About Ken Tumin

Ken Tumin founded the Bank Deals Blog in 2005 and has been passionately covering the best deposit deals ever since. He is frequently referenced by The New York Times, The Wall Street Journal, and other publications as a top expert, but he is first and foremost a fellow deal seeker and member of the wonderful community of savers that frequents DepositAccounts.

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PenFed CDs - How Much Have You Invested?


PenFed CDs - How Much Have You Invested?

With December coming to a close, I’m happy to see PenFed is still offering the very high CD rates. When I first reported on these on December 1st, I was concerned that they may not last through December. As I mentioned, PenFed no longer guarantees the CD rates will last for the entire month. However, I can’t remember a time when PenFed lowered CD rates before the end of the month. In addition, PenFed still has a rotating banner on its home page advertising the 3.04% 5-year CD, and that banner says "your gift for the holidays".

There are now signs that PenFed will extend these current CD rates through January. One reader has reported being told by a PenFed representative on December 20th that the current CD rates will be extended through January 31st. I called PenFed this morning, and a representative told me that PenFed’s board of directors has not yet approved the rates for January. However, they do expect that the board will approve the current rates for January. So I would consider it likely that the rates will be extended into January, but there’s no guarantee. There has been a case when PenFed came out with lower rates in January than what had been reported. That happened in January 2010 when the board approved lower rates than what the management had proposed.

One important factor that may determine if PenFed’s current CD rates will extended into January is the demand. The rates are very competitive, and PenFed CDs have received a lot publicity on the internet. The 3.04% APY is much higher than the yields of 5-year CDs at internet banks. For example, the best 5-year bank CD rate continues to be 2.16% APY at EverBank. PenFed’s 3.04% APY is about 41% higher. If PenFed has pulled in many more deposits than they had planned, there’s less chance that the current rates will be extended into January.

A DA reader had a useful suggestion to ask DA readers how much they have invested in PenFed CDs in December. I thought this was a great idea. It can give us an idea how much in demand are PenFed CDs. So I decided to create this poll which asks how much have you put into PenFed CDs or IRA CDs in December. Also, feel free to give more details in the comments.

For more information on PenFed, its CDs and membership, please refer to my post on Four Important Points about PenFed’s CDs and IRA CDs.

Related Pages: CD rates, IRA rates

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OldGuy   |     |   Comment #1
Hopefully, another month of PenFed posting 3.04% APY, plus ever-rising 5-year Treasury yields (Bloomberg is showing 1.73% at the moment), will get at least a few other credit unions and banks off their butts and raising their rates in the New Year.  Stranger things have happened, I suppose.
Anonymous   |     |   Comment #2
I opened 1 cd for $155,000
51hh   |     |   Comment #3
Some with > 2.4M!? 
paoli2   |     |   Comment #6
I do hope that is a gentleman with the 2.4 M.  I find wealthy men "very" attractive! Donald Trump is in my dreams most nights but I would be glad to replace him with a new "Bill".  :)   Whoever you are, I know you are going to be having a great Christmas probably on your yatch.  I'll be the poor gal rowing besides you in my unpainted rowboat!  Happy New Year to all!
Anonymous   |     |   Comment #11
So how many other CDs did you close early to get these penfed 3% CDs?
Anonymous   |     |   Comment #14
None.  Never closed one before maturity and never intend to.
Anonymous   |     |   Comment #4
Thanks for the info:  I looking forward to January when I have some cds coming due.  I hope it last that long and I may look to closing a couple 1% cds if I can without a great loss... Merry Christmas to all.  
decades   |     |   Comment #5
...in for 116k ...hope I have to break them all soon ...got some 7 year 6.25% money coming due in Jan... was nice while it lasted ...
Anonymous   |     |   Comment #82
I think there were quite a few of Penfeds 7 year 6.25% taken out in January 2007.
I have 3 due for renewal in January, and we are getting excited to now earn less 1/2
Anonymous   |     |   Comment #7
I renewed about 45k of the 48 expired in December.    Have about 20k in Roth/ and 32k regular cd coming due in January.    Btw as I mentioned in the other thread, a rep on ~ dec 21st told  me rates will be good through "January 31st".  So there is good odds the rates will stay that way through January.
Anonymous   |     |   Comment #8
"Citing their unilateral decision to keep rates low until at least 2016, both Bernanke and Yellen have opened PenFed CDs, which they heard about on DA".  
Anonymous   |     |   Comment #9
probably can throw out the 480k and above.
joke or wish votes
Anonymous   |     |   Comment #15
I hope you don't throw out my money with those votes.
Anonymous   |     |   Comment #10
$115,000 so far and have another $100,000 due the end of the month and will probably let it stay there. 
Anonymous   |     |   Comment #12
Hope it last through January.  In the mood to do an IRA transfer and I suspect it'll take a whole month with PenFed's ancient paperwork process.
Anonymous   |     |   Comment #17
It didn't take PenFed near that long to set up my IRA so that I could transfer my IRA to them 7 years ago.
Anonymous   |     |   Comment #13
Hi all.  Has anyone else encountered this...?  On December 3, I closed a little over $25K in CDs that I had opened at PenFed only a month earlier (November), and I faxed in the request to (1) close the CDs and (2) open one big CD with the proceeds.  The existing PenFed CDs were closed on December 4, and the money was put into my savings.  It is still there as of December 24, and no new CD has been opened with the money.  I've called several times, and they say the money is coded to be put into a new CD at the 3% rate, and that it will be back-dated to December 3.  I'm worried a bit because it's been 3 weeks and the new CD is not yet opened.  Has anyone else experienced similar?  Thanks!
paoli2   |     |   Comment #16
#13  Did they give you a time frame for when you might expect to see your new CD processed? Were you able to get a CD number for the new CD?  I was having a problem at first but they then said it would take 7 to 10 business days and for sure before the 10 business days were up, it was online for me to see all finished.  Problem is with the holidays, 7 -10 business days at this time can be quite longer.  I would still try to get a commitment from them on a time frame.  If they are going to extend the 3% rate they are going to stay very busy so I think you should get some commitment from them about your CD for your peace of mine.  I am still waiting for the paperwork for a couple of CDs I opened 12/2/13.  I have the CD numbers and see them online but nothing from Penfed yet.
Anonymous   |     |   Comment #30
I did the exact same thing in early December and my old CD was closed and the new one was opened within 2 hours of me faxing them a letter.  And it posted on their website that night.  So for me it was instant.  Not sure why it's taking them so long to do yours despite the backlog they must've gotten.  I'd keep calling.
KevinM   |     |   Comment #54
No, but my partner had a different issue. They said her signature on the instructions to break the existing CD didn't match her signature card. So she had to get the instructions notarized. Once they received that, the old CD was closed and the new one opened right away.

