Pen Fed Early Withdrawal Penalty

Ltssharon
  |     |   65 posts since 2020

I was thinking of buying some Penfed cds in April, 2022. But just now I looked at their early withdrawal penalties on their longer cds. The penalty is 30 percent of the interest you would have earned had you held the cd to maturity. Wow it looks to me like a penalty on a cd could cut into the original principal. Do you see it this way also? Thankyou



Answers
Ratesaver
  |     |   99 posts since 2013
Yes , not to go into the penalty in full but if you were to buy their cds just do it with the idea of not cashing out early period... They are not good at all. Their rates are ok but nothing great however in the todays times nothing is normal... Buy the one or two yr. and hold to maturity and make sure you mention at opening not for renewal... That way they will close it and you can get it mailed to you or have it put into a saving acc...
Ltssharon
  |     |   65 posts since 2020
Will do. Thank you very much.


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