PenFed CD Rate Increases Are Modest


Deal Summary: Rate increases on most Money Market Certificates/IRAs, with the 5-year (3.50% APY) having the most competitive rate.

Availability: Easy membership requirement

As anticipated and hoped for by many, PenFed Credit Union (PenFed) started December by raising the rates on all its Money Market Certificate (MMC), with the longer-term MMCs gaining the most ground. Unfortunately, the new rates don’t match our collective expectations, with increases of between 9 and 25 bps. Simply put, the new rates aren’t that great. The new MMC APYs are shown below in bold and are effective as of 12/1/2018. The previous APYs are noted inside parentheses.

  • 84 mo - 3.50% (3.30%)
  • 60 mo - 3.50% (3.30%)
  • 48 mo - 3.15% (2.90%)
  • 36 mo - 3.05% (2.85%)
  • 24 mo - 2.95% (2.80%)
  • 18 mo - 2.90% (2.75%)
  • 15 mo - 2.85% (2.71%)
  • 12 mo - 2.80% (2.71%)
  • 6 mo - 2.40% (2.30%)

As many DA readers know, this is the 5-year anniversary of PenFed’s hot CD deals, including the fabled 3.04% APY offered on the 5-year MMC. It was the hottest deal around at the time: the highest rate offered then on a 5-year CD by an internet bank was only 2.11% APY. To put that PenFed deal in perspective, an equivalent offering today would be something like a 4.50% APY 5-year CD. While only available for two months (December 2013 and January 2014), the 3.04% APY 5-year MMC serves as the touchstone when discussing hot deals.

I think many of us believed PenFed would offer something amazingly competitive in December, because there are millions of dollars in 5-year MMCs that will be maturing in the next two months. PenFed may have to come up a really compelling deal to keep those deposits in-house.

Any MMC can be opened with a minimum $1k deposit, and there are no stated balance caps. All of the above terms, with the exception of the 6-, 15- and 18-months, are available as IRAs (Traditional, Roth, and CESA) but with APYs 10 bps lower.

PenFed’s Early Withdrawal Penalty (EWP) changed in 2016 and any MMCs that are renewed from now on are subject to the following:

Certificates Having a Term Greater Than Six Months.

    a) If redeemed within the first year, all dividends will be forfeited.

    b) If redeemed thereafter, but prior to the maturity date, the early withdrawal penalty will equal 30% of what would have been earned if the certificate had been held to maturity, not to exceed total dividends earned.

As you can see, the EWP is harsh. For the 12-month term, no matter when a withdrawal occurs, it is loss of all earned interest.

On the other hand, PenFed continues to allow penalty-free partial withdrawals of IRA CDs for members over the age of 59 1/2. The following is an excerpt from the IRA CD disclosure:

Partial withdrawals for members over the age 59 1/2 (including Required Minimum Distributions) and qualified distributions regardless of age (including Disability) may be processed from IRA certificates without incurring an early redemption penalty.

This may be one reason PenFed now keeps its IRA CD rates 10 bps lower than its standard CDs.

Thanks to DA readers, alan1 and RateRover, for their Forum posts about PenFed’s December rate increases.

Premium Online Savings

PenFed also raised the rate on its Premium Online Savings account to 2.00% APY on balances up to $100k. According to the Savings Account Disclosure, “Amounts over $100,000 do not earn dividends.” Since the Premium Online Savings account was unveiled three months ago, there have been two rate increases, adding a total of 35 bps.

The Premium Online Savings page lists a few FAQs, including,

What is the maximum amount I can transfer?

    There is an incoming and outgoing transfer limit of $5,000 per day and $50,000 per rolling 30 day period for transfers you initiate at PenFed.

    If you would like to deposit more funds into your account please contact your other bank and send us a Wire or initiate a transfer at your other bank.

    To withdraw more funds please initiate a transfer at your other bank, or call us to send a Wire.

Can I access my Premium Online Savings Account at an ATM?

    Your Premium Online Savings Account is not accessible from an ATM. To access your savings from an ATM open a Regular Savings Account or a Money Market Savings Account.


Headquartered just outside the Beltway in McLean, Virginia, PenFed Credit Union offers membership to almost every U.S. resident. PenFed’s online application lists the various ways in which individuals can qualify for membership.

If you meet any of the following requirements, you are eligible to join PenFed:

1. I am active/retired United States Military & Uniformed Services.

2. I am an employee of a qualifying organization.

3. I belong to the following association or organization.

4. I am an employee of the United State government.

5. I am a relative or housemate of someone who is eligible.

6. I live or work at an eligible location.

7. Other

Selecting Option #7, "Other," provides information about joining PenFed through membership in either Voices for America’s Troops ($17, one-time only dues) or the National Military Family Association ($17, one-time only dues). Joining either of these associations and PenFed can be done simultaneously using PenFed’s online application.

