PenFed Credit Union Review 2023: High-yield savings with credit union comforts

At present, PenFed serves over 2.9 million members worldwide and offers various financial products and services, including share certificates (the credit union equivalent of certificates of deposit), checking accounts, credit cards, personal loans, mortgages, auto loans, student loans, and more. 

PenFed has more than 50 branches nationally and partners with the largest surcharge-free ATM network in the country, Allpoint. Historically, membership was limited to those with ties to the U.S. government or military, but membership is now open to everyone.

All rates and fees are current as of August 15, 2023, and are subject to change. 

PenFed Credit Union offerings 

PenFed offers many deposit accounts to help members meet their financial goals, including multiple checking, savings, and share certificate accounts, as well as a money market account. 

Checking and savings accounts 

PenFed members have a couple of options for checking accounts, including one free checking account option. The credit union also offers one basic savings (share) account, which is required to establish membership.

• Free Checking
  • APY: N/A
  • Minimum opening deposit: None
  • Minimum balance: $0
  • Fees:
    • Monthly fee: None
    • Non-PenFed ATM withdrawal: $1.50
    • Non-PenFed ATM balance inquiry: $1.00
    • International transaction: up to 2% of the transaction amount
    • Check stop-payment: $20
    • Non-sufficient funds: $30
• Access America Checking
  • APY: 0.15% APY on daily balances of less than $20,000, 0.35% APY on daily balances of $20,000 up to $50,000—monthly direct deposits of $500 or more required
  • Minimum opening deposit: None
  • Minimum balance: $0
  • Fees:
    • Monthly fee: $10 (waived with a monthly direct deposit of $500 or more or a daily balance of $500 or more)
    • Non-PenFed ATM withdrawal: $1.50
    • Non-PenFed ATM balance inquiry: $1.00
    • International transaction: up to 2% of the transaction amount
    • Check stop-payment: $20
    • Non-sufficient funds: $30
• Regular Savings
  • APY: 0.05% 
  • Minimum opening deposit: $5
  • Minimum balance: $0
  • Fees:
    • Monthly fee: None

High-yield savings account 

In addition to the savings account option above, PenFed also offers a high-yield savings account to boost members’ earnings.

• Premium Online Savings
  • APY: 3.00%
  • Minimum opening deposit: $5
  • Minimum balance: $0
  • Fees:
    • Monthly fee: None

PenFed Credit Union savings rates compared to current top rates*

Money market accounts 

PenFed also offers one money market account with tiered interest rates.

• Money Market Savings
  • APY:
    • Less than $10,000: 0.05%
    • $10,000 to $99,999: 0.10%
    • More than $100,000: 0.15%
  • Minimum opening deposit: $5
  • Minimum balance: $0
  • Fees:
    • Monthly fee: None

Share certificates

For members who want to earn higher yields by keeping their savings on deposit longer, PenFed offers several share certificates with rates on par with the  best CD rates offered by banks.

Note that withdrawing from a PenFed share certificate  before maturity results in a penalty. All dividends will be forfeited if you redeem the certificate within the first year. After the first year but before the maturity date, the early withdrawal penalty is 30% of what you would have  earned if you held the CD to maturity (not to exceed total dividends earned).

• IRA share certificates
  • APY:
    • 1-year: 4.75%
    • 2-year: 4.50%
    • 3-year: 4.20%
    • 4-year: 3.90%
    • 5-year: 3.90%
    • 7-year: 3.80%
  • Minimum opening deposit: $1,000
• Money market share certificates
  • APY:
    • 6-month: 3.00%
    • 12-month: 4.85%
    • 15-month: 4.90%
    • 18-month: 4.65%
    • 2-year: 4.60%
    • 3-year: 4.30%
    • 4-year: 4.00%
    • 5-year: 4.00%
    • 7-year: 3.90%
  • Minimum opening deposit: $1,000
• Coverdell Education Savings share certificates
  • APY:
    • 1-year: 4.75%
    • 2-year: 4.50%
    • 3-year: 4.20%
    • 4-year: 3.90%
    • 5-year: 3.90%
    • 7-year: 3.80%
  • Minimum opening deposit: $500
  • Maximum yearly deposit: $2,000

Other services PenFed offers 

In addition to many deposit account offerings, PenFed also offers additional products and services, including:

• Credit cards: PenFed offers several Visas with low or no annual fees and competitive rates.
• Auto loans: Members can secure auto financing or refinance an existing loan and purchase protection such as GAP coverage.
• Mortgages: In addition to conventional mortgages, PenFed is also a lender of FHA, VA, and jumbo loans. It also offers refinancing and home equity lines of credit.
• Personal loans: PenFed offers personal loans with terms of up to 60 months.
• Student loans: Students can borrow funds to pay for college and refinance existing student loans.

The PenFed platform and customer support 

Customers  can access a robust online banking platform through PenFed’smobile app, which has a rating of 4.2 stars in the Apple store and 3.9 stars on Google Play.

If you need to contact a PenFed representative, you can call 724-4PENFED or 1-800-247-5626. Representatives are available Monday through Friday from 7:00 am to 11:00 pm ET, Saturday from 8:00 am to 11:00 pm ET, and Sunday from 9:00 am to 5:30 pm ET.

You can also fill out an online form to schedule a call or get support from an online agent. The credit union also offers a chat feature that allows you to get answers to your questions or be connected with a representative if necessary. 

Pros and cons of PenFed Credit Union

If you’re considering becoming a member of PenFed, there are a few pros and cons to consider first.

Frequently asked questions

Can anybody join PenFed Credit Union?

Yes, PenFed’s field of membership is open to anyone in the U.S.

Is PenFed a legitimate credit union?

Yes, PenFed is the second-largest credit union, serving nearly 3 million members worldwide.

Is it hard to get a loan with PenFed?

Loan eligibility is based on many factors, including creditworthiness. You must be a member of PedFed to take out a loan.