to be able to get those rates if they truly go up on the 1st.  Go on the Penfed webpage and do a bit of research and maybe you will see what I saw and then I called them and found out what I needed to do.  It's not a big secret and I was just trying to let that heartless name-caller know I had more than one reason for calling Penfed.  I wanted info to help me make sure I will get those rates once the public starts calling.  Best of luck to you and I hope you get what you need.
paoli2   |     |   Comment #121
I was in our first little apartment after returning home from living in New York  watching the Kennedy parade on tv and then saw Ruby killing Oswald also when it occurred.  It  devastated me so badly that I called my DP at work and asked him to come home after the Kennedy killing.  I thought more horror was to come to our nation after witnessing that and I did not want to  be alone with our first little baby.  Seeing all the repeats of it this week was really depressing especially since we will never really know the true facts about the killings.
Anonymous   |     |   Comment #122
Remember it like yesterday. I was a little kid walking home from school and as I was walking across a parking lot behind some stores some guy yelled "Hey did you hear President Kennedy got shot". The street on my right was 12th avenue. The street in front was 2nd street. I had just passed the Firestone store. I was about 5 blocks from school and two blocks from home. Can't remember anything else about that day, before or after. Hey this is post #120 OMG!
Anonymous   |     |   Comment #124
Paoli, you have to stop worrying about what people say to you on a blog. As long as you are comfortable with what you are doing, it's your money it's your opinion you don't have to answer to anybody if you choose not to. On the other hand when you come to a blog and state what your opinion is you are going to get people that disagree and state it, sometimes in unfriendly ways.
paoli2   |     |   Comment #126
#124  Very wise words but you seem to misunderstand what the real problem is.  I agree with #125 that this site needs more monitoring.  We should have the right to disagree and give our opinions without name calling and being so nasty.  Other people give opinions and don't get responded to in such a mean nature as I do.  I am not feeling sorry for myself.  I am just tired of so many using "me" for an excuse to be vulgar and just plain mean.  Ken says we cannot be rude to one another but it seems I am fair game. If my posts are breaking the rules then delete them.  The truth is that "I" am not the one breaking the rules.  I responded in post #118 the worse I have ever done since being here but she pushed me too far.  And yet, I still hope she gets all the CDs she needs if they go up on the 1st.  I'm sure she cannot say the same about me.  What some of these posters say to me goes beyond just being "unfriendly".    I just want to be able to post and be disagreed with in an adult, mature fashion.  If anyone thinks I am breaking posting rules then let the Deleters do their jobs and delete me.   I do hope Ken will take #125's suggestion seriously so that we can post as adults and more about finances.  If Ken had time to read a lot of these wasteful posts, he would see I am trying to give my opinion of a topic and then I get responded to in such a way that it does not belong on DA.
Anonymous   |     |   Comment #125
While this is still the best site on the web for the latest and greatest information on savings and CD interest rates, thanks to Ken, it certainly has slid down hill a bit.  Not enough monitoring and deleting of non-relative posts.  
Anonymous   |     |   Comment #127
Ken's busy starting a new site called DApostsgonewild.com
Anonymous   |     |   Comment #128
If you think you are ever going to keep any blog pure the way you would like it to be, you are dreaming, not possible, never going to happen.
Anonymous   |     |   Comment #129
Please ensure your comments are free of personal attacks against the post author or other commenters. Constructive criticism is welcome, but rude and derisive comments directed toward others are not allowed and will be removed.

No one is asking for a "pure" blog, just one which follows the above policy.  Do we still have Deleters for this Blog? 
Anonymous   |     |   Comment #131
"Constructive criticism is welcome" - Aren't all the posts this?
Anonymous   |     |   Comment #132
Anonymous   |     |   Comment #133
Anonymous   |     |   Comment #134
What ever happened to that know it all poster who went by the name ytytytyt, you know, the one that kept buying gold every time it dipped. lolol!
Anonymous   |     |   Comment #135
I have been wondering the same thing.  Maybe he is still trying to recover from the gold market.  I know one thing.  He sure could flare up the nerves of pa-ran-oli.
Anonymous   |     |   Comment #136
Maybe he should change his name to, ymeymeyme
Anonymous   |     |   Comment #137
And maybe you could focus on what's important here:  Money.
Anonymous   |     |   Comment #138
Is that you ytytyt? You focus on money, I don't need to.
Anonymous   |     |   Comment #139
I have nothing relevant to add but I just wanted to be part of this epic thread.


