Penfed CD Rates

Peter Lantos | Jan 9, 2014 | 1 posts since 2014

Your blog sates that : "The third point about PenFed CDs is that they do not allow partial early withdrawals (except for IRA CDs)" That would seem to be incorrect. The PenFed representative I spoke with said that the rates and the penalties for early withdrawal are the same for regular CDs and for IRA CDs.

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ChasR | Jan 9, 2014 | 228 posts since 2013

The most recent "Money Market Share Certificate Agreement" I have on file says: :Partial withdrawals are not permitted except for IRA accounts." It also states that EWPs are waived on IRA Certificates ""only if the owner is permanently disabled" with the meaning of section 72(m) of the Tax Code.

paoli2 | Jan 9, 2014 | 2,394 posts since 2011

It all depends upon which rep you get as to what you might be told with Penfed from my experience. I always also understood it to be that their EWP is not the same for regular CDs as they are for IRAs. For example, from what you post, does that mean they will go back and change my earlier CD I bought a year ago to the higher 3 % rate if I call and request it? That would be nice but I don't think they could afford to have such a generous policy. Might be worth a call except I have finally gotten my CDs corrected with them and sure don't need to open up another can of worms for a bit more interest.

Ally6770 | Jan 9, 2014 | 2,317 posts since 2010

The following is from the PenFed page on IRA CD's under benefits

Benefits
Dividends are compounded daily and paid monthly for maximum returns
Contributions are tax deductable
Partial withdrawals from IRA certificate or qualified distributions without an early redemption penalty

paoli2 | Jan 11, 2014 | 2,394 posts since 2011

I just received some information from a Penfed ref today that I was wondering if it is what is the same with others on DA who are receiving Penfed interest checks monthly. I noticed none of the interest checks had my husband's name on them as Joint Owner so that he could sign them if necessary and handle them. I was told Joint Owners have full access to the CDs just like the member does.

I spoke to a Supervisor at Penfed today and was told Penfed does not put the Joint Owner's name on the interest checks and she has no idea why not. Can anyone tell me if they have a Joint owner on any of their CDs and if they are seeing both names on the checks? Everything I read states Joint Owners both have full access to the CDs and the money but evidently Penfed considers "full access" differently than other institutions do. We have joint accounts with many banks, cus, and brokerages, and everything they send us is in "both" of our names. She confirmed he is Joint on all the CDs but says this is the way Penfed does the interest checks. She is going to try to research it further and call me back next week to see if anything can be done so he can have access to the interest checks also. If I were to get sick, he could not just sign the checks and get them cashed since his name is nowheres on them. Any help or information you can give me will be greatly appreciated so I can understand what is going on with Penfed. Thanks!