Anonymous   |     |   Comment #18
have a $18,000 penfed cd maturing on jan 3.  I have it set to close and not renew.  I called penfed this am and asked them about the rates, the rep said that it may continue through the end of january and initally they were told  it probably would but they had been recently told it may not and wont know for sure until dec 31st.  If the rates are lowered, I will not renew the cd and place the funds elsewhere.  If they stay the same , I will change the setting to have it renew.
Anonymous   |     |   Comment #21
CD'S ? I bought SIRI at 10 cents /share and sold it at $4.00 for a nice $378K profit.  U guys need to get with the 21st century and get into the Stock Mkt.  $$$$$$$$$$$$

Kurt in Vegas
Anonymous   |     |   Comment #22
That is a blog violation, if you didn't call your siri entry point real time on the blog you can not gloat afterwards...... sorry those are the rules.
Anonymous   |     |   Comment #25
Right, and that's why you're here posting. Talk about zero credibility. ROTFLMAO
Anonymous   |     |   Comment #26
Are you brain dead? If you didn't call your entry on siri real time nobody is going to believe you now... got it?
Anonymous   |     |   Comment #19
Closed all my Ally CD's  due to the new, lower loyalty bonus and EWP and opened several 5-year PenFed CD's totaling 300K.  I had to open multiple CD's since it was over the phone transfer and I was a new customer.  The rep gave me each account number and I verified them online the next day....now just waiting on the paperwork!
Anonymous   |     |   Comment #27
I hope you set up these CD's  so you are covered by FDIC insurance.   If not anything over $250,000 and future interest is at risk.
Anonymous   |     |   Comment #29
You lack confidence in Penfed's stability?  Why?
Anonymous   |     |   Comment #40
I have no confidence in any institution. Why are they offering rates way above other CU's and even pre-announcing rates? Makes one wonder.
Anonymous   |     |   Comment #41
I have been wondering the same thing.  I have a guess though.  Penfed has a lot of high yield cd's maturing at first of the year 2014.  The 3% rate is an effort to bring in new funds to replace the funds that may not be reinvested when the high yield cd's mature in January.
Anonymous   |     |   Comment #20
Up to $575K in the 10-year & put $145K in the new rate 5-year this month. I have a sneaky suspicion though that I should have gone instead with the 7 year this month. It's pretty bad when most high yield junk bonds have a lower yield to maturity than a 5-year credit union CD...
Anonymous   |     |   Comment #23
Kurt in Vegas I bought RISI @ 10 cents and lost 10 cents, but made 3% @ PenFed yeah!
kcfield   |     |   Comment #24
I do hope Pen Fed maintains their rates - at least until my wife and I can meet with our CPA to discuss our financially planning for next year. Ken, I am wondering if you have any thoughts about what has happened with another military affiliated institution: USAA. Their credit cards and auto insurance remain top notch; however their CD and savings rates continue to disappoint. For many years their rates were top tier. However, now their CD rates top out at 1.06 percent for 7 years (about a third of Pen Fed's rates) and their savings rates are .10 to .30 max (a third of what I am getting with American Express.  Savings). Additionally, their bank ratings through Weiss have dropped to "C" overall. Their senior management has been apprised of this concern, but have not changed their rates in spite of their being so non-competitive. We have moved our life savings out of USAA because of their rates, which is unfortunate as they continue to have excellent customer service and as noted, other products that are top shelf. Any thoughts on why they have allowed themselves to move from top to lower tier with CD and savings rates?
Anonymous   |     |   Comment #28
I closed 1 CD I had opened for $25,000 on a 3 year CD a few weeks ago and lost $20 interest.  I faxed the request and had the check in a week.  I opened  online a 5 year with funds transferred from a savings account the same day.  So with PENFED I have a 10 year CD at 5%,  a 5 year CD at 3% and , 3 year CD at 2%.  So I have a ladder and about 225K at Penfed.  I have other investments in stocks bonds etc.
Anonymous   |     |   Comment #31
If the poll is reliable, then there has been at least 32 million dollars invested from the 167 entries in the poll.  The biggest part coming from the 4% than invested 2.4 million or more.  I suppose one has to question the truth on some of these entries though.
paoli2   |     |   Comment #32
#31  I really don't think that poll is reliable.  For example, I bought several CDs with Penfed and did not disclose the amounts.  I just don't share such info even anonymously in groups like these so I am wary of people who just pop in and check out such large deposits.  My financial info is exclusive to me, myself and I and DP at certain times when I can get him to take an interest in it.  People who are disclosing financial info even anonymously must not be aware as to what lengths hackers will go to to find someone's identify if they really feel they can make money off of that info.  As long as we have an IP address tied into our posting, I don't think we can ever be truly "anonymous".
Shorebreak   |     |   Comment #37
No kidding? You are right right. No one would disclose what they really have. LOL!
paoli2   |     |   Comment #38
#37:  You think my post is so funny then let's see "you" post what you have if I'm so wrong and under your Avatar without faking it!  LOL!
leehsm   |     |   Comment #33
I moved 50k from vanguard mm to the new penfed 3%.Lee
Anonymous   |     |   Comment #34
a couple billion
Anonymous   |     |   Comment #35
Pocket change!  Is that all?
Anonymous   |     |   Comment #36
Oops sorry I meant bouillon.
Anonymous   |     |   Comment #39
Hopefully, if we are lucky, the sell off in the bond markets will raise interest rates even higher in January.
Anonymous   |     |   Comment #42
At PenFed you have the option of having the interest from the CD transferred into another account.  Can anyone tell me how this will impact, if at all, the current yield of 3.04%?  The fine print says withdrawals of interest may impact the returns, etc. 
Anonymous   |     |   Comment #43
Your yield would then be 3.00%.
paoli2   |     |   Comment #44
I would love to see a Poll on whether or not Penfed's investors from our group are having the type of problems with their errors as I am having.  Just because you have a copy of the CD showing what you "think" it was processed to read doesn't mean Penfed has it processed correctly.  I was up to 1 am this morning retyping Amendments etc. for information they did not process correctly for any of my CDs in all these months even tho I faxed the info to them and mailed it also.  I refaxed and mailed everything again this morning and sure hope they get their act together.  Any poster who has entrusted large sums with Penfed might want to call and verify that your CDs were processed in "their" files the way you think they were to be.  I can't see how my exact copies show one thing and they say it doesn't appear to be on the copies they got by fax or mail.  I think they just don't want to admit they are so  busy they are not proofreading anything.
Anonymous   |     |   Comment #48
You brought up a good point, paoli2.

