- Penfed Credit Union Pentagon Credit Union
- Penfed Credit Union Cd Rates Today
- Pentagon Federal Credit Union Official Site
The rate of 1.90% is 1.13% higher than the average 0.77%. Also it is 0.45% lower than the highest rate 2.35 Updated Aug, 2019 on PenFed Federal Credit Union's secure website. May 06, 2020 PenFed Credit Union (PenFed) used to offer very competitive CD rates. My last post was in early 2019 when its 5-year CD yield was over 3%. Unfortunately, PenFed's CD rates have been uncompetitive for some time, with rates much lower than what online banks are offering. PenFed 2 Year CD Rates. Type Fixed: Rate 2.30%: Currency: USD: The rate of 2.30% is 1.07% higher than the average 1.23%. Also it is 0.25% lower than the highest rate. Rates are subject to change monthly and are fixed for the term of the certificate. Certificates dividends compound daily. The minimum balance to open a certificate is $1,000. The content you are about to. For shorter term certificates of deposit rates, PenFed's current 6 month money market CD rate is one of the highest CD rates available right now. The current 6 month CD rate and CD yield is 1.06 percent. That rate is also higher than the current national average 6 month CD rate.
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, originally called the War Department Federal Credit Union by the group of ten civilian War Department employees that founded it in 1935, is headquartered in Virginia today but started out in the Munitions Building on the Mall in Washington, D.C.
Though technically a military credit union, you don't actually have to be a military member or dependent to join. There are a number of ways to qualify for membership with PenFed outside of this, including becoming a member of the nonprofit National Military Family Association for $17 or Voices for America's Troops if you don't meet any of the other requirements. Once a member, you'll have access to modest rates on multiple savings products from this NCUA-insured credit union.
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 easy to open, especially for credit union standards. Once you're a member, certificates can be opened online within minutes.
PenFed Money Market Certificate Rates (CD Rates)
Although PenFed's CD rates still beat the current national average(s) for their respective terms by a significant margin, slightly better CD rates can be found through online banks or with other credit unions.
To put their 12 month and 5 year CD in perspective, the current national average for those terms sit at just 0.22% APY and 0.47% APY, respectively.
You'll need a minimum of $1,000 to open any money market certificate account with PenFed.
Compounding and Crediting Interest
Dividends are compounded daily and paid monthly – except for the 6 month certificate – which earns only simple interest, paid at maturity, on the principal.
You can choose to have your dividends deposited into a separate account if you're using these proceeds for income, or it can be returned to the CD account to compound further. The latter is the default option.
Early Withdrawal Penalties
- For a 6 month certificate, you'll have to pay 90 days' interest;
- 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.
A money market account with PenFed requires an opening deposit of just $25, however their rates are quite low and do not compete with other banks we've covered such as Vio Bank or Discover Bank.
PenFed Money Market Rates
The national average for money market rates sits at just 0.06%, so unless you have more than $100,000 lying around, you can expect below average payouts, paid and compounded monthly.
A PenFed money market savings account does not come with a monthly service fee or balance requirement. You are allowed no more than six withdrawals per month and you will be charged a fee of $10 for every excessive transaction. You may withdraw funds from a non-PenFed ATM, but you'll have to pay $1.50 per.
PenFed offers regular savings and premium online savings accounts.
For a $5 deposit, you become a member of PenFed, purchase a share in the credit union, andopen a regular savings account all at once. But this savings account is called 'regular' insteadof 'premium' for good reason: it pays a rate of just 0.05% on any balance. For comparison,that's 0.02% below average.
Dividends are paid and compounded monthly and you do have the option of withdrawing funds from an ATM with this account type. There is no monthly maintenance fee for a PenFed regular or premium savings account, but there are other fees you'll want to watch out for. You will be charged an insufficient funds fee of $30 every time you try to overdraft your account and there is no overdraft transfer service, so stay on top of your account balances if you plan to join PenFed.
