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Happy New Year! Update on PenFed CD Rates


Happy New Year! Update on PenFed CD Rates

I and my team at DepositAccounts.com wish you and your family a happy, healthy and prosperous New Year. I thank all of you for your support over the last year.

As is usual, PenFed updated its certificate rates at the start of the new month. Most of the rates did go up by a large amount. However, most of PenFed’s December rates were very low. So unfortunately, there are still no top rates. The only two competitive CDs are the 1-year and 2-year terms.

Below is a table showing how the PenFed CD and IRA CD rates changed for January. These rates are based on the rates listed at the PenFed Certificates Overview page as of 1/1/2015. PenFed typically only changes CD rates at the start of each month. However, there are occassions when they do change early (as we saw with PenFed’s 1-year CD last month).

PenFed Money Market Certificate APYs as of 1/1/2015:

Term Length January 2015 APYs December 2014 APYs Change (bps)
6 month 0.35% 0.30% +5
1 year 1.11% 1.11% no change
2 years 1.36% 0.80% +56
3 years 1.41% 1.00% +41
4 years 1.41% 0.90% +51
5 years 1.76% 1.21% +55
7 years 2.02% 1.21% +81

PenFed calls its CDs "Money Market Certificates", but they are essentially certificates of deposit (CD) with fixed rates for specific terms. Minimum deposit is $1,000. The rates are also available in an IRA and a Coverdell Education Savings Account. The early withdrawal penalty is up to 180 days of interest for terms from 1 year to 4 years. The penalty is up to 365 days of interest for terms of 5 and 7 years. The penalty doesn’t eat into the principal.

For more details about PenFed CDs, the early withdrawal penalty and PenFed membership, please refer to my October PenFed CD review.

To search for the best CD rates in the nation or in your state, please refer to our CD rates table. You can do the same search for IRAs in our IRA CD rates table.

Related Pages: CD rates, IRA rates

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Anonymous   |     |   Comment #1
It was nice to see the table with the comparison between last month and January's rates.
Anonymous   |     |   Comment #2
I thought they would a least offer some decent rates. Guess they got enough funds last year. Weren't they offering 1.76% on the 5 year earlier this year? I have a CD coming due at the end of the month. I'll use this site to find the highest rate for the term I desire.
Anonymous   |     |   Comment #3
In October 2014 the 5 year was paying 2.12%.
Anonymous   |     |   Comment #6
"Was this helpful?"  Not now.
jen   |     |   Comment #4
I simply adore PenFed.      They are so progressive that their call center is located in Eugene oregon. 
Anonymous   |     |   Comment #5
I don't understand how one can "adore" a credit Union. They pay no taxes yet are not offering the highest rates.
Anonymous   |     |   Comment #7
And they also offer some of the lowest loan rates as a service to their members.  Can't have it both ways. 

I do not "adore" PenFed, but I am a loyal member and have profited immensely from their past CD offerings.  I renew them as they mature as rungs in my laddered CD approach. 
Anonymous   |     |   Comment #9
I use Pended when it suits my purpose. I have a Penfed charge card that gives me 5% off of gasoline which I pay off every month. If I want a 5 year CD I would choose CIT which is paying 2.4% and is 2.5% if it is over 100,000. This site is depositaccounts so it basically is for comparing deposit rates. If Penfed doesn't offer high rates they will not be mentioned.
Anonymous   |     |   Comment #10

Happy New Year!
Anonymous   |     |   Comment #11
Unless it has changed recently, #9, you are earning 5 POINTS per dollar spent not per cent.  I stopped using that card when they implemented the change.  It's a small factor, but fuel isn't one of my most common expenses.
Anonymous   |     |   Comment #12
.#11  Penfed has 7 different  reward credit cards https://www.penfed.org/credit-card-overview/#tabs-1 . I get 5% off on gas..  I do not earn points. I have a Penfed "Cash Rewards" card. Saves me about $20 a month on gas,    Each month they take money off the balance.  I use this card for gas only.  I use my BOA Cash Rewards on other things 2% supermarket purchases and 1% on all other purchases.
Anonymous   |     |   Comment #14
If you're thinking "rewards" credit cards, the Fidelity Amex (through FIA (now BOA)) gives a straight 2% cash back on everything. Granted, the money goes into a Fidelity investment account, but can be easily moved via ACH into your checking account.
Anonymous   |     |   Comment #15
To #11:

I'm with you big time.  Unrelated in any way to #9's situation, the devaluation of CC points by PenFed smelled strongly to me of sleaze.  I was shopping for a new card when I learned of that despicable move and I was leaning PenFed.  I veered away abruptly and went with another CC issuer.

Something like that you expect from a self-serving bank.  You don't expect such shenanigans from any credit union, and surely not from a reputable one!!

I've been a PenFed member for a while.  After learning of the point devaluation, I'm vigilantly on guard regarding all of my business with them.  I no longer trust PenFed.  I really react badly to crap like that.  Who knows what they will pull next!!

It's not quite as bad.  But CC point devaluation is akin to the kind of despicable stuff Fort Knox pulled on its members a few years back.  People join credit unions to avoid things like that.      
Anonymous   |     |   Comment #16
#15  I remember when they changed their credit card rewards.  I monitor my credit card reward terms as well as my savings account terms.  I go where I get the best deal.  I find that Penfeds customer support is poor.  When I had problems their CSR's were slow and not knowledgeable.  When I inquired about a mortgage refinance they told me to look at the website.  I will be business with Penfed as long as it is advantageous for me.  If not I will go to another institution that gives the best terms for my money.  I have CD's with Penfed that will be due later in the year.  The money will go with the institution that offers me the best rates. 
Anonymous   |     |   Comment #13
Just don't get a mortgage through them, they're horrible for that. Their CD rates are good though.
Anonymous   |     |   Comment #8
I didn't realize how lucky I was 2 years ago when I opened a  5 yr. 2.26% CD at City-County CU (now called WE CU) in FL, with unlimited add-on benefits. In the next 6 months, I'll have a lot of available cash, and if nothing better opens up, can add it there at the 2.26 rate until 12/17. Their current 5 year rate is 2.22% and shorter terms aren't bad..
Sree   |     |   Comment #18
You are indeed lucky with the UNLIMITED ADD-ONs..
I had this kind of joy ride with NARA BANK several years back with 4% miles per hour speed :-) but not any more :)
Inforay   |     |   Comment #17
Those of us who had accepted the offer of seven year CDs at 5% from Pen Fed, will see our CDs maturing in February 2015.  I do hope the rates in February will be reasonable so we are not forced to go searching for other places to put our money, when the CDs mature.
Pikerdom   |     |   Comment #19
 I'd guess they are keeping rates low , knowing all that money is due to be rolled over and that most will be too lazy to move it for a small difference to another bank..
Anonymous   |     |   Comment #21
Not lazy, just don't see any point in opening new accounts with new financial institutions to earn just a couple of basis points of higher interest .  It's the average interest that I earned over the years that counts.  PenFed has served me very well and is so easy to manage accounts  with!
Anonymous   |     |   Comment #22
Depends on the term. I have a 2.5% offer with CIT bank for 5 years if I put in 100k. Pended is paying 1.76%. Or you can do a 2.25 with Synchrony or Barclay's that has a low EWP should rates go up which Ken mentions frequently.
klink   |     |   Comment #20
When I talked to a CSR before the new year he hinted to me they were going to raise the rates. I said that if the 1 year rate does not go back to 1.25% then I'll continue to look elsewhere. I'm looking.
Anonymous   |     |   Comment #23
Penfed dropped their rates mid month!  The rates in this post are no longer being honored.

1-Year  1.00%  <-- reduced
2-Year  1.25%  <-- reduced
3-Year  1.40%  <-- unchanged
4-Year  1.40%  <-- unchanged
5-Year  1.70%  <-- reduced
7-Year  1.90%  <-- reduced