Need another way to join? No problem!
Members of the National Military Family Association and Voices for America's
Troops are among those eligible for PenFed membership. We've made it easy for
you to join one of these associations, which makes you eligible to join PenFed.

Joining PenFed and/or opening a Money Market Certificate can also be done in person at any of the 47 full-service branches located in California, the District of Columbia (5), Florida, Georgia (6), Hawaii (3), Kentucky, Maryland (3), North Carolina, Nebraska, New Mexico (2), New York (1), Pennsylvania (4), Tennessee, Texas (8), and Virginia (9).

Credit Union Overview

PenFed Credit Union has an overall health grade of "A" at, with a Texas Ratio of 5.35% (excellent), based on September 30, 2018 data. In the past year, PenFed has increased its total deposits by $703 million, an excellent annual growth rate of 3.98%. Please refer to our financial overview of PenFed Credit Union (NCUA Charter # 227) for more details.

Established in 1935, PenFed Credit Union is the third largest credit union in the nation, with more than 1,685,000 members and assets in excess of $24 billion.

How the Money Market Certificate Compares

When compared to 180 similar length-of-term CDs tracked by that are nationally available and require a similar minimum deposit, PenFed Credit Union's 5-year Money Market Certificate APY currently ranks third.

The above rates are accurate as of 12/1/2018.

To searching for the best CD rates, both nationwide and in your state? Please refer to CD Rates Table page.

Related Pages: savings accounts, 1-year CD rates, 5-year CD rates, nationwide deals

sharpie   |     |   Comment #1
Terrible EWP, rates well below others. Used to do PenFed, but long since moved elsewhere.
Bozo   |     |   Comment #2
Sharpie (re comment #1), as noted elsewhere in other threads, PenFed is really only useful for partial withdrawals from IRA CDs for folks over 59 1/2, where there is no EWP. While my comments historically are fairly explanatory on this point, folks may feel free to PM me for further explanation. The IRA CD Disclosure (Article XIII (4)(G)(iv), available online should suffice.
SYC   |     |   Comment #28
While there is no EWP for "partial withdrawals from IRA CDs for folks over 59 1/2", people should beware of this clause "(3) The credit union reserves the right to require a written notice of up to 60 days of intention to withdraw from your IRA Share account." also in the IRA Disclosure Statement, XIII, d on page 15 of PenFed Form 742 (9/15).
rockies   |     |   Comment #3
Based on what I see, many PenFed customers should be looking at other alternatives. Ken’s site is a wonderful research tool for identifying other non-PenFed alternatives. To me, 10 bps are a big deal and 50 bps are a really big deal. I used to be a walking advertisement for PenFed. My support for their mortgage innovation and rates was responsible for 8-10 new PenFed mortgages by family members and friends over the last 10-15 years, including my own. When PenFed refused to meet the emerging competition, I refinanced with another lender. My opinion is that PenFed has become bloated and slow….diminished innovation, low certificate rates and high lending rates. The margin that they could be sharing with their customers is funding the internal bloat. So, like all challenged businesses, the only way change happens is when customers vote by taking their dollars elsewhere.
Here are a few alternatives to the PenFed 5 year Money Market Certificate (that I found on DA )– Founders FCU (4.06%), New Century Bank (4.01%), Bank of Utica (4.0%), New Horizons Credit Union-OH (3.82%), First Guaranty Bank (3.75%), Pelican State Credit Union (3.71%), Impact Credit Union (3.65%), United States Senate FCU (3.63%), Peninsula FCU (3.6%), and Northpointe Bank (3.6%). Some 4 year alternatives are - Northeast Credit Union (3.82%), CoastHills Credit Union (42 months) (3.71%), Pelican State Credit Union (3.61%), Tech Credit Union (50 months) (3.56%), Cross River Bank (3.56%), Bank of Utica (3.5%), Marion Community CU (45 months) (3.5%), and New Century Bank (3.49%). There are even 3 year alternatives that offer similar rates to the PenFed 5 year rate – Pathways Financial Credit Union (40 months) (4.00%), Pelican State CU (3.51%), Cedar Falls Community CU (41 months) (3.45%) and Veridian CU (41 months) (3.45% Bump Up). Others have mentioned brokered CD’s as another alternative. Yes, I know many of these may have some eligibility and geography restrictions, but there are a few nationwide alternatives as well. My point is that you can probably find some very attractive PenFed alternatives on Ken’s site with a little research if you do not want to accept PenFed’s “modest” offers. Those who choose to move their money out of PenFed will help PenFed to become more customer-focused moving forward. Competition is a wonderful thing.
Rocky Colavito
Rocky Colavito   |     |   Comment #4
Have received 5 notices from penfed regarding cds coming due . You can go to their website and have the money coming due NOT be renewed in a new certificate.
Disappointed   |     |   Comment #5
Also: Certificates Having a Term Greater Than Six Months.