When it comes to FDIC and NCUA insurance coverage, both insurances go by what is officially on the bank's or credit union's records, NOT necessarily what is written on the CD certificate.  So if the CD is recorded differently from what the information is on the certificate, a person may not have the insurance coverage they think they have.
Anonymous   |     |   Comment #49
If you logged into your Penfed account, you can select a specific cd and then select to show account owners.  Not sure why, but it will not do this for IRA accounts.   Also I find that sending a secure message online sometimes helps get things corrected on your account.
Anonymous   |     |   Comment #50
IRAs and any assets in an IRA can only be titled to one owner and that being the person whose IRA account it is.   There is no need to show the same owners name for CDs within the Acct.  That is also the reason why IRAs in banks and credit unions cannot be insured for more than the $250,000 limit unlike accounts outside of an IRA. 
Anonymous   |     |   Comment #51
#50,  I understand what you are saying as far as $250K limit on IRA ownership.  What I have never understood is why Penfed does not list the named beneficiaries on the IRA. 
Anonymous   |     |   Comment #52
paoli,  Why do you have soooo many problems.  Does it just come naturally or do you need to work hard at it??
paoli2   |     |   Comment #53
#52:  I work hard at everything I do.  Just wait until your turn comes up and let's see if you smile your way through financial errors.  If you do, you are in worse shape than I'll ever be and I am glad "you" are not managing my finances.
Anonymous   |     |   Comment #56
A very good observation and right on the mark. She seems to have a continuous stream of problems with everyone and everything.
Anonymous   |     |   Comment #57
Problems, especially with TROLLS. 

Most everyone was carrying on a decent conversation concerning CDs at PenFed until the personal sarcastic remarks started.

Oh well, kids will be kids.  Someday you may grow up. 
paoli2   |     |   Comment #58
#57  Thank you for noticing this.  I was On Topic and I am so tired of the sarcastic remarks no matter what I post.  Like you wrote "kids will be kids".
Anonymous   |     |   Comment #59
#44 (paoli2)  Would you care to share the problems your referring to with Penfed not processing your info correctly?  No personal information.  Just an overview as to what your referring to. - Thanks
paoli2   |     |   Comment #60
#44 I specifically asked the ref to mark my CDs to be closed at maturity and checks mailed  back to me and monthly dividend checks to be mailed to me.  She marked the CD to rollover into another one at maturity and checks put back into CD.  Then the main problem was I wanted my daughter to be named beneficiary of ALL the CDs and typed the info on each CD they mailed to me and over the months found out that her name was not on any of the CDs.  If my DP and I were demised at same time (in accident etc.) she would have to go through probate to get the money.  This part was more aggravating to me than even the other since I could correct the other errors myself.  They have to be the ones to see that the beneficiary is correctly named in their records and no one at Penfed has in all these months taken care of this.  I sent them an email yesterday and if it isn't corrected soon, I will take this further.  I know how busy they are but they have had months to take care of this and I feel I have a right to have it done since I am entrusting Penfed with a goodly amount of our funds.  When it comes to our money, I need things done in the manner I specify.
Anonymous   |     |   Comment #61
When you open a CD with Penfed you cab check a box the the CD will be closed at maturity and a check sent to you.  I have never had a problem with the titling of CD's.
paoli2   |     |   Comment #62
#61  My problem is that I always open them up on the telephone and give my info to the rep.  It is up to he/she to mark the boxes correctly.  I only see what they did when I get the Original and copy mailed to me.  That is how I saw the errors.  I think it is much better to do it online so we can  be in control of what we put down.  I just learned how to do it online after I did these last CDs.
Anonymous   |     |   Comment #63
You have a computer. Open the CD online. You are mailed the forms where you can add beneficiaries. After you are resistered online you can open a new CD in minutes anytime.
paoli2   |     |   Comment #64
#63  You are missing the point.  It would make no difference if I did them on line because we do have to add the beneficiary on the forms they mail us.  THAT is what I have been doing for months and faxing the forms back to them AND mailing them to make sure the would add the beneficiary and yet they have NOT.  So what good would it have done if I had done them on line?  They are still NOT processing things correctly after they get the necessary forms back.  That is my point and what has made me so concerned about Penfed.
Anonymous   |     |   Comment #65
I suggest that you send them a message on your online account noting the problem of getting your beneficiaries added. 
Anonymous   |     |   Comment #66
#64 (paoli2)  You need to take the "bull by the horn".  Remember, it's your money, not penfed's.  Contact the chairman of the board if necessary.  Here's the link I got from their website:  https://www.penfed.org/Chairman/
The process of changing beneficiaries should happen immediately upon request.  It may affect the Insured coverage.  Good luck.
Anonymous   |     |   Comment #67
Paoli  When you open a CD online in about 5 days you will receive a form where you enter title info for the CD's.  It will require birthdays and SS #'s to be filled out on a form.  It is carbonized so you get an exact copy and mail in the original to Penfed.
paoli2   |     |   Comment #68
#67  I do fill everything in and fax and mail Originals back.  They insist the typed info on "my" copy is not on theirs so they never got beneficiary info.  Is this weird or not??  So I refaxed and mailed this week.  If no luck, I WILL email their Chairman.  Thanks for the link #66.
CC in CA
CC in CA   |     |   Comment #45
*** ALERT *** These rates WILL continue through January!!!

