PenFed Raises CD Rates
Tip It!Just a quick note to let you know that Pentagon Federal Credit Union has raised their CD rates (see CD rates from last summer). Their 3, 5 and 7 year CDs have APYs of 5.5%, 5.75% and 6.0%. The early withdrawal penalties for the 3 and 5 year CDs are 6 months of interest, whereas there is a one year penalty on the 7 year CDs. We’re currently sitting on some 5 year PenFed CDs @ 5.25%. We bought these two years ago when they were a screaming hot deal, and a quick and dirty calculation suggests that it’s not worth breaking these to go after the extra quarter point over the remaining three years… It looks like the six month penalty would more than offset any extra earnings. (Thanks to John Howard for the tip.)
Published on January 3rd, 2006 - One Comment
Filed under: Banking
About the author: Nickel is the founder and editor-in-chief of this site. He's a thirty-something family man who has been writing about personal finance since 2005, and guess what? He's on Twitter!
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February 2nd, 2006 at 5:18 pm
Good to hear somebody has noticed Pentagon Federal,but Northwest Federal Credit Union has even better rates.The catch is you have to be within their “field of membership” (or be sponsored by a member) to join. Is anyone out there knowlegeable about this credit union? Do you know someone willing to sponsor or some means of joining?