Written by Jessica Merritt | Edited by Becca Stanek | Published on 12/13/2024
PenFed Credit Union was established in 1935 and is one of the largest federal credit unions in the United States, with 2.9 million members and more than $33.5 billion in assets. It was initially exclusive to members in national defense organizations, including active-duty service members, reservists and National Guard members, as well as employees of the Department of Defense. It has since broadened its membership eligibility to include the general public but maintains a focus on serving the military community.
The credit union has more than 50 branches in the U.S. and its territories, including locations in Guam and Puerto Rico. Members can access more than 85,000 fee-free ATMs.
Financial products offered by PenFed Credit Union include checking and savings accounts, certificates of deposit (CDs), loans, credit cards, and investment services. PenFed’s notable offerings include its Free Checking, Access America Checking and Premium Online Savings accounts.
With Free Checking, you can get a checking account with no monthly maintenance fee or minimum balance requirement. An Access America checking account earns up to 0.35% APY on your deposits — and though there is a $10 monthly fee, it can be waived with a monthly direct deposit of $500 or more or a daily balance of $500 or more. Premium Online Savings earns 3.00% APY with no monthly maintenance fees.
Account holders can access robust digital banking services, including online banking, a mobile app and digital wallet compatibility. Customer service is available by phone from 8 a.m. to 8 p.m. Eastern time Monday through Saturday. Secure messaging is available in online banking and the mobile app 24/7.
Pros and cons of PenFed Credit Union
Pros:
• Wide range of financial products, including competitive savings accounts and CDs
• More than 85,000 fee-free ATMs
• User-friendly mobile app and online banking features
Cons:
• Limited number of branches nationwide
• Limited customer service availability
• Monthly checking account fee, though it can be waived
Field of Membership Restrictions
Membership in PenFed is now open to all U.S. citizens/resident aliens who open a Share Savings Account with a $5 minimum deposit.
See current membership details
No Problem Getting Money Out
I was a little concerned about closing out my PenFed CD upon maturity and getting my money out, given a lot of the "horror story" reviews I've read.
I had set up an external bank account a few weeks ago and selected an ACH transfer to the external account as the maturity option (on my online account page).
The CD matured on a Saturday and the funds appeared in my external account the following Tuesday morning. Since ACH transfers don't occur on weekends, that means that PenFed took one business day to complete the transaction.
Can't argue with that.
Complaining Works
UPDATE 02-10-2024 - Of late, PenFed has finally pulled their heads out and apparently hired a new webmaster. What a drastic improvement! Their website now makes logical sense and is easy to navigae. I now issue 5 stars.
Too Many Cds
I have purchased Cds from Pen Fed for many years as they usually are very competitive on their rates. Recently I was unable to gain access to info on the CDs I currently own. When I sent a request to list my CDs the response was I had too many CDs to list. If I had a specific request about a particular CD they would give me access to it. This is really a poor program and makes me want to stop purchasing any more CDs from PenFed. I immediately purchased a CD from another financial institution with a better rate.
My Penfed Story
This is my PenFed story. I wanted to open a new checking account and I initially chose PenFed because of relatively high ACH transfer limits, and a physical branch nearby.
I did the account registration/creation process online. At first it seemed to go fine, multiple form pages asking for the usual info and more. All required. I had to do phone text verification for the initial registration, then the password reset, then to login again, every login after that, and each time I linked an external bank account. I made initial deposits of $1000 into checking and $200 into savings. Email and phone notifications are all flowing every step of the way. Congratulations they say, my checks and ATM cards are on the way. I logged in the next day to validate initial deposits and account access is still good. I wait a week to get the checks and ATM cards before taking any further action. Cards and checks arrive. My plan was to activate the cards and setup direct deposits that day. First step of that was to login again to get direct deposit numbers for the checking account. This is when the trouble begins.
I can’t log in and a message says account locked, call this 800 number to unlock. Heavy sigh. I call the number, entering personal information such as my date of birth and social security number to be able to advance through the phone prompts and get to a human. Repeat all the same info to the service rep and then she’s ready to assist. I asked if she could help me unlock the account. I was put on a long hold while she checked details, then she came back and asked me some questions about when I created the account, then put me on a longer hold. After the second hold, she said I would need to provide more proof of identity using their secure upload site. I would need to provide scans of the driver’s license, social security card, and car registration for both the primary (me) and the joint account owner (my wife). I had to take note of the upload numbers and then wait until the next day and call back on the same 800 number. I followed all those instructions with no issues.
I call back the next day, get to a rep, and give them the case background and upload numbers. The rep says yes, I see all your documents right here, let me put you on hold while I check your case. After a lengthy hold, she comes back and says sorry can you please now also send us a copy of your phone bill. I say sorry I am on a family plan and don’t have a copy of the phone bill. She says sorry she can’t unlock my account then and since it’s not in my name they need a copy of the bill AND the driver’s license of the person the bill is being sent to. I don’t want to ask him to provide me a phone bill, much less his driver’s license, so that was it for me. Although I’d invested a lot of time and given all my personal info already, I decided at that point to cut my losses with PenFed. I tell the customer support rep this isn’t going to work and can she please help me reverse the deposits and close the accounts. She says “No, I can’t do that.” After I complained about them accepting my money without a problem but now refusing to let me have it back, she said MAYBE if I go into a branch with my ID and explain my case they can help me.
I felt so mad at that point I had to take a minute to try and calm my breathing. Looking back, I realize I was feeling anger, fear, and helplessness all mixed together. I realized how little I could do to access my money, and just how poor and non-cost effective all of my options were for fighting it. Anyway, I agreed to try going into the branch the next day and ended the call.
I went in first thing the next morning. They open at 10:00. Although they still weren’t able to immediately unlock the account, I felt like the branch manager there made an honest effort to clear it up. He even put it on speaker so I could hear it. We had to leave it with an email to the fraud department and a promise that he would follow up the next day. He did just that and let me know the account was unlocked. I was able to log in that day and transferred money out of the account. I appreciated his help, but was past my limit with PenFed already and couldn’t just let it all go. I went back the next day and closed the accounts.
Data as of Q4 2024
Learn why bank health mattersHealth Grade Components
| Overall | |
|---|---|
| NCUA # | 227 |
| Year Chartered | 1935 |
| Employees | 2794 |
| Primary Regulator | |
| Profit Margin | |
|---|---|
| Return on Assets - YTD | 0.11% |
| Return on Equity - YTD | 1.29% |
| Annual Interest Income | $1.79B |
| Assets and Liabilities | ||
|---|---|---|
| Assets | Q4 2024vs Q4 2023 | $31.01B$34.82B |
| Loans | Q4 2024vs Q4 2023 | $24.93B$28.93B |
| Deposits | Q4 2024vs Q4 2023 | $27.05B$29.49B |
| Equity Capital | Q4 2024vs Q4 2023 | $2.81B$2.93B |
| Loan Loss Allowance | Q4 2024vs Q4 2023 | $650.2MM$690.7MM |
| Unbacked Noncurrent Loans | Q4 2024vs Q4 2023 | $320.6MM$344.4MM |
| Real Estate Owned | Q4 2024vs Q4 2023 | $2.4MM$640K |