I just read the insert with my PenFed IRA CD renewal notice, and it says at the bottom of the rate insert "APYs are current as of January 1, 2014" and also at the top of the insert it says "you're on your way to continued high-yield earnings in 2014!"

So...  Happy New Year, everyone!
CC in CA
CC in CA   |     |   Comment #46
Oh, that is unless they change on January 2.  ;-)
But, it looks like January is a GO!
Anonymous   |     |   Comment #55
Ya they told me rates will hold till 1/31/2014
mike67   |     |   Comment #47
Hi Ken.  Thank you for all your hard work.  As a direct result of your blog I have opened accounts at both Pen Fed and Melrose credit union.  I response to your little survey I opened CDs worth $30,000 at Pen Fed in Dec.  I know this is not a lot based on some of your other readers but it is to me and my wife. 
Anonymous   |     |   Comment #69
Just informed:  PFCU Board of Directors, last friday voted to continue the present December rates for Jan 2014.
Ally   |     |   Comment #70
Again Pen Fed has not disappointed. Had 3 IRA CD's mature on Sat. Requested in writing that the rollover IRA be converted to a Roth and that the rollover be combined with the other Roth once converted. It is Monday and all done as requested. Again kudos to Pen Fed and the great employees they have had for the many years our family have been members. 
paoli2   |     |   Comment #71
Too bad I can't give them "kudos" at this point.  Isn't it great when things go right for you in life?  I think I will go fill in that report Penfed wants me to fill in about how much "I" like their service.  That's what I get for expecting things to be done correctly with "my" CDs.
gregk   |     |   Comment #72
While the 3% PenFed 5&7 year rate looks like a great boon for us types right now, I wonder how many investors in these CD's  are just a bit apprehensive that a year from now or two years from now it will have turned out to be a very sub-optimum decision on our part (given where rates might be then)?   I'll admit to some of this feeling myself, but can't imagine rates zooming up so much as to make my jumping in now extremely consequential on the downside.  But before it happened I couldn't imagine the huge rate tumble we've all had to suffer through either.
decades   |     |   Comment #73
added another 20K ....got to back off now and keep some powder dry ...rates are hard to predict 6 months out ..
Anonymous   |     |   Comment #74
I would maintain a ladder with different maturity lengths.  No one can predict the future.
Anonymous   |     |   Comment #75
Penfed could also go under and you will not get these rates.  It concerns me that they are offering rates so much higher than other CU's and even leaking information on rates. 
gregk   |     |   Comment #85
PFCU is a very healthy institution (as one can determine by evaluating their current financial statements easily accessible at penfed.org), though not, I will admit, quite as sterling as it once was, - their capital ratio has modestly but consistently declined over the years.  It's apparent they believe interest rates are likely to rise over the coming years (a very plausible if not certain assumption) and the payouts on these CD's over the longer terms will balance above market amounts in the early years with below market amounts later on.  There's nothing to be suspicious about.  IMO it's simply the CU attempting to meet the perceived wishes of some of its member-depositors, - the owners.  An intelligent and responsible decision it seems to me.   
gregk   |     |   Comment #86
Frankly, I believe there's far greater risk for investors putting money into these CD's than to Penfed in offering them.  However appetizing 3% seems to the so long famished among us, it's still quite low, and even if rates did nothing over the coming 5-10 years PFCU's financial health wouldn't suffer much adverse impact from having them on the books.  OTOH, the risks of rapid inflation (and a consequent big rise in interest rates) would leave us all in the lurch with these things and probably forced to pull out early - the EWP being much less in effect than the real value losses resulting from holding to term under such conditions.

I've wavered in my decision, but for those of us whose alternative is even the highest yielding savings accounts the stakes are ultimately quite low.  Pulling out of Penfed early (and losing our interest) would merely leave us about where we would be in any case :). 

