topic Re: PenFed CR Visa 2% with their new Free Checking Account in Credit Cards

PenFed CR Visa 2% with their new Free Checking Account

TheFIGuy — Mon, 24 Jan 2022 23:14:11 GMT

Got an email this morning that PenFed now offers a free, that's right, free checking account with no fees whatsoever. Included with this checking account will be the 2% CR Visa. ~~Gone are the days when you needed to keep a $500 min. Deposit into the PenFed Access America Checking account to activate the 2% on the PenFed CR Visa~~. Link — https://www.penfed.org/checking/free

~~If you're someone who is keeping the $500 balance, I would call in and switch to the Free account and provide DP's for the community on how it went.~~

Off-topic:

I was just, like just, about to set up a PenFed CR 2% Visa card, then found I qualified for RBFCU and decided to take my business to them instead. Selfishly for the simple fact, PenFed now caps the PenFed CR 2% Visa at 25k Credit Limit and the PenFed Gold at 15k Credit Limit. I missed the grandfather in the timeline getting my reports cleaned up from an early life mishap .

Re: PenFed CR Visa 2% with their new Free Checking Account

FinStar — Mon, 24 Jan 2022 20:06:29 GMT

@TheFIGuy wrote:
Got an email this morning that PenFed now offers a free, that's right, free checking account with no fees whatsoever. Included with this checking account will be the 2% CR Visa. Gone are the days when you needed to keep a $500 min. Deposit into the PenFed Access America Checking account to activate the 2% on the PenFed CR Visa. Link — https://www.penfed.org/checking/free

If you're someone who is keeping the $500 balance, I would call in and switch to the Free account and provide DP's for the community on how it went.

Off-topic:
I was just, like just, about to setup a PenFed CR 2% Visa card, then found I qualified for RBFCU and decided to take my business to them instead. Selfishly for the simple fact PenFed now caps the PenFed CR 2% Visa at 25k Credit Limit, and the PenFed Gold at 15k Credit Limit. I missed the grandfather in timeline getting my reports cleaned up from a early life mishap .

@TheFIGuy

According to DPs reported here, PenFed isn't currently doing any checking account switches or conversions:

https://ficoforums.myfico.com/t5/Personal-Finance/PenFed-now-offers-a-free-checking-account/td-p/6469596

Re: PenFed CR Visa 2% with their new Free Checking Account

OmarGB9 — Mon, 24 Jan 2022 20:14:29 GMT

I don't think the free account qualifies, unless you still follow their standard Honors Advantage qualification rules:

You must maintain the checking account to receive the 2% cash back. If you close your checking account, then you’ll receive the standard 1.5% cash back. For Free Checking account holders, to receive 2% cash back during the upcoming checking statement cycle, you need to have maintained the minimum balance or made qualifying direct deposits for at least one of the two previous checking statement cycles. Members with a qualifying Free Checking account must also 1) maintain a minimum $500 daily balance OR 2) set up monthly direct deposits of $500 or more to maintain Honors Advantage Eligibility. A minimum balance or direct deposit is not required to maintain a Free Checking account.

https://www.penfed.org/credit-cards/honors-advantage

Re: PenFed CR Visa 2% with their new Free Checking Account

Anonymous — Mon, 24 Jan 2022 20:40:08 GMT

@TheFIGuy wrote:
Got an email this morning that PenFed now offers a free, that's right, free checking account with no fees whatsoever. Included with this checking account will be the 2% CR Visa. Gone are the days when you needed to keep a $500 min. Deposit into the PenFed Access America Checking account to activate the 2% on the PenFed CR Visa. Link — https://www.penfed.org/checking/free

If you're someone who is keeping the $500 balance, I would call in and switch to the Free account and provide DP's for the community on how it went.

Off-topic:
I was just, like just, about to setup a PenFed CR 2% Visa card, then found I qualified for RBFCU and decided to take my business to them instead. Selfishly for the simple fact PenFed now caps the PenFed CR 2% Visa at 25k Credit Limit, and the PenFed Gold at 15k Credit Limit. I missed the grandfather in timeline getting my reports cleaned up from a early life mishap .

