Pentagon Federal Credit Union (PenFed) Review 2024

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At a glance

4.1

Rating: 4.1 stars out of 5

Bankrate Score

CDs

Rating: 4 stars out of 5

Checking

Rating: 4.7 stars out of 5

Savings

Rating: 4.4 stars out of 5

MMA

Rating: 2.7 stars out of 5

Bankrate scores are objectively determined by our editorial team. Our scoring formula weighs several factors consumers should consider when choosing financial products and services.

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Overview

PenFed is good for savers who are interested in getting above average rates and the option to choose from a wide variety of banking products. Consumers who prefer in-person banking may want to consider an institution with a larger branch network.

Highlights

Free Checking

Overall

Pentagon Federal Credit Union is one of the largest federal credit unions, based on assets and membership. It has a rich history in serving members of the armed forces, those affiliated with the military and employees of the federal government. PenFed has members in all 50 states, the District of Columbia and several U.S. territories. It is insured by the National Credit Union Administration (NCUA).

Pros

The Premium Online Savings account offers an annual percentage yield (APY) that’s well above the national average.
Checking or savings accounts can be opened with a low minimum deposit.
Tens of thousands of free ATMs are available.

Cons

The yield on the basic savings account is low.
The credit union’s network of around 50 branches extends across just 13 states.

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Pentagon Federal Credit Union (PenFed) banking products

4.4

Rating: 4.4 stars out of 5

Bankrate Score

Compare top savings rates

Pentagon Federal Credit Union (PenFed) savings overview

The Premium Online Savings account earns a dividend rate that’s above the national average APY, and it requires only a $5 minimum deposit with no monthly fee.

PenFed’s Regular Savings account offers a very low APY, but it can be opened at a branch and provides easy ATM access.

Pros

The Premium Online Savings account offers an above average APY.
There are no monthly service fees to worry about.
Customers can set up free online recurring transfers with the Premium Online Savings account.

Cons

The Regular Savings account pays an APY that’s lower than the national average.
The Premium Online Savings account doesn’t provide ATM access.

Pentagon Federal Credit Union (PenFed)

APY

APY last updated between 6/19 and 6/25.

APY

APY last updated between 6/19 and 6/25.

National average APY

How do we get this data?

Bankrate independently tracks hundreds of APYs and product details for banking institutions nationwide. We retain the historical data of every rate we track in our database. If there are any gaps where we weren’t actively tracking a rate at the time, the graph will reflect the missing data.

Date Bankrate gathers rate data either directly from our partners, or through our proprietary rate surveying service. The rate change date is based on when Bankrate received or captured the rate change and may differ from the actual date the rate changed.	Pentagon Federal Credit Union (PenFed) APY APY last updated between 6/19 and 6/25. APY APY last updated between 6/19 and 6/25	National average APY The “national average” is determined by Bankrate’s comprehensive national survey of savings accounts and CDs and reflects the monthly average APY for each product.
07/10/2023	2.70%	0.54%

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Pentagon Federal Credit Union (PenFed) CD overview

PenFed offers several different types of certificates, including money market certificates, which are available with terms ranging from six months to seven years. All of these terms come with very high yields, though some are more competitive than others.

Other options include IRA certificates — which are for retirement savings — and Coverdell Education savings certificates — which are useful for setting aside money for a child’s education. With each of these products, the barrier to entry is fairly low, but the early withdrawal penalties are rather stiff.

Pros

A wide selection of CD terms are available.
The $1,000 minimum balance requirement is manageable for many savers.
Rates are above average.

Cons

No-penalty certificates are not available.
Some financial institutions have lower minimum opening deposit requirements on CDs.

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Pentagon Federal Credit Union (PenFed) money market overview

The Money Market Savings account offers a tiered APY. Balances of more than $100,000 earn the highest yield, but higher yields with much lower deposit requirements can be found at other banks and some credit unions. The account has no monthly service fees, but an initial deposit of $25 is required to open the account. Checks are free upon request.

Pros

There’s no monthly service fee.
You can request free checks for the account.
Unlike the Online Savings account, ATM access is available.
A money market account can be opened with little money.

Cons

Better yields can be found elsewhere.
At least $100,000 is required to earn the highest APY.

4.7

Rating: 4.7 stars out of 5

Bankrate Score

Compare top checking rates

Pentagon Federal Credit Union (PenFed) checking overview

PenFed’s Free Checking account requires no minimum balance and charges no monthly service fees. Account holders have access to more than 85,000 fee-free ATMs nationwide, including those in the Allpoint and Co-op networks. Members who set up direct deposit may receive paychecks up to two days early.

The credit union also offers Access America checking, an interest-bearing account that has tiered interest rates that reward those with balances of $20,000 or more with a higher APY.

Pros

The Free Checking account requires no minimum balance and charges no monthly fees.
Members have free access to more than 85,000 ATMs.
The Free Checking account works with Apple Pay, Samsung Pay and Google Pay.
An overdraft line of credit is available for added protection.
Direct deposit customers may be able to receive their paychecks up to two days early.

