Established in 1935 and headquartered in Tysons, Virginia, Pentagon Federal Credit Union (PenFed) is the second-largest federal credit union, with more than $35.3 billion in assets. At present, PenFed serves over 2.9 million members worldwide and offers various financial products and services, including share certificates (the credit union equivalent of certificates of deposit), checking accounts, credit cards, personal loans, mortgages, and more. PenFed offers full-service online banking as well as in-person locations in several major United States cities.
PenFed has more than 50 branches nationally and partners with the largest surcharge-free ATM network in the country, Allpoint. Historically, membership was limited to those with ties to the U.S. government or military but membership is now open to everyone.
All rates and fees are current as of June 17, 2024, and are subject to change.
PenFed Credit Union
Checking accounts: | Starting at $0 per month |
Savings accounts: | Open with as little as $5 |
Share certificate rates: | Earn up to 4.00% annual percentage yield (APY) |
PenFed Credit Union rates and products
PenFed offers many deposit accounts to help members meet their financial goals, including multiple checking, savings, and share certificate accounts as well as a money market account.
Checking accounts
PenFed members have a couple of options for checking accounts, including one free checking account option.
Free Checking
PenFed’s free checking account comes with no minimum deposit requirement and no monthly fees, though there’s no sign-on bonus and you won’t earn any interest.
Access America Checking
Access America checking offers 0.15% APY on balances of less than $20,000, and 0.35% APY if your balance is above that amount. While there is a $10 monthly fee, it can be waived if you set up at least $500 in direct deposits every month or maintain a daily balance of $500 or more.
Savings accounts
The credit union offers one basic savings (share) account, which is required to establish membership. In addition, PenFed also offers a high-yield savings account to boost members’ earnings.
Regular Savings
The PenFed Regular savings account offers a meager 0.05% APY on balances, and interest is compounded monthly. However, with no monthly fees and only a $5 minimum opening deposit, the account is highly accessible for a range of customers. Plus, you can get a free ATM card with the account and make an unlimited amount of transfers per month.
Premium online savings
The PenFed Premium Online Savings account offers a 3.00% APY and only requires a $5 deposit to open. However, be aware that this account only allows for six withdrawals or transfers per billing cycle and doesn’t come with an ATM card, so it wouldn’t be a good account for paying bills.
PenFed Credit Union savings rates compared to current top rates*
While PenFed Credit Union is a great option, some institutions offer higher interest rates. Compare the rates above to this list of competitors:
Share certificates
For members who want to earn higher yields by keeping their savings on deposit longer, PenFed offers several share certificates with rates on par with the best certificate of deposit rates offered by banks.
Individual retirement account (IRA) share certificates
Customers can choose between a traditional, Roth, or Simplified Employee Pension (SEP) IRA. Dividends on IRA share certificates are compounded daily and credited monthly into your account. Note that these certificates have no early withdrawal penalties on the principal.
Money market share certificates
Money market share certificates from PenFed require a $1,000 opening deposit, and APYs range from 3.00%–4.00%, depending on term length.
Withdrawing from a PenFed money market share certificate before maturity results in a penalty. All dividends will be forfeited if you redeem the certificate within the first year. After the first year but before the maturity date, the early withdrawal penalty is 30% of what you would have earned if you held the CD to maturity (not to exceed total dividends earned).
Coverdell Education Savings share certificates
Coverdell share certificates have a lower minimum opening deposit requirement of $500 and a maximum of $2,000 per year. These accounts have no service fees and APYs range from 2.90%–3.90% depending on term length.
Other services PenFed Credit Union offers
In addition to many deposit account offerings, PenFed also offers additional products and services, including:
- Credit cards: PenFed offers several Visas with low or no annual fees and competitive rates.
- Auto loans: Members can secure auto financing or refinance an existing loan and purchase protection, such as guaranteed asset protection (GAP) coverage.
- Mortgages: In addition to conventional mortgages, PenFed is also a lender of Federal Housing Administration (FHA), Veterans Affairs (VA), and jumbo loans. It also offers refinancing and home equity lines of credit.
- Personal loans: PenFed offers personal loans with terms of up to 60 months.
- Student loans: Students can borrow funds to pay for college and refinance existing student loans.
Online banking
You can use PenFed’s online banking and mobile app to deposit checks, review account transactions, check the status of a loan or credit card, make payments, transfer funds, and create travel alerts.
The PenFed Credit Union platform and customer support
Customers can access a robust online banking platform through PenFed’s mobile app, which has a rating of 3.2 stars in the Apple store and 3.9 stars on Google Play.
If you need to contact a PenFed representative, representatives are available by phone Monday through Saturday from 8 a.m. to 8 p.m. Eastern time.
You can also fill out an online form to schedule a call or get support from an online agent. The credit union also offers a chat feature that allows you to get answers to your questions or be connected with a representative if necessary.
Is PenFed Credit Union secure?
PenFed had a security breach in December 2010 that put many of its customers’ information online, resulting in the issuing new debit and credit cards to its users. There have been no other breaches since then, and PenFed uses multifactor authentication (MFA) and secure payment options to keep its users safe.
Also, the National Credit Union Administration (NCUA) insures PenFed customers up to $250,000 per person, so your money is safe in the rare case of a failure.
PenFed Credit Union user reviews
PenFed has a 4.1 rating with over 11,000 reviews on WalletHub. Positive reviews mention decent loan rates and helpful customer service while negative reviews note issues with loans taking a great deal of time to go through, getting denied for a loan without a stated reason, and rates being higher than originally stated as well as issues with the mobile app.
Compare PenFed Credit Union alternatives
Is PenFed Credit Union right for you?
PenFed could be a decent option for you if you’re looking for a credit union as it is open for all to join. It offers a wide range of products, so it could be ideal if you’re interested in having all your accounts at the same institution. However, higher rates can be found at other banks, and the mobile apps leave room for improvement. Also, if you’re interested in in-person banking, make sure it has a full-service branch near you before signing up as it only has physical locations in 12 cities.
Frequently asked questions
Can anybody join PenFed Credit Union?
Yes, PenFed’s field of membership is open to anyone in the U.S.
Is PenFed a legitimate credit union?
Yes, PenFed is the second-largest credit union, serving nearly 3 million members worldwide.
Is it hard to get a loan with PenFed?
Loan eligibility is based on many factors, including creditworthiness. You must be a member of PenFed to take out a loan.
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