PenFed CD Rates: What You Need To Know Before You Open One

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As with most credit unions, Pentagon Federal Credit Union members can tap into more attractive rates than they might find at a traditional bank. If you are looking for a place to grow your savings, PenFed’s certificates might be the right fit.

Current PenFed CD Rates: August 2025

PenFed offers certificates with relatively attractive interest rates. The offerings are broken into three different styles. Below is a closer look at PenFed CD rates for each option.

Money Market Certificates

PenFed’s money market certificates are offered in term lengths of six months to seven years. You’ll need to make a minimum deposit of $1,000 to get started. Here’s a breakdown of rates:

Like other CDs, you’ll encounter an early withdrawal penalty if you want access to your funds early.

• 6-month CD: If you withdraw funds from a six-month CD, you’ll lose the most recent 90 days of dividends earned.
• 12-month CD within 365 days of account opening: If you make an early withdrawal from a CD with a term of at least 12 months within 365 days of opening, the penalty is equal to the last 365 days of dividends earned.
• 12-month CD after 365 days of account opening: If you make an early withdrawal from a CD with a term of at least 12 months after 365 days of opening, the penalty is equal to 30% of the gross amount of dividends that would have been earned by the maturity date.

If you opt to have your CD automatically renewed, you won’t have a grace period to withdraw your funds. But you can choose to have the funds from your CD head to your checking account when it matures to avoid accidentally tying up your funds for another CD term.

IRA Certificates

If you want to use certificates as a part of your retirement savings strategy, working with PenFed IRA certificates might be the right choice. You can choose to contribute to a Roth, traditional or SEP IRA to build your retirement savings. Within these accounts, you can select certificates to suit your savings goals. But you’ll need at least $1,000 to get started.

Here’s a breakdown of PenFed’s IRA CD rates:

Coverdell Education Savings Certificates

The final certificate opportunity offered by PenFed is for the credit union’s Coverdell education savings certificates. If you are saving for a child’s education, this could be the low-risk solution you are searching for. You can start saving with just $500.

Here’s a breakdown of the rates available:

These certificates are designed to help you save for educational expenses. But if you need to withdraw funds before the maturity date, you’ll still face an early withdrawal penalty.

Pros and Cons of PenFed CDs

When considering PenFed CDs, the following benefits come into play:

• NCUA insurance: Your funds are protected for up to $250,000 per account holder, per account type.
• Guaranteed returns: When you tuck your funds into a CD, the returns are guaranteed for the term.
• No monthly maintenance fees: You won’t face monthly maintenance fees to grow your funds through these CDs.
• Straightforward online banking: An easy-to-use online banking platform and mobile app make it easy to manage your funds from anywhere.

These are some of the downsides to consider, though:

• Minimum deposit: $1,000 might be steep for some, especially if this is your first account.
• Early withdrawal penalties: If you need the money in a hurry and need to withdraw before the term matures, you’ll have to consider whether it’s worth taking away some of your savings.
• Membership required: You cannot open a CD at PenFed without being a member first. Banks don’t typically require membership the way that credit unions do.
• Lower rates: Rates can be lower compared to competitor credit unions or banks.

How Much Can You Earn With a PenFed CD?

The earnings on a CD at PenFed will depend on:

• Your deposit amount
• The CD’s term length
• The APY

Here’s an estimate of what you can earn with some of PenFed’s CDs:

The GOBankingRates Savings Calculator can also show you how much your savings could earn over time.

How To Open a PenFed CD Account

If you want to open a PenFed CD, the process starts by becoming a member of the credit union. Here’s a look at the process:

1. Join the Credit Union

Since everyone is eligible, joining PenFed isn’t too big of a hurdle. You’ll need to complete the application for membership with the following:

• Name
• Address
• Social Security Number
• A government-issued ID
• $5 opening deposit for the savings account

2. Choose a CD

Once you join the credit union, you must decide which CD you want to open.

3. Open the CD

You must complete an application to open a CD. It shouldn’t take more than a few minutes to finalize.

With the account open, you can fund it to finalize your CD.

PenFed CD Rates vs. Other Banks

As of July 21, 2025, the national average rate on a 12-month CD is 1.63%. In contrast, PenFed’s option offers APY. With that, it’s undeniable that PenFed offers reasonably competitive rates. However, higher rates are available elsewhere.

CDs

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Synchrony Bank CD Account

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GBR RatingGOBankingRates scores and rankings are objectively determined by our research/editorial team. Our scoring formula weighs several factors that differ from category to category depending on what consumers want from varying products and banks. Read our full Editorial Guidelines here.

First Internet Bank CD Account

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Capital One CD Accounts

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Fees

Fees

Fees

Early withdrawal penalty may apply

Early withdrawal penalties may apply

No monthly service fee

APY

APY

APY

Up to

Up to

to

Min Opening

Min Opening

Min Opening

$0

$1,000

$0

For example, Synchrony Bank is offering a APY on 12-month CDs, with no minimum deposit. First Internet Bank is offering a APY on 12-month CDs, with a minimum deposit of $1,000. Here’s a closer look:

Alternatives To PenFed CDs

In addition to CDs, PenFed offers a variety of other savings products. These include:

• Premium Online Savings: PenFed’s high-yield savings account currently offers APY, which provides liquidity without skimping on interest.
• Access America Checking: If you want to keep some funds in your checking account, this interest-bearing account still puts your funds to work at some scale.

If you are looking for the very top CD rates, you might choose to take your funds elsewhere. While PenFed has competitive rates, some other financial institutions offer even better APYs. Plus, you can find CDs with a minimum deposit requirement much lower than PenFed’s $1,000 minimum.

Another reason to skip PenFed is if you are comfortable with your current banking situation. If you aren’t willing to add another financial institution to your roster, you might be able to find equally good rates wherever you currently have a checking account or tackle your other banking needs.

Anyone looking for another option should check out GOBankingRates’ rankings of the Best CD Accounts of 2025 to make sure to lock in the best deal.

Are PenFed CDs Right for You?

Whether or not you are a current PenFed customer, the attractive CD rates make PenFed worth a second look. Unlike some credit unions, it’s very easy to join PenFed because the only membership requirement is tucking $5 into a PenFed savings account.

PenFed CDs are ideal for:

• Those who want to see fixed, guaranteed returns
• Those who have at least $500 to $1,000 minimum deposit ready
• Those who don’t immediate access to their money.

Might not be ideal for:

• Those who need more flexibility or higher yields
• Those who need to withdraw funds early or frequently
• Those who might prefer shorter term CDs.

If you join, you’ll find competitive rates to help you grow your savings. It’s an especially good option for savers who need a CD for less than a two-year term. Beyond the 18-month mark, APYs start to drop.

PenFed offers a wide range of CD options with competitive rates. The opportunity might be the right fit for some savers. But if you don’t like what you see, don’t be afraid to keep looking for the best deal for your situation.

Rates are subject to change; unless otherwise noted, rates are updated periodically. All other information on accounts is accurate as of Aug. 8, 2025.

Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.

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