Pentagon Federal Credit Union review: Easy to become a member, competitive rates on savings and certificates

This post was last reviewed and updated on September 27, 2021.

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.

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Overall bank rating

Feature	Insider rating (out of 5)
Savings	4.25
Checking	3.5
Money market account	3.75
CD	3.75
Trustworthiness	5
Total:	4

Pros and cons

Pros	Cons
Competitive APY on your savings account and certificate Interest earned on your checking account balance CD terms longer than five years	Interest compounded monthly, not daily Must qualify to earn interest on your checking account balance Low APY on money market account Monthly fees for the checking account (possible to waive them)

Savings

PenFed Premium Online Savings

The PenFed Premium Online Savings account pays a competitive APY – you can find slightly higher rates elsewhere, but it’s definitely up there. PenFed only requires $5 to open a savings account, and the credit union doesn’t charge monthly fees.

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

Checking

PenFed Access America Checking

Not all checking accounts pay interest, so it’s nice that you can earn interest with PenFed Access America Checking – but you must receive monthly direct deposits of $500 or more to earn it.

You can definitely find a checking account with lower fees than this one. PenFed charges a $10 monthly fee, although you can waive the fee if you maintain a $500 daily balance or receive monthly direct deposits of $500 or more.

Share certificates (CDs)

PenFed Money Market Certificate

Don’t be thrown off by the term “money market certificate.” A PenFed 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.

Beware that early withdrawal penalties are high for the shorter-term certificates. PenFed charges 365 days interest for an early withdrawal for certificates of 12 months or more. That’s not so bad for a seven-year term, but it’s steep for a one-year term.

Money market

PenFed Money Market Savings

The PenFed 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 APY elsewhere, especially if your balance is under $10,000. All in all, the money market account is a weak link for PenFed.

How Pentagon Federal Credit Union works

PenFed has 68,000 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.

To contact customer service with questions, call Monday through Friday, 7:00 a.m. to 11:00 p.m. ET. Or call Saturdays from 8:00 a.m. to 11:00 p.m. ET, or Sundays from 9:00 a.m. to 5:30 p.m. ET.

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

Your PenFed accounts are federally insured by the NCUA for $250,000, or $500,000 for joint accounts.

Is PenFed trustworthy?

The Better Business Bureau gives Pentagon Federal Credit Union an A+ in trustworthiness. 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. Between the strong BBB rating and clear history, you may feel comfortable banking with PenFed.

How Pentagon Federal Credit Union compares to similar credit unions

We’ve compared PenFed to two other popular credit unions: Navy Federal and Alliant.

Branch locations 13 US states, DC, Guam, Puerto Rico, Japan	Branch locations 30 US states, DC, Guam, overseas	Branch locations Online only
Savings APY 0.60% APY	Savings APY 0.25% to 0.50% APY	Savings APY 0.65% APY
Monthly service fees $0 to $10	Monthly service fees $0 to $10	Monthly service fees $0
Pentagon Federal Credit Union Pentagon Federal Credit Union Premium Online Savings Account	Navy Federal Credit Union Navy Federal Free Active Duty Checking™ Account	Alliant Credit Union Alliant High-Rate Savings Account

Pentagon Federal Credit Union review vs. Navy Federal Credit Union review

Your choice between PenFed and Navy Federal will likely come down to two main factors: membership eligibility and branch locations.

It’s more difficult to join Navy Federal than PenFed; 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.

Maybe you’re eligible to join either credit union and have nearby branches for both institutions. Your decision could come down to which type of account is most important to you.

PenFed pays a higher APY on your savings account balance. However, Navy Federal has more checking account options and pays a higher rate on money market accounts. When it comes to certificates, the higher rate will depend on the term length you’re interested in.

Pentagon Federal Credit Union review vs. Alliant Credit Union review

First things first: If you don’t like banking digitally, and you live near a PenFed branch, you should go with PenFed. Alliant is an online-only credit union with no brick-and-mortar locations.

If you’re comfortable banking online, Alliant is a worthwhile option – we’ve listed it as on of our top picks for online banking.

Otherwise, your choice could come down to which account you prioritize. If you want a money market account, you’ll want to go with PenFed, because Alliant doesn’t offer a money market account. PenFed also pays a higher APY for savings than Alliant. Alliant pays the same rate for all checking account balances. You’ll earn more with Alliant if your balance is under $20,000, but more with PenFed if your balance is over $20,000. The better APY for a certificate will depend on your term length.

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