Dedicated to Deposits: Deals, Data, and Discussion

New PenFed CD Rates - Down But Still Competitive - Update

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Pentagon Federal Credit Union updated their certificate rates yesterday. The bad news is that they went down, but the good news is that the long term rates are still competitive compared to the competition. The 5% APY 7-year CD continues. The 5-year CD rate dropped by 10 basis points to 4.75% APY. The 3 and 4 year CDs did take a hit with a new yield of 4.25% APY. Below is a table showing the new and old CD yields with how much the rates changed.

Term Old APY New APY Basis Pt Chg
6-Month 3.50% 3.25% -25
1-Year 4.00% 3.50% -50
2-Year 4.15% 3.75% -40
3-Year 4.50% 4.25% -25
4-Year 4.75% 4.25% -50
5-Year 4.85% 4.75% -10
7-Year 5.00% 5.00% 0

The yields on the 3 to 7 year terms are still competitive. As a comparison, the top yield listed at Bankrate is 3.97% APY for a 3-year CD at Ascencia. Unfortunately, it's not like last year when the 3-to-5 year rates were sometimes a 100 basis points over the competition.

The minimum deposit is $1,000, and these are also available in an IRA. PenFed typically keeps the CD rates unchanged for a month. They used to list the end date at the bottom of the rate table, but they ended this after their last 6% CD special last fall. That was the first time that I can remember PenFed ending the CD rates before the end of the month. After that, they stopped including an end date in the table.

For more details about PenFed's CDs and joining PenFed, please refer to this PenFed review post. PenFed makes it easy for anyone to join and open accounts online.

In addition to high CD rates, PenFed has several other competitive banking products including a cash back credit card with 5% cash back for gas purchases and auto loans with very low rates (see post).

PenFed is one of the largest credit unions in the US with $11.2 billion in assets and 778,298 members. It's federally insured by the NCUA (Charter # 227).

  Tags: CD rates, IRA rates

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