Stay Or Leave Penfed After Your Current Cds Mature?

senda
  |     |   30 posts since 2015

With a lot of PenFed's old, decent CDs having matured already, or maturing soon, I was wondering what people's thoughts were -- if there's any reason to still stay a member of PenFed after all the legacy CDs mature.

I just had the last of my PenFed legacy CDs mature.

Normally I would stay a member of a CU, in case there are other good deals in the future. But a few years ago PenFed made their Early Withdrawal Penalty one of the worst out there. I can never see myself ever having a CD with them again, with the severe EWP.

Though while I'm sure some DA readers are interested in money market accts, credit cards, or other products, I'll assume the majority of DA readers are interested in CDs. So I was just curious how many DA readers would plan to still stay with a CU if they know they'll never get another CD from them again.

There are other CUs where I only have the $5 in savings, and still stay with them just in case there are future deals that might pop up (making sure to ACH a few cents every now and then so the account isn't considered dormant) -- and that's my default view (stick with a CU in case there are good deals in the future).

But these two CUs make that decision harder:

(1) PenFed (because with their absolutely terrible EWP, I see myself never having another CD with them).

(2) GTE Federal (after the 3% CD matures in a few years) because of the requirement to keep at least $500 still with them to avoid huge fees.

Thoughts?




Rickny
  |     |   121 posts since 2017
Just keep the $5 in the Penfed savings account and you can wait and see if you want. I have a 5% gas discount grandfathered Visa with them so I keep things going with Penfed but no longer have CDs with them..
Ally6770
  |     |   3,008 posts since 2010
I also have an inherited IRA with them and a small Roth IRA that I forgot to transfer to Navy but both are still paying over 3%. I am trying to consolidate and am kind of nervous about transferring them both out because I still have that 5% cash back on gas credit card. I use Costco gas so my gas is pretty cheap. I love that they take the 5% right off the bill each month before sending out the bill and debiting my checking account. I sure would hate for them to  cancel that credit card but Costco pays 4% on their card but you have to wait until the first of the year to get their refund back.
deplorable_1
  |     |   247 posts since 2020
It's not 5% cash back though it's 5x points that have to be redeemed as a gift card, travel or merchandise correct? I was just wondering does one point = .01 cent when redeeming for a gift card? To me cash is king where rewards cards are concerned. I have seen several cards where 1 point = .005 or 1/2 a cent and they have a lame selection of gift cards to choose from for redemption. Plus due to the pandemic I stopped going to restaurants due to seating capacity/masks etc. and just started cashing out instead.
Rickny
  |     |   121 posts since 2017
D1 You are wrong about the 5%. I get 5% off my credit card bill every statement not points. If you refused the card with points when they tried to make you change cards you get 5%. I use my Penfed card to get 5% off a gallon and have it registered with Fuel Rewards so I get another 5 cents or sometimes 10 cents off on Shell gas.

Been using it alot this week. Looking at houses in NC this week.
deplorable_1
  |     |   247 posts since 2020
@Rickney: I don't have that particular card I was just stating how most point cards work. If you are getting one cent per point taken off your bill that's a pretty good card then for the 5% and 3% categories. I didn't see that listed in the redemption options at first glance so I figured a gift card would be the best way to redeem. I have a few point cards where you can redeem for cash and one point = one percent so they do exist. May be a good reason to keep PenFed open then.
Rickny
  |     |   121 posts since 2017
You stated "It's not 5% cash back though it's 5x points..."
deplorable_1
  |     |   247 posts since 2020
@Rickny: If you read it again I was asking you if that was correct that's why I ended it with a question mark. Sorry for the misunderstanding.
Rickny
  |     |   121 posts since 2017
No problem D1. Glad your posting again.
Choice
  |     |   373 posts since 2020
Rickny…Going to rent with option to buy?
Rickny
  |     |   121 posts since 2017
We were looking at homes in the Triangle area close to Raleigh like Apex, Holly Springs and Fuquay-Varina. With all the people and companies moving to the area their are bidding wars on resales.

With new construction they are selling like hot cakes and you have to bid on lot premiums from the builder when they open the lots in groups of 4. You also have to be pre approved for a mortgage to bid on a lot.

