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ALEXANDRIA, VA 22314-4557

Pentagon Federal Credit Union ("Penfed") serves over 903,609 members in the Air Force, Army, Coast Guard, Department of Homeland Security, Department of Defense, defense-related companies, and the Veterans of Foreign Wars. Penfed is one of the largest credit unions in the country and offers a range of banking products and services, in addition to credit cards and loans.

On its personal banking side, Pentagon FCU offers deposit accounts including checking, savings, Money Market, Certificate, Education Savings Certificate, and IRA accounts. Two checking account options are available, including a standard, free account that comes with a free Visa Check Card and ATM transactions, as well as a student checking account that comes with overdraft protection and a free check card. The standard checking has a minimum daily balance requirement, and the student checking requires a joint owner to establish the account. PenFed’s regular savings account comes with an average interest rate and a low initial deposit requirement. Money Market accounts are available and come with free checks, have no regular service fees, and offer tiered rates of interest for greater account balances. has featured PenFed’s CDs, which it calls ‘Money Market Certificates’, repeatedly in the past for their competitive rates of interest. IRA accounts are available and provide a number of retirement savings alternatives.

PenFed online banking is a secure banking platform through which members can access their accounts, transfer funds, pay bills, and view transaction history. The credit union has optimized it’s website for mobile banking as well as released a mobile app to make account management easy and convenient on the go. The credit union introduced its ACH online transfer service in the spring of 2012, making it easy for members to transfer funds into and out of these liquid accounts.

Pentagon Federal Credit Union was originally established in 1935 and is headquartered in Alexandria, Virginia. The credit union serves its members through branches located across the United States and at select military bases all over the world.

Field of Membership Restrictions

You are eligible for membership through your employment, association membership, or volunteerism. Membership is open to anyone who is in the United States Military & Uniformed Services, an employee of a qualifying organization, an employee of the United States government, a relative or housemate of someone who is eligible, or anyone who lives or works at an eligible location. Additionally, your membership eligibility may also be established through either of National Military Family Association or Voices for America's Troops. Membership into these two associations is open to anyone for low, one-time only donation or membership fee. - See Details

Related Posts

PenFed Slashes CD Rates for March - 3/1/2014

All good things must come to an end. That’s the case with PenFed CD rates. PenFed slashed its CD rates for March. The sizes of the cuts range from 51 basis points for the 7-year CD to 25 basis points ...

Tips for Those with PenFed CDs Maturing in February - 2/7/2014

As I reported in late January, PenFed took the unusual step to have two CD rate schedules for February. One of the rate schedules is for new CDs, and most of the rates are much lower than the January ...

PenFed CD Rates Going Down for New CDs in February - 1/30/2014

PenFed will be lowering most of its CD rates in February. This isn’t official since these rates are not yet posted on PenFed’s website. I learned of these rates from a PenFed customer service represen ...