The FAQs for the card include what needs to be done to qualify for the 2%

Members with a Free Checking account must also 1) maintain a minimum $500 daily balance OR 2) set up monthly direct deposits of $500 or more in order to maintain Honors Advantage Eligibility. A minimum balance or direct deposit is not required to maintain a Free Checking account.

So the only real change is that now there is a free checking account with no min balance requirements, but this doesn't really change what is needed for the 2%. And as free checking accounts are very common, not a big deal!

ETA, beaten by @OmarGB9

Re: PenFed CR Visa 2% with their new Free Checking Account

TheBoondocks — Tue, 25 Jan 2022 05:52:16 GMT

Let's gooo!!! Wow this makes me really happy, didnt even know! Love this forum, my credit brothers aha! I salute you guys aha! But yeah, I might pick up that 2% card then lol, I heard it's really good!

Re: PenFed CR Visa 2% with their new Free Checking Account

OmarGB9 — Tue, 25 Jan 2022 05:58:46 GMT

@TheBoondocks wrote:
Let's gooo!!! Wow this makes me really happy, didnt even know! Love this forum, my credit brothers aha! I salute you guys aha! But yeah, I might pick up that 2% card then lol, I heard it's really good!

@TheBoondocks

Note the clarification: in order to obtain and keep 2% back, you still need to either maintain a minimum $500 daily balance OR set up monthly direct deposits of $500 or more even with the free checking account. Those conditions aren't required to maintain the free checking account itself though.

Re: PenFed CR Visa 2% with their new Free Checking Account

TheBoondocks — Tue, 25 Jan 2022 06:04:28 GMT

Ooo I see, so it must be parked in there... I have a boa where I have a DD of $250 but because my boa better balance card, it gives me $120/y. Never mind then, I'll just open the free checking account but just to have it and not open the card then, it's good. Thank you for clarifying!

Re: PenFed CR Visa 2% with their new Free Checking Account

OmarGB9 — Tue, 25 Jan 2022 06:08:09 GMT

@TheBoondocks wrote:
Ooo I see, so it must be parked in there... I have a boa where I have a DD of $250 but because my boa better balance card, it gives me $120/y. Never mind then, I'll just open the free checking account but just to have it and not open the card then, it's good. Thank you for clarifying!

No problem. If you can swing it, all you theoretically have to do to get 2% is like you said, park $500 in their free checking account and just leave it. You don't have to do direct deposit. That's what I'm going to do in the next few months.

Re: PenFed CR Visa 2% with their new Free Checking Account

Sspartan — Tue, 25 Jan 2022 08:51:23 GMT

@OmarGB9 wrote:
@TheBoondocks wrote:
Ooo I see, so it must be parked in there... I have a boa where I have a DD of $250 but because my boa better balance card, it gives me $120/y. Never mind then, I'll just open the free checking account but just to have it and not open the card then, it's good. Thank you for clarifying!
No problem. If you can swing it, all you theoretically have to do to get 2% is like you said, park $500 in their free checking account and just leave it. You don't have to do direct deposit. That's what I'm going to do in the next few months.

This post has me very confused. I spoke with a representative at Penfed and I was told that if you have the new Free Checking Account that you qualify for the 2% cash back. I was told you need $25 to fund the initial opening of the account and then there is no minimum balance requirement. Having to hold the $500 minimum is not required. with the Free Checking Account.

Re: PenFed CR Visa 2% with their new Free Checking Account

SUPERSQUID — Tue, 25 Jan 2022 10:30:25 GMT

The other way to be enrolled in honors advantage and get the 2 pct is be a veteran with an honorable discharge.

No checking even needed

Re: PenFed CR Visa 2% with their new Free Checking Account

FireMedic1 — Tue, 25 Jan 2022 14:03:11 GMT

Got approved last week for the Power Cash. Opened the checking account with $25. Got an email next day you'll get 2% on the card and the in the fine print listed out the restrictions. So my part time job check will go direct deposit to cover the direct deposit part.

