bank rates

PenFed Is Back With Top 2-, 3-Year CDs

PenFed logoPentagon Federal Credit Union has boosted rates on some of its certificates of deposit by more than a quarter of a percentage point.

The increases are good enough to beat the best nationally available 2- and 3-year offers on our CD Rates Leaderboard.

It pays 1.26% APY for 2-year CDs and 1.51% APY for 3-year CDs. That just edges out — by a hundredth of a percentage point each — the top nationally available bank deals in those terms, both from Salem Five Direct.

The new rates represent significant increases over the 1.00% APY and 1.26% APY, respectively, the Alexandria, Va.-based credit union posted for these maturities last month.

In addition, PenFed has raised its 5-year CD rate to 2.02% APY, a major increase over the 1.56% APY it posted in September.

The 5-year rate is very competitive with iGObanking.com’s 5-year APY of 2.05%, which currently sits atop our Leaderboard for that maturity.

PenFed says the newly posted CD rates are accurate for the period Oct. 1 to Oct. 31, but are “subject to change at any time.”

As we’ve noted in prior PenFed posts, 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 “Help me join another way” option when prompted to answer how you are eligible to become a member.

Members can purchase CDs 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; Tennessee; Texas; and at military bases in Guam, Japan, Portugal, Puerto Rico and Turkey.

Although the new, improved CD rates are hardly earth-shattering, they represent the first time since last winter that PenFed has offered seriously competitive CD yields.

Maybe this is a sign of better things to come from this credit union in future months.

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  1. Kathy at Bankaholic said:
    on November 1st at 05:46 am

    PenFed has raised its 3-year CD rate to 2.02% APY, which it also is paying on 4-, 5- and 7-year CDs.