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It looks like we can keep the 5,3 1 rewards structure with this card if we have a checking account with direct deposit of $250 plus. Has this been verified at all?
@FutureBillionaire wrote:It looks like we can keep the 5,3 1 rewards structure with this card if we have a checking account with direct deposit of $250 plus. Has this been verified at all?
That seems to be the case if your card gets converted to the Signature version (and this new change means it's more OK if that happens). Still no word on what happens if you keep the old card.
@riffdex wrote:
Is PenFed phasing out the 5/3/1 rewards structure? I was really hoping my next card to be a PenFed so I can get 5% cb on gas...
The Penfed Plat Rewards is no longer available for new apps. It has been replaced by a Signature version. When that first appeared, it appeared that the card would go to an unappealing 3/2/1 structure beginning Nov 1. This has recently been changed, saying those on the 3/2/1 program will be evaulated every month to see if they have a qualifying product, and, if so, for that month they get 5/3/1. Qualifying products EXCLUDE other credit cards, but include things like loans, checking with at least $250 per month direct deposit, and CDs.
The Cash Rewards is still available, with it's 5/0.25 structure. That may or may not stay!
But as the OP said, it appears that there is at least a way to keep 5/3/1 without too much hassle.
Also you have to have a minimum of $500 in the checking account to avoid a monthly service fee.
I don't mind having to setup a checking account + direct deposit on Penfed since I will be paying down a large balance transfer with them for some time to come. But keeping a $500 minimum without fees would be problematic since I abhore fees and I'm trying to minimize them. But it might encourage me to get with the program on my emergency fund. But for the time being, I see no reason to move to the Signature card unless forced to.
@Default4 wrote:Also you have to have a minimum of $500 in the checking account to avoid a monthly service fee.
The Fee is waived if you have a total of $500 or more deposited via Direct Deposit per month.
From the PenFed Disclosures:
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If I have a Direct Deposit or electronic payroll deposit of $500 or more into this account each month, there are no recurring service fees. Otherwise, I must maintain a minimum daily balance of $500 to avoid the monthly service charge on my account.
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My employer allows up to 3 different Direct Deposit accounts, to split my paychek. So, I have several monthly recurring charges charged to a CC, which auto-pays from my PenFed checking. They are enough to need $265 deposited via direct deposit every 2 weeks, which satisfies the minimum requirement, so it works out.