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PenFed’s New Cash-Back Credit Card Goes Up to 2%

Cash Back Credit Cards, Credit Cards
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The heated competition among cash-back credit cards is extending to credit unions with a new offering from Pentagon Federal Credit Union.

The PenFed Power Cash Rewards Visa Signature® Card offers 1.5% cash back on all purchases, which bumps up to 2% cash back for PenFed members who have a PenFed Access America Checking account or are a current or former member of the military. The $0. Among its other features:

  • A sign-up promotion: Get a $100 Statement Credit when you spend $1,500 in the first 90 days.
  • A low introductory interest rate for transfers: 0% promotional balance transfer rate for 12 Months on transfers made between July 1, 2017 - September 30, 2017., and then the ongoing APR of 9.74% - 17.99% Variable.
  • No foreign transaction fees, a rare feature among cash-back credit cards.

This card isn’t just a standout among credit union credit cards — it’s a standout among credit cards, period. For PenFed members who qualify for the 2% cash-back rewards, these features make the card competitive even with the Citi® Double Cash Card – 18 month BT offer, which has been the reigning champion of the cash-back world since it was released in 2014.

There is one twist: You need to be a member of PenFed to qualify for this card. You can join if you:

  • Serve or have served in the U.S. military or uniformed services.
  • Are an employee of the U.S. government.
  • Are related to or live with someone who is eligible.
  • Belong to an organization that provides eligibility to PenFed. These include the National Military Family Organization or Voices for America’s Troops. You can read more about the card and apply for it here.

Claire Tsosie is a staff writer at NerdWallet, a personal finance website. Email: claire@nerdwallet.com. Twitter: @ideclaire7.