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2.17%$1k-PenFed Credit Union7 Year Money Market Certificate
2.12%$1k-PenFed Credit Union5 Year Money Market Certificate
Accounts mentioned in this post. Rates as of August 20, 2017.

PenFed Lowers CD Rates But Long-Term CD Rates Remain Competitive


Pentagon Federal Credit Union (PenFed) cut some of its CD rates for December. Its 7-year, 4-year and 3-year CD rates were cut by about 25 basis points. The 5-year CD rate remains unchanged at 2.75% APY which is very competitive. Even with the rate cut, the 7-year CD yield of 3.25% APY also remains very competitive. As a comparison to banks with nationwide availability, the best 7-year CD rate is 3.00% APY at Dime Savings Bank as of 12/01/2010 and the best 5-year CD rate is 2.60% APY at Acacia Federal Savings Bank as of 12/01/2010. Below are the new PenFed CD yields for December 2010. I've noted the old yields in parenthesis.

  • 3.25% APY 7-year CD (was 3.49%)
  • 2.75% APY 5-year CD (no change)
  • 2.25% APY 4-year CD (was 2.50%)
  • 1.75% APY 3-year CD (was 2.00%)
  • 1.50% APY 2-year CD (no change)
  • 1.26% APY 1-year CD (no change)

Minimum deposit is $1,000. The rates are also available in an IRA. These yields are listed in PenFed's Money Market Certificates page as of 12/01/2010. Even though PenFed typically maintains CD rates through the month, they no longer guarantee it. For more details about PenFed CDs, please refer to my PenFed CD review.

New 10-year CDs Are Coming

I was told that PenFed will be making available 10-year CDs and IRA CDs in January. We'll have to wait to know what their rates will be. The 5.00% APY 10-year CDs were made available in PenFed's CD reservation program. This program was limited and is no longer available so don't expect the publicly available 10-year CD rates to be close to 5.00%. Hopefully, the rate will be substantially higher than the 7-year rate.

PenFed Membership

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.

Branch Locations

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.

Financial/NCUA Info

PenFed has an overall health score at DepositAccounts.com of 4 out of 5 with a Texas Ratio of 7.05% (excellent) based on June 2010 data. It's one of the largest credit unions in the nation with $14.33 billion in assets and $11.62 billion in deposits. Please refer to our financial overview of Pentagon Federal Credit Union for more details. It's federally insured by the NCUA (Charter # 227).

Searching for the Best CD Rates

To search for the best nationwide rates and the best rates in your state, please refer to the following tables at DepositAccounts.com:

Related Pages: CD rates, IRA rates

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