Banking » Compare Banks » CD Rates Full Comparison: Navy Federal vs. PenFed
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CD Rates Full Comparison: Navy Federal vs. PenFed

PenFed and navy Federal credit unions offer competitive certificate rates. Which one is the winner? Check out our full comparison
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.

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Table Of Content

Two credit unions that offer competitive Certificate rates are Navy Federal Credit Union and Pentagon Federal Credit Union (PenFed). Whether you're a current member of one of these credit unions or looking to join, understanding the details of their CD offerings can help you maximize your savings.

In this article, we'll compare the CD rates, terms, and early withdrawal fees of these two credit unions to help you make an informed decision. 

Here's a general CD comparison:

Navy Federal CDs
PenFed CDs
CD Range
4.85%
2.00% – 4.35%
Minimum Deposit
$1,000
$1,000
Early Withdrawal penalty
90 – 365 days of dividends
90 – 365 days
Terms
3 months – 7 years
6 – 84 months

Navy Federal vs. PenFed CD Rates

The table compares the CD rates offered by Navy Federal Credit Union and Pentagon Federal Credit Union (PenFed) for specific terms.

The data shows that for the 3-month CD term, Navy Federal has a higher APY range than PenFed, while PenFed offers the highest APY for the 6-month term.

For the rest of the terms, there is no significant drawbacks between them.

CD Term
Navy Federal APY
PenFed APY
3 Months
2.75% – 2.80%
N/A
6 Months
0.45% – 0.50%
3.00%
12 Months
4.80% – 4.85%
4.20%
18 Months
4.50% – 4.55%
4.20%
24 Months
4.20% – 4.25%
4.20%
36 Months
4.00% – 4.05%
3.60%
48 Months
N/A
3.50%
60 Months
3.80% – 3.85%
3.50%
84 Months
3.80% – 3.85%
3.40%

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Which Is Better If You Need An Early Withdrawal?

An early withdrawal penalty is a fee imposed by financial institutions when an account holder withdraws funds from a certificate of deposit (CD) account before the maturity date.

If you need to withdraw your CD before maturity, PenFed is a better place to do it  – as you can see in the table below, the dividends you'll need to pay are lower compared to Navy Federal.

CD Term
Navy Federal
PenFed
3 Months
Dividends for 90 days
N/A
6 Months
Dividends for 90 days
Dividends for 90 days
12 Months
Dividends for 90 days
365 days / 30% of dividends
18 Months
Dividends for 180 days
365 days / 30% of dividends
24 Months
Dividends for 180 days
365 days / 30% of dividends
36 Months
Dividends for 180 days
365 days / 30% of dividends
48 Months
N/A
365 days / 30% of dividends
60 Months
Dividends for 365 days
365 days / 30% of dividends
84 Months
Dividends for 365 days
365 days / 30% of dividends

Do Navy Federal And PenFed Offer Alternatives to CDs?

Choosing a savings account as an alternative a CD may be suitable for those who value liquidity and flexibility more than higher interest rates. Despite having lower interest rates, savings accounts allow for easy access to funds without the risk of early withdrawal penalties.

PenFED Savings
Navy Federal Savings
Savings Rate
3.00%
0.25%
Minimum Deposit
$5
$5
Fees
$0
$3 per quarter (waived if your balance over $50)
Promotion
None
None

PenFED offers two savings accounts, Regular and Premium, both with no minimum balance requirements to earn the APY. The Premium Online Savings account offers a competitive rate of 3.00% APY and no monthly fees, and both accounts offer free bill pay services. The Regular savings account provides ATM access but with fees, while Premium Online Savings does not have an ATM card. 

On the other hand, Navu federal savings is not a real alternative to its CDs due to the significant difference between the rates and the low APY  it offers.

The Smart Investor CDs Comparison Methodology

In our comprehensive certificate of deposit (CD) comparison, The Smart Investor team meticulously evaluated various CDs across four key categories to assist you in selecting the most suitable option for your savings goals.

  • CD Rates: We thoroughly examined the interest rates offered by each CD, considering their competitiveness in the market. Higher rates typically translate to greater returns on your investment over the CD's term. Additionally, we scrutinized any special promotional rates or conditions that might affect the overall value of the CD.
  • CD Features: This category focuses on the unique features and terms associated with each CD. We assessed factors such as minimum deposit requirements, early withdrawal penalties, and the availability of flexible terms. Additionally, we considered any additional perks like interest compounding frequency or options for automatic renewal.
  • Customer Experience: A positive customer experience is crucial in banking, and we evaluated each institution's performance in this regard. We looked into aspects such as the ease of opening a CD, the quality of customer service, and the availability of support channels. Reviews from reputable sources such as Trustpilot and JD Power rankings were also considered to gauge overall user satisfaction.
  • Bank Reputation: The reputation of the bank is a significant factor in the decision-making process. We examined the bank's financial stability, regulatory compliance, and public perception to assess its overall trustworthiness and reliability as a CD provider.

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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