Pen Air Federal Credit Union 60-month CD Is A Rate Leader

Florida-based Pen Air Federal Credit Union (Pen Air) is offering a 60-month CD with three attributes that make it quite attractive: a good rate (2.40% APY), a mild early withdrawal penalty, and a generous rate-lock time frame. The minimum opening deposit is $500, with no stated balance cap.

All Pen Air CDs are offered as IRA Certificates (Traditional, Roth, SEP, CESA), earning the same APYs with the same funding requirements.

When I wrote about Pen Air’s 60-month CD six months ago, the APY was 55 bps higher and approaching the rate leaders. With the recent restructuring of CD rates following the Fed’s rate cut, Pen Air’s 60-month CD APY (albeit lowered) has become a rate leader.

15-Month Add-On CD

Pen Air’s long-standing 15-month Add-On CD currently earns 1.90% APY. The minimum opening deposit is $1.5k and unlimited additional deposits are allowed throughout the term.

As stated in the Account Disclosures document, the Early Withdrawal Penalty reads as follows:

Terms of 12 months or longer – 180 days’ dividends.

According to CSR, funding a CD can be done by transferring funds from an existing Pen Air, by check, or through an ACH or wire transfer. Once the application is complete, the stated rate will be in effect for 30 days; you must fund the CD within those 30 days.

Maturing funds will be sent by cashier’s check to the address on file, by wire ($25 fee), or transferred to another existing Pen Air account. The CD will automatically renew following the 7- day grace period.

Availability

Headquartered in Pensacola, Florida, Pen Air Federal Credit Union’s field of membership (FOM) provides a way to join for virtually any U.S. citizen or resident alien with a valid Social Security number.

Easy Membership: Joining the Friends of the Navy-Marine Corps Relief Society, Inc., (a one-time $3 donation) qualifies for membership in Pen Air.

Established in 1904, the Navy-Marine Corps Relief Society is a 501(c)3 organization, which provides financial, education, and other needed assistance to active-duty and retired Sailors and Marines.

According to Pen Air’s online application,

Pen Air will make the one-time $3 donation on your
behalf which enables you to qualify for Pen Air membership.

SEGs: Employees/members of more than 1,200 businesses, associations, churches, and local governments in northwest Florida and southeast Alabama are eligible to join.

Military Relationship: Active duty/retired members of the military (including the Coast Guard) and civil service employees qualify for membership.

Family Relationship: Immediate family members and household members of current Pen Air members are welcome to apply.

Joining Pen Air and/or opening a CD can be done online. Effective Monday, March 23, 2020, Pen Air’s 12 Florida and three Alabama branch lobbies will be closed. Pen Air’s “Need To Know Updates” page has a “Where Do I Go For My Banking Needs” infographic to help members determine how to complete a variety of transactions.

As a condition of membership, you must purchase and maintain the minimum
required share(s). Par Value of One Share –$25.00, Number of Shares Required – 1.

As I was reviewing the Fee Schedule, I noticed there is a $15 monthly Inactive Account Fee, if there is “no monetary activity for 12 months on a share or share draft account."

Pen Air participates in the CO-OP Shared Branching, giving its members access to more than 5,000 shared branches and nearly 30,000 ATMs throughout the country.

This shared branching network allows credit unions to serve each other's members. As a Pen Air member you can go to another credit union who is a part of the shared branch network and do transactions on your Pen Air account.

Credit Union Overview

Pen Air Federal Credit Union has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 2.21% (excellent) based on September 30, 2019 data. In the past year, Pen Air has increased its total non-brokered deposits by $34.27 million, an above average annual growth rate of 2.82%. Please refer to our financial overview of Pen Air Federal Credit Union (NCUA Charter # 1303) for more details.

Founded in 1936 as the U.S. Naval Pensacola Air Station Federal Credit Union for Civil Service Employees, the original FOM did not include the military personnel stationed at NAS Pensacola. It was nearly 25 years before the military became eligible for membership, and by that time, the Pen Air Federal Credit Union name had been in place for seven years. Pen Air is currently Florida’s 15^the largest credit union, with more than 107,000 members and assets in excess of $1.5 billion.

How the CD Compares

When compared to 131 similar length-of-term CDs tracked by DepositAccounts.com, which require a similar minimum deposit and are available nationwide, Pen Air Federal Credit Union’s 60-month CD APY currently shares the top spot with Financial Partners Credit Union’s 60-month CD APY.*

The above rates are accurate as of 3/21/2020.

To look for the best CD rates, either nationwide or state-specific, please refer to our CD Rates Table page.

*While we are working hard to keep our rates updated, there are just too many rate cuts for us to process quickly. For the time being, please be aware that the rates listed at DepositAccounts may not reflect the latest rates published by the banks and credit unions.