PenFed Premium Savings Account – 0.55% APY
PenFed's 'premium savings account' offers an excellent APY of 0.55%. Interest is compounded and credited monthly and the account requires just $5 to open. Keep in mind this savings account does not allow for ATM transactions, so you will not be able to conduct any regular banking activity out of the account.
In its 2018 Annual Report, PenFed reported growing by 80,000 members and $170 million in networth for that year. Today, PenFed has 1.75 million members across the world and over $25billion in total assets. It has members in every U.S. state as well as the territories of Guam andPuerto Rico and the prefecture Okinawa.
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.
PenFed membership eligibility is inclusive to just about everyone regardless of military affiliation. You can qualify for membership in any of the following ways: Legit games to earn money gta 5.
- You are an active-duty or retired military member
- You are employed at a qualifying organization (such as a veterans service organization)
- You belong to a qualifying association (such as the American Red Cross)
- You are a United States government employee
- You live or work in a qualifying location
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.
The goal of both of these organizations is to help military members feel seen and heard. The National Military Family Association supports military families by bringing pressing issues that service members and dependents face to the attention of Congress and other decision-making officials when it matters most. Voices for America's Troops advocates for career incentives in order to make a life serving in the military a sustainable option for soldiers and their families.
PenFed banking can be done in-person at a branch, online, or through the PenFed mobile app.
There are pretty clear pros and cons of PenFed membership when you look at the numbers alone. For a certificate or premium online savings accounts, PenFed has attractive rates. For a regular savings or money market savings account, PenFed is not appealing.
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 inclusive credit unions in the country opening their doors to nearly any US citizen or resident.
- High-earning interest rate
- Two account options, including an education savings account
- Potentially high minimum deposit
- Customers who qualify for membership and want a big boost of savings
Historically, credit unions offer better interest rates than traditional banks. This remains true with PenFed Credit Union which offers some of the best certificate of deposit rates around. These rates compete well with its bank competitors.
Luckily you'll have a variety of terms to choose from. Money Market Certificates come as nine different term lengths, from six months to seven years long. Coverdell Education Savings Certificates offer six different terms from one to seven years. These options allow you to find the accounts that work best for your financial situation and savings goals.
PenFed Money Market Certificates
The PenFed Money Market Certificates work as the credit union's standard CDs. You have a number of term options to choose from, each with a high interest rate. This means you can see immense growth in your savings no matter which term you choose.
PenFed calculates dividends daily and pays them monthly. Whichever you choose, it can be paid by adding it back into the certificate, transferred to another account or sent in check form.
| Money Market Certificates | Minimum Deposit | APY |
| 6 Month | $1,000 | 0.25% |
| 12 Month | $1,000 | 0.45% |
| 15 Month | $1,000 | 0.45% |
| 18 Month | $1,000 | 0.45% |
| 2 Year | $1,000 | 0.50% |
| 3 Year | $1,000 | 0.55% |
| 4 Year | $1,000 | 0.60% |
| 5 Year | $1,000 | 0.70% |
| 7 Year | $1,000 | 0.75% |
PenFed Coverdell Education Savings Certificates
Coverdell Education Savings Certificates are meant to help you save for education expenses. This includes elementary, secondary and college costs like books and tuition. With a minimum deposit of $500, it's easier to get started with these certificates than with a Money Market Certificate. There is also a $2,000 maximum yearly contribution to Coverdell Education Savings Certificates.
A big plus of these accounts is that they generate tax-free earnings. This allows you to really spend all your earnings on future education costs.
| Coverdell Education Savings Certificates | Minimum Deposit | APY |
| 1 Year | $500 | 0.40% |
| 2 Year | $500 | 0.45% |
| 3 Year | $500 | 0.50% |
| 4 Year | $500 | 0.55% |
| 5 Year | $500 | 0.65% |
| 7 Year | $500 | 0.70% |
6-Month Money Market Certificate Interest Rate Comparison
In its 2018 Annual Report, PenFed reported growing by 80,000 members and $170 million in networth for that year. Today, PenFed has 1.75 million members across the world and over $25billion in total assets. It has members in every U.S. state as well as the territories of Guam andPuerto Rico and the prefecture Okinawa.
