Deal Summary: Most competitive are the 15-month (1.46% APY) and 3-year (1.76%); $1k minimum deposit
Many banks and credit unions having been coming out with higher rates today (see Forum). While it is common for credit unions like PenFed Credit Union (PenFed) to change rates on the first of the month, the number of institutions increasing rates seems a little higher than normal. Perhaps the last Fed rate hike is starting to have an effect.
Today’s rate increases at PenFed aren’t impressive, but it’s nice to see any increase at PenFed during this time of the year. PenFed’s best rates tend to be offered in the Winter. I would consider PenFed’s rate increases on its 36-month CD and 15-month CD to be the most noteworthy. The APYs increased by 15 basis points on the 36-month CD (1.76%) and by 10 basis points on the 15-month CD (1.46%). Other CD rates only increased by 5 basis points. The long-term CD rates continue to be a little low relative to the top rates at internet banks.
Below is a summary of the new, noteworthy CD rates and how they have changed from last month.
- 1.31% APY 1-year (was 1.26%)
- 1.46% APY 15-month (was 1.36%)
- 1.51% APY 2-year (was 1.46%)
- 1.76% APY 3-year (was 1.61%)
- 1.81% APY 4-year (was 1.76%)
- 2.12% APY 5-year (was 2.07%)
- 2.17% APY 7-year (was 2.12%)
The minimum opening deposit is $1k, with no stated balance cap. PenFed calls these Money Market Certificates, but they are essentially CDs. All of the above terms except for the 15-month are available as IRAs (Traditional, Roth, and CESA) but with rates that are 5 basis points lower.
Please refer to our PenFed's CD rates table for the full listing of CD and IRA CD rates.
Last year, PenFed’s Early Withdrawal Penalty (detailed on the Money Market Certificate Application) 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.
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.
Joining PenFed and/or opening a Money Market Certificate can also be done in person at any of 38 branches located in the District of Columbia (6), Florida, Georgia (2), Hawaii (3), Maryland (2), North Carolina, Nebraska, New York (2), Oregon, Tennessee, Texas (4), Virginia (10), Guam (2), and Puerto Rico (2).
Credit Union Overview
PenFed Credit Union (NCUA Charter # 227) has an overall health grade of "A" at EpBooks.us, with a Texas ratio of 2.98% (excellent), based on December 31, 2016 data. In the past year, PenFed has increased its total deposits by $1.34 billion, an excellent annual growth rate of 8.72%. Please refer to our financial overview of PenFed Credit Union for more details.
Established in 1935, PenFed Credit Union is one of the largest credit unions in the nation, with assets in excess of $21 billion.
How the Money Market Certificates Compare
When compared to the 195 similar length-of-term CDs tracked by EpBooks.us that require a similar minimum deposit and are nationally available, there are 8 banks and credit unions that offer higher rates. Below is a sample of these:
When compared to the 143 similar length-of-term CDs tracked by EpBooks.us that require a similar minimum deposit and are nationally available, there are 4 credit unions that offer higher rates. Below is a sample of these:
The above rates are accurate as of 4/1/2017.