Anonymous   |     |   Comment #76
I think I'll pass on Penfed since I can't go to a branch to open a CD in person.  From the comments, some people are getting excellent service whereas others are having unnecessay problems.  I wonder if it has anything to do with how the customer qualified to become a member?  Possibly, a little priority for some groups?
Anonymous   |     |   Comment #78
I doubt that.
Anonymous   |     |   Comment #81
I joined on of the associations years ago.  Have had several CD's and have had no problems.  I closed one of my 3 year CDs that I just opened so I could open a 5 year.  I faxed penfed my instructions as the rep told me to do.  I got the check in 5 days.  I opened online a 5 year CD which took 2 minutes.  Penfed is as good or better than any online bank or CU.
emdtech   |     |   Comment #77
I opened several CD's & made transfers on Roth IRA money last week. I have spoken to several people at PenFed and understand their backlog issues (around 5 days). I would encourage everyone to consider Priority or certified mail so the money can be tracked to PenFed. The best way to transfer money is ACH (I have seen the accounts opened immediately with the ACH to follow several days later). You will get the opening date for interest purposes (even on weekends) - so you earn interest on your money from inception date of the account. NOTE: Just today PenFed mentioned that it will extend the CD rates through the end of January 2014.
paoli2   |     |   Comment #79
The worse thing about Penfed is the reps who are opening up CDs over the phone, imo.  I think they are so inundated with customers that they are not taking down our info correctly and just rushing the CDs through.  There is no reason for the errors I have had to redo when the CDs are sent to me.  The people who are getting great service must be doing their own CDs on-line and can see what to expect before they get them in the mail.  I'm glad this has been a good experience for some but I am still awaiting my CDs to be corrected after my call today. 
Anonymous   |     |   Comment #80
You have a computer. Open the CD's online
paoli2   |     |   Comment #83
#80 You seem to be missing the entire point of my problems with Penfed.  I already explained why opening online would not resolve my beneficiary problem so if you are that interested, please check my earlier posts.  If not, so be it.
gregk   |     |   Comment #84
Paoli, with all due respect and good humour you seem like just the kind of person to create confusion in this process from the get-go, and the mistakes you refer to a predictable consequence of it, - all anxious and fussy and demanding I imagine, rather than letting things unfold in the careful, focused, but relaxed manner that CS reps prefer when talking with the public all day long.  It might be you exasperate them, and that the carelessness you complain about on their part in fact is self-caused. 
Anonymous   |     |   Comment #88
I agree !!! Paoli creates drama !!
paoli2   |     |   Comment #89
You know some of you can be so smug about me and have such fun always putting the blame for my problems on me.  I have a right to have my financial matters done correctly.  If that causes "drama" then why don't you tune into another station!  This morning I got an email telling me my daughter is now beneficiary of all of our CDs as per my request.  They had NOT put her in their records until I CALLED, EMAILED, and brought this to their attention.  Customer service reps make MISTAKES and if you don't get them corrected, YOU will pay the price for their mistakes one day.  Why do I create confusion #84 just because I want my CDs processed CORRECTLY?  I would have expected better from people who have been reading Ken's articles all these years.  You certainly don't seem to retain info very well on how to protect your finances.
Anonymous   |     |   Comment #87
 gregk -  I tend to agree with paoli assessment of her situation.  There are excellent and bad CSRs working in the banking industry.  She has unfortunately got a CSR that isn't very good.  I run into the same thing at my local banks.
Anonymous   |     |   Comment #90
I think it is a good idea to have a copy of the beneficiaries. I have had mistakes made when my husband's Roth's were added to mine when he passed. The beneficiaries were lost even though the CD account numbers remained the same.  I now have copies of all CD's and the beneficiaries. Things happen. My children each have a copy of the account numbers and the beneficiaries of the CD itself or on bank letterhead. They have no information on the amounts. As I am now combining CD's as they mature I will also give them the information of the closed CD's.
Anonymous   |     |   Comment #91
Take a poll of how many people have had errors on their Penfed CD's.  Open the CD's online.  When you get the form make sure you fill out beneficiary correctly and neatly.  The form is carbonized so you have an exact copy.  After the CD is open confirm they are set up correct.  I could see how problems could occur when listing what is required by Penfed:  Name, complete address SS numbers and birth dates.  If you have issues you can just fax the form to Penfed (Or PDF it)  Paoli .. People are trying to help you (You are taking it as criticism)  so errors can be avoided.  You seem quick to the trigger when you encounter problems IMO.
paoli2   |     |   Comment #92
#91  Give me a break!  One can help someone without purposely trying to make them look like a fool!  I did not know how to open the CDs online until recently when a "kind" poster shared with me.  I DO fax and mail the forms to Penfed.  You people enjoy trying to make me look it's always my fault no matter what I share with you.  From now on, I will keep my problems to myself and not give you more reasons to post your negative posts about me.  I have opened tons of CDs over many years and never had the type of problems I have had with Penfed but then again, I have always been there to correct their errors before I got the documents.  I have learned a great lesson from trying to do CDs by phone.  In the future, I will stick to doing it in person or with institutions I know will process them correctly.  Have a Happy 2014 everyone.  I hope to make mine happier by keeping my concerns to myself in the future or look for help in other places.
Anonymous   |     |   Comment #94
You have the right not to do business with Penfed if the service is do poor. You should stick to local banks.
paoli2   |     |   Comment #96
#94  Now that is good, mature input and I don't even see any "eye rolls".  You are right and I hope to do just that if Penfed keeps making dealing with them such an aggravation.  It can't all be about higher interest rates.  Thank you for your input.
Anonymous   |     |   Comment #98
I have opened many CD's with Penfed over the years and have never had a problem with any of them.  If this Paoli person talks to the customer service reps the way she talks on here I would imagine when she calls, every rep there eyerolls and thanks their lucky stars they are not the ones who took the call.  Some people seem to be in the middle of drama all the time.  I have found that those people usually enjoy the drama and being the center of attention even if it is negative attention.  For myself, I am glad there are people like her in the world.  It makes the reps bend over backwards to help those of us who do not bring drama to the table nor enjoy it when it arrives unannounced.   I have no patience for drama or for those who cause it.  I could never work in retail or customer service because I would refuse to play along with the drama.  Life is way too short to spend anytime dealing with it.
paoli2   |     |   Comment #100
#98  So you sound like the type who hides from "drama" and lets the Paolis of the world take care of your problems for you.  You must enjoy living with problems because you sure don't sound like the type who will face them and make them better for yourself. I know your type too.  I have had to report your type many times in business.  They do not want to take responsibility for facing people in life so they call others names who do.  BTW, I am know for being polite and courteous to all people. Even when I report workers, I do it with complete politeness and professionalism.  I always have "proof" for my reports! 
Anonymous   |     |   Comment #101
Yes.....Once again more paoli self generated drama !
Anonymous   |     |   Comment #102
No doubt, you're right.....and in looking at all the deleted posts, 'someone' has also been very busy taking names and reporting fellow posters also.  :-) 
gregk   |     |   Comment #103
Yep, - the deletion of my good natured and hardly offensive previous post seems to indicate "Paoli partisanship" on the part of someone in control here.  Think I'll just permanently retreat to the sidelines in that case.
paoli2   |     |   Comment #104
Ok, I'm back.  I didn't report your posts.  They get themselves deleted because YOU are the ones breaking Ken's posting rules, not me.  It's 2014, can't you find something else to do than to target "one" poster?  Maybe if you do retreat to the sidelines and just post about something besides Paoli, we can all enjoy the work Ken has done to offer us DA.  Inspite of your negative remarks about me, I still do wish everyone of you a Happy, healthy, 2014!
