- 1.00% APY 6-month (was 1.75%)
- 1.25% APY 1-year (was 2.00%)
- 1.75% APY 2-year (was 2.25%)
- 2.50% APY 3-year (was 2.78%)
- 3.00% APY 4-year (was 3.14%)
- 3.00% APY 5-year (was 3.51%)
- 4.00% APY 7-year (no change)
At least the 7-year CD remains at the very competitive rate of 4.00% APY. One important downside of the 7-year CD is a harsh early withdrawal penalty of 1-year of dividends. The 5-year CD only has a 6-month penalty. However, if you have the IRA CD and you're 59½ or over, you can make partial withdrawals without a penalty (see post). This could be a very nice feature if interest rates start to shoot up in the next few years.
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).
Credit Card and Loan Deals
Most of the current PenFed deals are loan related. I described their latest credit card deal last month which extends their 5% cash back rebates to selected retailers through September. They also have a good deal on auto loans with a 3.99% APR for both new and used autos for terms up to 60 months.
Accounts can be opened online, but for those who prefer branches, PenFed has branches in several parts of the country including Washington DC, Maryland, Virginia, New Jersey, New York, Colorado, North Carolina, Hawaii, Puerto Rico, Missouri and Texas.
PenFed's ratings for safety and soundness are no longer the best, but they're still respectable: 4 stars (excellent) at BauerFinancial and 3 stars (performing) at Bankrate.com. Both ratings are based on 3/31/09 financial data.
PenFed is one of the largest credit unions in the US with $13.4 billion in assets and 889,874 members. It's federally insured by the NCUA (Charter # 227).
Other High Certificate of Deposit Rates