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)|
|1 year||1.11%||1.11%||no change|
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.