Carry on...
Anonymous   |     |   Comment #140
Anonymous   |     |   Comment #141
Hey has anyone checked Guinness to see if 141 posts about a CD rumor is a record? 
Anonymous   |     |   Comment #142
Why?  Many of the posts have nothing to do with the CD rumor.  Missfits trying to belong?
Anonymous   |     |   Comment #143
What happened to all the financial info?  Did the "Misfits" take it with them?  No Misfits around but only ONE post?  Hmmmmmmmm...............Somebody messed up.  :)
Anonymous   |     |   Comment #144
Financial info? The idea that just a mere "rumor" of a 3% CD rate can get all of you so excited..........pretty much says it all, doesn't it? What other financial info would you like? Rumor of a 3.1% rate?

So why am I here you ask? To watch the spectacle of course. I just want to see how many complaints there will be if the rate turns out to be 2.75% or something in that range. I suspect all the crybabies will flood this place with their tears, as if that meager quarter of a percent was going to alter their lifestyles one bit. After all, 0.25% more or less of a million bucks is barely worth talking about & 0.25% of $10 million is only $25,000 more or less interest per year................before taxes. But I look forward to the moaning, groaning, blaming Obama & talking about cat food. 
Anonymous   |     |   Comment #145
#144: 3.1% WHERE?! Lol
Anonymous   |     |   Comment #147
#144 is right, 3% cd, wow!
lou   |     |   Comment #148
#144, if I make more income than you (probably a lot more) with 3% CDs, why should I give a rat's a** what you think.
Anonymous   |     |   Comment #146
It doesn't take much to entertain some people.  #144 should get a life already.
RickNP   |     |   Comment #149
What #144 helped me put into focus is that for some people here, rate-chasing is about the game, rather than the cash realized. They surely realize how little that extra 0.10% adds to their monthly income, but the satisfaction of earning the highest possible rate makes it worthwhile, just as my wife HAD to drive all over town to save 2c/lb. on her Thanksgiving turkey, or I'll risk life and limb to drive across 8 lanes of traffic because gas is a penny cheaper across the highway.
Anonymous   |     |   Comment #150
Might as well make it 150 posts! And RickNP yes it is fun chasing higher rates! I think it has something to do with that hunter-gatherer gene...
paoli2   |     |   Comment #151
People for those of you who post Anonymously and are interested in Penfed's 3% rate 3.05% APY you might want to call Penfed and verify for yourselves that they "are" having those rates as of 12/1/13 for 5 and 7 year CDs with one year EWPs.  I called this morning and got 2  of the 5 year CDs which will be generated 12/1/13 with the 3 % rate (since I need monthly interest checks)  If you leave it compound you get the APY of 3.05%.  As long as you can fund what you need, they are selling the CDs for 12/1 now.  My money was already in my Share account with them so it was not a problem.  They expect to be swamped when they make it public on 12/1 so I was able to get mine now to beat the crowd.  Hope this helps someone.  We've waited a long time to see 3% CDs.
Anonymous   |     |   Comment #152
Thanks for the info Paoli...
Anonymous   |     |   Comment #153
Back on topic, at last.  I had about given up on this thread.  Thank you, Paoli.
lou   |     |   Comment #154
Rick (149), you make it sound like people are scrounging for nickels and dimes by going to this site and rate chasing. I can tell you that I have increased my income by hundreds of thousands of dollars over the years by following Ken's site. There have been excellent CD deals I wouldn't have known about if it hadn't been for depositsaccounts.com. The incremental income put my kid through college. So people can joke around all they want but this site has been a godsend for me.
psjf   |     |   Comment #155
Thank you very much for the info, Paoli, and congrats on getting in early.  Incredible deal here for these days and times (I, for one, still value 3.0% guaranteed return for a portion of my liquid assets, however meager those assets may be!).    
paoli2   |     |   Comment #156
Rick:  I don't consider it "rate chasing", I consider it survival of the fittess.  People want to be in the best stocks so why can't people like myself always want to be in the highest paying CDs?  It helps me make my financial goal for my family and be able to help loved ones during bad times.  What's so great about DA is that we not only can depend upon Ken for info but we help each other stay on top of the best rates. It's what makes this group so special.
Anonymous   |     |   Comment #157
Lou (#154)..........So let's see. Hundreds of thousands, huh? So that must mean that you' have tens of millions in CDs. Have you filled out your brain donor card yet? :) 
RickNP   |     |   Comment #158
lou (#148, #154): If your thing here is to boast about your income, good for you. I  meant no disrespect. You may have noticed I poked fun at myself as well as the rate-chasers who visit this site.  There is no question that Ken Tumin has been a blessing to all of us. I simply don't have the many millions in savings you must have in order for him to have boosted your income by hundreds of thousands of dollars.
Anonymous   |     |   Comment #159
Struggling to get the small added rate on a cd reminds me of what my grandfather once told me.  He told me if you take care of your pennies then the dollars will take care of their selves.
Anonymous   |     |   Comment #162
#159   that reminds me of the old saying penny wise dollar stupid.
RickNP   |     |   Comment #160
Paoli2: I, too, go after the highest rates, best deals, (and best stocks) just like everyone else. I think this site is a great resource. Without Ken, I wouldn't even have a PenFed account and certainly no 5% guaranteed until '21. I value your contributions and have learned from you. I wasn't intending to dump on anybody other than pick on those who obsess over minute incremental increases. By the way, I opened a 36 month just 10 days ago, and was tempted to follow your lead, but have decided to leave it alone, and use new money on 12/1 to take advantage of the new deal.
Anonymous   |     |   Comment #161
I think Lou made an honest mistake and it came out sounding wrong, if not he needs to get out and enjoy.
lou   |     |   Comment #164
#161, I didn't say how many years it took to accumulate the additional interest income. To clarify, I have been following Ken since 2005 so I have seen many good deals, particularly in those early years. Those were the days of 6% and in one case 7% CDs. There is no way I could have done as well without this site. I probably shouldn't have mentioned anything about income but #154's post irritated me.

