Dedicated to Deposits: Deals, Data, and Discussion

Update on Pentagon Federal Credit Union's Certificates - Update


Pentagon Federal Credit Union
At the start of previous months I had been pleasantly surprised to see Pentagon Federal Credit Union maintaining their competitive long-term CD rates. Our luck ran out for July. PenFed made big cuts today, but they remain fairly competitive in today's very low interest rate environment. They kept their short-term CD rates the same. These short-term rates have rarely been competitive, but with this rate environment, they're not too bad. Below if the full list of PenFed's current CD rates:
  • 1.75% APY 6-month
  • 2.00% APY 1-year
  • 2.25% APY 2-year
  • 2.78% APY 3-year
  • 3.14% APY 4-year
  • 3.51% APY 5-year
  • 4.00% APY 7-year
These rates are listed in PenFed's certificates page as of 7/01/09. 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 will help a little for those with maturing PenFed CDs.

The early withdrawal penalty is up to 180 days of interest for terms over 6 months to 5 years. The 7-year CD has a 365-day interest penalty. Even though the 7-year CD rate remained at 4% APY, it does have this downside as compared to the 5-year CD.

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.

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 has gone down a bit. At BauerFinancial, it's now 4 stars (excellent) based on 3/31/09 data. This is down from 5 stars (superior) when it was based on 12/31/08 data. still only has ratings based on 12/31/08 data, and its rating is still 3 stars (performing).

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

  Tags: New York, North Carolina, Texas, Virginia, Pentagon Federal Credit Union, Colorado, CD rates, Maryland, New Jersey, IRA rates

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