PenFed Credit Union is a community-oriented, not-for-profit financial cooperative, based in Omaha, Nebraska. We offer a wide array of financial services, including a variety of savings and money market accounts in a wide range of denominations, a competitive certificate of deposit rate, a variety of loan options, and the convenience of one-stop shopping for all your financial needs.

With CD rates as low as they are these days, those with some extra cash can find a cash CD rate as high as 1.10% APY.

PenFed Credit Union is another credit union that has been around for quite a few years now. They have been offering competitive CD rates since 2005. They have been able to provide competitive rates to their members for many years because of their strong foundation and very solid business model.

PenFed-Credit-Union-CD-Rates-%E2%80%93-Up-to-110-APYThe headquarters of PenFed are located in Tysons, Virginia.

Pentagon Federal Credit Union, commonly referred to as “PenFed,” is the third largest credit union in the nation—and the second largest federal credit union—with 1.75 million members across the world and $25 billion in assets.

PenFed, which was established in 1935 by a group of 10 civilian War Department workers as the War Department Federal Credit Union, is now located in Virginia, although it began in the Munitions Building on the Mall in Washington, D.C.

Though it is a military credit union, you do not have to be a member or dependant of the military to enroll. If you don’t fulfill any of the other criteria, you may still join PenFed by joining the nonprofit National Military Family Association for $17 or Voices for America’s Troops. As a member of this NCUA-insured credit union, you’ll get access to low rates on a variety of savings products.

This article will teach you how to:

PenFed offers a slightly wider range of certificate products than most credit unions with nine terms to choose from ranging from six months to seven years. Their CDs, called money market certificates, provide very good returns compared to the current national average(s). These accounts are federally insured by the NCUA up to $250,000 per depositor or $500,000 for joint accounts.

They are very simple to open, even by credit union standards. Certificates may be opened online in minutes after you’ve become a member.

Money Market Certificate Rates at the PenFed (CD Rates)

6 month 0.40%
12 month 0.60%
15 month 0.60%
18 month 0.60%
2 year 0.65%
3 year 0.85%
4 year 0.75%
5 year 1.10%
7 year 1.10%

Although PenFed’s CD rates are still much better than the current national average(s) for their individual periods, internet banks and other credit unions offer somewhat better CD rates.

To put their 12-month and 5-year CDs in context, the national average APY for those periods is now 0.17 percent and 0.27 percent, respectively.

To establish a money market certificate account with PenFed, you’ll need a minimum of $1,000.

Interest Compounding and Crediting

Except for the 6 month certificate, which yields just simple interest on the principal and is paid at maturity, dividends are compounded daily and paid monthly.

If you’re utilizing the profits for income, you may opt to have them transferred into a different account, or they can be returned to the CD account to compound further. The second choice is the default.

Penalties for Early Withdrawal

  • You’ll have to pay 90 days’ interest on a 6-month certificate;
  • for any other certificate (from 12 months to seven years), you’ll pay 365 days’ interest if you withdraw within a year of issuance and 30% of the gross interest earned if you withdraw after a year of issuance but before maturity.

PenFed needs just a $25 starting deposit for a money market account, however their rates are very low and do not compete with other banks we’ve examined, such as Vio Bank or Discover Bank.

Money Market Rates at the PenFed

Balance APY
From $25 to $9,999 0.05%
From $10,000 to $99,999 0.10%
$100k + 0.15%

Because the national average for money market rates is only 0.06 percent, you may anticipate below-average payments, paid and compounded monthly, unless you have more than $100,000 on hand.

There is no monthly service charge or minimum balance requirement with a PenFed money market savings account. You are limited to six withdrawals per month and will be charged a $10 fee for any transaction that exceeds this limit. You may withdraw money from a non-PenFed ATM for $1.50 each transaction.

Regular and premium online savings accounts are available from PenFed.

