PenFed Credit Union Review: Checking, Savings and Share Certificates
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Many or all of the products on this page are from partners who compensate us when you click to or take an action on their website, but this does not influence our evaluations or ratings. Our opinions are our own.
Overview
Pentagon Federal Credit Union, or PenFed, offers strong rates for online savings and money market certificates. PenFed is easy to join and offers a handy mobile app. Its $30 nonsufficient funds fee, however, isn’t as consumer friendly.
No monthly fees on some savings accounts.
Competitive rate on some money market certificates.
Anyone can become a member.
Large, free, nationwide ATM network.
Early direct deposit.
Expensive nonsufficient funds fee.
Monthly fees (though they are avoidable).
Limited branch access.
Product reviews
Certificates of deposit
PenFed's money market certificates function like share certificates (the term typically used by credit unions). Share certificates are a type of savings account that guarantees its savings rate for a specific time period. In exchange, the customer generally doesn't withdraw their money until the time period ends. (Certificates are similar to certificates of deposit, or CDs, offered by banks.)
PenFed's certificates have average rates. Terms range from six months to seven years.
Full List of Certificate Rates
| Term | APY | Min Deposit |
|---|---|---|
| 6 months | 2.70% | $1,000 |
| 1 year | 3.10% | $1,000 |
| 1 year | 3.00% | $1,000 |
| 15 months | 3.10% | $1,000 |
| 1.5 years | 3.10% | $1,000 |
| 2 years | 3.00% | $1,000 |
| 3 years | 3.00% | $1,000 |
| 3 years | 2.90% | $1,000 |
| 4 years | 2.90% | $1,000 |
| 5 years | 2.90% | $1,000 |
| 5 years | 2.80% | $1,000 |
| 7 years | 2.90% | $1,000 |
| 7 years | 2.80% | $1,000 |
PenFed Credit Union Money Market Certificate
Savings
PenFed offers the Premium Online Savings account with a strong 2.80% annual percentage yield on all balances. The basic savings account offers a much lower APY. Both accounts have no monthly fees and require only $5 to open.
PenFed Credit Union Premium Online Savings
Checking
PenFed’s Free Checking account has no monthly fee. Other than a minimum opening deposit of $25, there are no other requirements for this account. Direct deposits can arrive up to two days early.
PenFed's interest-bearing checking account, which didn’t factor into our rating, has a monthly fee (though it can be waived), and some requirements to get the APY, including a minimum direct deposit, and a hefty minimum balance.
Its massive ATM network includes Allpoint and Co-op machines and is larger than that of many financial institutions.
» Interested in credit? Check out our list of the best PenFed credit cards
PenFed Credit Union Free Checking
Customer experience & overdraft fees
Customer experience
Though the credit union was originally exclusive to military personnel and family, anyone can now apply to join. All that’s required to be a member is a $5 deposit in a savings account.
The credit union's iOS and Android mobile apps get solid ratings from users, and customer phone support is available late into the Eastern time evening hours and on weekends.
PenFed doesn’t participate in shared branches, which some other credit unions offer, but it has more than 40 branches of its own across the country.
Overdraft fees
PenFed’s overdraft policies aren’t easy to find on their site but according to the credit union, it doesn’t charge overdraft fees. Certain transactions, such as debit card purchases or ATM withdrawals, are rejected by the institution and no fee is charged.
Other transactions, such as checks or pre-authorized debits (like a recurring bill payment) would incur a $30 nonsufficient funds fee.
» Understand bank fees: Learn what an overdraft fee is and what a nonsufficient funds fee is
Members who want overdraft transactions to go through can sign up for a line of credit that has a 17.99% percentage rate and no fee (restrictions for who qualifies for this program apply). If you tend to overdraw your account, consider one of the best banks for overdrafts instead.
Rating methodology
How we rate banks and credit unions
Banking writers and editors use an objective methodology to rate banks, credit unions, and other providers, and to recommend the best products.
100+
Financial institutions reviewed
100+
Financial institutions reviewed
We took a close look at around 100 financial institutions and financial service providers, including the largest U.S. banks based on assets, internet search traffic and other factors; the nation’s largest credit unions, based on assets and membership; and other notable players in the industry. We rated them on criteria including annual percentage yields, minimum balances, fees, digital experience and more.
30+
Categories assessed
30+
Categories assessed
Each provider is evaluated across five weighted categories and 30 subcategories, including checking and savings accounts, certificates of deposit, customer experience, and overdraft services. For banks or credit unions without one or more types of accounts, the overall rating is modified to include only applicable categories. Institutions are not penalized if they don't offer every type of account.
60+
Data points analyzed
60+
Data points analyzed
We considered more than 60 data points for each provider. Depending on the category, these included account fees and rates (such as annual percentage yields), ATM and branch access, account features, account bonuses, customer service access and user-facing technology, such as innovative tools and mobile apps. We gathered this information for each financial institution from its website, a media representative or both.
Star rating categories
The review team is made up of seasoned writers and editors who cover personal banking deposit accounts, such as checking, savings and certificates of deposit, as well as related banking services, such as overdraft programs and ATM networks. For providers without one or more types of accounts, the overall rating is modified to include only applicable categories. Institutions are not penalized if they don't offer every type of account.
Financial institutions and providers surveyed are: Affirm, All America Bank, Alliant Credit Union, Ally Bank, Alto, Amalgamated Bank, American Express National Bank, Andrews Federal Credit Union, Associated Bank, Axos Bank, Bank of America, Bank5 Connect, Barclays, Bask Bank, BMO, Boeing Employees Credit Union, Bread Savings®, BrioDirect, Capital One, Cash App, CFG Bank, Charles Schwab Bank, Chase, Chime, CIBC U.S., CIT Bank, Citibank, Citizens Access, Citizens Bank, Climate First Bank, ConnectOne Bank, Connexus Credit Union, Consumers Credit Union, Current, Customers Bank, Discover® Bank, E*TRADE, EverBank, Fifth Third Bank, First Foundation, First Internet Bank, First Tech Federal Credit Union, FNBO Direct, Forbright Bank, FourLeaf Federal Credit Union, GO2bank, Golden 1 Credit Union, Hope Credit Union, HSBC Bank, Huntington Bank, Ivy Bank, KeyBank, Lake Michigan Credit Union, LendingClub Bank, Live Oak Bank, M&T Bank, Marcus by Goldman Sachs, My Banking Direct, NASA Federal Credit Union, Navy Federal Credit Union, NBKC, Newtek Bank, OMB Bank, OnePay, Openbank, PayPal, Peak Bank, Pentagon Federal Credit Union, PNC, Poppy Bank, Popular Direct, Quontic Bank, Regions Bank, Revolut, Salem Five Direct, Sallie Mae Bank, Santander Bank, SchoolsFirst Federal Credit Union, Security Service Federal Credit Union, Securityplus Federal Credit Union, Self-Help Credit Union, Service Credit Union, SoFi, State Employees’ Credit Union of North Carolina, Synchrony Bank, TAB Bank, TD Bank, Truist Bank, U.S. Bank, UFB Direct, Upgrade, USAA Bank, Valley Bank, Varo, Venmo, Vio Bank, Wells Fargo, Western Alliance Bank, Zolve and Zynlo Bank.
NerdWallet does not receive compensation for our star ratings. Read more about our ratings methodologies for banks and credit unions and our editorial guidelines.