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PenFed CU Raise Rates On 1-Year And 2-Year CDs To Competitive Levels


Availability: Easy membership

Pentagon Federal Credit Union (PenFed) always updates their rates on the first of the month, and today is no exception: 1-year Money Market Certificate (1.31% APY) and 2-year Money Market Certificate (1.41% APY).

The minimum deposit for either of these Money Market Certificates (CDs) is $1K, with no maximum balance cap.

1.31%$1k-PenFed Credit Union2 Year Money Market Certificate
1.21%$1k-PenFed Credit Union1 Year Money Market Certificate
Accounts mentioned in this post. Rates as of October 27, 2016.

As stated on PenFed’s Money Market Certificate page, the Early Withdrawal Penalty reads as follows:

Certificates having a term greater than 6 months up to and including 4 years:

If redeemed within 180 days of the issue date or any renewal date, all dividends will be forfeited.

If redeemed thereafter, but before the maturity date, dividends for the most recent 180 days will be forfeited.

PenFed’s CDs have a history of frequent rate changes, as evidence by the following chart:

Term Length December 2014 Rate January 2015 Rate May 2015 Rate
1-year CD 0.80% APY 1.00% APY 1.31% APY
2-year CD 0.80% APY 1.26% APY 1.41% APY
3-year CD 1.00% APY 1.31% APY 1.41% APY
4-year CD 0.90% APY 1.31% APY 1.41% APY
5-year CD 1.21% APY 1.61% APY 1.51% APY
7-year CD 1.21% APY 2.02% APY 1.51% APY

Thanks to DA Member, Saver5, for posting this deal in the Forum.


Headquartered in Alexandria, Virginia, Pentagon Federal Credit Union offers membership to virtually all U.S. residents. PenFed’s online application lists the various ways in which individuals can qualify for membership.

If you meet any of the following requirements, you are eligible to join PenFed:

1. I am in the United States Military & Uniformed Services.

2. I am an employee of a qualifying organization.

3. I belong to the following association or organization.

4. I am an employee of the United State government.

5. I am a relative or housemate of someone who is eligible.

6. I live or work at an eligible location.

7. Other

Clicking on Option #7, "Other," provides information about joining PenFed through membership in either Voices for America’s Troops ($14, one-time only dues) or the National Military Family Association ($15, one-time only dues). Joining either of these associations and PenFed can be done simultaneously using PenFed’s online application.

Need another way to join? No problem! Members of the National Military Family Association and Voices for America's Troops are among those eligible for PenFed membership. We've made it easy for you to join one of these associations, which makes you eligible to join PenFed.

Opening a CD can be done online, or in person at any of 31 branches located in the District of Columbia (9), Florida, Hawaii (2), Maryland (2), North Carolina, Nebraska, New York (2), Oregon, Tennessee, Texas, Virginia (6), Guam, and Puerto Rico.

Credit Union Overview

Pentagon Federal Credit Union has an overall health grade of "A" at DepositAccounts.com, with a Texas ratio of 2.75% (excellent), based on December 31, 2014 data. In the past year, PenFed has increased its total deposits by $516.85 Million, an excellent annual growth rate of 3.85%. Please refer to our financial overview of Pentagon Federal Credit Union for more details.

Established in 1935, Pentagon Federal Credit Union (NCUA Certificate # 227) is one of the largest credit unions in the nation, with over 1.3 Million members and assets in excess of $18 Billion.

How the CDs Compare

When compared to other similar length of term CDs tracked by DepositAccounts.com, requiring a similar minimum deposit and available nationally, Pentagon Federal Credit Union’s 1-year and 2-year Money Market Certificates are both quite competitive.

The above rates are accurate as of 5/1/2015.

To search for nationwide CD rates and CD rates in your state, please refer to the CD rates section of DepositAccounts.com.

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Anonymous   |     |   Comment #1
Yawn! zzz Please wake me up when rates start rising. But, thanks Ken!
Anonymous   |     |   Comment #2
Then you might rename yourself Rip Van Winkel
Anonymous   |     |   Comment #3
Aaaaand I went onto the Penfed site to day to open a 1 year CD, but the rate has dropped to 1.06% APY.  It wasn't a super-great rate, but at least 1.31% was a good place to put some money for a year.
Anonymous   |     |   Comment #4
Has anyone looked closely at the following language from the PenFed site on EWP:

"Penalties are imposed for early withdrawal of money market share certificates. This will reduce earnings on the account. You must provide your request in writing."

Must the request be "in writing" and thus in person at a branch?
Anonymous   |     |   Comment #5
"In writing" can certainly be done by mail, or if PenFed agrees, by e-mail. 
Anonymous   |     |   Comment #6
That is what you heard from PenFed?...if so, what is the basis for them to agree or not agree for the latter?  Thanks