Penn now has 12% dca int rate

Mar 3, 2019

  1. pfg1
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    For lump sum deposits or 1035 money going into IUL, they now pay 12% int on that $ while its sitting in the bucket waiting to go into the policy. That is quite strong. :yes:
     
    pfg1, Mar 3, 2019
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  2. pfg1
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    They also increased their premium deposit account int rate to 3.5%!
     
    pfg1, Mar 4, 2019
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  3. Allen Trent
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    I know some other carriers PDA accounts are at 3.5% to 3.75% too. Securian is 4% on their PDA for 8-10 years PDA to Premium movement. It appears to be a great marketing play for them as they know they will only have to credit those very good rates if the money actually flows later into the UL contract where they recover some of that interest in the load fees/policy costs. Not saying it is a bad thing, just saying it is a great marketing tool to help get funds on deposit sooner.

    in terms of the DCA averaging account at 12%, that is really pretty amazing. just curious how that can be 12% when PDA at 3.5%. would seem those funds are invested in similar ways for the carrier & the UL contract has the same loads/fees to later charge. wondering how they can pay 12%.

    good stuff
     
  4. jboussea
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    there's gotta be a catch..
     
  5. pfg1
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    nope

    well its only for a limited time at this point good through end of year - if that is the catch

    The catch is market share, I guess they want some right now
     
    pfg1, Mar 8, 2019
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