PenFed CD Rates: All You Need To Know About Increase Rates

PenFed CD Rates: The Pentagon Federal Credit Union, or PenFed, is a national credit union that provides a variety of banking services, including certificates of deposit. The certificates issued by PenFed are referred to as Money Market Certificates, which are essentially CDs.

Despite the fact that PenFed was originally restricted to customers with military affiliations, that restriction no longer applies. Now, regardless of military status, anyone can become a member by establishing a savings account and depositing $5. After opening the savings account, you are free to open additional accounts, such as CDs.

Best CD Rates of August 2023: Top CD-Issuers, Methodology, other details

PenFed CD Interest Rates

CD rates at PenFed range between 3.00% and 4.90% APY (Annual Percentage Yield). There are nine terms available, ranging from six months to seven years.

PenFed’s CD rates are significantly higher than the national average. However, PenFed’s rates are not quite on par with the highest CD rates available at this time.

Here is a comprehensive list of PenFed CD rates:

• 6 months: 3.00%
• 1 year: 4.60%
• 15 months: 4.90%
• 18 months: 4.70%
• 2 years: 4.45%
• 3 years: 4.30%
• 4 years: 4.00%
• 5 years: 4.00%
• 7 years: 3.90%

Comparing PenFed CD Rates

Navy Federal CDs vs. PenFed CDs

Navy Federal CD rates range from 0.45% to 4.95% APY on standard CDs, so the optimal choice between Navy Federal and PenFed could come down to which term you want. You can choose a term between three months and seven years with Navy Federal, and rates are tiered based on the quantity of your deposit.

Navy Federal pays an even higher rate on the Navy Federal Credit Union EasyStartSM Certificate, ranging from 0.40 percent to 5.30 percent APY. A $50 deposit is required for an EasyStart Certificate, significantly less than the $1,000 required for PenFed CDs.

Navy Federal membership is more difficult than PenFed membership. To join Navy Federal or access its CDs, you must be a member of the active or retired military, a veteran, a Department of Defence employee, or an immediate family member of a military service member.

PenFed Compact Discs vs USAA Compact Discs

Again, the higher CD rate between these two financial institutions is dependent on the term selected. Currently, USAA pays between 0.01% and 5.00% APY on CDs. USAA provides more term options than PenFed, including 30-day terms.

The disadvantage of USAA is that membership is exclusive. You must be a member of the United States military, a veteran, a noncommissioned officer, or the spouse or child of an existing USAA member.