ZingW

• Pros and cons
• Savings Account
• Checking Account
• CDs
• Money Market
• How PenFed works 
• Is PenFed trustworthy?
• FAQs

Our experts choose the best products and services to help make smart decisions with your money (here's how). In some cases, we receive a commission from our partners; however, our opinions are our own. Terms apply to offers listed on this page.

The bottom line: If you prefer a credit union over a bank, Pentagon Federal Credit Union is a good choice. It's one of the best credit unions out there, and it's easy to become a member regardless of where you live in the US.. You'll also earn a higher interest rate with PenFed accounts than with the average bank account. However, other online banks may still offer more competitive interest rates.

• Pentagon Federal Credit Union Access America Checking Account
• Pentagon Federal Credit Union Money Market Savings
• PenFed Credit Union Money Market Certificate
• Pentagon Federal Credit Union Premium Online Savings Account

Overall PenFed credit union rating

Pros and cons

Pentagon Federal Credit Union Premium Online Savings Account

no monthly service fee

3.00%

$5

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Competitive APY
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. $5 opening deposit
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. No monthly service fee

• con icon Two crossed lines that form an 'X'. Compounds interest monthly, not daily
• con icon Two crossed lines that form an 'X'. You may find a slightly higher rate elsewhere

• Many ways to join PenFed, the easiest being to open a savings account with $5
• Branches in US and on military bases in Guam, Puerto Rico, and Japan
• Interest compounded monthly, paid monthly
• Federally insured by the NCUA

The Pentagon Federal Credit Union Premium Online Savings Account account pays a solid interest rate — but you can find higher rates elsewhere. Pentagon Federal Credit Union only requires $5 to open a savings account, and the credit union doesn't charge monthly bank maintenance fees.

The main downside is that your money will compound monthly, whereas many institutions' savings accounts compound your interest daily and pay monthly.

Pentagon Federal Credit Union Access America Checking Account

$10 monthly service fee

0.15% to 0.35%

$25

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Ability to earn interest on your checking balance
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Over 85,000 ATMs

• con icon Two crossed lines that form an 'X'. $25 opening deposit
• con icon Two crossed lines that form an 'X'. $10 monthly service fee
• con icon Two crossed lines that form an 'X'. $1.50 fee for using out-of-network ATM
• con icon Two crossed lines that form an 'X'. Interest is compounded monthly, not daily
• con icon Two crossed lines that form an 'X'. Overdraft protection is a line of credit, not a transfer from your other bank accounts

• Many ways to join PenFed, the easiest being to open a savings account with $5
• Branches in US and on military bases in Guam, Puerto Rico, and Japan
• Federally insured by the NCUA
• Interest is compounded and paid monthly
• Waive $10 monthly fee by maintaining $500 daily balance, or setting up monthly direct deposits of $500
• Earn interest if you receive monthly direct deposits of $500
• Earn 0.15% APY on balances less than 20k, and 0.35% APY on balances with $20k to $50k

Not all checking accounts pay interest, so it's nice that you can earn interest with Pentagon Federal Credit Union Access America Checking Account — but you must receive monthly direct deposits of $500 or more to earn it. 

Pentagon Federal Credit Union charges a $10 monthly service fee, although you can waive the fee if you maintain a $500 daily balance or receive monthly direct deposits of $500 or more. If you'd like to open a checking account that doesn't charge monthly service fees, the credit union also has a free checking account — but you won't earn any interest.

PenFed Credit Union Money Market Certificate

3.00% to 4.80%

$1,000

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Competitive APY
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Terms up to 7 years

• con icon Two crossed lines that form an 'X'. $1,000 opening deposit
• con icon Two crossed lines that form an 'X'. High early withdrawal penalties
• con icon Two crossed lines that form an 'X'. 6-month certificates earn simple interest, not compounded interest

PenFed CDs may be a good option if you want a CD that pays a high interest rate. Other banks and credit unions pay even higher rates right now, but PenFed CDs might be worth it if you have other accounts at PenFed and want to do all of your banking with the same company.

• Many ways to join PenFed, the easiest being to open a savings account with $5
• Branches in US and on military bases in Guam, Puerto Rico, and Japan
• Terms ranging from 6 months to 7 years
• 90 days interest early withdrawal penalty for 6-month CDs
• For longer terms, you'll lose all interest earned if you make an early withdrawal within 1 year of opening the certificate
• If you make an early withdrawal after the 1-year mark, the penalty is 30% of the gross dividends you would have earned if the certificate had matured
• Federally insured by the NCUA

Don't be thrown off by the term "money market certificate." A PenFed Credit Union Money Market Certificate serves basically the same purpose as a CD: You open an account for a set amount of time, lock in a rate, and can either access the money when the term ends or pay a fee to access funds early.

PenFed CD rates are pretty high — just know that it doesn't compound interest on its 6-month term. Depending on how much money is in your CD, this may or may not make a significant difference in how much you earn.