gregk   |     |   Comment #105
It's just banter, Paoli (and Ken).  Do you truly believe your "antagonists" on this site feel genuinely acrimonious and hostile towards you?  You're a character (and everywhere) here, and amidst all the useful information and exchange we access at DA, to indulge in a bit of harmless "theatre" at the same time shouldn't be something to give any offense.  I can only speak for myself, of course, but suspect if posters didn't in fact "like" your persona here in some fashion you'd be completely ignored rather than feted (even if critically) as you are.  I'd feel privileged rather than abused if I were you.
Anonymous   |     |   Comment #114
Join the crowd.  There are many of us who don't care for drama and no longer participate actively on this blog for that reason. 
Anonymous   |     |   Comment #106
Paoli,  If we didn't have you to joke around with, this site would be very boring.  There's really no interest rate deals to talk about.
paoli2   |     |   Comment #107
So Greg was right?  I am not the enemy of the group?  Thanks so much for relieving my mine and not making me feel so dumb.  This is a great way to start 2014 and I sure hope we get more great CD rates so you won't have to be bored.  :)  Much appreciation. 
Anonymous   |     |   Comment #108
Here's a novel idea.  Why not save all the banter, personal attacks, jokes, etc. for those dumb social networking sites?  Then those of us looking for serious info on interest rates won't have to sort through all the B.S. 
paoli2   |     |   Comment #109
#108  If you can't find the "serious info on interest rates" because of the banter then I think "you" need to spend more time on your "dumb social networking site".
Since when did these other posts keep us from finding out about Penfed?  Ken always draws our attention to specials by his articles.  Sorry DA has been so tedious for you to contend with.  Happy Griping Year to you!
Anonymous   |     |   Comment #111
And there she goes again! 
paoli2   |     |   Comment #112
Geez, you people have got to entertain yourselves for the rest of the evening without Paoli.  I have a scary movie to watch on TV.  I do have a life other than DA.  Have fun!
Charlottte   |     |   Comment #113
She won't be able to resist coming back again and again.  People like that crave the attention.  They never willingly give it up.
Anonymous   |     |   Comment #115
paoli should be on a reality show
paoli2   |     |   Comment #116
You mean you missed my reality show??  It's called "Tarzan gives up Jane to Swing with Paoli".  You people must not subscribe to the Premiere channels.  I'm not just Premiere with Chase you know. :)
RickNP   |     |   Comment #117
I have a question, which I am assuming can be answered by someone other than she I promised to never communicate with again. If I open a PenFed CD online, and  designate a beneficiary when I open the account,  the paperwork that arrives in the mail will be exactly what I indicated in my application. I then sign and return the original while keeping the copy. How can this scenario lead to botched beneficiary designation? Am I being naive to trust PenFed as I have been doing for the past few years? I've never called to double-check the accuracy. Is this something a reasonable person should be doing?
Anonymous   |     |   Comment #118
I can hardly see how anything could go wrong if the beneficiary that you requested is listed on the certificate that arrived in the mail.  However; if you get a little paranoli, you can double check on your online account by selecting the cd and then select display account owners to display your elected beneficiary.
RickNP   |     |   Comment #122
Thank you for the reassurance. I have always done that, and felt fully confident. However, being a cautious individual, reading of others' difficulties with this seemingly routine task started to give me pause. I'll stop obsessing now, and go back to living.
Charlottte   |     |   Comment #126
Rick, you have nothing to worry about.  Penfed is wonderful and their customer service reps are great.  You can see your beneficiaries online by clicking the small plus sign to the left of your CD.  Then click on Display Ownership Details just as #118 suggested.  It will show you and your beneficiaries there.  You also have your paper copy that you returned as backup if you ever need it.  Obsessing doesn't help even if there should ever be a problem.  It will just raise your blood pressure.  :-)
Charlottte   |     |   Comment #119
I open mine over the phone without designating beneficiaries.  Then I get the form in the mail.  I write my beneficiaries on that form, sign it and return it.  My beneficiaries show up online as soon as they receive the form.  Never once had any trouble with it.  Never had to make a followup call.  It is very simple.  You won't have any trouble.
paoli2   |     |   Comment #120
This is not a response to "he who has sworn never to post to she" but my experiences with Penfed are nothing like what the rest of you have.  I know.  I just love "drama".  I was told customers are not allowed to see the beneficiaries on-line that it can only be seen by their special computers and that is why I can't see my beneficiary even tho they insist the name is there.  Sooo is this the real Twilight Zone for me or what?  #119 can "you" actually see your beneficiaries online when you click on the thing that brings up the Owners etc.?  This is really beginning to concern me that the rest of you are doing so fine and I am having these problems.  The replies I get from Penfed are nothing like the answers you get.  I have gone out of my way to be polite to them whether you want to believe it or not.  I checked tonight and the beneficiary is still not to be seen and I am not supposed to be concerned with what is going on for "me" at Penfed?
Anonymous   |     |   Comment #121
conspiracy against paoli?
Charlottte   |     |   Comment #123
That is correct.  When you are looking at your accounts, click on the small plus sign on the left.  Then click on Display Ownership details.  Mine gives my name with Payable on Death next to it and below that it shows the names of  the beneficiaries for that CD.  It does the same for every CD I have.  Simple.  Has done the same for every CD I have ever had with Penfed and that is quite a few over the years.  If you truly love drama as much as it seems, it looks as though you are getting as much of it as you can handle, so why not just relax and enjoy it?
paoli2   |     |   Comment #124
#1123  This isn't funny and has nothing to do with "drama".  Either you are not telling me the truth about what you are really seeing on Penfed's page or they are lying to me about customer's not being able to see the beneficiaries.  I am not looking for drama.  I am just asking for what you are saying you can get.  I just want to see that my beneficiary is there with the CD Owners so I can know Penfed has done their job.  This is not funny to me and if it was happening to you, I don't think you would feel it was something to joke about.  I'm giving Penfed more time to post it since we have had holidays to interfere with their 7 to 10 day timeline.  After that, I will take it further.
Charlottte   |     |   Comment #125
I knew that I should have not replied to you and will not do so in the future.  I answered the question you posed and you accuse me of not being truthful.  I am sure the customer services reps at Penfed are looking forward to dealing with you.  I have no doubt you will "take it further."  You just will not be taking anything further with me.
paoli2   |     |   Comment #127
Excuse me, I am not accusing you of lying.  I am trying to find out why you are saying you can do something Penfed tells me the customers can't see.  I am trying to get to the bottom of my problem.  I don't intend on taking it further with you.  "You" are not my problem.  Penfed is until they resolve this for me and see to it that their reps don't make statements that may not be true.  Note that when I made my remark concerning "lying" I said "either".  I was trying to get across that I do not know what is going on but I intend on finding out before long.
RickNP   |     |   Comment #128
Charlotte, thanks again for the encouragement. I am replying here rather than above because I see that you have just had a similar communication experience to one I had several weeks ago, and have reached a similar conclusion. (Thus explaining my vague reference to "she I promised to never communicate with again.")  My wife actually opened a PenFed CD last month via phone and we added the beneficiary once the paperwork came in the mail. As you state, it was visible online within a week. The telephone rep was, according to my wife, excellent to work with.
Charlottte   |     |   Comment #129
No problem, Rick.  We all learn by our experiences.  The trick is just to not keep repeating the same mistakes over and over.  Lesson definitely learned. 