Re: PenFed CR Visa 2% with their new Free Checking Account

TheBoondocks — Tue, 25 Jan 2022 12:26:17 GMT

@Sspartan wrote:
@OmarGB9 wrote:
@TheBoondocks wrote:
Ooo I see, so it must be parked in there... I have a boa where I have a DD of $250 but because my boa better balance card, it gives me $120/y. Never mind then, I'll just open the free checking account but just to have it and not open the card then, it's good. Thank you for clarifying!
No problem. If you can swing it, all you theoretically have to do to get 2% is like you said, park $500 in their free checking account and just leave it. You don't have to do direct deposit. That's what I'm going to do in the next few months.
This post has me very confused. I spoke with a representative at Penfed and I was told that if you have the new Free Checking Account that you qualify for the 2% cash back. I was told you need $25 to fund the initial opening of the account and then there is no minimum balance requirement. Having to hold the $500 minimum is not required. with the Free Checking Account.

So which one is it lol? Park $500 or just have $25 in there and you have the 2%? Well, you already got the 2% when open, let us know for months to come then. Thanks!

Re: PenFed CR Visa 2% with their new Free Checking Account

OmarGB9 — Tue, 25 Jan 2022 12:37:38 GMT

@Sspartan wrote:
@OmarGB9 wrote:
@TheBoondocks wrote:
Ooo I see, so it must be parked in there... I have a boa where I have a DD of $250 but because my boa better balance card, it gives me $120/y. Never mind then, I'll just open the free checking account but just to have it and not open the card then, it's good. Thank you for clarifying!
No problem. If you can swing it, all you theoretically have to do to get 2% is like you said, park $500 in their free checking account and just leave it. You don't have to do direct deposit. That's what I'm going to do in the next few months.
This post has me very confused. I spoke with a representative at Penfed and I was told that if you have the new Free Checking Account that you qualify for the 2% cash back. I was told you need $25 to fund the initial opening of the account and then there is no minimum balance requirement. Having to hold the $500 minimum is not required. with the Free Checking Account.

CSRs aren't always the best informed. I think they're confusing the requirements for the free checking account itself with the requirements for 2%. See the disclaimer I posted above regarding qualifying and maintaining 2%, quoted straight from Penfed's site.

Re: PenFed CR Visa 2% with their new Free Checking Account

bigseegar — Tue, 25 Jan 2022 12:39:17 GMT

I got the same email and I didn't take all of that away from it. What I read was it's just basically another Free checking acct is all really. Maybe I missed something though.

Re: PenFed CR Visa 2% with their new Free Checking Account

SouthJamaica — Tue, 25 Jan 2022 15:20:33 GMT

@Sspartan wrote:
@OmarGB9 wrote:
@TheBoondocks wrote:
Ooo I see, so it must be parked in there... I have a boa where I have a DD of $250 but because my boa better balance card, it gives me $120/y. Never mind then, I'll just open the free checking account but just to have it and not open the card then, it's good. Thank you for clarifying!
No problem. If you can swing it, all you theoretically have to do to get 2% is like you said, park $500 in their free checking account and just leave it. You don't have to do direct deposit. That's what I'm going to do in the next few months.
This post has me very confused. I spoke with a representative at Penfed and I was told that if you have the new Free Checking Account that you qualify for the 2% cash back. I was told you need $25 to fund the initial opening of the account and then there is no minimum balance requirement. Having to hold the $500 minimum is not required. with the Free Checking Account.

It's not just you that's confused, it's PenFed that's confused too. They have contradictory statements on the site. One states that you automatically qualify for 2% CB on PCR just by having the free account, the other states you would have to comply with the 500 or 500 requirement to qualify for 2%. I believe the bottom line is this:

1. They now have a free checking account.

2. There is no monthly maintenace fee for the account, therefore there is no requirement to have $500 minimum balance or $500 direct deposit to waive the fee.

3. If your only checking account is the free account, and you want to get 2% rather than 1.5% on the Power Cash Rewards card, and are not in military service, you have to have $500 minimum balance or $500 direct deposit in the free checking account.

