Overall bank rating
| 4.25 |
| 3.5 |
| 3.75 |
| 3.75 |
| 5 |
| 4 |
Pros and cons
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Savings
0.55% APY $5 0.55% APY $5- Pros & Cons
- Details
- Competitive APY
- $5 opening deposit
- No monthly service fee
- Compounds interest monthly, not daily
- You may find a slightly higher rate elsewhere
- Many ways to join PenFed, the easiest being to open a savings account with $5
- Branches in US and on military bases in Guam, Puerto Rico, and Japan
- Interest compounded monthly, paid monthly
- Federally insured by the NCUA
- Pros & Cons
- Details
- Ability to earn interest on your checking balance
- Over 68,000 ATMs
- $25 opening deposit
- $10 monthly service fee
- $1.50 fee for using out-of-network ATM
- Interest is compounded monthly, not daily
- Overdraft protection is a line of credit, not a transfer from your other bank accounts
- Many ways to join PenFed, the easiest being to open a savings account with $5
- Branches in US and on military bases in Guam, Puerto Rico, and Japan
- Federally insured by the NCUA
- Interest is compounded and paid monthly
- Waive $10 monthly fee by maintaining $500 daily balance, or setting up monthly direct deposits of $500
- Earn interest if you receive monthly direct deposits of $500
- Earn 0.15% APY on balances less than 20k, and 0.35% APY on balances with $20k to $50k
- Pros & Cons
- Details
- Competitive APY
- Terms up to 7 years
- $1,000 opening deposit
- High early withdrawal penalties
- 6-month certificates earn simple interest, not compounded interest
- Many ways to join PenFed, the easiest being to open a savings account with $5
- Branches in US and on military bases in Guam, Puerto Rico, and Japan
- Terms ranging from 6 months to 7 years
- 90 days interest early withdrawal penalty for 6-month CDs
- For longer terms, you'll lose all interest earned if you make an early withdrawal within 1 year of opening the certificate
- If you make an early withdrawal after the 1-year mark, the penalty is 30% of the gross dividends you would have earned if the certificate had matured
- Federally insured by the NCUA
- Pros & Cons
- Details
- $25 opening deposit
- No monthly service fees
- Paper checks
- Low APY
- No debit card
- Many ways to join PenFed, the easiest being to open a savings account with $5
- Branches in US and on military bases in Guam, Puerto Rico, and Japan
- Earn 0.05% on balances under $10k; 0.10% on balances between $10k and $99,999; 0.15% on $100k or more
- Federally insured by the NCUA
- Interest is compounded and paid monthly
- California
- Florida
- Georgia
- Hawaii
- Maryland
- Nebraska
- New Jersey
- New Mexico
- New York
- North Carolina
- Pennsylvania
- Texas
- Virginia
Pros
Cons
The PenFed Premium Online Savings account pays a competitive interest rate — you can find slightly higher rates elsewhere, but it's definitely up there. PenFed only requires $5 to open a savings account, and the credit union doesn't charge monthly fees .
The main downside is that your money will compound monthly, whereas many institutions' savings accounts compound your interest daily and pay monthly.
Checking
0.15% to 0.35% APY $25 0.15% to 0.35% APY $25Pros
Cons
Not all checking accounts pay interest, so it's nice that you can earn interest with PenFed Access America Checking — but you must receive monthly direct deposits of $500 or more to earn it.
You can definitely find a checking account with lower fees than this one. PenFed charges a $10 monthly fee, although you can waive the fee if you maintain a $500 daily balance or receive monthly direct deposits of $500 or more.
Share certificates (CDs)
0.45% to 1.50% APY $1,000 0.45% to 1.50% APY $1,000Pros
Cons
Don't be thrown off by the term "money market certificate." A PenFed Money Market Certificate serves basically the same purpose as a CD: You open an account for a set amount of time, lock in a rate, and can either access the money when the term ends or pay a fee to access funds early.
Beware that early withdrawal penalties are high for the shorter-term certificates. PenFed charges 365 days interest for an early withdrawal for certificates of 12 months or more. That's not so bad for a seven-year term, but it's steep for a one-year term.
Money market
0.05% to 0.15% APY $25 0.05% to 0.15% APY $25Pros
Cons
The PenFed Money Market Savings account will send you paper checks, but the account doesn't come with a debit card. You can also find a higher APY elsewhere, especially if your balance is under $10,000. All in all, the money market account is a weak link for PenFed.
How Pentagon Federal Credit Union works
PenFed has 68,000 free ATMs nationwide. It has around 50 branch locations in Washington DC and the following US states:
The credit union also has branches on military bases in Guam, Puerto Rico, and Japan.
You're eligible if you have served in the military or work at qualifying associations or organizations. But the easiest way to join is to simply open a savings account with a $5 minimum deposit.
To contact customer service with questions, call Monday through Friday, 7:00 a.m. to 11:00 p.m. ET. Or call Saturdays from 8:00 a.m. to 11:00 p.m. ET, or Sundays from 9:00 a.m. to 5:30 p.m. ET.
You can also contact customer service via email, snail mail, or fax, but there is no live online chat option.
Your PenFed accounts are federally insured by the NCUA for $250,000, or $500,000 for joint accounts.
Is PenFed trustworthy?
The Better Business Bureau gives Pentagon Federal Credit Union an A+ rating . A good BBB rating signifies a company responds effectively to customer complaints, has honest advertising practices, and is transparent in how it handles business.
The credit union doesn't have any public scandals.
How Pentagon Federal Credit Union compares
We've compared PenFed to two other popular credit unions : Navy Federal and Alliant .
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Branch locations 30 US states, DC, Guam, overseas |
Branch locations Online only |
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Savings APY 0.25% to 0.50% APY |
Savings APY 0.55% APY |
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Monthly service fees $0 to $10 |
Monthly service fees $0 |
Your choice between the three financial institutions may likely come down to two main factors: membership eligibility and branch locations.
Both Alliant Credit Union and Pentagon Federal Credit Union offer an easy way to become a member . Simply donate $5 to a foundation and you'll be eligible to become a member. At Navy Federal, you must be tied to the armed forces or have a family member who is already a member of the credit union. You can also be a Department of Defense civilian employee, veteran, or extended family member.
If you need to regularly visit a branch location to manage your account, Navy Federal or PenFed will be better options for you than Alliant. Alliant is an online-only institution so you'll have to be comfortable with online and mobile banking .
Via PakApNews