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Pentagon Federal Credit Union's March CD Rates

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Like many other financial institutions, Pentagon Federal Credit Union reduced their certificate rates for March. Nevertheless, the long-term rates are still competitive for federally insured institutions. These include:
  • 3.50% APY 3-year
  • 3.75% APY 4-year
  • 4.00% APY 5, 7-year
These rates are listed in PenFed's certificates page as of 3/2/09. The CD rates 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.

Several readers have mentioned being offered an extra 0.25% for renewing their maturing PenFed CDs. So that makes the rates even more competitive.

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.

Update 3/3/09: A reader just noted another way you can qualify to join PenFed. As described on Penfed's website, you are eligible to become a member of Pentagon Federal if you are an employee or volunteer of the American Red Cross.

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 3.99% APR 12 to 60 months, new or used (more details at this FW thread)
  • Competitive Home Equity Loans and Lines of Credit, currently 4.57% APR for up to 180 months
  • Competitive mortgages, currently 5.21% APR 30-year fixed
Accounts can be opened online, but for those who prefer branches, PenFed has branches in several parts of the country including Washington DC, Maryland, Virginia, New Jersey, New York, Colorado, North Carolina, Hawaii, Puerto Rico, Missouri and Texas.

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 $13 billion in assets and 846,803 members. It's federally insured by the NCUA (Charter # 227).
Related Pages: CD rates, IRA rates

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Comments
Anonymous
Anonymous   |     |   Comment #1
Mile High Bank in Colorado has 3%APY for short and long term CDs - see their website.

Your blog is great.
Anonymous
Anonymous   |     |   Comment #2
Regarding their credit card I wanted to mention that being approved is not an easy matter: They want the two previous years' tax returns. No summaries, no, full schdules!! And they don't tell you that up front, you are told once your credit history is run and you are "approved".
Anonymous
Anonymous   |     |   Comment #3
If all the other financial institutions required the same information, our nation's financial and economic system would not be in such dire straights.
Anonymous
Anonymous   |     |   Comment #4
I have to apologize.
Please ignore my previous post at 1:58 PM.
I had home loan applications for mortgages on my mind.
AtHome Dad
AtHome Dad (anonymous)   |     |   Comment #5
I've been very pleased with my PenFed account. The CC application was easy; loan rates, CD rates, are very competitive. Service is excellent.

One important note: To qualify for membership, you can also be a volunteer for your local Red Cross, and important and simple task. Perhaps more meaningful than other options, perhaps not, but I felt it important to highlight.
Banking Guy
Banking Guy (anonymous)   |     |   Comment #6
Thanks for sharing your experience and the note regarding the American Red Cross. I've updated the post with this info.