Banking » Reviews » PenFed CD Rates (Money Market Certificated)
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PenFed CD Rates (Money Market Certificated)

PenFed offers CDs (money market certificated) with terms that range from 6 to 84 months. Here are the rates and how much you can earn
Author: Baruch Mann (Silvermann)
Baruch Mann (Silvermann)

Writer, Contributor

Experience

Baruch Silvermann is a financial expert, experienced analyst, and founder of The Smart Investor.  Silvermann has contributed to Yahoo Finance and cited as an authoritative source in financial outlets like Forbes, Business Insider, CNBC Select, CNET, Bankrate, Fox Business, The Street, and more.
Interest Rates Last Update: April 15, 2024
The banking product interest rates, including savings, CDs, and money market, are accurate as of this date.
Author: Baruch Mann (Silvermann)
Baruch Mann (Silvermann)

Writer, Contributor

Experience

Baruch Silvermann is a financial expert, experienced analyst, and founder of The Smart Investor.  Silvermann has contributed to Yahoo Finance and cited as an authoritative source in financial outlets like Forbes, Business Insider, CNBC Select, CNET, Bankrate, Fox Business, The Street, and more.
Interest Rates Last Update: April 15, 2024

The banking product interest rates, including savings, CDs, and money market, are accurate as of this date.

We earn a commission from our partner links on this page. It doesn't affect the integrity of our unbiased, independent editorial staff. Transparency is a core value for us, read our advertiser disclosure and how we make money.

Table Of Content

PenFed Credit Unions offers many different money-saving products, particularly competitive certificate Rates.

Pentagon Federal Credit Union offers many different certificate options, the most popular being their three, five, and seven-year options.

Pen Fed Certificates

penfed personal loan
penfed personal loan

Pen Fed Certificates

APY Range

2.00% – 4.35%

Minimum Deposit

$1,000

Our Rating

4.2
4.2/5

Terms

6 – 84 months

What’s the Difference Between a Certificate and a Certificate of Deposit (CD)?

Both types of accounts operate in the same way, offering a fixed return on investments made for a predetermined period of time.

The difference is that banks refer to the account as a Certificate of Deposit whereas credit unions refer to it as a Certificate (CD).

PenFed Certificates Rates

PenFed offers a great variety of CDs for consumers to choose from.  PenFed Certificates are a type of savings account offered by PenFed Credit Union. They typically offer a higher interest rate than a traditional savings account and require a minimum deposit to open. The depositor agrees to leave the money in the account for a set term, ranging from 6 months to 7 years. PenFed offers some of the highest rates for 5-month CDs.

The interest rate is fixed for the term of the certificate and the depositor can earn a higher rate than traditional savings account. The depositor will not be able to withdraw funds from the account without penalty before the term is up. PenFed credit union membership is required to open a certificate account.

Term
APY
Penalty
6 Months
3.00%
90 days of dividends
12 Months
4.20%
365 days / 30% of dividends
18 Months
4.20%
365 days / 30% of dividends
24 Months
4.20%
365 days / 30% of dividends
36 Months
3.60%
365 days / 30% of dividends
48 Months
3.50%
365 days / 30% of dividends
60 Months
3.50%
365 days / 30% of dividends
84 Months
3.40%
365 days / 30% of dividends

Overall, the rates are pretty high, especially for medium terms. Let's take the 3-year CD as an example. PenFed gives you a 3.60% APY, which is a really good rate when you compare it with other banks offering 3-year CDs.

How Much Can You Earn If You Deposit $100,000 Today?

In case you deposit $100,00 to PenFed certificate, here are the expected earnings (before tax) in case the interest is compounded daily:

Term
APY
Interest Earned
6 Months
3.00%
$1,490
12 Months
4.20%
$4,229
18 Months
4.20%
$6,410
24 Months
4.20%
$8,637
36 Months
3.60%
$11,239
48 Months
3.50%
$14,806
60 Months
3.50%
$18,838
84 Months
3.40%
$26,457

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PenFed Certificates vs PenFed Savings Rates

Since PenFed is a highly competitive financial institution, they also offer savings accounts. Both accounts provide their own distinct advantages and disadvantages.

The savings accounts differ from a CD account at PenFed in a few key instances. First of all, the interest rates are going to be lower. The interest rate currently being offered for a PenFed savings account is 3.00% APY, much lower than what you can get with certificates or even at different savings accounts.

The main reason for the lower interest rates is that people have more money access. With a savings account, individuals may withdraw their money up to six times a month; exceeding this number may result in the account being closed.

About PenFed Bank

PenFed is a Credit Union that was established in 1935 which operates worldwide. At its opening, it was only limited to military and civilian government employees and their family but has since opened a national membership charter, so anyone may join.

The only requirement is that the individual is located in a participating region and deposits at least $5 to establish a savings account. Furthermore, PenFed Credit Union is federally insured by the National Credit Union Administration. On our PenFed review you can read more on PenFed pros and cons.

FAQs

At the present time, PenFed does not offer any no-penalty CDs. 

PenFed does not offer special deals on CDs. However, the interest rates do fluctuate throughout the year, when the interest rates are higher it could be considered a “special offer”.

While a majority of banks and credit unions offer a grace period, PenFed does not have a grace period once the contract reaches the maturity date.

Interest rates for PenFed earn compound interest, which means the interest is added to your principal. Once that money is added to your total, the money will be earning interest as well. Interest rates are fixed for the duration of the contract.

At PenFed, the early withdrawal penalty will not go over the total dividends earned on the certificate. However, the penalty may make an impact on the principal amount if the dividends were already distributed.

How We Rate Certificates of Deposits: Our Methodology

The Smart Investor team has thoroughly examined certificate of deposit (CD) offerings from various banks, considering multiple factors to provide a comprehensive evaluation. Here's how we rated them across four key categories:

  • CD Rates (50%): We meticulously analyzed the interest rates offered by each bank on their certificate of deposit (CD) products. Higher ratings were awarded to banks offering competitive rates that provide maximum returns for customers' investments. Factors such as the yield curve, current market conditions, and consistency of rates were considered to assess the attractiveness of each bank's CD rates.

  • CD Features (30%): This category evaluated the features associated with each bank's certificate of deposit offerings. Factors considered include the variety of terms available, early withdrawal penalties, minimum deposit requirements, and any additional features or benefits. Higher ratings were given to banks offering a diverse range of CD terms, reasonable early withdrawal fees, and flexible options to meet customers' investment needs.

  • Customer Experience (10%): A positive customer experience is paramount, even when investing in CDs. We assessed each bank's performance in this area, considering factors such as the ease of opening a CD account, the responsiveness of customer service, and overall user satisfaction. Higher ratings were assigned to banks with efficient account opening processes, helpful customer support, and a track record of satisfying customers.

  • Bank Reputation (10%): The reputation of a bank is a critical consideration when investing in CDs. We evaluated each bank's reputation based on factors such as financial stability, regulatory compliance, and public perception. Higher ratings were given to banks with a solid reputation for reliability and trustworthiness, ensuring customers' investments are safe and secure.

By considering these categories and assigning appropriate weights to each, our review aims to provide valuable insights to help individuals make informed decisions when investing in certificate of deposits.

Compare CD Rates

Picture of Baruch Mann (Silvermann)

Baruch Mann (Silvermann)

Baruch Silvermann is a financial expert, experienced analyst, and founder of The Smart Investor.  Silvermann has contributed to Yahoo Finance and cited as an authoritative source in financial outlets like Forbes, Business Insider, CNBC Select, CNET, Bankrate, Fox Business, The Street, and more.
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