Prolific DA Forum poster, rockies, announced in a recent Forum post that Florida-based Pen Air Credit Union (Pen Air) has added a 28-month Certificate earning 4.75% APY to its product line. Like all of Pen Air certificates, the 28-month Certificate requires a minimum opening deposit of $500, with no stated balance cap. That’s the good news.
The not-so-good news is Pen Air is no longer offering 5.02% APY on it 18-month CD. The 5.02% APY was in effect for about four weeks; during that time, 18-month CD claimed the top spot for nationally available 18-month CDs in the bi-weekly CD Deals Summary.
As stated in the Truth-in-Savings disclosure, the Early Withdrawal Penalty reads as follows:
Terms of 12 months or longer 180 days’ dividends
If the account has not yet earned enough dividends or if the dividends have already been paid, the penalty will be deducted from the principal.
15-month Add-On CD
DA has been tracking Pen Air’s 15-month Add-On CD for about 12 years. Between late November and early December, the 15-month Add-On CD gained an impressive 255 bps and currently earns 4.00% APY. Unlimited additional deposits in any amount can be made at any time throughout the 15-month term. The minimum opening deposit is $500, with no stated balance cap.
|2.55%||$500||-||Pen Air Credit Union||15 Month Add-On CD|
|2.55%||$500||-||Pen Air Credit Union||15 Month Add-On IRA (Traditional, Roth, CESA, SEP)|
The Add-On CD is also offered as an IRA (Traditional, Roth, SEP, CESA), earning the same APY with the same deposit requirements.
Headquartered in Pensacola, Florida, Pen Air Credit Union converted from a federal charter to a state charter, effective October 1, 2022. In addition to the new name (sans “Federal”), the field of membership (FOM) has changed, but the easy membership requirement (EMR) is still in place.
EMR: U.S. citizens or resident aliens (18 years or older) with a valid Social Security number can qualify for membership by joining the Friends of NMCRS Inc., (one-time $1 donation).
Established in 1904, the Navy-Marine Corps Relief Society (NMCRS) 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.
Residency: The newest way to qualify for Pen Air membership is community-based, with individuals who live, work, worship, or attend school in any of 15 Florida counties or two Alabama counties eligible to join.
- Florida counties – Bay, Calhoun, Escambia, Franklin, Gadsen, Gulf, Holmes, Jackson, Leon, Liberty, Okaloosa, Santa Rosa, Wakulla, Walton, and Washington.
- Alabama counties – Baldwin and Mobile.
SEGs: Employees/members of more than 1,200 Select Employer Groups (SEG) in northwest Florida and southeast Alabama are also eligible for membership. The SEGs include businesses, associations, churches, and local governments
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 a Certificate can be done online, or at any of eight Florida branches located in Gulf Breeze, Milton, Pace, and Pensacola (5). 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 Branch network, 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.
Funding and Other Details
The following information is from a conversation with CSR.
- Funding – ACH, wire ($15 fee), internal transfer. Note: while savings/checking accounts can be initially funded by debit or credit card, CDs cannot.
- CO-OP Shared Branch Participant – Yes.
- Dividends – Compounded/credited monthly and can be paid out by check or transferred to a Pen Air CU liquid account.
- Maturing Funds – ACH, wire ($20), cashier’s check, or internal transfer.
- Beneficiaries – Unlimited; equal shares; Social Security number required.
- Grace Period – 7 calendar days before automatic renewal.
- Credit Check – Hard pull with Equifax when joining. No credit check for existing members when opening a CD.
Credit Union Overview
Pen Air Credit Union has an overall health grade of "B+" at DepositAccounts.com, with a Texas Ratio of 4.35% (excellent) based on September 30, 2022 data. Pen Air has a below average capitalization level (7.00%), the result of holding $2.24 billion in assets with $156.71 million in equity. Please refer to our financial overview of Pen Air 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 Credit Union is currently Florida’s 13th largest credit union, with more than 121,000 members and assets in excess of $2 billion.
How the 28-Month CD Compares
When compared to similar length-of-term CDs tracked by DepositAccounts.com that are available nationwide and have minimum deposit requirements of $10k or less, only one bank has a higher rates than currently offered on the Pen Air Credit Union 28-month CD. The following table compares the 28-month CD to the two highest-rate CDs from other credit unions and the two highest-rate CDs from banks.
|APY||CD Term (Early Withdrawal Penalty)||Credit Union/Bank|
|5.00%||27-Month High Yield CD via SaveBetter (EWP=180 days)||Sallie Mae Bank|
|4.85%||23-Month High Yield CD via SaveBetter (EWP=180 days)||Sallie Mae Bank|
|4.75%||28-Month CD (EWP=180 days)||Pen Air Federal Credit Union|
|4.75%||24-Month Certificate (EWP=180 days)||Mountain America Credit Union|
|4.71%||24-Month CD Special (EWP=180 days)||NASB|
The above information and rates are accurate as of 1/26/2022.
To look for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table page.