You may join PenFed, buy a stake in the credit union, and establish a normal savings account all at once for a $5 deposit. But there’s a reason this savings account is named “ordinary” rather than “premium”: it pays just 0.05 percent interest on any amount. That’s 0.02 percent below the national average.

Dividends are paid and compounded on a monthly basis, and this account type allows you to withdraw money from an ATM. A PenFed regular or premium savings account has no monthly maintenance charge, but there are certain additional expenses to be aware of. If you attempt to overdraft your account, you will be charged a $30 insufficient funds fee, and there is no overdraft transfer service, so keep track of your account balances if you intend to join PenFed.

PenFed Premium Savings Account (APY: 0.45%)

Deposit Requirement APY
$5 0.45%

PenFed’s “premium savings account” pays an outstanding 0.55 percent annual percentage yield. The account’s interest is compounded and credited monthly, and it only costs $5 to start. Keep in mind that ATM transactions are not permitted in this savings account, so you won’t be able to perform any normal banking with it.

PenFed claimed an increase of 80,000 members and a net value of $170 million in its 2018 Annual Report. PenFed now has 1.75 million members worldwide and total assets of more than $25 billion. It has members throughout every state in the United States, as well as the territories of Guam and Puerto Rico, as well as the prefecture of Okinawa in Japan.

There are only 50 PenFed branch locations in select cities and states, but over 60,000 ATMs nationwide. To find ATMs and/or branch locations start here. You are more than likely within a mile of several ATMs accepted by PenFed. Some of these surcharge-free ATMs are branded as PenFed Credit Union and some of them are not. However, like other large credit unions, PenFed DOES NOT participate in shared or co-op branching. Branches can be found in Washington, D.C., Florida, Hawaii, Maryland, New York, North Carolina, Oregon, Tennessee, Texas, and Virginia.

Membership in the PenFed is open to almost everyone, regardless of military allegiance. You may join the organization in one of the following ways:

  1. You are a member of the military, either on current duty or retired.
  2. You work for an organization that qualifies (such as a veterans service organization)
  3. You are a member of a qualified organization (such as the American Red Cross)
  4. You work for the United States government.
  5. You live or work in one of the eligible areas.

For a complete list of qualifying organizations, associations, and locations, go here. If you are not eligible in any of these ways, you can access membership by joining either the National Military Family Association for $17 or Voices for America’s Troops for $14.

Both of these groups strive to make military personnel feel seen and heard. When it counts most, the National Military Family Association helps military families by bringing urgent problems that service members and dependents confront to the attention of Congress and other decision-makers. For troops and their families, Voices for America’s Troops pushes for career incentives to make serving in the military a viable choice.

PenFed banking can be done in-person at a branch, online, or through the PenFed mobile app.

When you look at the statistics alone, there are fairly obvious benefits and drawbacks to joining PenFed. PenFed offers competitive rates on certificates and premium online savings accounts. PenFed is not a good option for a regular savings or money market account.

Outside of just rates though, there are no membership or maintenance fees and there are countless discounts through partner organizations, such as TurboTax and Sprint, that PenFed members can take advantage of.

PenFed is one of the most welcoming credit unions in the nation, welcoming virtually every citizen and resident of the United States.

If you’re looking for a new savings account that puts your money to work, look no further. PenFed Credit Union has some of the highest CD rates around, with up to 1.10% APY for a 5-year CD. And with a minimum deposit of just $500, it’s easy to get started.. Read more about penfed cd rates calculator and let us know what you think.

Frequently Asked Questions

What is a good APY rate for a CD?

The APY rate for a CD is 0.05%.

What is the current 5 year CD rate?

The current 5 year CD rate is 2.88%

Do credit unions have higher CD rates?

Credit unions typically offer higher interest rates on savings and checking accounts, but they also have higher fees.

This article broadly covered the following related topics:

  • penfed cd rates
  • penfed ira cd rates
  • penfed cd rates 2018
  • penfed money market rates
  • penfed premium online savings
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