Over the weekend, Pen Air Federal Credit Union (Pen Air) added 5 bps to its 15-month Add-On CD, which now earns 0.60% APY. According to CSR, there are no limitations on the Add-On CD: unlimited additional deposits in any amount can be made at any time throughout the term. The minimum opening deposit is $500, with no stated balance cap.
|1.00%||$500||-||Pen Air Federal Credit Union||15 Month Add-On CD|
|1.00%||$500||-||Pen Air Federal Credit Union||15 Month Add-On IRA (Traditional, Roth, CESA, SEP)|
The Add-On CD is also offered an as IRA (Traditional, Roth, SEP, CESA), earning the same APY with the same deposit requirements.
Between February 2019 and March 2020, the 15-month Add-On CD earned a competitive 2.05% APY. In late March 2020, a series of rate decreases began, with the rate bottoming out at 0.50% APY in May 2021. In the last 30 days, 10 bps were added in two increases.
According to Pen Air’s 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.
DA reader and guest blogger, Charles Rechlin, contributed, “Searching for the Elusive Add-On CD,” which is an excellent resource when considering an add-on CD. Charles stated that,
To my mind, an ideal add-on CD possesses the following features:
- a multi-year term (three or more years)
- a fixed or minimum rate that is reasonably competitive with rates offered on CDs of identical maturity that don’t carry add-on rights
- a low opening balance requirement
- an unlimited right to make additional deposits from time to time, with no maximum balance
It’s extremely difficult, if not impossible, to locate a CD combining all of these features. You’re fortunate if you can find one with a couple of them.
Pen Air’s 15-month Add-On CD definitely puts savers in the “fortunate” category, having two of the features mentioned above. If you have a CD that’s maturing in the next few months, opening an Add-On CD with a $500 deposit now can provide safe harbor for those maturing funds in the near future.
A possible downside is that a credit union might change the add-on terms on existing CDs. DA readers may remember that in October 2019, GTE Financial made changes to the terms of existing promotional share certificates opened in 2018 and 2019. While GTE Financial quickly reversed its decision after a general outcry by its members, there’s no guarantee that another credit union won't be more intractable.
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 who has a valid Social Security number.
Easy Membership: Joining the Friends of NMCRS Inc., (a one-time $1 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,
I understand Pen Air will make a $1 donation to the Friends of NMCRS on my behalf.
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/reserve members of the military (including the Coast Guard) and active/retired 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 an Add-On CD can be done online, or at any of ten Florida branches located in Century, Gulf Breeze, Milton, Pace, and Pensacola (6). Pen Air also has three Alabama branch locations in Foley, Robertsdale, and Spanish Fort.
A minimum opening deposit and maintained balance of $25 is required.
This is your share in Pen Air and remains in your savings account.
Just an FYI – Pen Air’s Fee Schedule lists a $15 monthly Inactive Account Fee, if there is “no monetary activity for 12 months on a Savings or Checking 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 1.56% (excellent) based on June 30, 2021 data. In the past year, Pen Air has increased its total non-brokered deposits by $434.18 million, an excellent annual growth rate of 27.07%. 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 twelfth largest credit union, with more than 117,000 members and assets in excess of $2.3 billion.
How the Add-On CD Compares
When compared to the similar length of term Add On CDs tracked by DepositAccounts.com, which require a similar minimum deposit ($5k or less), Pen Air Federal Credit Union’s 15-month Add-On CD APY currently ranks first. The low minimum initial deposit and unlimited number of deposits allowed throughout the term makes the 15-month Add-On CD quite competitive.
The above information and rates are accurate as of 12/6/2021.
To look for the best CD rates, either nationwide or state-specific, please refer to our CD Rates Table page.