a) If redeemed within the first year, all dividends will be forfeited.

b) If redeemed thereafter, but prior to the maturity date, the early withdrawal penalty will equal 30% of what would have been earned if the certificate had been held to maturity, not to exceed total dividends earned.
yess   |     |   Comment #13
How did you find these other options? Is it possible to join Founders FCU if we do not live in the area?
gregk   |     |   Comment #6
One very annoying practice of PenFed in regards to non-renewing maturing CD's is that the funds are not as a matter of course made available on the maturity date, but only on the day after maturity. Thus I have two large Certificates maturing on December 4th, the funds in which I've specified to be deposited in my Checking Account which I will then ACH out to another FI. But those funds will only hit the checking account on December 5th, thus causing me to lose a day's interest as a result of this lack of access. I've been complaining about this systemic irregularity to PenFed for two decades, the only remedy for which is to call them on the maturity date and have them manually override the delay and make a transfer to checking immediate. I've even had many PenFed reps quite adamantly maintain that the maturity date is included in the term of the Certificate, and thus justifying PenFed holding the funds until the day following.
???   |     |   Comment #7
crediting CD interest maturing dec 4th at the end of day isnt normal?
gregk   |     |   Comment #8
No. The CD matures 12:00 AM December 4th. The funds won't be in my checking account until the 5th. You think that's "normal"?
QED   |     |   Comment #9
Thank you, gregk, for posting about this despicable practice. Sadly this sort of thing is not limited to PenFed. I run into this exact same outrage frequently elsewhere.   And of course it is beneficial to the financial institution to have use of our money for an extra day without paying us interest. This delayed transfer practice is, to my way of thinking, unvarnished theft.

As will be the case for so many other members, my money will be fleeing PenFed at the earliest opportunity. It will be such a relief to be out of there. My avenue of escape is PurePoint, where I can schedule an ACH withdrawal and earn interest from the very moment I do the scheduling. Problem is, I refuse to do any such withdrawal scheduling until I actually am able to SEE the money in my PenFed savings account. I will not schedule the withdrawal based solely on their promise to move the CD money to savings soon and timely. It is too dangerous to do so. So I, like so many others, will be forced to telephone them or lose a day's interest. That is one hell of a way for PenFed to do business.  It stinks out loud!!
emdtech   |     |   Comment #21
I'm in an agreement with you. PenFed personnel are not up to date with their back office policies and some of their managers fall into this area as well. FINE print I discovered when I opened the Premium Savings account: Internal money is treated the same was as external deposits. They hold for 6 business days and only allow $5k / day to transfer out via ACH. After many hours of calling many levels in PenFed food chain, I discovered that an "Operations Manager" level may over-ride internal controls. But the rank & file CSR's do not know (nor offer if they did) that unless you press for management to intervene. I was lucky enough to find a Operations Manager who would assist and resolve my matter. Before that, I felt like dealing with PenFed was a contact sport.
CapitalClimate   |     |   Comment #70
gregk, it's even worse if your maturity date was Sunday, Dec. 2. The maturity was processed on Monday, which means it didn't show up in the account until today, the 4th. Since tomorrow is a financial market holiday for the presidential funeral, an ACH out probably won't arrive until Thursday the 6th. That's THREE days of lost interest!
DCGuy   |     |   Comment #85
This is why you have to do the CD closure in person (the way they did it back before the concept of online banking). The bank could not close it and give you the money days later. People who did mail order banking decades earlier had to swallow the lost interest during the time the check was in the mail. Direct deposit and ACH did not become popular until the late 1980s. I received paper paychecks when I began my work career. A secretary would come around and disburse the checks and pay statements.
CC in CA
CC in CA   |     |   Comment #10
FYI for those who have opened the PenFed Premium Online Savings account... The money you put into that account is NOT available right away. The account features a 5 business day hold, so your money is not "available" until the 6th business day. I found this out the hard way and had thousands of dollars stuck in my new Premium Online Savings at PenFed. Because of this multi-day hold on my money, I find this account pretty much useless to me. PenFed DID raise the APY to 2% on this account, but the hold is still a problem. For CDs I have maturing at PenFed, I have set them up to dump into my PenFed Money Market or Savings account, from which I can quickly move the money to another institution. I called PenFed to find out about the holds on my money (that came from a matured PenFed CD that dumped into my PenFed Premium Savings account). The PenFed rep said the Premium account was set up that way to "encourage" customers to keep their money in the account for a period of time. I'd rather move it all out to my Discover Savings account, where the money is more accessible to me and easier to manage as *I* see fit. I'm sad to see PenFed falter like this (non-competitive rates, unnecessary holds on MY money, etc.). They used to be my primary institution, but now I've ended up spread out at several places as I've been forced to "chase" rates when PenFed had nothing good to offer.
dollarsncents   |     |   Comment #11
Your could have avoided all of that by going on-line and designating what account your maturing CD funds to be transferred into. In this case, your regular savings account, if you wanted your money available immediately.
DOA   |     |   Comment #12
Unless something has changed, dollarsncents (Comment #11) is 100% correct!

