PenFed Credit Union Review: Checking, Savings and Share Certificates
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- Certificates of deposit
- Savings
- Checking
- Customer experience
- Overdraft fees
Overall institution rating
4.0
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, especially since PenFed can charge it multiple times in one day.
Best for: Those who prefer a credit union and want high interest rates and plenty of access to free ATMs, and who are unlikely to overdraft.
Pros
- 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.
Cons
- Expensive nonsufficient funds fee.
- Monthly fees (though they are avoidable).
- Limited branch access.
Full review
Certificates of deposit
CD
Federally insured by NCUA
4.5
/5 NerdWallet ratingMoney market certificates, PenFed’s version of certificates of deposit, earn competitive APYs, up to 4.90%. They function like standard share certificates, the term used by most credit unions. Terms from six months to seven years are available.
» Want to comparison shop? See our list of this month’s best CD rates
Savings
Savings
Federally insured by NCUA
4.5
/5 NerdWallet ratingPenFed offers the Premium Online Savings account with a strong 3.00% annual percentage yield on all balances. The basic savings account offers a much lower APY as well as the ability to withdraw money at ATMs, which the online account does not. Both accounts have no monthly fees and require only $5 to open.
» Looking for a loan? See our PenFed personal loans review
Checking
Checking
Federally insured by NCUA
4.0
/5 NerdWallet ratingPenFed’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
Customer experience
4.0
NerdWallet ratingThough 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 50 branches of its own across the country.
Overdraft fees
2.5
NerdWallet ratingPenFed’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. What’s more, the NSF fee can be charged multiple times in a day, which can quickly add up.
» 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.
How does PenFed Credit Union compare?
 SoFi Checking and Savings Member FDIC |  CIT Bank Platinum Savings Member FDIC |  Citizens Access Savings Member FDIC |
|---|---|---|
NerdWallet rating 5.0 /5 | NerdWallet rating 4.5 /5 | NerdWallet rating 4.5 /5 |
APY 4.50% With $0 min. balance for APY | APY 5.05% With $5,000 min. balance for APY | APY 4.50% With $0.01 min. balance for APY |
Bonus $250 Earn up to $250 with direct deposit. Terms apply. | Bonus N/A | Bonus N/A |
Learn more at SoFi Bank, N.A. | Learn more at CIT Bank | Learn more at Citizens |
Methodology
NerdWallet’s overall ratings for banks and credit unions are weighted averages of several categories: checking, savings, certificates of deposit or credit union share certificates, banking experience and overdraft fees. Factors we consider, depending on the category, include rates and fees, ATM and branch access, account features and limits, user-facing technology, customer service and innovation. The stars represent ratings from poor (one star) to excellent (five stars). Ratings are rounded to the nearest half-star.
