Happy New Years! PenFed Credit Union (PenFed) has started the new year with higher long-term CD rates. PenFed has a history of offering top long-term CD deals in January, and it’s nice to see PenFed continuing this tradition. The new rates aren’t spectacular, but they are very competitive. Below is a summary of the new CD rates and how they have changed from last month.
- 0.85% APY 6-month (no change)
- 1.36% APY 1-year (no change)
- 1.41% APY 15-month (no change)
- 1.51% APY 2-year (no change)
- 1.71% APY 3-year (was 1.51%)
- 1.87% APY 4-year (was 1.51%)
- 2.28% APY 5-year (was 1.51%)
- 2.38% APY 7-year (was 1.51%)
The minimum opening deposit is $1k, with no stated balance cap. All of the terms except for the 6-month and 15-month are available as IRAs (Traditional, Roth, and CESA) but with rates that are 5 basis points lower.
Please refer to our PenFed's CD rates table for the full listing of CD and IRA CD rates.
Last year, PenFed’s Early Withdrawal Penalty (detailed on the Money Market Certificate Application) changed and now reads as follows:
Certificates Having a Term Greater Than Six Months:
If redeemed within the first year, all dividends will be forfeited.
If redeemed thereafter, but prior to the maturity date, the early withdrawal penalty will equal 30% of what would have been earned if the certificate had been held to maturity, not to exceed total dividends earned.
Many thanks to DA reader/contributor, ChasR for his Forum post about the new PenFed rates.
Headquartered in Alexandria, Virginia, Pentagon Federal Credit Union offers membership to virtually all U.S. residents. PenFed’s online application lists the various ways in which individuals can qualify for membership.
If you meet any of the following requirements, you are eligible to join PenFed:
1. I am in the United States Military & Uniformed Services.
2. I am an employee of a qualifying organization.
3. I belong to the following association or organization.
4. I am an employee of the United State government.
5. I am a relative or housemate of someone who is eligible.
6. I live or work at an eligible location.
Clicking on Option #7, "Other," provides information about joining PenFed through membership in either Voices for America’s Troops ($14, one-time only dues) or the National Military Family Association ($15, one-time only dues). Joining either of these associations and PenFed can be done simultaneously using PenFed’s online application.
Need another way to join? No problem!
Members of the National Military Family Association and Voices for America's Troops
are among those eligible for PenFed membership. We've made it easy for you to join
one of these associations, which makes you eligible to join PenFed.
Joining PenFed and/or opening a Money Market Certificate can also be done in person at any of 38 branches located in the District of Columbia (6), Florida, Georgia (2), Hawaii (3), Maryland (2), North Carolina, Nebraska, New York (2), Oregon, Tennessee, Texas (4), Virginia (10), Guam (2), and Puerto Rico (2).
Credit Union Overview
PenFed Credit Union (NCUA Charter # 227) has an overall health grade of "A" at DepositAccounts.com, with a Texas ratio of 2.86% (excellent), based on September 30, 2016 data. In the past year, PenFed has increased its total deposits by $1.52 billion, an excellent annual growth rate of 10.31%. Please refer to our financial overview of PenFed Credit Union for more details.
Established in 1935, PenFed Credit Union is one of the largest credit unions in the nation, with assets in excess of $20 billion.
How the Money Market Certificates Compare
When compared to the 183 similar length-of-term CDs tracked by DepositAccounts.com that require a similar minimum deposit and are nationally available, PenFed Credit Union's 5-year Money Market Certificate APY currently ranks fourth.
|Interest Rate||CD Length of Term||Credit Union/Bank|
|2.50% APY||5 Year CD||XCEL Federal Credit Union|
|2.32% APY||5 Year CD||Melrose Credit Union|
|2.30% APY||5 Year CD||Mountain America Credit Union|
|2.28% APY||5-Year Money Market Certificate||PenFed Credit Union|
The above rates are accurate as of 1/1/2017.