It does seem wrong that the premium savings account, mentioned in comment #10, would hold money that was transferred directly from another Penfed account ransom for 5 business days.

Not being proactive for offering competitive cd rates and that stiff EWP penalty was the biggest blackeye they gave me. Now they are beginning to try to act more like a big bank.

Old Sam Walton of Walmart stores once said that people vote with their feet. I suppose that might be happening more with Penfed customers if Penfed does not straighten up their act.
CC in CA
CC in CA   |     |   Comment #22
@dollarsncents... that is what I did when I found out about the hold. I originally had the CD set up to dump into my new premium account, and that is when I discovered I could not move the money out right away. That is why I stated later in my text, above, that "I have set them up to dump into my PenFed Money Market or Savings account, from which I can quickly move the money to another institution." Perhaps you skimmed through my post and didn't catch that. The "money market" I reference is the original, basic PenFed money market account, which does not have the hold (and allows me an additional 6 transactions out per month).
CC in CA
CC in CA   |     |   Comment #23
By the way, the only reason I posted about this is that I didn't want anyone else to be unpleasantly surprised about the hold if they needed to move money quickly. The reason for sending funds into the new "premium" account is that the APY is 2%, which is much better than the super low interest rate offered by the PenFed savings or (regular) money market. But, the hold on funds takes away the freedom to move money quickly. I usually read every disclosure in depth before I open an account, but somehow I missed the part about a hold on my money. This is the first time I've seen such a long hold on money internally transferred at an institution.
dollarsncents   |     |   Comment #30
Well then, because you didn't read the full disclosure in depth, you shouldn't be that critical of PenFed. for your mistake in this particular case.
Att   |     |   Comment #14
After December the only CD I'll have with Penfed will be my 5% 10 year that matures in 2020. I didn't expect Penfed to offer a rate much higher than any other institutions. I'll keep my grandfathered 5% discount on gas card .
SvyT   |     |   Comment #36
Don't forget you'll need to keep at least one Penfed active account to get 5% and avoid the $25 annual fee, which includes:

Active checking account with direct deposit ($250 min.)
Money Market Certificate or IRA Certificate
Installment loan
Equity Loan or Equity Line of Credit
Thrifty Credit Service
Personal Line of Credit
Money Market Savings Accounts
Moving Day
Moving Day   |     |   Comment #15
Does anyone have any advice on how to move large sums of money OUT of PenFed? ACH seems limited to $5000 a day. Shared Branching? Wire?
alan1   |     |   Comment #16
replying to #15 -- The $5000 ACH limit applies to withdrawals initiated at the PenFed website. If you initiate the withdrawal at the website of an external account, you can pull out as much as you want (subject to the external institution's limits, if any). My response is based on my experience in withdrawing funds from PenFed.
Moving Day
Moving Day   |     |   Comment #33
Thanks for the reply and suggestion! If I may press my luck, is it possible to link my established Ally checking or savings to PenFed's Regular Savings account?
alan1   |     |   Comment #34
replying to #33 -- Yes, you can go to the Ally website and link your Ally accounts to your PenFed Regular Savings Account. After you've established the link, and you're ready to have Ally pull funds out of your PenFed account, you should be aware that it will take 3 business days for you to have access to the funds at Ally. (Please check this with Ally -- I am not certain. But I believe that Ally's one-day transfer service is not immediately available.)
Frugal guy
Frugal guy   |     |   Comment #39
Correct...I checked it today. :)
Link an Account
Link an Account   |     |   Comment #45
Another option PenFed offer is to "Close the certificate and transfer the funds to one of my accounts (select account below)" The account selected below must be linked to PenFed. I went ahead and linked an account so that when my CDs mature, then will automatically be transferred to my other bank. No guess when the money will be available by PenFed. They'll just transfer the money when the CDs matures. Hope this helps.
51hh   |     |   Comment #64
Supervisor claimed three-business-day ACH transfer, sounds like stone-age technology:D
Rocky Colavito
Rocky Colavito   |     |   Comment #17
Penfed had a good run ,was nice while it lasted ...just a suckers credit union now
Att   |     |   Comment #20
Yes Rocky It was nice while it lasted. I guess the business model of offering rates much higher than any bank or credit union couldn't last. With all the regulatorty requirements and investments in technology that institutions require they could no longer afford their business model.