What I should have said is that a lot of the people who are enjoying their stock market returns these last few years also rode the roller coaster in 2007-09 and lost 50% of their money during that time. I sold most of my stock market portfolio in 2006 and put the money in 6% plus 5-7-year CDs. So if you track the performance of my portfolio from 2005 to 2014 with those who held their stocks throughout 2007-09, I think I fare pretty well. People can spin it anyway they want, but if you look at the entire picture, I am very happy with the decisions I have made. As an added benefit, I sleep very well. 

Incidentally, like Rick, I also purchased those 5% ten year CDs in Jan of 2011.
Anonymous   |     |   Comment #163
If rates increase to 4.5% in 3 years, investing in the 2% 3-year CD now and a 4.5% CD during the 4th and 5th years results in the same return. If this month 2% was announced, and next month 3% is announced, gee maybe...
Saul   |     |   Comment #165
Lou says that #154's post "irritated" him.  Since #154 is in fact Lou, I guess Lou irritated himself.
lou   |     |   Comment #166
Good catch, Saul. I meant #144. I'm going to blame it on the wine. :)
Anonymous   |     |   Comment #167
How mentally challenged does someone have to be in order be so easily "irritated" by a complete stranger on the internet whose obvious goal is to irritate? 
lou   |     |   Comment #168
#167, I got to admit you make a good point. I am not sure about the mentally challenged part (although I have my moments) but it was pretty lame responding to the guy.
Anonymous   |     |   Comment #169
So reading paoli's comment a few rows up it seems that this is really going to happen? 5&7 years at 3.05% APY?
RickNP   |     |   Comment #170
lou: Thanks for clarifying. I'm jealous (seriously) of your good timing. I'd used Bankdeals' advice sporadically, but became a true disciple when a significant chunk of available cash and a PenFed website error allowed me to join and get in on the greatest savers' CD opportunity of the decade. Without Ken and the contributors of this blog, I never would have known. Since then, I've given PedFed whatever business I can, and shouted the praises of Depositaccounts to anyone within earshot. Happy Thanksgiving.
paoli2   |     |   Comment #171
Anony 169:  It "has" happened since my 2 CDs have already been purchased and will be generated on 12/1/13 for the 3%.  I called back just to make sure and the other rep confirmed the Share desk has my order and it will go through dated 12/1/13 so I can get the new 3% rate.  I think it is so great of Penfed to make this possible for us not to have to wait until 12/1/13 which is a Sunday.  A lot of my financial institutions won't do this.  She said they expect to be "swamped" with calls once it goes public.  Maybe they are just letting us do it early if we call and request it so they can get some done ahead of time as long as we know the higher interest rate isn't effective until 12/1/13.
Anonymous   |     |   Comment #172
When's it going to 4%?  Jan 2014?
Anonymous   |     |   Comment #173
#172 No it won't be 4% in January, but close to 100% of experts believe it will be more than 4% in three years, which is why I pointed out that it is probable that re-investing the 3-year CD will likely bring the same or better returns than the 3% 5-year, IMO. P.S. 173 posts WOW!
paoli2   |     |   Comment #174
Like I am really going to believe the "experts" know what they are talking about.  Things could happen the way our economy is going which could turn rates back lower again.  I will go with my gut feeling and take 3% while I can get it and be thankful it finally turned up.  If I am wrong, I am many other CDs maturing at the time the "experts" say rates will go up and I can lock into the higher rates then.  I want the income now and won't pass up a chance to get 3% today for "maybe" 4% in the future.  You know what they say about "a bird in the hand" etc.  I'll hold on to as many birds as I can catch today.  To each his own tho.  We must do what is best for ourselves.
