UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev | Next
Author: kfieldjr One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 35571  
Subject: I Bond to PenFed CD -- Nearly Instantaneous Date: 1/6/2007 2:34 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 2
Here is my experience redeeming an October vintage I bonds and buying a 6.25% 5 year PenFed CD. Note that I did not have a PenFed account set up ahead of time and, therefore, was my PenFed account wasn't directly linked to Treasury Direct. I am incredibly impressed with how smoothly it went!

1/2 -- Placed order to redeem I bond online at Treasury Direct with proceeds ACH deposited to NetBank. Note, this was a bank holiday in US.
1/3 -- Redemption takes place and principal/interest shows up in Netbank account at 8AM.
1/3 -- I call PenFed and open an account, but I don't have my ACH info handy so I have to call back (at about 7 PM) with it.
1/3 -- 5 year CD is issued with a 1/3/2012 maturity date.
1/5 -- ACH withdrawal posted to Netbank with 1/4 as the effective date.

So to answer Loki's question about timing. I think that you could wait until 1/31 to call PenFed (even if you don't already have an account there!) and get your 6.25% CDs. The debit wouldn't post to your account until 2/1 or 2/2. The main limitation is the $10,000 limit that PenFed places on ACH transfers. This is not a limitation on ACH itself -- I noticed that Vanguard can take up to $100,000 by ACH.

Good luck!
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev | Next


Post of the Day:
Fool One Central

Look at the Total Risk
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.