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


Deal Summary: 60-month CD, 2.40% APY, $500 minimum deposit.

Availability: Easy membership requirement; military relationship.

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.

2.20%$500-Pen Air Federal Credit Union60 Month CD
2.20%$500-Pen Air Federal Credit Union60 Month IRA (Traditional, Roth, SEP, CESA)
Rates as of March 27, 2020.

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.

1.70%$500-Pen Air Federal Credit Union15 Month Add-On CD
1.70%$500-Pen Air Federal Credit Union15 Month Add-On IRA (Traditional, Roth, CESA, SEP)
Rates as of March 27, 2020.

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.


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, 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 15the 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, 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.*

Interest RateCD Length of TermCredit Union/Bank
2.40% APY60-Month CDPen Air Federal Credit Union
2.35% APY60-Month CDAchieva Credit Union
2.30% APY60-Month CDPremier American Credit Union

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.

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

  |     |   Comment #1
This is a decent rate, all things considered. However, I’m not inclined to tie up my money for 5 years at this rate. With rates now at zero, CD rates are probably not going much lower than where they are today. The adjustments are in and they have bottomed out or are close to bottoming out. I think they’ll always be at least a few CUs offering similar 5 year rates. Once we get past this virus, there will be so much pent up demand around the globe that growth will soar and inflation will follow. The Fed will be forced to raise rates and CD rates will rise accordingly. With all of this global stimuli in the works, it’s only a matter of time before we see higher rates and it could happen sooner than people think. For that reason, I’m going to keep my powder dry and not lock into any 5 year CDs at these rates. Better and brighter days will emerge for CD investors. Let’s see if my friends on here agree with me.
  |     |   Comment #2
You make many very good points. Personally, I don't see the Fed raising rates until the Dow gets back to around 30k or more... and that could be awhile. I think the Fed fears the president's wrath more than inflation - but I hope that I'm wrong.
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  |     |   Comment #10
If the Fed fears the president's wrath, they have done something illegal in the past. Maybe dismantlement of the FEDs will be a justified move.
  |     |   Comment #12
I don’t think negative rates are coming. I think they are smart enough to know that negative rates won’t work. It’s like pushing on a string. It hasn’t worked anywhere in the world so why would it work here, unless their goal is to bankrupt banks and CUs from coast to coast and forever disjoint the economy and monetary system. Leave the rates at zero (can’t believe I’m saying that) and work on government stimulus measures that will actually benefit people. However, basing these stimulus checks on 2018 tax return data is idiotic. For the people who got laid off or retired in 2019 or 2020 but worked throughout 2018, they are getting the Royal, well, you know. I retired in early 2019 but I made good money in 2018, so I will get nothing under the stimulus bill. Wouldn’t it be easier if they simply cut a check of the same amount to everyone? But of course, our politicians are excellent at complicating the simple.
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Japan Bubble
  |     |   Comment #14
A good example of low/negative rates and direct ETF purchases not working is Japan. Their stock market hit 39,000 back in 1989 and here we are 31 years later and they are at 16,665 area down nearly 57% off the bubble top. So much for buy/hold.
  |     |   Comment #17
I hope you are right. But if the current potus is reelected, the push from the white house will continue to be for negative rates. Not trying to make this a political argument. Just saying that is, and has been his stance.
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  |     |   Comment #7
Those who paid attention to rates from 2009-2017ish would have to comment as to where rates are heading. Pretty sure I read that 2%ish was possible, but rare... and maybe once in a blue moon a bank would offer some special at a better rate than that. I don't think most banks/cus have bottomed out yet though -- they are just slowly making adjustments as to not spook their customers too badly. Sadly I think the banks that dropped crazy amounts are probably the more accurate numbers we'll see -- they just chose to rip the bandage off all at once vs slow adjustments down over the next month or two.
  |     |   Comment #11
anony , negative rates are coming, what's your point reminiscing the past.
  |     |   Comment #8
Hope you are correct as it all sounds good to me.
  |     |   Comment #6
I'll post my opinion of this CU in the review section in a couple of weeks, after I finalize some CDs.

I just managed to squeak in at the deadline when they dropped rates from 2.6 to 2.4 a couple of weeks ago, system actually downgraded me to 2.4, but the documents I signed stated 2.6, so a nice manager locked me into that rate as well as noted on my account that the rate is locked. 2.6 isn't great, but I don't expect to see better rates for quite some time. And she also repeated what was stated here, 30 days to fund, which kind of saves me (assuming it works out okay), as I have CDs coming due end of March up to the first week in April.

It may be a little tricky with so many CUs closing though ... assuming they will still handle business somehow, as I will need to do a shared CU transfer eventually. ACHs won't work so well (according to the manager) for initial funding, needs to be check or shared branch deposit.

And just so others know, most of the pen air reps I talked to were kind of clueless as to their own policies. I was told various things, none of them accurate -- such as it's okay to ach initial opening of CD, which isn't even an option, or rates only locked when funded. So unfortunately like many banks/cus, not every rep even knows what they are talking about.
Predatory Depositor
  |     |   Comment #20
For me the inconsistent information I get from CSRs is one of the most difficult parts a managing bank deposits.

I'm in the process of trying to do an IRA transfer from a maturing CD, which is it bad enough process even when you have reliable information. Even though the CSRs at the receiving bank sound like some of the best I've dealt with, I still get three different answers from three different ones on critical questions.

I've never yet taken a significant loss on a transaction due to receiving inaccurate information from CSR, probably because I'm extremely careful and check everything ten times. But it's probably only a matter of time before that will happen. Every time I do a transaction, especially with large amounts, it causes a lot of extra stress that shouldn't be necessary. All you can do is factor that risk and all the extra work involved into the equation, meaning you need higher rates to make bank deposits worthwhile versus other investments.
  |     |   Comment #9
I found Pen Air hard to work with. They don't even allow beneficiaries on a Trust!
  |     |   Comment #19
The Trust itself, should have beneficiaries.. i"m talking about Revocable Living Trust..
Predatory Depositor
  |     |   Comment #21
That's a formal trust. I assume #9 is saying that they do not allow informal trusts.
  |     |   Comment #18
March 25,2020...Pen Air reduced the rate today, From 2.40 to 2.20
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Availability: Easy membership requirement; military relationship.

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