How can they compete if they gave savers a 5% 10 year CD when long term CDs were paying about 1/2 that?

So all us rate chasers are looking for other banks giving promotional offers that are usually short lived. We no longer seem to have that one place like Penfed that is always a leader and by a far margin.
Nmw   |     |   Comment #18
Think agai. If you think you are getting a 5% reward on gas from one fed
It now costs you 2900 points to a a $25 reward bit 2500 as it was
Like the ewp and 5 day hold , plus money not given until next day.... Pen fed is getting a little sneaky in many ways. Not the same bank get were
Got too much cash 5 years ago and. Became too biggie their britches
Att   |     |   Comment #19
#18 Your wrong about the gas card. If you read the letter and the terms that was sent you did not have to change the credit card terms and still get 5% back. Each statement I get credited 5% for the gas purchased that month and it is deducted from the total amount on the statement. The amount deducted is indicated on the second page of the invoice. I do not earn any "points" for rewards or have to submit for rewards.

I also only purchase gas with this card.
111   |     |   Comment #24
#18, you are confusing the PenFed gas 5% cashback Visa with certain other credit cards from Penfed which DID, a few years ago, "devalue" their rewards points system from 1 point per cent, to something less than that. The good news is that as #19 stated, the gas Visa gives 5% cashback for gas bought at the pump - no points are involved. The bad news is, although current users are grandfathered-in, I don't think Penfed offers this card any longer.
CC in CA
CC in CA   |     |   Comment #26
Att appears to have kept the original card and didn't convert when PenFed tried to lure everyone in with the bonus points a few years back. I took the bait and the bonus points but now have a card that suffered from the devaluation of points a couple of years ago. Nmw is correct about the points value for those of us who converted to the new points-based card back then. Initially, the points were worth 1 cent each until the devaluation, which dropped the percentage of "cash back" below 5% for gas.
Anon1234   |     |   Comment #25
I called a few minutes ago and waited 22 minutes on hold before I was able to speak with Member Services about my CD which matured today and for which I had submitted maturity instructions online 2 weeks ago, The representative said PenFed acquired Texas Partners CU and today was the first day those new members could set up online accounts and they were overwhelmed with calls from those individuals.
The rep said the matured funds would be moved to my regular savings account as instructed shortly after midnight and she could see the transfer scheduled to occur. When I asked about the dividends waiting to be credited she said it would be around ($xxx), which was the last dividend amount credited. I told her that was unlikely since the last dividend had been credited as of mid November, so the correct amount was closer to half $xxx. "Oh you are right", she said.
Nice going PenFed, excessive wait times and CSRs willing to say anything. I have been a member for 9 years but would not recommend the credit union to anyone new, other than for the usefulness of IRA CD withdrawals after age 59 1/2.
Att   |     |   Comment #27
They have you the reason for the hold time which is valid. When they offered the 5% CD for 10 years in 2010 they were overwhelmed with CD openings and early withdrawals of CDs to be converted to the 5% offer. The holdtimes during this period were long too.
Saver5   |     |   Comment #29
If you look at your "Money Market Share Certificate Agreement", at the end of the first paragraph on front it states: "*Maturity Date: Funds are available for withdrawal the business day following this date. If the maturity date is a Sunday, funds are available for withdrawl (sic) in two business days."
dollarsncents   |     |   Comment #31
Exactly! Too many people ignore reading the disclosures pertaining to the accounts they are willing to throw money at and then complain when it doesn't suit them.
Yawn   |     |   Comment #32
I have about $30k coming due in the next month.......Bye PenFed!
gregk   |     |   Comment #35
As rejoinder to my own decrying of PenFed's practice of withholding the availability of funds in maturing Certificates until the day after maturity, one might argue that when Certificates are established (at least by check, which mine commonly are), PenFed pays interest for day one of the term despite not possessing the funds deposited until the day following (indeed, I always made a point of opening PenFed Certificates on a Friday, and thereby extended this "float" period to three days rather than just one). One might argue the churlishness of accepting this indulgence from PenFed on the front end, yet objecting to their reciprocal insistence on me abiding by a compensatory equalization of such at maturity.
SvyT   |     |   Comment #37
Good point; on the other hand, I can't see a justification for a 5 day hold for funds transferred from one PENFED account into the Premier Savings account?
yawn   |     |   Comment #51
My brokered CD's do the same thing......not available until day after maturity and I think it's complete bs.......someone is getting interest for that day. And when it's a lot of money that's not peanuts.
RJM   |     |   Comment #38
Brokered rates are higher. 5 year 3.65%.