Pentagon Federal Credit Union Money Market Savings

no monthly service fee

0.05% to 0.15%

$25

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. $25 opening deposit
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. No monthly service fees
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Paper checks

• con icon Two crossed lines that form an 'X'. Low APY
• con icon Two crossed lines that form an 'X'. No debit card

• Many ways to join PenFed, the easiest being to open a savings account with $5
• Branches in US and on military bases in Guam, Puerto Rico, and Japan
• Earn 0.05% on balances under $10k; 0.10% on balances between $10k and $99,999; 0.15% on $100k or more
• Federally insured by the NCUA
• Interest is compounded and paid monthly

The Pentagon Federal Credit Union Money Market Savings account will send you paper checks, but the account doesn't come with a debit card. You can also find a higher interest rate elsewhere, especially if your balance is under $10,000. All in all, the money market account is a weak link for Pentagon Federal Credit Union.

How Pentagon Federal Credit Union works 

Pentagon Federal Credit Union has over 85,000 free ATMs nationwide. It has around 50 branch locations in Washington, DC, and the following US states:

• California
• Florida
• Georgia
• Hawaii
• Maryland
• Nebraska
• New Jersey
• New Mexico
• New York
• North Carolina
• Pennsylvania
• Texas
• Virginia

The credit union also has branches on military bases in Guam, Puerto Rico, and Japan.

You're eligible if you have served in the military or work at qualifying associations or organizations. But the easiest way to join is to simply open a savings account with a $5 minimum deposit.

To contact customer service with questions, call Monday through Friday, 7 a.m. to 11 p.m. ET. Or call Saturdays from 8 a.m. to 11 p.m. ET, or Sundays from 9 a.m. to 5:30 p.m. ET.

The credit union's mobile app is rated 2.4 out fo 5 stars in the Apple store and 3.6 out of 5 stars in the Google Play store.

You can also contact customer service via email, snail mail, or fax, but there is no live online chat option.

Your Pentagon Federal Credit Union accounts are federally insured by the NCUA for $250,000, or $500,000 for joint accounts.

Pentagon Federal Credit Union trustworthiness and BBB score

The Better Business Bureau gives Pentagon Federal Credit Union an A+ rating. A good BBB rating signifies a company responds effectively to customer complaints, has honest advertising practices, and is transparent in how it handles business.

The credit union doesn't have any public scandals. 

Pentagon Federal Credit Union vs. Navy Federal Credit Union

Your choice between the two financial institutions may likely come down to two main factors: membership eligibility and branch locations.

At Navy Federal, you must be tied to the armed forces or have a family member who is already a member of the credit union. You can also be a Department of Defense civilian employee, veteran, or extended family member. However, you may have access to more branches. Navy Federal has a branch network with 247 locations around the world, including ones on some military bases. 

Meanwhile, Pentagon Federal Credit Union makes it easy for anyone to join — simply donate $5 to a foundation. However, it only has 50 branches in the US and on military bases. 

Navy Federal Credit Union Review

Pentagon Federal Credit Union  vs. Alliant Credit Union

Both Alliant Credit Union and Pentagon Federal Credit Union offer an easy way to become a member. Simply donate $5 to a foundation and you'll be eligible to become a member.

If you need to regularly visit a branch location to manage your account, Pentagon Federal Credit Union will be a better option for you than Alliant. Alliant is an online-only institution so you'll have to be comfortable with online and mobile banking. 

Alliant Credit Union Review

Frequently asked questions

Pentagon Federal Credit Union, also known as PenFed, is a financial institution with branches in 13 US states, Guam, Puerto Rico, and Japan. You can also open online accounts from anywhere in the US. 

Yes, anyone can use Pentagon Federal Credit Union. Credit unions usually require membership to open an account, and PenFed allows you to become a member if you open a savings account with at least $5. Some products are geared toward military members, though, and it's one of the best military banks out there.

Yes, PenFed Credit Union is a real bank. A credit union is technically different from a bank, but it is just as safe for your money. PenFed is federally insured by the NCUA and has 50 branches in the US and on military bases.

Yes, Pentagon Federal Credit Union is federally insured by the NCUA. Credit unions that are federally insured keep your money safe regardless of what happens to the financial institution. Individual bank accounts are insured for up to $250,000.

Yes, Pentagon Federal Credit Union is one of the best credit unions. It's a good option if you want to earn competitive interest rates on savings accounts or certificates. Note the early withdrawal penalties for CD terms, though.

You can deposit cash into your PenFed account at any branch, or at one of over 85,000 fee-free ATMs in the US. Pentagon Federal Credit Union has branches in California, Florida, Georgia, Hawaii, Maryland, Nebraska, New Jersey, New Mexico, New York, North Carolina, Pennsylvania, Texas, Virginia, and Washington, DC. It has branches on military bases in Guam, Puerto Rico, and Japan.

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