Anonymous   |     |   Comment #175
Paoli, how many times have you called penfed?  
paoli2   |     |   Comment #176
#175:  On which day?  I would have to look at my notes.  Maybe 30 -50 times ??  I always like to reconfirm  and rereconfirm the reconfirms.  It's who I am.  I don't like errors and people on this planet tend to make a lot of them unfortunately.  Good thing I did call back because the first rep forgot to do the 2nd CD and when I called back the 2nd rep did it for me.  I then called back to check on the 2nd rep and this guy triple checked my account and said the CDs were already on the Share desk waiting to be processed for the 12/1 date and rate.   In fact, I was complimented for calling back and catching the error the 1st rep had made.    
Anonymous   |     |   Comment #177
paoli2,  I have a question about the 2 new cd's you just opened.  Do you have it in writing that the rate on Dec. 1 will be 3%?  Their website still shows 2%.  How do you know for sure that you'll be getting 3%?
Anonymous   |     |   Comment #178
Also, why wouldn't you just wait until Dec. 1 to initiate the cd opening process after you've seen what the new rate will be?   Thanks...
Anonymous   |     |   Comment #179
Good point #178  or why not just open it online when the new cd comes out, it only takes a minute.
Anonymous   |     |   Comment #180
What if the 3rd guy you called got tired of you calling so much and undid your cd applications, did you get there names?
Anonymous   |     |   Comment #181
I meant, their names.
Anonymous   |     |   Comment #182
IMO Ken should put Paoli on the DA payroll as color commentator. I always look forward to reading her posts.
paoli2   |     |   Comment #183
I am tired but  your questions are legit so I will answer.  12/1 is a Sunday and I was concerned I would not be able to call Sunday.  By Monday, word would have been out and I was concerned about spending hours on the phone trying to get an answer.  A person I know said they had spoken to a rep who told them the rates would be known by this past Wednesday.  It wasn't for sure so about 10 AM I called and the rep whose name I got (a lady) was very nice and told me they already had the new rates for 12/1.  I asked her since my funds were already in their Share account, would it be possible for her to let me buy two CDS right then so I wouldn't have to call back and try to get them once it was made public.  I was very happy that she spoke to her supervisor and said that would be no problem as long as I knew the CD 3 % rate would not be effective until 12/1/13 and I would not see them on my account online until about then either.  I am not getting any interest until 12/1/13.  I asked her some questions about the new interest rate and EWP and then told her, I was glad to agreed to do it this way if she would do it for me.  She could not give me a confirmation or CD number because the Share desk would not be allowed to generate the CDs until 12/1/13.   I got her name.  She made an error but with the help of her supervisor corrected it and explained everything to me.  When I called back, I got the name of the 2nd rep who told me the 1st one did not put the 2nd CD through so she would do it for me.  I have had Penfed make errors in the past but they are always good about correcting them.  When I called back the 3rd time and the guy realized I was concerned (as you mentioned) about whether or not they had really sold be the 2 CDs for the new rate, he was very nice and assured me, after rechecking, they were already on the Share desk to be generated on 12/1/13.  He said if any errors occured, Penfed would make good on them and I would certainly get the 2 CDs I purchased at the new rate.  He said he would type a note in my file about my concern as proof that I did purchase the 2 CDs that day for the 3 % rate  in case any error happened.