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.
PenFed membership eligibility is inclusive to just about everyone regardless of military affiliation. You can qualify for membership in any of the following ways: Legit games to earn money gta 5.
- You are an active-duty or retired military member
- You are employed at a qualifying organization (such as a veterans service organization)
- You belong to a qualifying association (such as the American Red Cross)
- You are a United States government employee
- You live or work in a qualifying location
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.
The goal of both of these organizations is to help military members feel seen and heard. The National Military Family Association supports military families by bringing pressing issues that service members and dependents face to the attention of Congress and other decision-making officials when it matters most. Voices for America's Troops advocates for career incentives in order to make a life serving in the military a sustainable option for soldiers and their families.
PenFed banking can be done in-person at a branch, online, or through the PenFed mobile app.
There are pretty clear pros and cons of PenFed membership when you look at the numbers alone. For a certificate or premium online savings accounts, PenFed has attractive rates. For a regular savings or money market savings account, PenFed is not appealing.
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 inclusive credit unions in the country opening their doors to nearly any US citizen or resident.
- High-earning interest rate
- Two account options, including an education savings account
- Potentially high minimum deposit
- Customers who qualify for membership and want a big boost of savings
Historically, credit unions offer better interest rates than traditional banks. This remains true with PenFed Credit Union which offers some of the best certificate of deposit rates around. These rates compete well with its bank competitors.
Luckily you'll have a variety of terms to choose from. Money Market Certificates come as nine different term lengths, from six months to seven years long. Coverdell Education Savings Certificates offer six different terms from one to seven years. These options allow you to find the accounts that work best for your financial situation and savings goals.
PenFed Money Market Certificates
The PenFed Money Market Certificates work as the credit union's standard CDs. You have a number of term options to choose from, each with a high interest rate. This means you can see immense growth in your savings no matter which term you choose.
PenFed calculates dividends daily and pays them monthly. Whichever you choose, it can be paid by adding it back into the certificate, transferred to another account or sent in check form.
| Money Market Certificates | Minimum Deposit | APY |
| 6 Month | $1,000 | 0.25% |
| 12 Month | $1,000 | 0.45% |
| 15 Month | $1,000 | 0.45% |
| 18 Month | $1,000 | 0.45% |
| 2 Year | $1,000 | 0.50% |
| 3 Year | $1,000 | 0.55% |
| 4 Year | $1,000 | 0.60% |
| 5 Year | $1,000 | 0.70% |
| 7 Year | $1,000 | 0.75% |
PenFed Coverdell Education Savings Certificates
Coverdell Education Savings Certificates are meant to help you save for education expenses. This includes elementary, secondary and college costs like books and tuition. With a minimum deposit of $500, it's easier to get started with these certificates than with a Money Market Certificate. There is also a $2,000 maximum yearly contribution to Coverdell Education Savings Certificates.
A big plus of these accounts is that they generate tax-free earnings. This allows you to really spend all your earnings on future education costs.
| Coverdell Education Savings Certificates | Minimum Deposit | APY |
| 1 Year | $500 | 0.40% |
| 2 Year | $500 | 0.45% |
| 3 Year | $500 | 0.50% |
| 4 Year | $500 | 0.55% |
| 5 Year | $500 | 0.65% |
| 7 Year | $500 | 0.70% |
6-Month Money Market Certificate Interest Rate Comparison
Overview of PenFed CDs
PenFed is a credit union, which means you need to be a member of the credit union in order to open an account. You can join PenFed based on your employment, volunteerism or military affiliation. You may also be able to join if you know someone who is already a PenFed member. If you qualify, then you can become a PenFed member and start earning at its high rates.
