PenFed 3 Year CDs at 5% APY

Written by nickel - 7 Comments

I just got an e-mail from Pentagon Federal Credit Union announcing that their 3 year CD pays 5% APY (rate effective June 1- June 29). It’s sort of a strange rate schedule, as their 3, 4, 5 and 7 year CDs now all have the same APY. In a rising rate environment, I’m not sure who would opt for the longer term… Anyway, I can personally vouch for PenFed — we’ve had CDs there for close to 2.5 years and have never had a problem. I have no idea if this is the best deal going, but it beats the heck out of the averages on Bankrate.com. Note that, like all credit unions, you have to meet their criteria for membership. In this case, however, that’s pretty easy to do. Even if you’re not affiliated with the military in any way, you can simply join the National Military Families Association (NMFA). The NMFA requires a $25 annual membership fee, but you don’t have to maintain your membership beyond the first year in order to remain a member of PenFed. And you can sign up for the NMFA over the phone with PenFed when you’re opening your account, which makes it really easy.

Published on June 1st, 2005 - 7 Comments
Filed under: Banking, Saving & Investing
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Comments (scroll down to add your own):

I am a member of PenFed as is the non-profit business I am treasurer of. I looked at their web site but did not see any 5% CD’s. Is that CD no longer available?
Comment by Don Hogeland — Oct 7th 2005 @ 8:08 am
Don, those rates are abot four months old. I just checked and none of their current certificates are anywhere near that. PenFed rates tend to fluctuate up and down pretty, and not necessarily in step with Fed rate changes.

Comment by nickel — Oct 7th 2005 @ 8:57 am
Why don’t you publish your CD rates in the monthly news publication? You used to do this please start again. THANKS, Bob Price
Comment by Bobby H. Price — Dec 16th 2005 @ 1:58 pm
What newsletter is that?
Comment by Blaine Moore — Dec 19th 2005 @ 7:28 am
Yeah, I’m not sure. I’ve never run a newsletter.

Comment by nickel — Dec 19th 2005 @ 7:46 am
Sometimes people think you’re who you write about (tons of people think I’m jim = Jim Cramer and ask for stock advice)…
Comment by jim — Dec 19th 2005 @ 9:07 am
Penfed is currently offering, for IRA’s and CD’s:

7-Year 6.00% APY
5-Year 5.75% APY
3-Year 5.50% APY
Comment by John Howard — Jan 2nd 2006 @ 12:20 am