We can check only so many times and then it comes to a point we have to just trust the institution we are dealing with.  I do not like the fact that I have no proof I really purchased the CDs but the reps could not do it any other way if I wanted to do it early.  I have dealt with Penfed in the past and feel that whatever happens on 12/1, they will see that I get the 2 CDs I purchased at the new rate.  I have 3 names of the 3 reps I spoke to and I don't believe all 3 would have lied to me especially since the supervisor was involved.  I am not telling anyone else to do it like I did.  If others feel better waiting until 12/1 to do it so they can get the CD number etc. that is their own choice.  Penfed told me they expect to be swamped when they make the 3% public so I think they were happy to be able to get my purchase through for me since it is a decent amount of money involved and I have another large CD with them. BTW, I don't think the guy would have cancelled my buy order since he was willing to give me peace of mine and make sure the Share desk had the orders.  He would have also known a supervisor was aware of my call so I do have some proof of my order.  I hope I have answered all your questions and we can put this matter to rest.  

  Oh, I wanted to add, I don't know if it is true or not but I was told you can't buy CDs online from Penfed.  Your only other option is to print out the forms and fill them out yourself and fax or mail them to Penfed.  Mail and faxes can get lost or misplaced especially if they get a large amount of them due to the good rate.   I would also have had to wait longer to know if I actually got the 2  CDs.  This way in a few days, by the time it is made public, I should know about my own.    Have a good evening.

I hope you do know I was joking with you about the 30-50 times.  I actually made only 3 calls that morning to get everything taken care of correctly. 
psjf   |     |   Comment #184
Lou #164/168 - love the humility in post #168, and I figured from your history with the site that you probably weren't making a mistake when you said hundreds of thousands.  ;)    
Anonymous   |     |   Comment #185
PenFed has one of the easiest "On-Line" CD opening processes that I have ever used

The funds for a new CD must already be in your share account.  Takes only about a minute to complete the whole process and the new CD shows up in your account.  There are paper copies of the new CD for required signitures that Penfed will then send to you to be filled out and returned, but the new CD is officially valid on the date of the "on-line" form was initiated.

Anonymous   |     |   Comment #186
PenFed Member website is down.  This is strange on the last business day of the month.
Andy   |     |   Comment #187
Well, I got my cash ready to ACH over on Monday if PenFed greenlights 3% :-)
paoli2   |     |   Comment #188
#185  If what you are posting is correct, some Penfed rep doesn't know that.  I was told I could not do it on-line and they either had to mail me the forms (which they did) or I had to print them out (which I did) and mail or fax back to them.  I decided to call instead.  That is odd their rep not knowing.  In fact, I tried to go on line first but could not type into their form and send it.  Is there something special one has to do to be able to type on in.  It was ot a "fill-in form" and they said that was because it wasn't meant to be done on line. (??)  Thanks.
paoli2   |     |   Comment #189
#186:  That was a quick "Penfed Maintenance".  I just logged in to my account on Penfed.  They are back up already for anyone who wants to access Penfed.  When I first checked them they were actually down for maintenance but now are back up.
Anonymous   |     |   Comment #190
I called penfed and they said you can open the 3% cd on line on the 1st
paoli2   |     |   Comment #191
#190   Can you tell me how one gets to the On-Line CD form?  I think from what I read it is only workable for certain computers programs.  I don't think my computer has the program needed to do the on-line CDs and maybe that is why I could not fill in the info and had to print out the forms  which I ended up not needing.  Thanks.
Anonymous   |     |   Comment #192
I just spoke to a customer service rep at Penfed, and she informed me that Penfed is filing a restraining order against Paloi for too many harassing phone calls about the 3% CDs. ;)
paoli2   |     |   Comment #193
#192:  Ha. Ha!  And "what or WHO is a "Paoli"?  3 calls restrained does not a Paoli make.  Maybe we can get Ken to put a restraining order on all you blokes who keep yakking about my "few" calls to Penfed.  Can we have a new song and dance please?  Must be something about that "Paoli" name that attracts these posts.  I tried to change it but it's cursed!  Won't change!  I like it because I think in another life I was the first Indian to own a string of banks! :)  Talk about "low" interest rates! :)
Anonymous   |     |   Comment #194
paoli, I don't believe you can open a 3% cd online until that cd is actually avaiable on the 1st
Anonymous   |     |   Comment #195
Paoli, go to your account at penfed then press on open account/certificate, that will take you to a page where you will press on money market certificate, that will then start the application process but you have to wait until that cd comes out on the 1st.
51hh   |     |   Comment #196
I like #200 but will take #196:

New (approved) PenFed CD rates on 12/1/13:

4 year - 2.22% APY
5 year - 3.04% APY
7 year - 3.04% APY

Credit to drdobro of FWF.
paoli2   |     |   Comment #197
Folks, I hate to blow my cover but I am not really "The Donald's" 24th wife.  I really don't have tons of money so until next year when more CDs mature, I have done my Penfed thing for now.  I was just curious incase one of you has me in your Will and I inherit more money. :)  Then I could go on-line maybe and buy more CDs.  Please only make me a beneficiary if it is over $500,000.00.  I don't like to fool with the small bucks. :)   Thanks for caring anyway. 
paoli2   |     |   Comment #198
51hh:  Who or what is this " drdobro of FWF."?  I thought I knew most of the CD websites.  He's not a Best Cash Cow person is he?  Maybe he is Ken's new competition.  I think not.  Ken is still No. 1 in the ranks.  I would like to know where to find the doc in case he has some info I can use.  Thanks!
Anonymous   |     |   Comment #199
200 posts yes we can!!! Interesting how PenFed has 3 thru 7-year CD rates at 2.00% now and for December 1st will have the same rate for 5 and 7-year CDs. Betcha that 7-year's gonna change soon! Oh and btw Paoli #1!!! 
Cal_Gal   |     |   Comment #200
I have a question...it's a what would you do...Since my timing was bad, I had opened a 3yr @ 2% a week ago for 100k.  I'm going to open another one at the 5yr 3%...for $100k next week (good timing).  If breaking the first will cost just under $100, do you think it would be worth it to do so?  I am leaning towards in 3 years time...we'll be able to easily get cd's for 2.75%.
Anonymous   |     |   Comment #201
#197   you might want to get friendly with Lou. hehe
Anonymous   |     |   Comment #202
Cal_Gal  I opened a 3 year for 2% also but will just keep mine... for you it depends on what they will penalize you, if they are going to take 6 months or a year penalty from you I would say not worth it but do a little math the ewp is tax deductable as long as it is in a taxable account. If you pull the 3 year and open a 5 year what happens if in 3 years they have a higher rate and when 5 year rolls around the federal reserve is lowering rates again.
51hh   |     |   Comment #203
Paoli (#198):

FWF (Fatwallet: Financial Forum) is another website for cool deals and offers.  No, they are not as complete and up-to-date as Ken is at this site as far as deposit accounts are concerned.  There are some smart people there for all kinds of deals (e.g., Cashback credit cards).  Drdobro (a FW member) stated (at FWF) today that these new rates were approved by PenFed Board of Directors this morning.
Anonymous   |     |   Comment #204
I didn't see that under $100, if that is true the extra 1% will earn you another 1,000 a year but the gov gets a portion of that.
paoli2   |     |   Comment #205
#199:  I think you got the Penfed rates a bit confused.  The 5 - 7 year Cds will be 3% rate 3.5% APY on 12/1/13 (from what I was told) so you have the choice for 5 or 7 year for same rate with one year EWP. The rates are 2% until 12/1/13. 

#200  If you can truly get rid of the first 3 year 2% for 100K for only $100, I think it would be a win for you to break it and go for the 3 year CD for 2.75% if you know you can get 2.75% for 100K.  That would be about $2,750.00 yr interest for 3 years against making $2,000.00 yr for the same period.  Deduct the $100 tax deductible EWP and you still end up with $2,650.00 of interest for first year and the $2750.00 yr for rest of 3 years.  Just be sure the penalty is only $100.00.  I like the 5 years CD but it has a one year penalty and you would only be making about $250.00 more per year. 

