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New CD Rates at Pentagon Federal Credit Union


As expected Pentagon Federal Credit Union reduced their certificate rates for January. Nevertheless, the long-term rates are still competitive for federally insured institutions. These include:
  • 4.00% APY 3-year
  • 4.25% APY 4-year
  • 4.50% APY 5, 7-year
These rates are listed in the credit union certificates page as of 1/1/09. They typically last for the entire month, but they're not guaranteed to last. Minimum deposit is $1,000. They're also available as Coverdell Education Savings Certificates and as Traditional and Roth IRA Certificate.

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. If you don't qualify based on military, employer or family, you can become eligible by joining the National Military Family Association (NMFA). Please refer to How to Join Overview Page for details. Joining NMFA and Penfed can be done at the same time all online. The yearly membership for NMFA is $20, but your membership in the association does not need to be maintained to continue as a Penfed member

Electronic Statements

A reader in my previous PenFed post commented that starting February 1, 2009, PenFed will start charging for paper statements. Here are the details from the reader:
If you don't sign up for electronic statements, they will charge you a fee for mailed statements (I think it is $5). Only people who can prove that they don't have Internet access will be exempt from this new fee.

Update: A reader has noted that the mailed statement cost will be 50 cents for each statement.

Credit Cards, Auto Loans, Home Equity Loans and Mortgages

In addition to high CD rates, PenFed has several other competitive banking products. These include:
  • Cash back Visa credit card with 5% cash back for gas and 2% for supermarket (see post)
  • Competitive auto loans, currently 4.75% APR 12 to 60 months, new or used
  • Competitive Home Equity Loans and Lines of Credit, currently 4.99% APR for up to 120 months
  • Competitive mortgages, currently 5.375% 30-year fixed
PenFed's financial rating for soundness at Bankrate.com has improved since last year. It's now 4 stars (sound) based on 9/30/08 data (up from 3 stars last year). PenFed's rating at BauerFinancial remains at 5 stars (superior) based on 9/30/08 data.

PenFed is one of the largest credit unions in the US with $12.7 billion in assets and 846,549 members. It's federally insured by the NCUA (Charter # 227).
Related Pages: CD rates, IRA rates

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Anonymous   |     |   Comment #1
This is a great credit union to be a member of.

One clarification: The fee for receiving mailed, hard copy statements will be $.50 each, not $5.00.
Anonymous   |     |   Comment #2
Their loan rates and credit card benefits are among the best available. I reread the statement flyer and the cost of mailed statements after February 1, 2009 is fifty cents and not $5.00. Thanks for correcting my earlier error.
Anonymous   |     |   Comment #3
An additional note regarding the 50 cents mailed statement fee. You can avoid it by doing one of the following according to the flyer.

1) Sign up for online e-statements
2) Have a Direct Deposit of at least $500 monthly into a Pentagon Federal Checking account
3) Notify them that you don't have Internet access and they might consider waiving the fee

So they will not automatically switch everyone over to E-statements as is done by some banks or firms.
Anonymous   |     |   Comment #4
Is this even legal to NOT provide cost free statements? I would think financial regulations somewhere require financial institutions to provide customers a cost free accounting of their accounts.
- Ssn
Anonymous   |     |   Comment #5
They do deliver "cost free statements"
Their online e-statements are cost free.
Anonymous   |     |   Comment #6
The flyer covers all of the situations for every customer. If you go online, they want you to enroll in e-statements for free. If you can't go online, then they will waive the fee. If you set up direct deposit to a checking account, the other provisions do not apply and they will send the statements to you for free because they are making money off of the "float period" of your direct deposit money. So, in a nutshell, they are penalizing the online access customers who are too lazy to let them save postage and too cheap to give them more money through Direct Deposit.
ct   |     |   Comment #7
to note, i'm a penfed member, happy with the products and customer service, although the online interface and features is basically crap (think banking 2001 style) so i wouldn't manage my money or checking with them.

anyways, i always wonder how penfed turns a good business. they constantly offer high yield cds, and also have low rates on all their loan products. while they don't have branch overhead, they do have third party overhead instead like acquiring third parties to arrange a mortgage locally. i'm guessing their visa card is all outsourced too.

i do know a well run CC can be nice for its members, just surprisng that this one continues to do it so well, even with nearly open membership
Anonymous   |     |   Comment #8
A lot of their members are probably employed by the military. In this day of the war against terrorism, the number of employed military staff is BIG. Military families usually go by word of mouth from others in the military so I am sure this particular credit union gets new members and business that way. And with the recession, military recruitment is going UP because people can get paid by the US military if they can't find work elsewhere. If you got a lot of business from military families, you can then offer savings and loan rates that beat other banks.