Dedicated to Deposits: Deals, Data, and Discussion

Update on Pentagon Federal Credit Union's Certificates

POSTED ON BY

Pentagon Federal Credit Union
Unlike many other credit unions, Pentagon Federal Credit Union didn't lower their certificate rates for June. The long-term rates remain very competitive. These include:
  • 3.50% APY 3-year
  • 3.75% APY 4-year
  • 4.00% APY 5, 7-year
These rates are listed in PenFed's certificates page as of 6/02/09. The CD rates typically last for the entire month, but they're not guaranteed to last. Minimum deposit is $1,000. They're also available as Coverdell Education Savings Certificates and as Traditional and Roth IRA Certificate.

Several readers have mentioned being offered an extra 0.25% for renewing their maturing PenFed CDs. So that makes the rates even more competitive.

For more details about PenFed's CDs and joining PenFed, please refer to this PenFed review post. Details of the CDs are available in the second page of PenFed's account application. The early withdrawal penalty is up to 180 days of interest for terms over 6 months to 5 years.

PenFed makes it easy for anyone to join and open accounts online. If you don't qualify based on military, employer or family, you can become eligible by joining the National Military Family Association (NMFA). Please refer to How to Join Overview Page for details. Joining NMFA and Penfed can be done at the same time all online. The yearly membership for NMFA is $20, but your membership in the association does not need to be maintained to continue as a Penfed member. You can also be eligible to become a member of PenFed if you are an employee or volunteer of the American Red Cross (refer to this PenFed page).

Most of the current PenFed deals are loan related. I described their latest credit card and loan deals in this May 10th post. They have one of the best cash-back credit cards.

PenFed's rating for safety and soundness at BauerFinancial remains at 5 stars (superior) based on 12/31/08 data. Bankrate.com gives it a lower rating of 3 stars (performing). This is also based on 12/31/08 data.

PenFed is one of the largest credit unions in the US with $13 billion in assets and 889,874 members. It's federally insured by the NCUA (Charter # 227).

Other High Certificate of Deposit Rates

For top CD rates nationally available, refer to my weekly rate summary. Many of the best CD deals are only locally available. To find the best deals in your state, refer to the index of state CD and bank deals.
  Tags: New York, North Carolina, Texas, Virginia, Pentagon Federal Credit Union, Colorado, CD rates, Maryland, New Jersey, IRA rates

Related Posts

Comments
3 comments.
Comment #1 by Anonymous posted on
Anonymous
I donated blood to the Red Cross regularly. Does that make a volunteer ?

1
Comment #2 by Anonymous posted on
Anonymous
No more than giving $100 would make you a volunteer....

1
Comment #3 by Anonymous posted on
Anonymous
I had been maxed out under the prior FDIC $100K limit with Penfed CDs... But now that the new limit through 2013 is $250K, I was able to take the maturing proceeds at another bank's CD and put them into a new Penfed 5-year CD at 4%.

The new CD isn't such a large amount compared to the FDIC limits. So even if interest rates climb back up again in the next couple years, I don't mind having this amount locked in at 4%.

Lately, there's been an interesting convergence. PenFed CDs opened a year ago were paying 6% for 5-7 year terms. Likewise, the best rewards checking accounts were paying 6%. Now Penfed's CDs are paying 4% max, and the best rewards checking accounts are paying 4-5%.

Those two investment vehicles, for me, right now, are the best things going... Penfed CDs for guaranteed rates and where I'm not worried I'll need the principal. And 4-5% rewards checking accounts for cash I was to keep free.

In this latest move, I shifted a bit more free cash into CDs because of the change in the FDIC limit and because of the feeling that rewards checking rates may still be trending downward a bit more beyond their current levels.

1