I think you have a good deal with your 5 year CD bringing you in $3,000.00 yr and the 3 year $2,750.00 yr minus $100 EWP.  I did not see any Penfed 2.75% 3 yr CDs so it must be with someone else.  Then again, I didn't ask for any rates except 5 year CDs for Penfed.  Good luck to you on whatever decision you make.  This is just my opinion on what I would do if I had that much money available at this time.  Others may have different suggestions.
paoli2   |     |   Comment #206
#201:  I get reported enough to Ken for being rude.  All I need now is to be reported for going after Lou. :)  Anyway if he left a chunk to "Paoli" I would never see it.  The things we do on DA to make more money!   :)  Thanks for caring tho. 
Anonymous   |     |   Comment #207
Paoli, you didn't read Cal_Gal's comment very well... she didn't say she could get a 2.75% 3 year cd now she said she should be able to get them in 3 years...... so the choices are break the 3 year and open a 5 year or leave it be and open a new 5 year.
Anonymous   |     |   Comment #208
But if you get friendly enough with Lou that he puts you in his will surely he wil know your real name by then.
paoli2   |     |   Comment #209
#207  When you post figures like $100,000.00 in a post, my eyes only focus on the big bucks.  Sorry if I messed up on the rest.  That's why I posted the "hint" for the rest of you to jump in and do it right! :)  If it were me, I would go for the most money I can get and we don't know for sure if rates will be up or down in 5 years.  I am a 5 yearer especially with that kind of money.  If you don't agree, tell the Gal what you would do.  She wants suggestions not just one from Paoli.

208: My own hubby doesn't even know my real name and you think I am going to tell Lou?  :)  Here's hoping Lou has a good sense of humor and knows that I am not a "gold" digger.  Then again, if he has gold too???  Wow!  This is getting good.  Ken can throw me off the forum but I'll be so rich, I won't need to bother anyone anymore!!    Won't you guys be so thrilled to finally be rid of Paoli.

Anonymous   |     |   Comment #210
Well, here goes this thread down the tubes again.  200 posts, one half of which is B.S. 
Anonymous   |     |   Comment #211
Paoli, First of all I don't think the penalty is only $100 but I am too lazy to check, can you check for me?

I opened a 2% 3 year cd at the beginning of November and I don't plan to close it, I will just open a new 5 year cd on the 1st so that is my answer but cal_gal has to do what works for her. I have CDs maturing all the time so if a higher rate comes out I will capture it the next time. I ladder so when rates move up I lose a little and when rates move down I win a little, over time it all balances out imo. If I was going to close CDs early I would wait till rates really move up, if they do.

Btw, I believe you would be missed.
Anonymous   |     |   Comment #212
#210 probably won't be missed...hehe
paoli2   |     |   Comment #213
#211  Thank you for "maybe" missing me but let's hope I'll be around a while (to the detriment of some :)

Dear One, I would be so happy to figure out your penalty for you but I am in the midst of doing a Medical Appeal for hubby and really exhausted.  I must get this done for him tonight or I may be looking for a new DP. :)   If you are in the first week of closing the CD, mine only was the few days for the interest "I would have earned.  They took nothing out of the principal.  I can't see yours being near $100 if you do it soon.  If you want to do it, don't wait too long or they would have to charge you the regular EWP.   I must go back to DP's stuff. 
Andy   |     |   Comment #214
Post 203: Did a search for "drdobro" on FatWallet Forums just now and their are no posts by this person regarding any PenFed CD rates. What gives? Provide link?
paoli2   |     |   Comment #215
#214  I just was on FatWallet and drdobro is posting about Penfed now with the rates.  Interesting site but of course hasn't reached the excellence of DA yet.  I'll check it out with my others.  You never know who might have something new to share.  Just go to www.fatwalletfinancial.com and look for financial group.  It was easy to find.  If you can't drop a another post and I'll post the entire link .  I have it bookmarked.
paoli2   |     |   Comment #216
Ok:  here is the Fatwallet link:


That should be the page where the drdobro is and he does have the Penfed rates posted here.  I don't know how to make the link blue so you can click on it.  You have to copy and paste into your url box. Hope it helps.
paoli2   |     |   Comment #217
#214:  You may not be able to find the guy with the Penfed rates because you have to scroll all the way down to the end of the page.  He seems to be the last post on that page.  If my link brings up Google, just click on the first Fat Wallet listed on the google page and it brings up the page where the little guy is with the Penfed rates.  At bottom, ok?
paoli2   |     |   Comment #218
#211  Calgal's penalty may not be as much as $100 if she closes it quick.  When I closed my two 4 year CDs with Penfed recently it was within a few days and they only charged me the few days of interest I would have received and it was just a few dollars since I didn't have the huge amount Calgal is speaking of.  That is why if she doesn't want to get hit with a bigger penalty she needs to make up her mine soon.  I think Penfed is very fair about how they do their EWP.  
Andy   |     |   Comment #219
Thanks for the fatwallet link, found it now. Doing a financial CD calculator it seems the APY for 3% APR is 3.045%.

