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New PenFed CD Rates - Down But Still Competitive


Pentagon Federal Credit Union updated their certificate rates yesterday. The bad news is that they went down, but the good news is that the long term rates are still very competitive considering the massive Fed rate cuts over the last two weeks. They still have a 5% APY but it's only on their 7-year CD. The 5-year CD rate is down from 5% to 4.85% APY. The 4-year and 3-year APYs are 4.75% and 4.50%. The minimum deposit is $1,000, and these are also available in an IRA. The highest yield for a 5-year CD listed today at Bankrate is only 4.62% APY at Intervest.

PenFed typically keeps the CD rates unchanged for a month. They used to list the end date at the bottom of the rate table, but they ended this after their last 6% CD special last fall. That was the first time that I can remember PenFed ending the CD rates before the end of the month. After that, they stopped including an end date in the table.

For more details about PenFed's CDs and joining PenFed, please refer to this PenFed review post. PenFed makes it easy for anyone to join and open accounts online.

In addition to high CD rates, PenFed has several other competitive banking products including a cash back credit card with 5% cash back for gas purchases and auto loans with very low rates (see post).

PenFed is one of the largest credit unions in the US with $10.5 billion in assets and 769,231 members. It's federally insured by the NCUA (Charter # 227).
Related Pages: CD rates, IRA rates

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Duck   |     |   Comment #1
Hi saw that too on Penfed BankingGuy Justice FCU said they were going to change their Cd's today but didnt know what they would go too the table is still showing the 5%apy on the 60m also you reported last year on Heritage Cu aka Arizona zHolsum in Az when they were offering 8% 4 8m they still have good rate listed (dated Dec27,07) on cd nothing at 5% but competive if still available Thanks for the updates BankingGuy
Anonymous   |     |   Comment #2
I think it would be stupid to lock in 7 years at 5%. While 5% is OK for a couple years, after that there is going to a massive interest rate spike due to budget deficits, declining US dollar, peak oil...)
Duck   |     |   Comment #3
Its not stupid ifyou dont need right away you can always break it early take the intrest penalty go for the better rate then claim the intrest penalty on your taxes. its better than leaving it liquid in a sinking ship. Saving account rates head south fast as they are now but dont jump back that fast