Pen Air Federal Credit Union 60-month CD Earns 2.95% APY


Deal Summary: 60-month CD, 2.95% APY, $500 minimum deposit.

Availability: Easy membership requirement; military relationship.

It’s been nearly seven years since I last wrote about Florida-based Pen Air Federal Credit Union (Pen Air). At that time, Pen Air was offering the top APY (2.00%) on nationally available 5-year CDs. The combination of the recent across-the-board falling CD rates and the addition of 45 bps in the past year have put Pen Air’s 60-month CD APY near the top once again. The minimum opening deposit is $500, with no stated balance cap.

2.60%$500-Pen Air Federal Credit Union60 Month CD
2.60%$500-Pen Air Federal Credit Union60 Month IRA (Traditional, Roth, SEP, CESA)
Rates as of January 23, 2020.

Pen Air offers all of its CDs as IRAs (Traditional, Roth, SEP, CESA), earning the same APYs with the same funding requirements.

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 the online application,

You can fund your account by transferring funds from any one of the following options:

    An existing Pen Air FCU account
    Direct Deposit (Account must be funded within 15 business days)
    Check by Mail (Account must be funded within 15 business 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.


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, or at any of 14 Florida branches, located in Century, Gulf Breeze, Milton (2), Pace, or Pensacola (9). Pen Air also has three Alabama branches, all located in Baldwin County.

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, with a Texas Ratio of 2.36% (excellent) based on March 31, 2019 data. In the past year, Pen Air has increased its total non-brokered deposits by $19.73 million, an above average annual growth rate of 1.62%. 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 14the largest credit union, with more than 105,000 members and assets in excess of $1.4 billion.

How the CD Compares

When compared to 172 similar length-of-term CDs tracked by, which require a similar minimum deposit and are available nationwide, Pen Air Federal Credit Union’s 60-month CD APY currently ranks third.

The above rates are accurate as of 8/28/2019.

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

Related Pages: Mobile CD rates, 5-year CD rates, nationwide deals

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