Dedicated to Deposits: Deals, Data, and Discussion
DETAILSINSTITUTIONAPYMINMAXPRODUCT
Pentagon Federal Credit Union1.21%$1k-5 Year IRA
Pentagon Federal Credit Union1.21%$1k-7 Year IRA
Pentagon Federal Credit Union1.21%$1k-5 Year Money Market Cerificate
Pentagon Federal Credit Union1.21%$1k-7 Year Money Market Cerificate
Pentagon Federal Credit Union1.00%$1k-4 Year IRA
Pentagon Federal Credit Union1.00%$1k-4 Year Money Market Cerificate
Accounts mentioned in this post. Rates as of August 19, 2014

PenFed's Long-Term CD Rates are Now Competitive

POSTED ON BY

Pentagon Federal Credit Union

With all the CD rate cuts over the last couple of months, I was happy to see that Pentagon Federal Credit Union kept its CD rates the same in October. These rates have held up since March 2011. At that time, these rates were not that competitive, but now PenFed's long-term CD rates are back near the top for nationally available CDs.

Below are PenFed's long-term CD yields as listed in PenFed's Money Market Certificates page as of 10/05/2011.

  • 2.75% APY 7-year CD & IRA CD
  • 2.25% APY 5-year CD & IRA CD
  • 2.00% APY 4-year CD & IRA CD

Minimum deposit is $1,000. The rates are also available in an IRA. These yields are listed in PenFed's Money Market Certificates page as of 10/05/2011. Even though PenFed typically maintains CD rates through the month, they no longer guarantee it. For more details about PenFed CDs, please refer to my PenFed CD review.

There's one thing that happened that has made PenFed's 5-year CD less competitive is a larger early withdrawal penalty. The penalty now matches the 7-year EWP: up to 365 days of interest. Note, the penalty doesn't eat into the principal so if you redeem the CD before 365 days from the issue date, you'll just lose all of the accrued interest. Please refer to PenFed's disclosure.

It should be noted that PenFed did the honorable thing in how it changed the EWP. The change applied only to new CDs or CDs that were rolled over. It did not apply to existing CDs. Not all credit unions have done this.

PenFed Membership

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 (one-time $20 fee) or by joining the Voices for America's Troops (one-time $15 fee). Joining one of these organizations and joining PenFed can be done at the same time all online. Please refer to PenFed's How to Join Overview Page for details.

Branch Locations

Accounts can be opened online, but for those who prefer opening accounts in an office, 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.

Financial/NCUA Info

PenFed is one of the largest credit unions in the nation. It has over $12 billion in deposits. PenFed has an overall health score at DepositAccounts.com of 5 stars (out of 5) with a Texas Ratio of 4.82% (excellent) based on June 2011 data. Please refer to our financial overview of Pentagon Federal Credit Union for more details. It's federally insured by the NCUA (Charter # 227).

News on PenFed's Credit Cards

PenFed announced yesterday that it has eliminated the Foreign Transaction Fee for all of its credit cards. This is a nice perk for those who travel overseas.

How These CD Rates Compare

PenFed's 7-year CD rate is now on top for nationally available 7-year CD rates. Navy FCU 7-year CD rate is a little higher with a 2.80% APY for a $20K minimum, but you must have a military connection to be eligible to join. The highest nationally available 7-year CD rate from a bank is only 2.25% APY at Discover Bank.

PenFed's 4-year CD and 5-year CD rates are close to the best CD rates at banks. However, there are some all-access credit unions which offer much better deals. These include Alliant Credit Union's 2.45% APY 4-year CD and Firstmark Credit Union's 2.75% APY 5-year CD (2.85% APY for $100K). These rates are accurate as of 10/05/2011.

Searching for the Best CD Rates

To search for the best nationwide rates and the best rates in your state, please refer to the following tables at DepositAccounts.com:


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

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Comments
9 Comments.
Comment #1 by Shorebreak posted on
Shorebreak
I'm glad to see Randolph-Brooks Federal Credit Union in Texas still has a yield of 3.25% on their 7-year share certificate with a $5k deposit. It looks like they are now the 'top gun' for that maturity period.

1
Comment #2 by Bozo posted on
Bozo
PenFed and Alliant still appear to be neck-and-neck in the "most everybody can join" category.

1
Comment #4 by Anonymous posted on
Anonymous
there is something definitely wrong with the rewards checking accounts part of this site ... i know i have a few still paying 3% and none are listed. for example 1st commonweatlh bank of virginia is listed as paying 0.75% on their reward checking. that is not true. it still pays 3%. and there are others too..

1
Comment #5 by KenBDG posted on
KenBDG
About the reward checking table, please note that the APY depends on the investment amount that you select. Select an investment amount of $10K to see the top APYs. Please refer to this post to see how to use the filter accounts button to modify the investment amount.

4
Comment #7 by ILsaver posted on
ILsaver
Ken....   has there been any word from your contact at PenFed about their CD reservations program?  It was done last October, but there has been silence on this ever since.  Has it been abandoned?  Must savers now just wait for the January specials again, as in days of old?

1
Comment #9 by Anonymous posted on
Anonymous
pen fed is the best who hoo

1
Comment #10 by Jim Davis (anonymous) posted on
Jim Davis
Any guess on whether Penfed will bump up long term rates in Jan?

1
Comment #11 by Singh (anonymous) posted on
Singh
CSR at pfed who I spoke with on 12/22 (Mandy) said there may be a 3.00% 10 yr. special in Jan.

1
Comment #12 by ChrisCD posted on
ChrisCD
Ken, I'm not sure if you have this noted elsewhere, but we discovered that Pentagon's EWP for 5-year and longer CDs is 1-year of lost interest.  The 5-year used to be a 6-month penalty.  If you already had this noted elsewhere, sorry for the duplication.

cd :O)

1