12/28/11 - Rumors Of New Penfed 3.00% 10-Year CD In January
12/16/11 - New Simple Checking Account Disclosure Form - How About CDs?
12/6/11 - Comparing the Best CD Rates After Early Withdrawal Penalties
11/23/11 - New Service Fees At Pentagon Federal As Of Sept 2011
10/6/11 - Comparing the Best Long-Term CD Rates After Early Withdrawal Penalties
10/5/11 - PenFed's Long-Term CD Rates are Now Competitive
8/20/11 - Pen Fed Branch Offices Are Useless
7/29/11 - Penfed Contingency Plan In Case Of Government Default
5/26/11 - Penfed CD Penalty Change Alert
4/7/11 - Larger CD Early Withdrawal Penalties
3/8/11 - Update on Future PenFed 10-Year CDs
3/1/11 - PenFed Cuts CD Rates By 25 Basis Points
2/2/11 - February 2011 Maturing CD's Bonus 25 Basis Points
1/21/11 - Comparing the Best Long-Term Certificates of Deposit
1/11/11 - Malware on Laptop Caused Security Breach at PenFed
1/1/11 - PenFed CD Update for January
12/30/10 - Important Note For Those Who Reserved CDs In The Penfed Watch It Grow CD Promotion
12/5/10 - The Best CD Rates Available Nationwide: Comparing PenFed with Ally Bank
12/1/10 - PenFed Lowers CD Rates But Long-Term CD Rates Remain Competitive
11/11/10 - Why PenFed's 7-Year CD Is A Hot Deal
11/1/10 - Long-Term CD Rates and Early Withdrawal Penalties - Updates and Concerns
10/11/10 - Comparing the Best Long-Term CD Rates and Early Withdrawal Penalties
9/29/10 - Ally Bank to Offer IRA CDs - How It Might Compare to Discover Bank and PenFed
9/28/10 - Update on PenFed's CD Reservation Promotion - New End Date
9/20/10 - Update on PenFed's CD Reservation Promotion
9/18/10 - PenFed Cutting Costs by Eliminating a Toll-Free Number
9/1/10 - PenFed Lowers CD Rates But Some Rates Remain Competitive
8/29/10 - Comparing Long-Term CD Rates at Discover, Ally and PenFed
8/26/10 - Rate Leaders Cutting Long-Term CD Rates
8/19/10 - Select PenFed Members Can Reserve CDs with Yields from 3.50% to 5.00%
8/19/10 - New CD Rollover Promotion At Pentagon Federal Credit Union
8/2/10 - PenFed's New 7-Year CD and IRA CD Rate - Available Nationwide
7/9/10 - Penfed Offers Remote Deposit To Members With Checking Accounts
3/31/10 - CD Rates Fall at Pentagon Federal Credit Union
3/23/10 - Pentagon FCU Adds Private Student Loan Program to Education Loan Portfolio
3/3/10 - PenFed's New No-Fee Credit Card, the PenFed Promise Card
2/1/10 - Penfed Keeps Its Competitive CD Rates into February
1/24/10 - Joining PenFed When You Have a Credit Freeze
1/20/10 - Wisdom of Long-Term CDs in Today's Rate Environment?
1/9/10 - Updates on Pentagon FCU's Rewards Credit Cards
1/5/10 - Update on PenFed CDs and CD Rollovers
1/1/10 - Happy New Year! PenFed Raises CD Rates for January
12/2/09 - Update on PenFed CDs for January - New and Rollover CDs
11/20/09 - Certificate and Credit Card Deals at Pentagon Federal Credit Union - Available Nationwide
10/18/09 - Update on ACH Transfers at PenFed and the Issue of Restrictive ACH Policies
9/20/09 - Tips for Those With Maturing CDs at PenFed and Other Credit Unions
9/1/09 - 4.00% 7-Year CD Continues But Other CD Rates Have Fallen at Pentagon FCU
8/5/09 - PenFed's Cash Back Credit Card Back-to-School Promo
7/28/09 - Useful IRA CD Feature at Pentagon Federal Credit Union
7/1/09 - Update on Pentagon Federal Credit Union's Certificates - Update
6/2/09 - Update on Pentagon Federal Credit Union's Certificates
5/10/09 - PenFed's Cash Back Credit Card Adds Another 5% Category
4/3/09 - Update on Pentagon Federal Credit Union CDs, Credit Cards and Other Products
3/2/09 - Pentagon Federal Credit Union's March CD Rates
2/3/09 - Pentagon Federal Credit Union's February CD Rates
1/1/09 - New CD Rates at Pentagon Federal Credit Union
12/17/08 - Pentagon Federal Credit Unioin's 4.75% 3-Year CD
11/25/08 - Last Days of 5% CDs at Pentagon Federal Credit Union
11/1/08 - PenFed Extends the 5% CDs into November
10/28/08 - Last Week for 5% 36-Month CD at Pentagon Federal Credit Union
10/1/08 - 5% CDs at Pentagon Federal Credit Union - Nationally Available
5/1/08 - Higher Long Term CD Rates at Pentagon FCU
2/1/08 - New PenFed CD Rates - Down But Still Competitive
1/22/08 - CD Rates Falling Quickly - Best Options for Locking in CD Rates
1/2/08 - PenFed's New Cash Back Credit Card Feature
12/27/07 - New PenFed Certificate Rates Released
12/20/07 - PenFed's Special January CD Rates and Other Planned Promotions
10/9/07 - Friday is Last Day for PenFed's 6 Percent CDs
10/3/07 - Update on PenFed's 6.00% CDs
9/27/07 - It's Official: 6.00% 3 to 7 Year CDs at Penfed
9/26/07 - New High Yield CDs From Penfed? 6.00%?
6/14/07 - Change in Policy on Pentagon FCU's IRA Certificates
12/28/06 - It's Official: 6.25% CDs at Penfed

