PenFed refers to its certificate of deposit (CD) products as money market certificates. They feature competitive rates and renewal flexibility. Minimum amount to open an account: $1,000; Minimum amount to earn APY: $1,000; Early withdrawal penalties, which depend on the original term of the CD. PenFed Credit Union CD Rates, Checking, Savings, Money Market, and IRA Accounts. Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It may not have been previewed, commissioned or otherwise endorsed by any of our network partners. PenFed 6 Month CD Rates. Interest Rate below was based on the Money Market Certificate CD rates product. A minimum opening deposit of $1,000 is required. The rate of 1.90% is 1.13% higher than the average 0.77%. Also it is 0.45% lower than the highest rate.

1. Pentagon Federal Credit Union Official Site
2. Penfed Cd Rates Calculator
3. Penfed Credit Union Pentagon Credit Union
4. Penfed Cd Rates Highest

Pentagon Federal Credit Union is the second-largest federal credit union in the U.S. Unlike some other exclusive institutions, membership is open to anyone. While U.S. government employees, members of the U.S. military and Uniformed Services and their families qualify automatically, you can also gain membership by joining one of two organizations (for a one-time cost of $14 to $15).

PenFed offers a wide range of products from checking and savings accounts to personal loans and mortgages. Its rates and terms tend to be competitive in the market, while its branch access is limited. Bankrate’s overall rating of the Pentagon Federal Credit Union is 4.3 out of 5.

Pentagon Federal Credit Union CD rates

Pentagon Federal Credit Union offers money market certificates, IRA certificates and Coverdell Education Savings certificates. According to PenFed’s website, banks use the term “certificate of deposit,” or CD, while credit unions use the term “certificate.” However, the accounts function in the same way.

Here are the rates on PenFed’s money market certificates.

Note: The APY (annual percentage yield) shown is as of Jan. 5, 2021. The APY may vary in region.

Minimum deposits range from $500 to $1,000, depending on the certificate type and all certificates are backed by NCUA insurance up to $250,000. Additionally, all certificate dividends are compounded daily except for six-month money market certificates which earn dividends on a simple interest basis.

You’ll face penalties for withdrawing your Coverdell or money market certificates early while qualified distributions and partial withdrawals after the age of 59 1/2 are allowed on IRA certificates without penalties.

How Pentagon Federal Credit Union compares to top-yielding banks

When comparing the best CD interest rates, PenFed CD rates tend to fall in the middle of the pack. Its one-year money market certificate APY currently sits at 0.50 percent while top competitors earn up to 0.80 percent. The three-year APY is 0.60 percent while top competitors range from 0.81 percent to 1.15 percent, and the five-year APY is at 0.80 percent compared to top competitors coming in from 1.00 percent to 1.35 percent.

Where PenFed CDs stand out is in other CD terms like the minimum deposit amount. Across the board, PenFed only requires $1,000 to open a money market certificate. Competitors such as Amerant Bank and PurePoint Financial ask $10,000, Citizens Access requires $5,000 and Synchrony Bank requires $2,000. However, there are a few competitors with no minimum deposit amount including Capital One, Ally Bank and Barclays.

Other savings options at Pentagon Federal Credit Union

Pentagon Federal Credit Union ranks well when it comes to savings accounts due to its Premium Online Savings offering. You only need $5 to open the account, there is no monthly fee and the APY is competitive.

Additionally, FedPen offers a regular savings account; however, the APY is only a modest 0.05 percent. A money market savings account is also on offer with a 0.15 percent APY on balances over $100,000.

The Premium Online Savings account comes out a clear winner in PenFed’s lineup due to the low barrier of entry and high reward. Depending on how long you want to keep your money in a CD and how much you have to invest, the savings account may even be a better alternative to CDs.

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.

Pentagon Federal Credit Union Official Site

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 Cd Rates Calculator

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:

1. You are an active-duty or retired military member
2. You are employed at a qualifying organization (such as a veterans service organization)
3. You belong to a qualifying association (such as the American Red Cross)
4. You are a United States government employee
5. You live or work in a qualifying location

Penfed Credit Union Pentagon Credit Union

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.​

Penfed Cd Rates Highest

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.