It's not looking like penfed will ever have very good rates again.
no accounts
no accounts   |     |   Comment #40
i wouldn't think more than you can count on one hand that are taking any of this type of advice at DA
gregk   |     |   Comment #41
What would you call "very good" for a 5 year CD now, RJM? My own benchmark is 4% (with none being offered at that rate presently), but competitively speaking PenFed's 3.5% is certainly in the upper tier of what can be found now. I'd say it's "pretty good" at least, even if not "very good", - but in any case not good enough for me to renew my maturing CD's with them.
Frugalson   |     |   Comment #42
Agreed. Penfed is still competitive, but the days of someone sharing inside info on fatwallet about a bonkers 6.25% CD deal are probably behind us. Yeah, the EWP has been weakened, but there are worse places to put your money. My Mom won't do business with an online bank since she feels she has to have the ability to show up there in person if need be, but I can at least get her to use brokered CDs at Fidelity and Penfed's rates are in the ballpark with those.
RJM   |     |   Comment #43
I'm not interested in going 5 years for less than probably 4.5%.

I will take my chances with CEFs, dividend stocks & ETFs rather than commit that long for less.
I probably need more in the market as it is.
Anon   |     |   Comment #58
What makes it NOT competitive is the EWP. 3.5 is maybe fine with 180 days ewp. Not so much with 1 year. Def not with theirs.
adrift   |     |   Comment #44
There are a few mentions here of doing a partial withdrawal from an IRA CD for those over 59 1/2. Does anyone here have experience doing this?

One of the CD's I have is a 7-year traditional IRA that matures in January 2021. Can I take out all but $1000 into to its affiliated PenFed IRA share account and then have my brokerage initiate a trustee to trustee transfer from there to a traditional IRA at that brokerage. Of course, I want to avoid an EWP and any tax consequences.

alan1   |     |   Comment #46
My understanding of the PenFed disclosure is that the no-EWP provision applies to partial "withdrawals", not to trustee-to-trustee transfers. You could do a partial withdrawal, receive the funds from PenFed, and then do a rollover to another IRA. That would not entail an early withdrawal penalty from PenFed.

As to tax consequences, the regular rules re rollovers would apply. That's one tax-free rollover in any 12-month period.
fed oaks
fed oaks   |     |   Comment #47
Has anyone considered reading the disclosure?
alan1   |     |   Comment #48
I believe the authors of Comment #2 (Bozo), Comment #28 (SYC) and Comment #46 (alan1) have all considered reading the disclosure. I think it's likely that they have also read the disclosure.
mindless   |     |   Comment #55
Alan, if you read the disclosure, then you should know that you are misstating the disclosure.

The disclosure does not mention any different treatment for partial withdrawals or total transfers.
Matthew Long
Matthew Long   |     |   Comment #57
Fed and Mindless are right.

Has anyone considered reading the disclosure?

Is it easier to sit around and speculate than to read the disclosure? May be easier but unlikely to be as efficient, or productive.
alan1   |     |   Comment #59
replying to comments #47, 55 and 57 -- The disclosure specifically states that the penalty:

will not be applied if the withdrawal is made:
if the owner has reached age 59 1/2 and takes a partial withdrawal.

What information do the authors of those comments possess that leads them to believe that PenFed considers a trustee-to-trustee transfer to be a "withdrawal"?
That's an easy question to answer. They possess no such information.
Nothing   |     |   Comment #60
Alan1 Isn't the issue "what is a withdrawal" or a transfer or a distribution? Is withdrawal a QCD? All the above?
alan1   |     |   Comment #61
All I've stated is that an IRA trustee-to-trustee transfer is not a "withdrawal" as far as PenFed is concerned, for purposes of avoiding an early withdrawal penalty on an IRA CD. I have nothing further to say on this point.

If anyone possesses information that PenFed considers a trustee-to-trustee transfer to constitute a "withdrawal" for those purposes, please post that information, along with your source(s). Thanks.
dollarsncents   |     |   Comment #62
I think you are confusing PenFed's Certificate of Deposit EWPs and the IRS's IRA EWPs.
alan1   |     |   Comment #63
#62 -- Nope. I have been writing about PenFed's early withdrawal penalty on IRA CDs. I clearly distinguished between PenFed and the IRS in Comment #46. My subsequent comments made no mention of the IRS. That's because I am not confusing PenFed and the IRS.
Capper   |     |   Comment #49
Does any one know what the grace period is on PedFed Certificates? I am looking all over the website but can't find anything.
dollarsncents   |     |   Comment #50
You must choose your certificate options, which can be changed at any time, before maturity.