Very Unprofessional Organization

I joined Penfed solely to get an auto loan to buy out my leased vehicle. I was approved at 1.99% but Penfed made it impossible to close the loan with them. First, Penfed wanted a payoff letter from the leasor. I had the leasor provide that. Then Penfed wanted the payoff letter to have the purchase price and the amount being financed. Since I was putting money down on the loan, the payoff letter was higher than the amount I wanted to finance. The leasor was not willing to put a down payment in the payoff letter. And why would they since it's just my word on what I'll put down? So I asked Penfed how to get around this, e.g. could I made the down payment directly to them. I was told it may be possible, so I moved the down payment into my Penfed account.

The next issue was that Penfed could not make out three checks for the loan- I needed one for the loan amount, one for sales tax, and one for my down payment. The sales tax had to be made payable to a different party than the other two checks. Penfed refused to send three checks, despite the money being in my account. So at that point, I cancelled the loan and believed it was over with.

A few hours later I log into my Penfed account to transfer the money out to my other bank and Penfed has issued the loan and withdrawn my down payment. I immediately call Penfed and find out that they only mailed two checks, one for the loan amount and the other for my down payment and sales tax combined. I would not have a check for the sales tax made payable to the other party. Additionally, despite needing the payoff letter, they made the checks payable to the wrong leasor. The payoff letter clearly stated who the checks needed to be made payable to and Penfed didn't even get it close to correct. How is it possible that they cannot make the check payable to the correct party? The leasor is common too, not some abnormal party that Penfed may have never seen before. Isn't that the entire point of a payoff letter??

The final issue was that the Penfed representative told me that she cancelled the loan and told me that the check with my downpayment was made payable to me only. That when it came, I could cash it and do with it as I wanted. I believed that and thought the issue was resolved. But the next day I called again just to confirm since the loan was still showing online. This representative informed me that the loan was cancelled but that the down payment check was made payable to the leasor. This was the complete oppositive of what I'd been told the day before. At that point, I was so angry with Penfed that I demanded my down payment be put back into my Penfed account. It had been withdrawn WITHOUT my authorization. While I had discussed with a representative the possibility of Penfed issuing the down payment from my account, I had never actually authorized it to occur. Since Penfed could not issue the three checks that I needed, I had cancelled the loan. How could Penfed then issue a withdrawal from my account without my authorization? They basically stole my money from me.

Trying to speak with representatives was useless. I was escalated to a manager and she was borderline rude to me. She implied that the entire thing was my fault as the down payment was part of the loan documents. I had never signed anything and the application I filled out online did not include the withdrawal of my money without authorization. 

After much frustration, it was finally resolved. I have NEVER had such a bad experience with a financial institution. At many times during this ordeal I was told conflicting information from representatives. Primarily, a check was made payable only to me when in actuality it was made payable to a third party. If you look that information up, how can you get it wrong? Clear incompetence. Penfed is a very unprofessional organization and its actions in this instance border on illegal.

I bank with Bank of America normally and have no problems. I thought credit unions were supposed to be better than big banks, but apparently not.  I will NOT be using Penfed for anything further.

Penfed Credit Card - No B.S. - Awesome For Gas And Immediate Rebate

The PenFed credit card is currently the best card for gas rebate one can get. At the 5% discount I'll keep using the card. If they ever reduce that rate I go back to a competitor's gas card that I have. No B.S. here...I'M LOYAL TO THE CARD THAT PAYS ME. Their credit card marketing folks are very smart in that they don't B.S. me since they kick the rebate right back to my account at billing time. That is, unlike other cards, no waiting until the rebate amount reaches a certain level. They simply get 'it'.

Keep up the good work (& the 5% gas rebate) PendFed credit card department and I'll keep using it to get you your transaction fees from the vendors who I buy from.

Penfed And Its Credit Card

I opened a CD with PenFed a while ago which gave me good returns. I am happy with their customer service too. Unfortunately the rate has come down a lot, and it's not that attractive except the 7 year CD which is 3.51%APY. However, you do need to consider whether or not the CD rate will shoot up later.

I like their visa credit card very much. Frist of all, VISA is accept almost everywhere except the places that doesn't accept any credit card. It rolled back to 1% on all purchases (planned roll back), but it still has 2% on grocery and 5% on gas. The cash return is credited to your credit card every month, instead of waiting for it to accumulate to $50 or $25.

