Penfed does it again: Annual high yield CD promotion

Last week I wondered if the Pentagon Federal Credit Union would offer a first quarter high yield CD promotion for the third year in a row, and today they did just that (kudos to the Bank Deals blog for getting the early scoop on the rates and terms).

History has shown that now is a great time of year to start or add to a Penfed CD ladder, as they offered market leading yields for 5 year CDs in January 2005 (5.25%), January 2006 (5.75%), and January 2007 (6.25%).

Since I will be cashing in some I Bonds next week, I will be adding a 5 year Penfed CD @ 6.25% APY to the 4 year CD ladder I built in the fall. I you have some idle cash available, I highly recommend taking Penfed up on their generous offer.