While PenFed does offer two certificate of deposit account types, you may only use a Coverdell Education Savings Certificate to pay for education expenses. Still, you can open multiple Money Market Certificates if big savings is what you're looking for. To really maximize your savings, open a few accounts at the same time, each with a different maturity date. That way, you can have a certificate payout in six months, 12 months, two years and four years from now, for example. This practice is called a CD ladder. It helps you set up a steady stream of income over the months. Just be careful of overstretching your current funds so you don't end up with all your money tied up in a certificate and none in your actual checking account.
Once you make your deposit into your certificate account, you won't be able to make any withdrawals or additional deposits until it reaches maturity. If you really need to access those funds, you can make an early withdrawal although at a cost. To make an early withdrawal from a Money Market Certificate, you'll need to first make a request in writing. Certificates funded by ACH do not allow for withdrawals within the first 60 days of account opening. For six-month accounts, you'll have to forfeit all your earnings if the withdrawal is made within 90 days of account opening. After those 90 days, your penalty equals 90 days of interest earned. If you make an early withdrawal within the first year on an account longer than six months, you'll have to forfeit all the dividends you earned. Any withdrawals after one year assess a penalty of 30% of what would have been earned had you held the certificate to maturity.
Coverdell Education Savings Certificates assess a slightly different early withdrawal penalty. You still must provide your early withdrawal request in writing. If you withdraw within the first year of account opening, you'll have to forfeit all the dividends you earned. If you make a withdrawal after that first year, the penalty equals 30% of the interest your account would have earned had it been held to maturity.
Your PenFed certificates are NCUA-insured up to legal limits instead of being insured by the FDIC.
Compare PenFed to Other Competitive Offers
How Much You Earn With PenFed Certificate of Deposits Over Time
With just about the highest rates around, PenFed guarantees a big boost in your savings no matter which account you open. If you're not saving toward education, you'll open a Money Market Certificate, which means you have to deposit at least $1,000. This does limit potential customers who don't have at least $1,000 to set aside responsibly. However, higher deposits result in higher final balances since there is more to grow.
To snag the highest PenFed certificate rates, you'll want to open longer-term accounts. This can earn you hundreds, or even thousands, in savings. However, it also means that you have to wait for the long-term account to mature, which can reach as high as seven years.
Plus, PenFed compounds interest daily. This means your interest grows faster and more efficiently by building on itself every day. So your deposit will earn interest today, all that money will earn interest again tomorrow and so on. This is the fastest way to grow your deposit as opposed to compounding weekly or even monthly.
How PenFed CDs Rates Compare to Other Banks
Another credit union with excellent rates is Navy Federal Credit Union (NFCU), which offers a variety of certificates and rates. The minimum you need to deposit is also $1,000. However, larger deposits (think $100,000) can earn at higher interest rates. The rates we've given below correlate to the $1,000 minimum tier. Its rates compete well with PenFed's, even reaching so high as a 1.01% APY on a 5-year account. Do note that NFCU has its own membership requirements that are more limited to military members and their families.
Penfed Credit Union Pentagon Credit Union
A close interest rate competitor, although not a credit union, is Marcus by Goldman Sachs. Marcus is an online bank which allows it to offer such high rates. You do need at least $500 to open a Marcus CD, which does open up the account to more customers than a $1,000 minimum.
Penfed Credit Union Cd Rates Today
| CD Account | PenFed (Money Market Certificates) | Navy Federal Credit Union | Marcus by Goldman Sachs | Chase |
| 6 Month | 0.25% | 0.45% | 0.15% | 0.02% |
| 1 Year | 0.45% | 0.55% | 0.55% | 0.02% |
| 3 Year | 0.55% | 0.70% | 0.55% | 0.02% |
| 5 Year | 0.70% | 0.90% | 0.60% | 0.02% |
Should You Get a PenFed CD Account?
Pentagon Federal Credit Union Official Site
If you qualify for PenFed membership, you should consider opening a certificate account. These accounts have some of the best rates around, even when compared to online banks. You'll want to take advantage of your membership by using these great rates to really boost your savings. Plus, if you foresee education expenses in your future, the Coverdell Savings Certificates allow you to save toward those costs tax-free.