Cons

The charge per instance of nonsufficient funds is $30 with no daily limit on the number of occurrences.

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Bank fees

Fee	Charged
Overdraft fee	$15
Non-sufficient funds fee	$30
Monthly maintenance fee	None
Out-of-network ATM fee	$1.50
Excessive transaction fee	None

Find out:Tips to avoid common bank fees

About Pentagon Federal Credit Union (PenFed)

Pentagon Federal Credit Union was established in 1935 in Washington, D.C., as the War Department Federal Credit Union. Today, PenFed is based in McLean, Virginia, and serves around 2.8 million members worldwide.

PenFed offers a variety of banking products, including checking, savings and money market accounts as well as several types of share certificates.

Current and retired members of the armed forces and employees of the federal government are eligible to join the credit union, but membership is open to just about anyone.

Bank experience

Consumers who choose PenFed will have access to about 50 branches, but those who aren’t in proximity to a branch can take advantage of robust digital features and do their banking online.

The mobile app is highly rated in both Apple’s App Store and the Google Play Store. It can be used to set travel notifications on debit/credit cards, deposit checks, pay bills and more.

Members also have ample access to free ATMs with tens of thousands of free ATMs available, including those in the Allpoint and Co-op networks.

PenFed has phone hours from 8 a.m. to 8 p.m. Eastern on every day except Sunday.

How Pentagon Federal compares to other banks

Compare different account types offered by Pentagon Federal Credit Union. Annual percentage yields (APYs) shown were updated between June 19, 2024 and June 25, 2024.

Selected bank Pentagon Federal Credit Union savings account Bankrate score Rating: 0 stars out of 5 N/A Bankrate Savings rating = 0.0/5 Bankrate scores are objectively determined by our editorial team. Annual percentage yields (APYs), minimum opening deposit requirements and minimum balances to avoid monthly service fees are some of the things that make up Bankrate’s score.	Most comparable Alliant Credit Union savings account NCUA Insured Bankrate score Rating: 4.4 stars out of 5 4.4 Bankrate Savings rating = 4.4/5 Bankrate scores are objectively determined by our editorial team. Annual percentage yields (APYs), minimum opening deposit requirements and minimum balances to avoid monthly service fees are some of the things that make up Bankrate’s score. Read review	Bankrate score Bankrate Savings rating Bankrate scores are objectively determined by our editorial team. Annual percentage yields (APYs), minimum opening deposit requirements and minimum balances to avoid monthly service fees are some of the things that make up Bankrate’s score. Read review
APY APY, or annual percentage yield, is the yearly return on a bank or investment account. APY includes the effects of compounding interest. APYs last updated between June 19, 2024 and June 25, 2024.
N/A	3.10%
Minimum balance for APY
N/A	$100.00
Estimated earnings Interest earned calculation based on a $25,000 deposit amount for a period of 1 year and is rounded to the nearest dollar. Exact earnings are dependent on calendar year, balance, and compounding frequency. Minimum deposit rules may apply.
N/A	$775

The Premium Online Savings account earns a dividend rate that’s above the national average APY, and it requires only a $5 minimum deposit with no monthly fee.PenFed’s Regular Savings account offers a very low APY, but it can be opened at a branch and provides easy ATM access.	Alliant Credit Union has three savings accounts: a High-Rate Savings account, a Supplemental Savings account and a Kids Savings account.

The Premium Online Savings account offers an above average APY There are no monthly service fees to worry about Customers can set up free online recurring transfers with the Premium Online Savings account	You can earn a competitive APY with the High-Rate Savings account. You can set as many as 19 different savings goals through additional savings accounts.	N/A
The Regular Savings account pays an APY that’s lower than the national average The Premium Online Savings account doesn’t provide ATM access	You need to keep at least a daily average of $100 in the High-Rate Savings account to earn interest. There’s a $1 charge for paper statements. You need to keep at least $5 in the High-Rate Savings account to keep the account open.	N/A

Bankrate does not currently track additional product details for this bank.	APY offering: 3.10% 4/5 APY, or annual percentage yield, is the yearly return on a bank or investment account. APY includes the effects of compounding interest. Minimum balance to earn interest: $100.00 4/5 The lowest deposit amount an account must have before it can earn interest. Monthly service fee: $0.00 5/5 A monthly charge a financial institution deducts from an account if certain requirements are not met. Minimum balance to avoid fee: $0.00 5/5 The lowest balance an account must maintain in order to avoid a fee. Access to funds: Great 5/5 A procedure that allows an individual or organization to access and manage the funds of another account holder.	APY, or annual percentage yield, is the yearly return on a bank or investment account. APY includes the effects of compounding interest. The lowest deposit amount an account must have before it can earn interest. A monthly charge a financial institution deducts from an account if certain requirements are not met. The lowest balance an account must maintain in order to avoid a fee. A procedure that allows an individual or organization to access and manage the funds of another account holder. Bankrate does not currently track additional product details for this bank.

