Pentagon Federal Credit Union has lifted my holiday spirits by boosting CD rates for the second month in a row.
The Alexandria, Va.-based credit union is now offering a hefty 1.50% APY for its 2-year CDs and an even more eye-catching 1.75% APY for its 3-year CDs.
The new rates represent significant increases over its 1.36% 2-year APY and 1.61% 3-year APY during November.
These deals are leaders in their terms on our list of highest CD rates from credit unions and local banks.
PenFed has also raised its 5-year CD rate to 1.80% APY, up from 1.71% in November.
All of these deals require a $1,000 minimum deposit.
The new 2-year rate is two-tenths of a percentage point better, and the 3-year rate is more than one-third of a percentage point better, than the best nationally available bank deals for these maturities, both at NexBank, as shown on our CD Rates Leaderboard.
The 5-year rate equals the best nationally available bank 5-year APY at CIT and Nationwide.
Not all PenFed CD rates have gone up, however.
The credit union has lowered its 1-year rate from 1.26% to 1.00% APY and its 7-year rate from 2.02% to 2.00% APY.
PenFed says all the newly posted APYs are accurate for the period Dec. 1-Dec. 31 but are “subject to change at any time.”
As we’ve noted here 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 (www.penfed.org), choose the “none of the above” option when prompted to answer how you are eligible to join.
Members can purchase certificates of deposit online, over the phone or in person at a Pentagon Federal Credit Union 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.
Do I have any regrets, you ask, about having opened several 3-year CDs in November at the 1.61% rate, now that the rate is 1.75% APY?
Frankly, I’m too busy applying for more PenFed CDs to worry about it.