Quick update regarding CDs having a five year term, for those who do not envision rates rising any time soon:
Both PSECU and NFCU are offering five year CDs at 3.00% APY. However
Only at PSECU can you obtain that 3.00% APY rate together with the PSECU add-on feature.
Noted in passing:
Ken continues not to be featuring the several PSECU “three handle” CDs. Instead he is presenting his readers with inferior “two handle” opportunities.
However Ken’s readers, in two separate locations on his website, are openly and avidly discussing the PSECU gift horses. In those posts it has become clear that intricate details of the add-on provision are uncertain, with PSECU reps offering differing, conflicting information.
I am taking nothing for granted here with significant money on the line. I plan to open a CD next week and then another at November’s end if the deal remains available then as currently advertised. It’s only a $500 commitment to open one of the PSECU certificates, well worth the cost in my view. 'Tis better to be safe than sorry, and besides they’re going to pay you 3% or more even on that $500!
My sole dilemma is whether to open a three year at 3.25% or a five year at only 3.00%. With entry cost being a mere $500, I might end up opening one of each!
ETA
For PSECU members with interest in their CD gift horses, this contact information might help to answer your questions:
To reach the PSECU Certificate Administrative Department:
Telephone them at
800-237-7328 extension 3570
They are available Monday - Friday 8 a.m. to 9 p.m. and Saturday 9 a.m. to 5 p.m…
Maybe I missed something in earlier posts. It seems I read at one point PSECU would end specials 11/12/19. In another post the specials wound close at the end of month. Who knows for sure?
As posted above, this has been my fear right along. Darn, I wish this had not happened . . . even though I realized it could. There were just too many people over there posting about this and it so clearly is the best deal in the country today. We all have been posting about it here for quite a while, with principal credit going to scanchain for being first and leading the way.
Well, first, middle, or last makes no difference now. There will be no change in plans for me. I will for certain be opening my account based on the old promise, prior to (this) month’s end. With Ken’s blog post the new promise of end of November might become impossible for PSECU to maintain as all of his readers jump in.
Last most recent word, pattyb53, was end of November. I’m certainly not banking on that now. If it happens, fine and dandy. If not, well, I’ll have my ace in the hole.
Ken finally got 'round to this. Gosh it took him long enough.
ETA
Just went over and read Ken’s blog post. Ken gives short shrift to the five year, focusing instead on the two and three year CDs. Heck, he does not mention the five year CD at all!
I strongly disagree with that approach. A five year CD at 3% APY, WITH that add-on feature, should by no means be overlooked or ignored. In fact, right now I’m leaning toward opening both a three year and a five year. They can keep the two year. I need that like another hole in my head.
Course that’s only my personal opinion. Everyone will have a different one. And we’re only talking $500 per account here. I’m last of the big time spenders!
So my funds at Navy were available early 10/25/19 as expected. ACH’ed quickly to Alliant CU (I have 3 accts). On Monday will ACH funds to PSECU. This was a large amount of money, so will take 3 days to fully arrive in PSECU & finalize the 36 mo 3.25% CD. Everything neatly tied up Friday 11/1/19.
One reason why the 3-yr CD might be more attractive than the 5-yr is the EWP: 90 days for the 3-yr as opposed to 180 for the 5-yr. There’s always the chance rates could go up in the next three yrs.
My dilemma is I have a huge CD coming due in late April of 2020. There is a way I could do this deal today and still add a significant amount of that CD to this one if I start the add-on in Dec and add $50,000 a month for the next 4 months and then use the proceeds of the April CD to continue the $50,000 a month until I exhaust all the proceeds from the maturing CD. My problem is that I’m not liquid right now and would have to use my Home Equity Line of Credit or break CD’s I have at other credit unions to fund the first 4 months or $200,000 worth. Not sure I want to do this or hassle with opening this CD under the circumstances.
If this deal really lasted until the end of November, I might be more inclined to think about it.
Understood. My own situation is similar but not identical to yours. My nearest incoming money is split, roughly half will be available early February, the other half not until mid-April.
Remember the current promise from PSECU is availability of the deal through end of November. Looking over on Ken’s blog, there are at present only five comments so far on this deal. However there was a LARGE number of posts which preceded Ken’s official announcement, the tardiness of which is likely responsible.
Thing is, number of comments on deals over there customarily is indicative of interest in the deal and “hotness” of the deal. And of course should the deal become “too hot to handle” (too much money incoming) for PSECU they reserve the right to shut it down early.
Responding to your issue directly, I think the deal is more likely than not to be available at end of November. But since entry cost is only $500 I will be opening account(s) this month just in case. If deal remains available at end of next month, November, I will open additional new account(s) then and simply not use, not add onto, the accounts I will open this week. My cost for this “insurance” is at most a thousand bucks which will be earning me 3% or more in any event. I can live with that cost.
Why not do both? Make the 3% 5-yr an addon with minimum amount in it ($500), and go for the 3.25% 3-yr one with the rest of your available funds. After 3 years, you can add the money from the 3-yr CD into the 5-yr addon CD (with 2 remaining years at that point) if rates for 2-yr CDs are worse than 3%.
Only downside is you may end up with the $500 earning only 3% for 3-years instead of 3.25%. Call that an insurance cost of $3.76 (before tax) over the 3 years to make sure you have a 3% addon available later on (that is not on GTE).
That would be quite a challenge given the special rules which govern the add-on feature of PSECU CD accounts. It’s not at all a run-of-the-mill add-on situation, like at GTE for example. Very different. See posts up thread by scanchain.
Since I’ve added more funds to these great CD’s, now I need more insurance. I’ve had PSECU send me forms to add POD’s. Probably never need them, but better safe than sorry.
If a bank or credit union supports it (and most nowadays do) you just name who you want the account or a percentage of the account to go to upon notification of your death. This transfers the funds directly without need to go through probate. An additional protection is each POD beyond the first adds an additional 250K in FDIC insurance. One point is it does have to be a person OR a living trust. I’ve been unsuccessful in trying to name a charity directly.
hi, I am trying to open an account/membership at PSECU, and after they open the account they told me that I will receive the account number (to be able to access the account online ) by mail in 5 business days. it is any way that I can move things faster? thanks
