PenFed Credit Union Review 2024: A Credit Union Anyone Can Join
Written by
Andrea Norris
Edited by
Emily Gadd
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Quick Take: As a credit union that anyone can join with a robust selection of products, it's not surprising that PenFed is one of the largest federal credit unions in the country. It offers everything from savings products and checking accounts to mortgages, credit cards, and more.
Pentagon Federal Credit Union, also referred to as PenFed, is one of the largest credit unions in the United States. With more than 2.9 million members worldwide, PenFed is one of the few credit unions that opens its membership to everyone.
Pentagon Federal Credit Union offers a wide range of banking products, including:
- Savings accounts
- CDs
- Money market accounts
- Checking, loans
- IRAs and credit cards
It’s included in the Top 100 Banks of 2024 in GOBankingRates’ annual Best Banks rankings.
PenFed Credit Union Features
GOBankingRates gave Pentagon Federal Credit Union a 4.7 overall score for the following notable features.
Savings and CD Rates
PenFed offers four savings accounts: Premium, Regular, Money Market and IRA. Some accounts offer competitive APY rates, like the Premium Online Savings account with a .
PenFed also offers Money Market, IRA and Coverdell Education certificates. Opening a Money Market certificate at PenFed only requires $1,000 and offers a range of terms from 6 months to 7 years. Both its short- and long-term CD rates are high compared to other credit unions. IRA and Coverdell Education certificate rates are only slightly lower than the Money Market certificate rates.
| Term | Money Market CD APY |
|---|---|
| 6 month | 3.00% |
| 12 month | 4.00% |
| 15 month | 4.00% |
| 18 month | 4.00% |
| 2 year | 4.00% |
| 3 year | 3.40% |
| 4 year | 3.20% |
| 5 year | 3.20% |
| 7 year | 3.00% |
Good To Know
PenFed has great CD rates but stiff early withdrawal penalties. Certificates with terms longer than 36 months and that are less than one-year mature get hit with a penalty of 365 days of earned dividends. Certificates that have surpassed one year maturity are penalized 30% of the gross amount of dividends that would have been earned if the certificate had reached maturity.
Checking
PenFed offers two checking options: Free Checking and Access America Checking.
Free Checking
A free checking account can be opened with as little as $25, and it has no minimum balance requirements beyond the initial opening. Account holders have access to a network of more than 85,000 fee-free ATMs. They can also apply for an overdraft line of credit with this account.
Access America Checking
Access America Checking account has a $25 minimum opening deposit, but it also has a $10 monthly fee. The fee is waived for account holders who maintain a minimum daily balance of $500 or have monthly direct deposits of $500 or more. Making $500 or more in monthly direct deposits can also earn the account holder a 0.15% APY on daily balances of less than $20,000 and 0.35% APY on daily balances ranging from $20,000 to $50,000.
Banking Experience
Because PenFed has members worldwide, most members rely on mobile and online banking. With the mobile app, members can deposit checks, check the status of loans, make loan payments, transfer funds and monitor account details.
Online banking provides many of the same features, other than the ability to deposit checks. Account holders also have a network of over 85,000 fee-free ATMs to withdraw cash.
Members can access forms for most banking needs on the PenFed website. Documents can also be uploaded securely from the website.
Those who need to speak with customer service but aren’t near a branch location can have a representative contact them via email or phone. They also have a chatbot on their website that can answer some questions and connect users with a representative if needed.
Overdraft Fees
PenFed doesn’t charge overdraft fees, but it does charge a $30 non-sufficient fund fee anytime an account balance is too low to cover a transaction. However, for those who qualify, PenFed offers a no-fee overdraft line of credit of $300 or more at a 17.99% annual percentage rate.
Other Features
Pentagon Federal offers a number of other services, including:
- Auto loans
- Mortgage and home equity loans
- Personal loans
- Student loans
- Member discounts on various insurance, auto and tax services
It also provides financial education and advice through the Learning Hub on its website.
How PenFed Credit Union Stands Out
PenFed’s strong CD rates make it an ideal option for savers looking to grow their funds. Plus, the low interest rates attached to loans can make PenFed a good choice for those seeking out a large loan. It’s also nice that PenFed doesn’t have any burdensome hoops to jump through. Anyone can join the credit union, which makes the attractive rates accessible to everyone.
Pentagon Federal Credit Union Competitors
Anyone considering joining a credit union should shop around and draw comparisons. Here’s some insight into a few of PenFed’s competitors.
Pentagon Federal Credit Union vs. Alliant Credit Union
Alliant Credit Union membership is limited to those who live or work in an eligible community or are currently or previously employed by an Alliant partner. Those who seek an alternative option may consider becoming a member of the Alliant Credit Union Foundation — all members of this organization are eligible for Alliant membership. It will even pay the one-time $5 membership fee to the foundation on the member’s behalf.
Alliant offers a high-yield 0.25% APY checking account with no overdraft fees. It also pays dividends to account holders who meet the minimum requirements of receiving at least one electronic deposit per month and getting eStatements rather than paper statements.
Pentagon Federal Credit Union vs. Randolph-Brooks Federal Credit Union
While Randolph-Brooks Federal Credit Union does have membership requirements, there are over 4,000 ways to qualify, making this credit union more accessible than some. Like PenFed, RBFCU offers personal lines of credit that can be used for overdrafts, with APRs ranging from 12.95% to 18%.
RBFCU also has better rates on short-term CDs, starting at 4.26% APY for a 6-month term compared to PenFed’s 3.00% APY. But RFCRU’s long-term rate tops out much lower than PenFed’s.
Pentagon Federal Credit Union vs. Navy Federal Credit Union
Navy Federal Credit Union membership is limited to current and retired members of the armed forces, Department of Defense personnel and children of existing members. That means most people don’t qualify for membership.
PenFed has better rates on both short- and long-term CDs, but Navy Federal pays interest and dividends on its checking accounts, including its free and student accounts.
Who PenFed Is Best For
PenFed is best for savers seeking to tap into relatively attractive CD rates to build out a ladder. It’s also a good option for those seeking a free checking account without overdraft fees attached. If you want a credit union that’s easy to join with robust digital tools, PenFed is a worthwhile choice.
Final Take
Pentagon Federal Credit Union is one of the few credit unions that accepts everyone for membership. Its CD rates are higher than other credit unions, but its free checking doesn’t earn interest, which may make competitors more appealing.
Between the mobile app, online banking, the extensive fee-free ATM network and the PenFed website, members don’t need to live anywhere near a physical branch to bank with PenFed efficiently and successfully.
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Rates are subject to change; unless otherwise noted, rates are updated periodically. All other information on accounts is accurate as of July 23, 2024.
Editorial Note: This content is not provided by Pentagon Federal Credit Union or any other financial institutions mentioned. 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 Pentagon Federal Credit Union or any other financial institutions mentioned.
