Pentagon Federal Credit Union; Alyssa Powell/Business Insider
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.
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 |
|
|
Savings
The
The main downside is that your money will compound monthly, whereas many institutions’ savings accounts compound your interest daily and pay monthly.
Checking
Not all checking accounts pay interest, so it’s nice that you can earn interest with
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)
Don’t be thrown off by the term “money market certificate.” A
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
The
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.
|
Pentagon Federal Credit Union |
Navy Federal Credit Union |
Alliant Credit Union |
|
Branch locations 13 US states, DC, Guam, Puerto Rico, Japan |
Branch locations 30 US states, DC, Guam, overseas |
Branch locations Online only |
|
Savings APY |
Savings APY 0.25% to 0.50% APY |
Savings APY |
|
Monthly service fees $0 to $10 |
Monthly service fees $0 to $10 |
Monthly service fees $0 |
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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