Re: Penfed or Navy

Anonymous · ‎02-13-2015

I just joined NFCU. Weighing if I should apply for the cash rewards card or not. I am preapproved for it and my scores are 650 from all 3. What do you guys think my credit limit would be with that card? Rough estimate?

Creditaddict · ‎02-13-2015

Just apply!

CreditDunce · ‎02-13-2015

I joined PenFed last year to start building a relationship with them. I opened a savings, checking and LOC/Overdraft account. If I could have joined NFCU, I would have. Neither has a CC I am interested in. I am interested in their CDs. I also wanted to be a member in case I ever needed another mortgage. They run some nice mortgage specials occasionally. If I needed a mortgage in a hurry, I wouldn't want the extra HPs to join the CU's I might want a mortgage from.

For me, the main drawback to joining credit unions is you need to keep at least a little money in each one. In the case of a PenFed checking account, you need to either keep $500 in checking or have a DD to not pay a service fee each month. I also setup a small, automatic ACH each quarter to make sure none of my CU accounts goes dormant and gets charged an inactivity fee. I look at it as a forced way to save.

8in2years · ‎02-14-2015

Navy is the bomb. I don't have any experience with Penfed, but Navy is very generous and EASY to work with for sure.

8in2years · ‎02-14-2015

Yes, please apply Now.

Anonymous · ‎02-14-2015

@CreditDunce wrote:
I joined PenFed last year to start building a relationship with them. I opened a savings, checking and LOC/Overdraft account. If I could have joined NFCU, I would have. Neither has a CC I am interested in. I am interested in their CDs. I also wanted to be a member in case I ever needed another mortgage. They run some nice mortgage specials occasionally. If I needed a mortgage in a hurry, I wouldn't want the extra HPs to join the CU's I might want a mortgage from.

For me, the main drawback to joining credit unions is you need to keep at least a little money in each one. In the case of a PenFed checking account, you need to either keep $500 in checking or have a DD to not pay a service fee each month. I also setup a small, automatic ACH each quarter to make sure none of my CU accounts goes dormant and gets charged an inactivity fee. I look at it as a forced way to save.

This is the same deal with my BoA account. I gotta keep 500 bucks in my savings and only can have 8k and under deposited into checking each month. Not that I've ever exceeded, but months where there are 3 pay checks, plus freelance work, plus just moving money around like I do. I'm trying to end my relationship with them. I'm super interested in investment products too. NFCU had an easy start 1yr cd at like 3.0 or something. But I would assume penfed being more exclusive would have great products too.

CreditDunce · ‎02-14-2015

For investments, I love Vanguard. They aren't exciting, but they have rock bottom costs. For long term investing, costs really matter. But I don't have any experience with PenFed or NFCU investment products. I can't offer any advice on their mutual/bond funds.

Penfed used to have great rates on CDs. Currently, their rates are ok, but nothing special. But who knows, their rates could increase at anytime. That is a great rate for NFCU's Easy start CD. If you join and move your DD to NFCU, it would be an easy $90 a year (minus taxes). Not earth shattering, but a nice bonus for having a NFCU account.

After the 3k max in the NFCU CD, you could think about US saving bonds. I-Bonds are better than most current CD's. They will at least keep up with inflation and have a few tax benefits.

EDIT: I see you are are looking to buy a house next year. If the money you are putting into CDs is for the house next year, I-Bonds are probably not the best place. I-Bonds are best with a minimum 5 year investment time line. Sorry bad advice.

Saleen099 · ‎03-05-2015

NAVY!!!!!!!!!!!!!!!!

MaisCher · ‎03-05-2015

Navy!

You don't need to keep a min. balance or have a DD for their free checking option. I tossing around the idea of making them my main bank vs USAA but I may wait a while longer.