Per PenFed's DISCLOSURE, Form 687 (08/16):

1) Automatic Renewal Certificates. If you selected this option, your certificate will automatically renew at maturity. There is no grace period during which penalty-free withdrawals may be received following the maturity of this certificate.
Frugal guy
Frugal guy   |     |   Comment #54
10 calendar days is the grace period.
MidAtlantic   |     |   Comment #66
There is no grace period for maturing CDs. See Para j of the disclosure.
yawn   |     |   Comment #52
Did I hear once that Penfed only allows $5k daily to come out per customer??......even if it's an ach initiated from another bank? Maybe I'm wrong but thought that was a policy. Hope not.
adrift   |     |   Comment #53
I've withdrawn much larger amounts from PenFed. I've done this by initiating the ACH pull from another bank.
tom   |     |   Comment #56
Stay away, been a member for 15 years and they are simply problematic these days.
Pub   |     |   Comment #65
Navy Federal has a 4 year IRA certificate 3.75% Plus they gift you $100 (credited as dividend) if you are opening new IRA
Att   |     |   Comment #67
One consideration is that Navy is not any easy membership Credit Union.
dollarsncents   |     |   Comment #69
Membership is easy for all us Veterans and family members.
Att   |     |   Comment #79
Easy Membership means no restrictions like Penfed. I have no need for an IRA CD anyways.
Nick11   |     |   Comment #68
Pub,thank you. Did not know Navy Fed had the 4 year IRA special. My PenFed cd will be maturing in Jan. Looks like I could open Navys with a $50 transfer and transfer the rest then. Hate the thought of the paperwork and hassle. Am glad that I am already a member of Navy Federal CU.
JimDavis   |     |   Comment #71
I'm as greedy as the next guy, but I'm cutting Penfed some slack as far as IRA cd's go.

One reason I was able to go ahead and open long term cd's years ago was the benefits Penfed offered (over 59 1/2)

If not for that who would want to lock up money for 7 years?

I bet many of you are in the same boat.

So if they are 1/4 point under I can live with it.
51hh   |     |   Comment #72
One-day ACH transfer to my BofA checking account, I am impressed.
Test22   |     |   Comment #73
I do not see anything in PenFed's "Money Market and IRA Share Certificate Disclosure" (Form 687) that mentions penalty free partial withdrawals. Where did Ken and the people mentioning partial withdrawals get their information?
dollarsncents   |     |   Comment #74
On PenFed's home page. Checking and Savings drop down menu. IRA drop down menu, Choose
and click on any one of the IRA Accts. In the middle or at the bottom of the page will be "Disclosures" on the left hand side of the page. Directly opposite of that on the right hand side of the same page will be a little scroll down bar just under the word "print". Using that scroll down bar will bring up the information you are looking for.
Test22   |     |   Comment #77
Thank you for your assistance. Have a pleasant day.
Ricochet   |     |   Comment #75
PLEASE see my post in the Forum
about Phone Service at PenFed
JimDavis   |     |   Comment #76
This is why I always call to check on things that might cost me money

I'm doing a partial withdrawal from an IRA CD at Penfed

I asked how the current months interest posting would be handled , assuming it would be pro rated, but was told that no, I would  lose the interest on the withdrawn amount for the current cycle

I don't recall running into this before (maybe I missed it) OR could this information be wrong?

If its true, then it's something everyone should be aware of.
Anon   |     |   Comment #88
FYI, I believe you got wrong information here. I am looking at numbers on my 3.04% apy CD which credits interest on the 6th of each month. After interest of $140.07 on 6-Nov-18, total balance was $55043.37. I withdrew $25k on Dec 5'18. On Dec 6'18, credited interest was $131.77 for a total balance now of $30175.14. If $25k did not earn interest for the whole cycle, my posted interest on Dec 6'18 would have been ~$74.04. Instead of was very close to prior month interst (and prior cycle had 1 more day than current cycle too!)
JimDavis   |     |   Comment #91
Well, not sure your situation was exactly the same as mine . Was yours an IRA cd and a partial distribution?

Didn't really cost me anything to wait an extra few days. If I need to do something again , I'll ask again about this supposed policy.
lr5558   |     |   Comment #78
As a creditor (that's what we are, loaning Penfed money) the risk (EWP) is not worth the reward (very modest rate).
tbradnc   |     |   Comment #80
I'm looking to roll my maturing certs into 12 month certs and can't find anything available nationally that's better than Penfed's 2.8% 12 month offering. Guess I'll stay here for another year.
alan1   |     |   Comment #81
Advancial has 1-year CDs with a 3.04% APY ($50,000 minimum) and an APY of 2.94% with a $25,000 minimum.

