First post by long time lurker. I've learned a lot from the knowledge shared on this forum - thanks.
Letter I received today says the PenFed Cash Rewards variable APR will be reduced to 9.99% (from 13.99%) effective with the first billing cycle after January 15, 2012. Also, effective February 1, 2012, reward rate for gas purchases stays at 5% but drops from 1% to 0.25% on all non-gas purchases.
In the same letter, they're announcing a new PenFed Platinum Rewards Card (Visa) with 5 points per dollar on gas, 3 points per dollar on supermarket, and 1 point per dollar on all other purchases. Effective February 1, 2012. Points can be redeemed for merchandise, travel, gift cards, or Visa prepaid cards. This includes a limited time offer "...jumpstart your rewards by earning 5,000 points the very first time you use your card and another 20,000 points when you spend $1,000 within the first 3 months. That's $250 that you can use toward merchandise, gift cards, and other rewards. Or, you can use your points for other easy-to-redeem rewards, such as merchandise, gift cards, or travel."
To switch from cash rewards to the new card go to PenFed.org/MoreRewards. "You will receive more information about tracking and redeeming your points once your switch becomes effective in February."
On the PenFed web site, I didn't find any references to the Cash reward changes or references to the new rewards card.