Sounds like your wife did hers just like I do mine each time.  I opened one completely online but I find the customer service reps take care of it for me so much more easily.  So, I just call, tell them what I want done and they do it.  I get the paperwork in the mail in a few days, list my beneficiaries, sign it and return it.  My CD shows up online almost immediately after I call to open it and the beneficiaries show up a couple of days after I mail the form back to them.  Nothing could be more painless.

Again thanks for the reply and you are most welcome.
paoli2   |     |   Comment #130
Ok, no one is speaking to me but I have to apologize for my earlier postings.  I feel you deserve to know that I won't be bothering you about my Penfed problems.  I think I got to the bottom of it.  I just spoke to a very nice rep who said I should never have been told "customers cannot see the beneficiaries" by the other rep.  They certainly can and he found my DD's name on all of our CDs.  The problem was that while on the phone with him I could not see them at all.  There must be a computer problem someplace and he has advised me to contact their technical Helpers who may be able to help me get her name on the page.  I hope to work with them tomorrow on this.
Charlotte, please accept my apologies for me allowing my concern about this to cause me to post in a way that you felt I insulted you.  Evidently, you and Rick are both telling the truth and I had no right to think otherwise and jump to wrong conclusions.  I don't expect either of you to communicate with me but I do hope you both will accept my apologies.  I will deal with Penfed and not discuss my problems any further on DA.  Thank you for your understanding.
Anonymous   |     |   Comment #131
Not sure you are talking to a knowledgeable person at penfed.  It should be a simple task to get the beneficiary listed so it shows up online on your cd.   By the way, Penfed does not display the beneficiaries online for the IRA CD accounts.
Anonymous   |     |   Comment #132
#130 paoli2,  What internet browser are you using?  I've had past experience where Firefox would not display some data whereas Internet Explorer (IE) would show it.  Good luck.
paoli2   |     |   Comment #133
#132  Thank you for the suggestion.  I am using Firefox and it will at least show Joint w/Survivorship and myself and hubby but when I tried IE it says "Information not Available".  It won't even show our names.  I will have to wait until Penfed's Online Help contacts me and maybe they can figure out what is going on.  It may be a glitch in my computer.  Much appreciation anyway.
scottj   |     |   Comment #134
Opening a CD online with a beneficiary is a piece of cake with Penfed and paperwork will show beneficiary. Gets more difficult opening in a living trust, no way to request that when opening, you need to put that into that paperwork they send you. What has bothered me is they don't send you anything back reflecting that and there is no change to how accounts are titled online or on statements. Since I just did a new $160k CD with them I wanted to make sure my old CDs were under my Living Trust and this new CD will be just in my name. They told me they will send me a document showing exactly how my accounts are titled. And Paoli2 you remind me of my 77 year old mother, while you are doing better than she would in opening these, she would be lost in the process if it werent for me doing all the work. She is excited about this rate and has been hoping it would go into Jan since she has a CD of over $750k at another bank maturing on Jan 9
paoli2   |     |   Comment #135
Oh Greeat.  Someone is actually speaking to me this morning and I remind him of his mother.  That "has" to be a compliment! :)  BTW Scotty, I am in no way like your beloved mom because first I am not 77 and I am already doing my 2013 taxes and RMDs for 2014 and still handle all the medical, taxes and finances for the family.  The Penfed problem is not of my errors.  I did everything required perfectly and all I want is to see that "they" processed it correctly.  I think after someone instructed me recently, I could do the CDs online now.  When I did them on the phone, I did not know how to do it with this piece of junk computer I have.  If you think I am emotional, you need to meet my computer.  It gives me fits some days.  I also am not like your dear mom since I don't have one CD at any one bank for the amount she has.  I would never put that much money in one bank.  I don't like to put a lot of my eggs into one basket.  I even seperated hubby's Rollover IRAs into two different brokerages.  It helps to get what I want from one by telling them "so and so" does it for me. :)
Your mom would be able to handle her CDs on her own even at 77 if it were something she was doing all her life like I have.  If she hasn't it would be hard for even a 50 year old to do.  I am not a young chickadee but when I don't understand how to do something, I research and teach myself.  I only had one tax problem in all these years and it turned out "I" was correct and the IRS had made the error. 
I am so glad your mom has you to protect her money for her.  Many savers her age, men and women, don't and they end up having to pay dearly in a lot of ways to hire professionals to do it.  That is the scary part!
Anonymous   |     |   Comment #136
What is the brand of junk computer you have?
paoli2   |     |   Comment #137
Ok.  So it's a Dell Desktop.  It may not all be the computer's fault.  I got it late in life about 4 years ago and don't understand a lot about how to handle it.  I can't get my Adobe Flash to work even tho I paid a Geek guy to install it.  Now my 3 year contract with them is expired so I am on my own.  Unlike my finances, I have not been using a computer all my life so at my "youngest" age, it is a wee bit confusing at times when it gets neurotic on me.  It got good reviews in Consumer Reports so that is why I got the Dell.  I think the problem with my Dell is a lot "me".  I have a scanner and in all these years can't figure out how to get it to work. See what I mean?
Anonymous   |     |   Comment #138
The problem isn't you or the computer.  Its the Adobe Flash software.  I had the same thing happen to me. The latest version is a real "hog" on the computer's resources and internet connection.  I de-installed it and loaded the old version back (Version 9.5.5)
Now I just download the PDFs and read them from my PC.
paoli2   |     |   Comment #139
I had a feeling it was that Adobe thing but I don't know how to de-install it and put old version back in.  I tried and it gave me a message saying I couldn't do it.  One day I will pay somebody to come to the apt. and fix it back up again. 
Anonymous   |     |   Comment #140
The paoli drama continues !!
paoli2   |     |   Comment #141
#140:  What is your problem?  Why is it you never start up about any other poster yet when I post you always have to refer to it as "drama"?  I checked your other posts and it seems you are obsessed with Paoli.  Get a puzzle or a new rocking chair and leave me alone!
Anonymous   |     |   Comment #142
Earlier quote from Paoli in comment #130.
 "I will deal with Penfed and not discuss my problems any further on DA."
paoli2   |     |   Comment #143
#142  I was referring to my PENFED problems in that post.  Are you stating I should not respond to posters who acknowledge my name and something about in "their" posts?  Well maybe you should get Ken to put up a new rule for everyone and tell them they are never allowed to mention Paoli in any of "their" posts. You want to keep my posts off the thread then DON'T bring my name into your posts.  I don't think the poster "Scotti" knew that he's not allow to refer to Paoli or he would not have brought me into the discussion about his dear mom.  I did not initiate any post discussions on my own but if I am referred to it is rude of me not to respond or give my opinion.  That is NOT called DRAMA. 
That is called being a polite and courteous poster responding to another polite and courteous poster.
paoli2   |     |   Comment #144
#142  I meant to post "I was NOT referring to Penfed problems in that post"  as you well know.
Anonymous   |     |   Comment #145
I could tell you how to de-install Adobe, but I don't recommend you do it yourself since your not a computer "geek".  (No offense please)
paoli2   |     |   Comment #146
#145  Thank you so much for bringing to my attention what the problem may be.  I agree with you that this is nothing I want to try to do myself.  I would rather have a professional do it the "right" way.
RobbieP   |     |   Comment #147
I've read through all the DA comments and you know what, just ONE SINGLE person has claimed to have had issues with PenFed paperwork out of the many many people reporting on this forum, which in my estimation is extremely outstanding!  PenFed's customer service must be outstanding to have just a single person having problems!
paoli2   |     |   Comment #148
#147 I was not going to discuss my Penfed problems but what you are insinuating must be responded to.  This morning I received an reply to my email to Penfed asking if they could put my daughter's name as beneficiary online so I could print it for my records. This is what they replied:
"Thank you for contacting Pentagon Federal Credit Union.