Selected bank Pentagon Federal Credit Union CD Bankrate score Rating: 0 stars out of 5 N/A Bankrate CD rating = 0.0/5 Bankrate scores are objectively determined by our editorial team. Annual percentage yields (APYs) and minimum deposits are some of the things that make up Bankrate’s score.	Most comparable First Tech Credit Union CD NCUA Insured Bankrate score Rating: 4.1 stars out of 5 4.1 Bankrate CD rating = 4.1/5 Bankrate scores are objectively determined by our editorial team. Annual percentage yields (APYs) and minimum deposits are some of the things that make up Bankrate’s score. Read review	Bankrate score Bankrate CD rating Bankrate scores are objectively determined by our editorial team. Annual percentage yields (APYs) and minimum deposits are some of the things that make up Bankrate’s score. Read review
APY APY, or annual percentage yield, is the yearly return on a bank or investment account. APY includes the effects of compounding interest. APYs last updated between June 19, 2024 and June 25, 2024.
N/A	4.00%
Minimum deposit
N/A	$500.00
Term
N/A	1 yr

Some credit unions are limited to very specific groups. But Pentagon Federal Credit Union is open to anyone, as long as you open a savings account with at least $5. PenFed CDs offer a competitive yield and require a minimum opening deposit of at least $1,000. Its terms range from six months to seven years.	Credit unions offer share certificates, which are the same in function as a certificate of deposit. First Tech offers five standard share certificates with a wide variety of terms, ranging from six months to five years. The APYs for these certificates, in addition to the bump-up certificates, are competitive. Bump-up certificates come with different terms: 13 months, 24 months or 36 months. It’s just $500 to open both standard and bump-up certificates, but the latter will let you “bump up” your APY if rates increase.

PenFed offers competitive yields on its CDs. PenFed has a seven-year CD, which is one of the longer CD terms around.	All certificates are available to open for just $500 There’s a large range of terms to choose from The APYs are competitive Bump-up certificates are available	N/A
You need to open a savings account at PenFed to become a member. Its six-month CD is PenFed’s shortest term. PenFed doesn’t offer a no-penalty CD.	There are hefty withdrawal penalties on share certificates with terms of more than 2 years	N/A

Bankrate does not currently track additional product details for this bank.	APY offering: 4.00% - 1 yr 4/5 APY, or annual percentage yield, is the yearly return on a bank or investment account. APY includes the effects of compounding interest. APYs are selected based on Bankrate reviews of the highest rates a bank offers between the term ranges of 7 and 17 months. This excludes jumbo CDs and applies when the minimum deposit is $25k or less. Minimum deposit: $500.00 5/5 The minimum deposit amount a financial institution requires in order to open a CD. Range of term lengths: 6 mos - 5 yrs 3/5 A designated amount of time that funds must be held within a CD. Early withdrawal penalty: Average 3/5 A penalty incurred when funds have been withdrawn from a CD before its maturity date. Offer no-penalty or bump-up CDs: Yes 5/5 A CD that doesn’t incur a penalty if funds are withdrawn before its maturity date. Offer IRA CDs: No 0/5 An IRA account which consists of CDs that typically earns fixed interest over a specified period of time.	APY, or annual percentage yield, is the yearly return on a bank or investment account. APY includes the effects of compounding interest. APYs are selected based on Bankrate reviews of the highest rates a bank offers between the term ranges of 7 and 17 months. This excludes jumbo CDs and applies when the minimum deposit is $25k or less. The minimum deposit amount a financial institution requires in order to open a CD. A designated amount of time that funds must be held within a CD. A penalty incurred when funds have been withdrawn from a CD before its maturity date. A CD that doesn’t incur a penalty if funds are withdrawn before its maturity date. An IRA account which consists of CDs that typically earns fixed interest over a specified period of time. Bankrate does not currently track additional product details for this bank.

Pentagon Federal Credit Union vs. Navy Federal Credit Union

As some of the largest credit unions in the country, both PenFed and Navy Federal offer a wide array of financial products and services, including deposit accounts like checking and savings in addition to loans and credit cards.

Membership at PenFed is open to everyone, but Navy Federal requires you or a family/household member to have ties to the armed forces, the Department of Defense or the National Guard.

While both credit unions offer similar yields on their CDs, PenFed offers higher yields on its Premium Online Savings account.

Learn more:The best credit unions of 2024

Pentagon Federal Credit Union FAQs

Review methodology

With so many financial institutions to choose from, it can be hard to know who to trust. Bankrate’s ever-growing list of bank and credit union reviews is updated regularly. Our editorial team analyzes and reviews each institution across deposit products such as savings accounts, checking accounts, certificates of deposit (CDs) and money market accounts (MMAs). Banks are rated by important factors such as offered interest rates, fees, minimum balance requirements, access to funds and more.

We assign a score to each type of account and its features, weigh them carefully based on importance to account holders and determine an overall score. Read our full review methodology.

Pentagon Federal Credit Union (PenFed) Review 2024 | Bankrate (2024)

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