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. DepositAccounts.com 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.
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
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.
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.
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.
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!!
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.
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.
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.
|Assets and Liabilities|
|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|
|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|
|Net Interest Margin||0.44%|
|Return on Assets||0.46%|
|Return on Equity||4.85%|
|Interest Income||$136.28 million|
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.
|0.05%||-||$2,500||Regular Share Savings|
|0.05%||$25||-||IRA Share Account|
|0.05%||-||-||IRA Premier Account|
|0.15%||$100k||-||Money Market Savings Account|
|1.31%||$1k||-||5 Year Money Market Cerificate|
|1.31%||$1k||-||7 Year Money Market Cerificate|
|1.11%||$1k||-||4 Year Money Market Cerificate|
|1.00%||$1k||-||3 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|
|1.31%||$25||-||5 Year Roth IRA|
|1.31%||$1k||-||5 Year IRA|
|1.31%||$1k||-||7 Year IRA|
|1.31%||$25||-||7 Year Roth IRA|
|1.31%||$1k||-||5 Year CESA|
|1.31%||$1k||-||7 Year CESA|
|1.11%||$25||-||4 Year Roth IRA|
|1.11%||$1k||-||4 Year IRA|
|1.11%||$1k||-||4 Year CESA|
|1.00%||$25||-||3 Year Roth IRA|
|1.00%||$1k||-||3 Year IRA|
|1.00%||$1k||-||3 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|