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Higher Long Term CD Rates at Pentagon FCU


Pentagon Federal Credit Union increased its long term certificate rates today. The 3, 4 and 5-year CD rates were increased by about a quarter of a percentage point. The 36 and 48-month CD yields are now 4.01% APY. The 60-month CD yield is now 4.50% APY. The new rates are competitive but not any more competitive than what you can get at many banks now (see post). The table below shows the new CD rates along with the old rates and the changes.

Term Old APY New APY Basis Pt Chg
6-Month 2.75% 2.75% 0
1-Year 2.99% 2.99% 0
2-Year 3.25% 3.25% 0
3-Year 3.75% 4.01% +26
4-Year 3.75% 4.01% +26
5-Year 4.25% 4.50% +25
7-Year 4.49% 4.51% +2

The minimum deposit is $1,000, and these are also available in an IRA. 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 Visa credit card with 5% cash back for gas purchases and auto loans with very low rates (see post). Regarding their Visa credit cards, my PenFed contact said they'll be introducing on Monday a special limited time balance transfer rate of 2.99% APR for the life of the balance.

PenFed is one of the largest credit unions in the US with $11.2 billion in assets and 778,298 members. It's federally insured by the NCUA (Charter # 227).
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Anonymous   |     |   Comment #1
Glad I got those 6% CDs late last year. They were a "Banking Guy" Grand Slam recommendation.