UPDATE 1/30/16: Rate has been dropped to 1.26% APY.
On New Year’s Day, I was happy to see that PenFed Credit Union (PenFed) had raised the rate on its 1-year Money Market Certificate (CD), but a closer look dampened my enthusiasm when I saw the APY was only 1.21%.
A few days later, DA reader, StantheMan, posted he had been told by a PenFed rep that an "unadvertised 15-month CD Special paying 1.51%" would be offered, beginning on January 23, 2016.
That’s today, and DA reader, leef, noted in the Forum that the 15-month CD (1.51% APY) is indeed being offered. StantheMan, you’re definitely the man!
The minimum deposit for the 15-month CD is $1K, with no maximum balance cap.
Since I last wrote about PenFed, their Early Withdrawal Penalty (detailed on the Money Market Certificate Application) has changed and now reads as follows:
Certificates Having a Term Greater Than Six Months:
If redeemed within the first year, all dividends will be forfeited.
If redeemed thereafter, but prior to the maturity date, the early withdrawal penalty will equal 30% of what would have been earned if the certificate had been held to maturity, not to exceed total dividends earned.
Thanks again to both Stantheman and leef.
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.
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 32 branches located in the District of Columbia (9), Florida, Hawaii (2), Maryland (2), North Carolina, Nebraska, New York (2), Oregon, Tennessee, Texas (2), Virginia (6), Guam, and Puerto Rico.
Credit Union Overview
PenFed Credit Union has an overall health grade of "A" at DepositAccounts.com, with a Texas ratio of 2.76% (excellent), based on September 30, 2015 data. In the past year, PenFed has increased its total deposits by $866.894 Million, an excellent annual growth rate of 6.25%. Please refer to our financial overview of PenFed Credit Union for more details.
Established in 1935, PenFed Credit Union (NCUA Certificate # 227) is one of the largest credit unions in the nation, with over 1.4 million members and assets in excess of $19 Billion.
How the CD Compares
When compared to the 99 similar length-of-term CDs tracked by DepositAccounts.com, requiring a similar minimum deposit and available nationally, PenFed Credit Union’s 15-month Money Market Certificate APY currently shares the top spot with USALLIANCE Financial’s 15-month Certificate Special.
The above rates are accurate as of 1/23/2016.