Re: PenFed CR Visa 2% with their new Free Checking Account

OmarGB9 — Tue, 25 Jan 2022 15:34:44 GMT

@SouthJamaica wrote:
@Sspartan wrote:
@OmarGB9 wrote:
@TheBoondocks wrote:
Ooo I see, so it must be parked in there... I have a boa where I have a DD of $250 but because my boa better balance card, it gives me $120/y. Never mind then, I'll just open the free checking account but just to have it and not open the card then, it's good. Thank you for clarifying!
No problem. If you can swing it, all you theoretically have to do to get 2% is like you said, park $500 in their free checking account and just leave it. You don't have to do direct deposit. That's what I'm going to do in the next few months.
This post has me very confused. I spoke with a representative at Penfed and I was told that if you have the new Free Checking Account that you qualify for the 2% cash back. I was told you need $25 to fund the initial opening of the account and then there is no minimum balance requirement. Having to hold the $500 minimum is not required. with the Free Checking Account.
It's not just you that's confused, it's PenFed that's confused too. They have contradictory statements on the site. One states that you automatically qualify for 2% CB on PCR just by having the free account, the other states you would have to comply with the 500 or 500 requirement to qualify for 2%. I believe the bottom line is this:

1. They now have a free checking account.
2. There is no monthly maintenace fee for the account, therefore there is no requirement to have $500 minimum balance or $500 direct deposit to waive the fee.
3. If your only checking account is the free account, and you want to get 2% rather than 1.5% on the Power Cash Rewards card, and are not in military service, you have to have $500 minimum balance or $500 direct deposit in the free checking account.

I think that's a perfect way to summarize it.

Re: PenFed CR Visa 2% with their new Free Checking Account

summerterrace — Tue, 25 Jan 2022 17:56:39 GMT

If you want the 2% cash back on the power cash there is no real benefit to opening the free checking account. The same $500 direct deposit or average daily balance requirement applies on both accounts to qualify for the 2%. If you already have Access America and meeting those requirements for Honors Advantage there is no reason to switch to the free checking account.

Re: PenFed CR Visa 2% with their new Free Checking Account

SouthJamaica — Tue, 25 Jan 2022 18:12:12 GMT

@summerterrace wrote:
If you want the 2% cash back on the power cash there is no real benefit to opening the free checking account. The same $500 direct deposit or average daily balance requirement applies on both accounts to qualify for the 2%. If you already have Access America and meeting those requirements for Honors Advantage there is no reason to switch to the free checking account.

Well, if you miss out or forget to meet the minimums one month, and spend less than 2k a month on your PCR, the loss of the half percent cash back is less severe than the imposition of the $10 maintenance fee.

Re: PenFed CR Visa 2% with their new Free Checking Account

Anonymous — Tue, 25 Jan 2022 18:29:25 GMT

@SouthJamaica wrote:
@summerterrace wrote:
If you want the 2% cash back on the power cash there is no real benefit to opening the free checking account. The same $500 direct deposit or average daily balance requirement applies on both accounts to qualify for the 2%. If you already have Access America and meeting those requirements for Honors Advantage there is no reason to switch to the free checking account.
Well, if you miss out or forget to meet the minimums one month, and spend less than 2k a month on your PCR, the loss of the half percent cash back is less severe than the imposition of the $10 maintenance fee.

If you CAN keep $500, then with Access America you will earn a MASSIVE 0.15% per year, vs nothing with free checking, that's 75c a year or $75 every century!

Re: PenFed CR Visa 2% with their new Free Checking Account

OmarGB9 — Tue, 25 Jan 2022 18:37:30 GMT

@Anonymous wrote:
@SouthJamaica wrote:
@summerterrace wrote:
If you want the 2% cash back on the power cash there is no real benefit to opening the free checking account. The same $500 direct deposit or average daily balance requirement applies on both accounts to qualify for the 2%. If you already have Access America and meeting those requirements for Honors Advantage there is no reason to switch to the free checking account.
Well, if you miss out or forget to meet the minimums one month, and spend less than 2k a month on your PCR, the loss of the half percent cash back is less severe than the imposition of the $10 maintenance fee.
If you CAN keep $500, then with Access America you will earn a MASSIVE 0.15% per year, vs nothing with free checking, that's 75c a year or $75 every century!

lol...75 cents a year won't even buy you a soda at the end of the year.