Am debating now whether to sell a 3.5% $100K Ally Financial corporate bond that I bought at 101.10 a few months ago that matures in July 2016 that has since appreciated to 103 for a 2% capital gain and putting all the proceeds into the PenFed 5-year. Doing some rudimentary math shows that selling the bond would be the way to go; depositing the $104K total from the sale ($103K from the sale plus $1K accrued interest) into the 3.045% ends up at $112000 in Jul 2016 versus ending up with only $108750 if I kept the bond.

I can't see where my math went wrong so I guess I will set the bond monday...


Anonymous   |     |   Comment #220
Has anybody counted how many of the 220 posts are Paoli's? Just wondering.
Anonymous   |     |   Comment #221
Several of them have been deleted but there are still a bunch left.
Anonymous   |     |   Comment #222
Rate increase for PenFed CDs is great news for those who were using maximum capped reward checking accounts for interest income. 
paoli2   |     |   Comment #223
#220 & 221:  Very few of my posts are deleted because I don't waste bandwidth calling others names.  The posts that got deleted were the delightful posters who choose to call me names.  As for how many of these posts are Paoli's, why don't you pay attention to the fact that I usually am responding to another poster or trying to give help when I can.  I don't know how to post "links" to articles so I respond to those who do.  Do you have a problem with that?  If so, take it up with Ken.  It's amazing how many gripe about me and my posts yet a day doesn't go by that you find a way to draw me back here.  If you don't like me or my posts, just IGNORE Paoli.  I assure you this isn't the only group I post to or read.  I use many different posting names but my other groups are always happy to have me involved.  So please give me some peace from your snide remarks.  At least I don't hide behind "Anonymous" names.  Even if it is a fake name, I think it would be better to at least help us recognize "who" is making the remarks when we give ourselves a name instead of a "number".  Have a nice day if you still can.

Anonymous   |     |   Comment #224

Just a few questions:

1.  Do you live within a reasonable driving distance to a Penfed office?

2.  Do you feel secure with opening your Penfed CDs over the phone (or online) instead of in person?



paoli2   |     |   Comment #225
#224:    1.      No

             2.     Yes  (However, I prefere in person when possible to catch errors asap)

You're welcome
decades   |     |   Comment #226
For what its worth ..just called pen fed ...the on hold recording mentions 5 & 7 year certificates having highest rates in nation ...talked to a rep and she said they would be in effect the entire month ...just closed out some crap cd's from digital FCU and will move it to pentagon .... lets hope this starts the ball rolling towards higher rates ...its sad when 3% gets everyone frothing at the mouth
Anonymous   |     |   Comment #227
When others of you called Penfed inquiring about 12/1  3% rates did they inquire if you were interested in purchasing a car with their new low car loans?  Each time I called they asked and I am wondering if these new higher interest rates are a way to get some to take out a loan.  However a 1.99% car loan does not make them more if they are paying others 3% for CDs.  Kinda wonder what is really going on here with Penfed.

Anonymous   |     |   Comment #228
I have been reading DA for a long time and I have never seen so much activity and enthusiasm regarding any other news.  Let us hope that the news is true, but I choose to wait for the official word before taking any action.
paoli2   |     |   Comment #229
228  You must  be a newbie to Da or you would know that we don't usually post info on DA unless it is the real thing.  You just have until tomorrow and you should know.  No big deal.
Anonymous   |     |   Comment #230
A. Asking how many posts are Paoli's was a positive lighten up comment. B. Anonymous is just the default setting its the comments that are important but you can call me Vinnie if you'd like. C. This is a great site.
Anonymous   |     |   Comment #231
Vinnie:       A.  Less than 40 out of 231.  Paoli is on her good behavior these days.  

B.  Vinnie it is.  I just hope you keep the same Avatar or pick something recognizable so we can know when you are around. 

C.  Yes it is a great site (inspite of "you know who" :)  )
Anonymous   |     |   Comment #236
Done deal! PenFed 5- and 7-year CDs are now 3% (3.04% APY) as of midnight, Dec. 1!
Andy   |     |   Comment #237
I am torn. I don't know whether to do the 5 or 7. Dang, why couldn't they have made the 7year rate a tad bit higher then the decision would be easier... The 5-year compounded comes out 3.23%/year, the 7-year compounded comes out to 3.33%/year
Anonymous   |     |   Comment #238
I did the 5 year, I wouldn't do the 7 year, way too long.