bank rates

New Year, New PenFed CD Rates Increase

Pentagon Federal Credit Union logoJust when you thought you’d seen the best it could offer, Pentagon Federal Credit Union topped itself — again.

It’s boosted, for the third month in a row, the rates it pays on selected CD maturities.

The Alexandria, Va.-based credit union has hiked CD rates for:

  • 1-year CDs to 1.25% APY from 1.00% in December.
  • 2-year CDs to 1.60% APY from 1.50%.
  • 3-year CDs to 1.85% APY from 1.75%.
  • 5-year CDs to 1.90% APY from 1.80%.

The minimum deposit is $1,000.

All of these deals pay more than the best nationally available bank yields on our CD Rates Leaderboard.

The 60-month CD pays a tenth of a percentage point better, the 12-month CD pays two-tenths of a percentage point more and the 24-month CD is three-tenths of a percentage point better.

But the best deal is the 36-month CD, which pays nearly a half of a percentage point more than the best nationally available bank deal.

The 2- and 3-year deals are leaders in their terms on our list of highest CD rates from credit unions and banks, as well.

PenFed says all the newly posted APYs are accurate for the period Jan. 1-Jan. 31, but are “subject to change at any time.”

As we’ve noted before, anyone can join this credit union.

Those not already qualifying for membership, by reason of specified military or government service or organizational affiliation, may join by signing up through PenFed’s website for either the National Military Family Association (a one-time $20 fee) or Voices for America’s Troops (a one-time $15 fee).

Under the “Join PenFed” tab on the website (, choose the “none of the above” option when prompted to answer how you are eligible to join.

Members can purchase CDs (PenFed calls them “Money Market Certificates”) online, over the phone or in person at a PenFed branch.

Branches are located in the Washington, D.C., area; Hawaii; New York; North Carolina; Texas; and at military bases in Guam, Japan, Portugal, Puerto Rico and Turkey.

All I can say is that I hope other banks and credit unions take notice and that these new PenFed rates are an indicator of better things to come for downtrodden savers in the coming year.

See how these returns compare with the best CD rates from scores of banks in our extensive database.

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