Opening An IRA Rollover Certificate

After 3 phone calls and being put on hold for each one, I still have not had my account opened. All I have gotten from three different CSR's and one supervisor is promises and excuses. The account was opened over the phone on 1/30/14 and has not been posted online!! What a slow and sloppy operation!!



Data for Q1 2014

Institution Health


Texas Ratio


The Texas Ratio is an indicator of how much capital a bank has available compared to the total value of loans considered at risk. As of March 31, 2014 Pentagon Federal Credit Union had $49.73 million in non-current loans and owned real-estate with $1.7 billion in equity and loan loss allowances on hand to cover it. This gives Pentagon Federal Credit Union a Texas Ratio of 2.92% which is excellent. Any bank with a Texas Ratio near or greater than 100% is considered at risk.

Texas Ratio Trend


The Texas Ratio for Pentagon Federal Credit Union decreased slightly from 3.26% as of March 31, 2013 to 2.92% as of March 31, 2014, resulting in a positive change of 10.60%.This indicates that the balance sheet and financial strength for Pentagon Federal Credit Union has improved slightly in recent periods.

Deposit Growth


In the past year, Pentagon Federal Credit Union has increased its total deposits by $1.62 billion, resulting in 12.85% growth for the year. A strong track record of growth is an indicator of consumer confidence and the bank's ability to strengthen its balance sheet. The growth Pentagon Federal Credit Union has shown is excellent.



Both FDIC and NCUA consider capitalization levels of banks and credit unions to be of high importance. Higher capitalization allows for a greater buffer when cover loans that may fail in the future. Pentagon Federal Credit Union has $17.6 billion in assets with $1.7 billion in equity, resulting in a capitalization level of 9.69%, which is above average.

Institution Statistics

NCUA #227
Year Chartered1935
Primary Regulator
Assets and Liabilities
Assets$17.60 billion
Loans$15.51 billion
Deposits$14.19 billion
Equity Capital$1.65 billion
Loan Loss Allowance$52.41 million
Unbacked Noncurrent Loans$44.38 million
Real Estate Owned$5.35 million
Historic Data - March 2013
Assets$15.94 billion
Equity Capital$1.55 billion
Loan Loss Allowance$53.92 million
Unbacked Noncurrent Loans$44.38 million
Real Estate Owned$6.56 million
Profit Margin - Quarterly
Return on Assets0.46%
Return on Equity4.85%
Interest Income$136.28 million
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Always verify rates and promotions with the bank or credit union. We are not Pentagon Federal Credit Union, we are a rate comparison website and can not provide official rates or promotions.

Pentagon Federal Credit Union Savings Account Rates

0.05%-$2,500Regular Share Savings
0.05%$25-IRA Share Account
0.05%--IRA Premier Account

Pentagon Federal Credit Union Money Market Rates

0.15%$100k-Money Market Savings Account

Pentagon Federal Credit Union CD Rates

1.21%$1k-5 Year Money Market Cerificate
1.21%$1k-7 Year Money Market Cerificate
1.00%$1k-3 Year Money Market Cerificate
1.00%$1k-4 Year Money Market Cerificate
0.90%$1k-2 Year Money Market Cerificate
0.80%$1k-1 Year Money Market Cerificate
0.30%$1k-6 Month Money Market Cerificate

Pentagon Federal Credit Union IRA Rates

1.21%$25-5 Year Roth IRA
1.21%$1k-5 Year IRA
1.21%$1k-7 Year IRA
1.21%$25-7 Year Roth IRA
1.21%$1k-5 Year CESA
1.21%$1k-7 Year CESA
1.00%$25-3 Year Roth IRA
1.00%$25-4 Year Roth IRA
1.00%$1k-3 Year IRA
1.00%$1k-4 Year IRA
1.00%$1k-3 Year CESA
1.00%$1k-4 Year CESA
0.90%$25-2 Year Roth IRA
0.90%$1k-2 Year IRA
0.90%$1k-2 Year CESA
0.80%$25-1 Year Roth IRA
0.80%$1k-1 Year IRA
0.80%$1k-1 Year CESA

Pentagon Federal Credit Union has 28 locations. Click to view all Pentagon Federal Credit Union locations.