We came close to pulling the plug but wife found a nice new development and a model we like. You can't even meet with the salespeople without an appointment. Going back next month. Figure new build and have 2 homes and when my daughter graduates high school sell NY house and move. We also looked at colleges. Want to talk about sticker shock. Thank God I started a 529 when she was 1.
Choice
  |     |   373 posts since 2020
And real estate taxes on new house with all this bidding has been considered
Rickny
  |     |   121 posts since 2017
In NC the taxes would be 4 to 5k for the house we would buy. In NY I pay a little over 16k. The taxes are on assessments of other similar houses.
hank
  |     |   98 posts since 2016
No it's not 5 percent cash back. yes it's 5 points which are worth less than 1 cent each. I do keep this card also and I use it only for gas and then when I have enough points I cash it in for a 50 dollar Visa card. It's less than 1 cent per point but it still gets me that $50 faster than if I use the 2 percent cash back card.
diamondx
  |     |   162 posts since 2011
My pf visa card IS 5% cashback when used at pay at the pump gas stations. I have had it for probably well over 5 years and it does pay me 5% cash back on my statement every month.
Rickny
  |     |   121 posts since 2017
Hank I get 5% off gas comes off the statement each month. If you did not chose to change your card when you sent the letter years ago you were grandfathered for the 5%.
111
  |     |   194 posts since 2019
Perhaps part of the confusion is that some may be conflating 2 different PenFed credit cards. Several years ago they had a few cards that earned points, including one that paid 5% in points for gas (and fewer points for other purchases), plus another that was a specialized gas card paying 5% cashback. I had and still have both. At that time a point equaled 1 cent. Then PenFed devalued their points cards (all of them, I think) to make a point equal to either ¾ or 2/3 of a cent - anyway, less. Members were not happy. As I recall they offered people with the 5% points card a small cash bonus to agree to this change, so I agreed. A bit later on the 5% gas-only cashback card, they tried to jerk members around by making it contingent on keeping X amount in a certain PenFed checking account, but they later backed off on that.

My 5% points card gets little use lately, but once in a while they do a promotion like the $25 statement credit for making 4 charges over the Memorial Day weekend this year, which was nice. I actually keep the 5% cashback card in my wallet, and put almost all gas on it.
deplorable_1
  |     |   247 posts since 2020
Ok I see now. I didn't know about the old cards all I had to go on was the current terms. I stand by my statements about points cards vs. cashback cards in general although there are always exceptions and a couple of good points cards out there. I have seen some points valued at 1/4 and 1/2 a cent per point and points are only good for merchandise which they overvalued as well.
Rickny
  |     |   121 posts since 2017
All my credit cards are cash off (ex 5% at Lowe's and Target) or cash back. Never has a card with points rewards.
deplorable_1
  |     |   247 posts since 2020
Personally I would keep them both open for future deals as long as the account activity isn't too tough to maintain. For GTE just do a 6 month CD with cc funding. For PenFed it looks like that would be a tougher decision as I see nothing good being offered currently. Their only good credit card has 2% cashback if you qualify which may be a reason to stay with them. Very few cards offer a straight up 2% that can be redeemed for cash. I don't like the points cards because you can't get cash and you may not get 1 cent per point depending on the card. I would guess that PenFed will have a CD special in the future.
mariafalter
  |     |   65 posts since 2010
I tried to fund a gte cd with the fidelity cc, the transaction was coded as a cash advance. ??
RickZ
  |     |   110 posts since 2010
mariafalter, that’s definitely concerning news. I’ve opened a number of these CDs in the past using my Fidelity Visa credit card and they’ve always coded as a purchase. 

Questions: When did this transaction take place? Did you contact Fidelity Visa CC or GTE about this and what did they say? Where you able to do anything about the cash advance fee or did you have to pay it? Thanks.
mariafalter
  |     |   65 posts since 2010
It happened last week. I called both cc and cu, because the funding didn’t go through. Fidelity said that the transaction was rejected, because the amount was higher than my cash advance limit. The gte people said they didn’t do anything differently, just hit the funding button as always.
RickZ
  |     |   110 posts since 2010
Thanks mariafalter – could be a change at Fidelity Visa. My last CD using my Fidelity Visa was in April and it processed as a purchase. I’ve been using a new 1.5% credit card with an extended 0% APR for newer purchases.

Fidelity Visa sets its cash advance limit at 25% of your credit limit and it can’t be lowered independently of your credit limit. A $5K transaction would potentially process as a cash advance for me. If I want to use this card again I’ll probably need to do a $500 test purchase to see what happens.
mariafalter
  |     |   65 posts since 2010
I did a $500 test in June, and it went through as a purchase. I just had a thought though: is it possible that initially the transaction goes through as a cash advance, but settles as a purchase?
deplorable_1
  |     |   247 posts since 2020
That is definitely a possibility maria. I have had this happen with NFCU. I can tell you guys one thing for sure it's not GTE it's Fidelity. The issue is on their end. they either: 1. Changed the way they code the transaction or
2. It has something to do with your cash advance limit. I posted about this before I do NOT set mine to $0 as many have suggested I keep mine at $2,700 which is where Citibank set it. The reason for this is that sometimes if it's set to $0 the transaction won't process at all. I never suggested using that Fidelity card as I don't have it personally so I have no idea how it would code.
hank
  |     |   98 posts since 2016
I use the same strategy of staying with the CU in case a deal pops up. I have never cashed in a cd early so I don't think too much of an EWP. Penfed has had some good rates in the past and probably will again. Penfed has also swallowed up other CUs in which I had CDs including Tobyhanna/Valor with the 3 percent 7 year CD
Incidentally , I keep $500 with Penfed so I get 2 percent back with my credit card.
Jack11
  |     |   272 posts since 2019
I have the 5 point penfed gas card but I never use it as I buy discounted gas giftcards off ebay for a larger than 5% discount

I did get a postcard like promo today that says they added 3X for supermarkets restaurants and streaming

But I am unlikely to dust it off


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