Disregard anything on this website that may lead you to believe that membership is not nationally available. You can become a member via joining an organization called Connex (no relationship to Connexus Credit Union). I don't know if joining Advancial via Connex is disclosed in the application process -- you may have to contact Advancial for info on that. Their phone number is 800.322.2709.
tbradnc   |     |   Comment #82
Thanks - on $100k the difference between 2.80% and 3.04$ on a 12 month cert is $28.80.

Not quite enough to make it worthwhile.
tbradnc   |     |   Comment #83
Oops.. less than that actually. :) Can't edit my post.
#84 - This comment has been removed for violating our comment policy.
tbradnc   |     |   Comment #86
Make CD Rates Great Again...

and... putaytoe
#87 - This comment has been removed for violating our comment policy.
DAJunkie   |     |   Comment #89
On $100k the difference at maturity is $240.00. Of course this figure excludes
potential interest loss overhead incurred during transfer between institutions, etc.
So how did you obtain your $28.80 estimate?
Rocket Lady
Rocket Lady   |     |   Comment #90
Rocket Lady-12-12-2018
Looks like the 6month Certificate offer did not show up on Penfed site this morning . Nothing showed under 1 year certificate
Daniel   |     |   Comment #92
I have some of the 5 year CDs at 3.04% maturing in Jan 2019...any thoughts on where they should go? Looks like rates are going to flat line for a while, am I correct?

The money is not needed so would it make sense to have the longest investment with the highest rate?
Nonchalance   |     |   Comment #93
Penfed 60 month certification rate decreased to 3.30%.
Nonchalance   |     |   Comment #94
certificate rate, that is...
PenFed CDs Make Small Gains
Deal Summary: Rate increases on most Money Market Certificates/IRAs, with the 12-month (2.71% APY) having the most competitive rate.

Availability: Easy membership requirement

For the second month in a row, PenFed Credit Union (PenFed) has started the month by raising its Money Market Certificate (MMC) rates. Like October’s rates, the new rates aren’t that great. Of the nine MMCs in the product line, only the 12-month (2.71% APY) has a rate worth highlighting.

I’m hoping that we’ll see some very competitive rates at PenFed in December. This...

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New CD Rates Offered by PenFed Credit Union
Deal Summary: Rate increases on all Money Market Certificates/IRAs. Most noteworthy are the 5-year (3.30% APY) and 12-month (2.60% APY).

Availability: Easy membership requirement

Good news – PenFed Credit Union (PenFed) has started the month by raising the rates on most of its Money Market Certificates. Unfortunately, the new rates aren’t that exceptional. (FYI – a Money Market Certificate (MMC) is essentially a CDs.) Of the nine MMCs in the product line, the 5-year (3.30% APY) and 12-month (2.60% APY) are the most competitive.

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PenFed Credit Union Begins June With New CD Rates
Deal Summary: Rate increases on all Money Market Certificates/IRAs. Most noteworthy are the 12-month (2.25% APY) and 5-year (3.00% APY).

Availability: Easy membership requirement

PenFed Credit Union (PenFed) announced new rates on its Money Market Certificate (MMC) but they are not exceptional. (Don’t be confused by the “Money Market Certificate” moniker – they’re essentially CDs.) While the 5- and 7-year MMCs have broken the 3.00% APY ceiling, none of the new APYs are rate leaders, as internet banks (and a few credit unions) continue to be the front-runners...

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First Of The Month CD Rate Increases At PenFed
Deal Summary: Rate increases on all Money Market Certificates/IRAs. Most noteworthy are the 12-month (2.07% APY), 18-month (2.22% APY), and 5-year (2.68% APY).

Availability: Easy membership requirement

It’s the first of the month, which means PenFed Credit Union (PenFed) will probably have raised its Money Market Certificate (MMC) rates. While several of the new APYs are competitive, none of them are rate leaders, as internet banks continue to be the front-runners in the CD rates race. Ever the optimist, I look forward to hot MMC deals at PenFed –...

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CD Rates Up at PenFed But There Are No Rate Leaders
Deal Summary: Rate increases on all CDs and IRA CDs. Most noteworthy include 18-month (1.97% APY) and 7-year (2.48% APY).

Availability: Easy membership requirement

The start of a new month often brings rate changes at credit unions, and that is the case at PenFed Credit Union (PenFed). All of its certificate and IRA certificate rates increased today. Unfortunately, the rates for all of the terms are less than the rates at several internet banks. Hopefully, one of these days, we’ll see the return of some hot CD deals like many...

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