Online will show the Owners, primary and joint, on the Money Market

I take this to mean I cannot get it done yet others have said they did and I believe them.  No matter what Penfed's reps think of me personally, they have a job to do and should not treat all customers in the same manner.  Maybe other customers have had problems but are not posting it here.  Not everyone is a member of DA.  They have no reason to single me out.  Frankly I doubt I am the only customer having these problems with their reps and I resent the fact of what your post is insinuating since you do not know everything that is going on and yet you seem to be making me the problem here. 
paoli2   |     |   Comment #149
I meant to say "they SHOULD treat all customers in the same manner".
BTW, if no one wants to hear about Paoli's drama, why do you keep referring to my problems with Penfed?  Please keep me out of your posts!
paoli2   |     |   Comment #150
Guess what folks?  Penfed finally mailed me the 5 CDs I was waiting for with my daughter as beneficiary today.  I am so happy this "drama" can finally be closed and I can have good feelings again about Penfed.  I will fill out their survey and give them a good rating at last!  I just won't have anything left to post about now.  Boy, this will make some of you real happy!  :)
scottj   |     |   Comment #151
After reading how important it is that credit union has your beneficiaries listed correctly to get insurance I decided to send my question to the NCUA. I understand it's easy to list a beneficiary if account is opened as "ITF" or "POD", but became more complicated when opened as a "Revocable Living Trust". Penfed has that listed on one of my certificates but makes no mention of a beneficiary and no way for me to list one. So sent that question into NCUA and got the following prompt response. Since my Trust is considered a formal one Penfed does not need to show beneficiaries, if something were to happen to them the NCUA would require a copy of my trust to determine amount of coverage, since my beneficiary is listed in it this account would be insured separately for increased coverage. Hope this might be helpful to others who have Living Trusts 

"    Scott, Your question was forwarded to me by Consumer Access Technician David Button for response.    If your account was an informal revocable trust then the beneficiaries must be specifically named in the account records of the credit union.  However, formal revocable trusts do not need to have the beneficiaries named in the account listed at the credit union to qualify for insurance.  NCUA would look to the formal trust document to determine how many beneficiaries are listed and the insurance would be calculated based upon the findings.  Based upon the information you have provided it appears you have a formal trust document and  the insurance on your trust account would be $250,000. Your e-mail also indicates you have an additional account which is a single ownership account in your name.  This account would be separately insured from your trust account for $250,000. If you have any additional questions, please don’t hesitate to contact me.  
Susan  M. RyanConsumer Access AnalystNCUA Office of Consumer ProtectionPhone: (703)664-3957RightFax: (703)837-2896
paoli2   |     |   Comment #152
#151  Thank you for sharing the phone number for this information.  However, your concern for the beneficiaries seems to be different from my own.  I just wanted to make sure the beneficiary was named and titled correctly so that they could take over the CDs as owner in case of the decease of the Joint Owners.  As long as the beneficiary is correctly named and they become Owner of the accounts, if the credit union fails, the insurance coverage should automatically belong to them.  I just finished doing informal POD trusts for two of my credit unions so that our beneficiary would be able to take over the accounts when necessary and also be insured.  I was surprised that credit unions do not just allow one to make someone a beneficiary without doing this.