I'm sorry, but PenFed has gone too far!
Last month I initiated an ACH online payment from PenFed website to pay my credit card. They put a full 10 day hold on funds (even though it cleared in 48 hours). There was no exception to this rule for "new members under 6 months" as a risk policy.
Okay, annoying but I will "push" the money next time. This time I wire transfered CASH to my PenFed checking account. PenFed took 3 business days to credit it.
3 days later I transferred CASH (from the wire) from my PenFed checking account to my VISA CC. They have now put a 10 day hold on funds. I called in and asked what this was for because I paid with clear funds from my PenFed account. They told me "we hold funds for 10 days, and up to 15 days, on all new members under 6 months regardless of the source of payment as a part of risk management."
WTF! I have never, in all my earthly days heard of the need to put a hold on cash due to some risk! I posted previously that PenFed was one of my regrets. I then eased up and said, okay I won't call it regret, I'll call it annoyed.
Well, now it's regret. This is ridiculous, not risk managment. If I pay cash, how can they have risk. It's gone from my deposit account, but not credited and I have no use or access to it.
I'm on hold right now waiting for the CSR to see if there is any way to get a one time waiver of this hold due to the fact that funds were drawn on PenFed and were derived from a wire....but she said "I can't promise anything though!"
That is frustrating! I'm depositing $50 a day until I can get my card and start using it, then will pay the card from a PenFed account.
I hope it works out and you're finally happy with them. I'm using them to BT.
Finally got off the phone with the CSR and she was able to get the hold "lifted" but told me this is a general "new member policy" that all VISA payments, regardless of source get a hold.
I went so far as to ask: "If I walked into a branch and paid with cash, not check, I would still incur such a hold?" And she said, "yes, that is correct."
Wow, somebody said PenFed was ultra-conservative. I don't think that adequately describes PenFed.
Anyway, this is now my Gas Card $200-300 per month use at most, PIF. I realize it's their card, so their rules, but I just can't wrap my head around putting a 10 to 15 day hold on cash payments from a direct wire transfer which they had in their possession for nearly a week before I made use of the funds to make the payment.
That's just crazy! I pay from a non-PenFed source, and it's credited that day.
So they have no issues with payments from outside sources, but they put the stink-eye on their own??
Like I said, I use them for credit, not for banking. sheesh
How long have you been a member? The issue is not source, they said "any source" for "new members under 6 months." The point is not how much or where it comes from or how they got it, just that I'm a new member and thus unworthy even of cash till I become a beautiful butterfly in 6 to 12 months
And I am using them for credit too....but they make it impossible to pay them in a manner that is satisfactory that the funds are released or available in less than 10 days. 10 days is 1/3 of every month!
Okay, rant over, thanks for listening. Just don't like people doing that to MY MONEY! Oops, guess I still had a little rant left in that last breath.
Okay, my PenFed is zero balance and I know what I am going to do with PenFed to avoid the annoyances of the first 6 months and still capitalize on the benefits of PenFed.
I am in the middle of home improvement. Going to put the expenses on my BoA or NFCU card then BT to PenFed at the 2.99%.
The cash I was going to pay these expenses with I am depositing into my Addison Avenue CU Dividend Reward Checking which pays 3.41%. Then I am going to collect 3.41% while I pay 2.99% and wait until I am 6 to 12 months, then decide what, if anything, I want to do from that point.