Hello everyone,
I was recently approved for a PenFed PCR card about a month or so ago. I made a payment this past Monday and the next my available credit reflected the payment. Well I was looking over my accounts with them today and noticed that my available credit had dropped significantly so I phoned up customer service to found out why this had occured. Keep in mind the payment was made from my PenFed checking account with available balance funds. I was told that all accounts with PenFed have a 5 day hold in place before funds become available for 6 months. After 6 months this hold policy is lifted for the client. This seems a little extremely to me but I understand the credit union protecting themselves from possible fraud.
I have several checking and savings accounts with other credit unions and banks and have never ran in to this type of policy before. I was thinking of making PenFed my main bank but seriously reconsidering that idea. I am currently looking at SDFCU to open accounts with them. I use Zelle pretty regularly to transfer funds from one of my checking accounts to my daughter's. She is at another FI that uses Zelle and it just amazes me how fast those transfers are. She is currently a full time college student and doesn't have a job due to her college work load. Just thought I would let others who are thinking of joining PenFed know about this 5 day hold policy they have in place before opening accounts with them.
I will am very curious to find out how fast the funds become available after the 6 months period is up. The CSR did tell me that this hold policy does not apply to direct deposits (such as employer payroll deposits). I will see on the 28th if this holds true.
Credit_Master
@Credit_Master wrote:Hello everyone,
I was recently approved for a PenFed PCR card about a month or so ago. I made a payment this past Monday and the next my available credit reflected the payment. Well I was looking over my accounts with them today and noticed that my available credit had dropped significantly so I phoned up customer service to found out why this had occured. Keep in mind the payment was made from my PenFed checking account with available balance funds. I was told that all accounts with PenFed have a 5 day hold in place before funds become available for 6 months. After 6 months this hold policy is lifted for the client. This seems a little extremely to me but I understand the credit union protecting themselves from possible fraud.
I have several checking and savings accounts with other credit unions and banks and have never ran in to this type of policy before. I was thinking of making PenFed my main bank but seriously reconsidering that idea. I am currently looking at SDFCU to open accounts with them. I use Zelle pretty regularly to transfer funds from one of my checking accounts to my daughter's. She is at another FI that uses Zelle and it just amazes me how fast those transfers are. She is currently a full time college student and doesn't have a job due to her college work load. Just thought I would let others who are thinking of joining PenFed know about this 5 day hold policy they have in place before opening accounts with them.
I will am very curious to find out how fast the funds become available after the 6 months period is up. The CSR did tell me that this hold policy does not apply to direct deposits (such as employer payroll deposits). I will see on the 28th if this holds true.
Credit_Master
PenFed is a good credit union, but it has its peculiarities. Apparently you've stumbled onto one of them. I never experienced it because I never use a credit card like that for anything remotely approaching the limit, so that the amount available would not be of importance to me.
I seriously doubt what the CSR promised you will come true, because the payment of the PCR credit card won't be coming from the direct deposit, it will be coming from the bank account into which the direct deposit was made.
Despite its peculiarities it's one of my most useful and reliable financial institutions, so I wouldn't give up on it too quickly. But if you're going to use it as your 'main' bank, I guess you need to find out about the peculiarities, to see if they conflict in a significant way with the ways you do your banking.
@Guyatthebeach wrote:Credit_Master,
The 5 day hold for the first six months is a standard operating procedure for them. I don't use them for direct deposit, but I never have a hold for any amount I transfer into PenFed. When I use their ACH for credit card payments, they post before the money is even pulled from my primary checking account at my main CU. When I use the ACH from my main CU, PenFed credits my saving account the morning of the second business.
I have no real issues with them. I just have them for the credit cards.
Guyatthebeach
I've also used PenFed in this same way and never had an issue with them either.
@Absolution16 wrote:
So all PenFed checking, savings, and credit card available balance do not get updated for 5 "business" days until they are aged to 6 months old, if I understand this correctly?
I don't recall ever experiencing that. PenFed has been super fast for me.
I am in the process of applying for membership, which only requires savings account with them, but seeing as how this 6-month, 5-business day rule is enforced with them, would it be wise to open up a checking account with them as well and let both savings/checking age together to 6 months in order to avoid this funds availability issue?
According to reports I've seen, yes. But I think the thing to do is open the accounts, and test them out on small unimportant transfers until you have the feel of it.
I'd also like to apply for one of their credit cards as well, but I've been reading a lot of posts that suggest to wait for at least 6 months of membership before applying for their credit cards. By then, I would still have to deal with available balance not actually being "available" for 5 business days after payment for 6 months on the newly opened account, I assume? I am curious since I am not sure how much credit I will be granted by them, considering I am just trying to join them now.
I don't know of any reason to wait to apply for a credit card with them.
