PenFed Credit Union Review 2021

PenFed Credit score Union Overview 2021

Professionals Defined

  • Excessive-yield checking account with easy-to-waive month-to-month charges – Dividend-bearing checking accounts often have a meager dividend fee. The Entry America Checking account affords a excessive yield and no month-to-month price with a day by day steadiness or month-to-month direct deposit of $500 or extra.
  • On-line financial savings account providing a aggressive dividend fee – The Premium On-line Financial savings account has a aggressive dividend fee with no month-to-month charges. Plus, it solely requires a $5 deposit to open.
  • Low minimal deposit to open checking and financial savings accounts – You possibly can open a checking, financial savings, or cash market account with PenFed for $25 or much less. This makes it simpler for folks as they transition their accounts from their outdated financial institution.

Cons Defined

  • Restricted variety of branches – PenFed has lower than 50 branches throughout the U.S. This can be a drawback for individuals who need the consolation of a bodily department close by.
  • Doesn’t reimburse ATM charges charged by different banks – In case you use one other financial institution’s ATM, PenFed doesn’t cost a price. Nonetheless, PenFed won’t reimburse you for that financial institution’s charges, as a result of it companions with Allpoint, RiteAid, and others to offer fee-free entry to greater than 68,000 ATMs.
  • Stiff penalties for early withdrawal from cash market certificates – Members who must entry their cash earlier than their cash market certificates matures might pay a stiff penalty. For instance, a one-year time period would forfeit all dividends earned if withdrawn earlier than maturity.

Who Is PenFed Credit score Union Finest For?

PenFed Credit score Union is greatest for shoppers who need high-yield accounts with low minimal deposit necessities and low charges. It could be a very good match in the event you:

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  • Desire to financial institution on line
  • Wish to earn a excessive yield in your checking and financial savings accounts and cash market certificates
  • Are searching for a low minimal opening deposit requirement
  • Wish to waive month-to-month charges simply
  • Desire a full-service financial institution that provides many services
  • Need a bank card with no annual price

What Does PenFed Credit score Union Supply?

PenFed Credit score Union affords an array of deposit accounts, loans, and companies to satisfy your wants. As a result of it’s a membership-based credit score union, deposit charges are typically increased than with a conventional financial institution.

Though PenFed was traditionally restricted to folks with ties to the navy and authorities, membership is now open to all residents and everlasting residents of the U.S.

Checking Accounts

PenFed presently affords just one checking account: Entry America Checking. This dividend-bearing checking account has two tiers of annual proportion yields (APYs), relying in your day by day steadiness. For balances above $50,000, no dividends are earned.

There’s a $25 minimal deposit required to open your account. The month-to-month price of $10 is waived with a day by day steadiness of $500 or direct deposits totaling not less than $500 per 30 days.

Members can use greater than 68,000 ATMs with no price. Though PenFed Credit score Union has restricted ATMs that it owns, the credit score union companions with Allpoint, Goal, CVS, Walgreens, and extra, in order that members can use an ATM with out being charged. In case you use one other financial institution’s ATM, PenFed Credit score Union doesn’t cost a price. Nonetheless, it won’t reimburse you for any charges charged by the proprietor of that ATM.

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PENFED CREDIT UNION CHECKING ACCOUNTS
ACCOUNT NAME MINIMUM OPENING DEPOSIT MONTHLY FEE ANNUAL PERCENTAGE YIELD (APY)
Entry America Checking $25 $10 0.15%  $0 to $19,999

0.35%  $20,000 to $50,000

0.00%  $50,001+

(As of March 15, 2021)

Cash Market Financial savings Accounts

The Cash Market Financial savings account earns the next fee of dividends, relying on the quantity deposited. There’s a minimal opening deposit of $25 and no month-to-month service charges. Free checks can be found upon request, so members have quick access to their funds.

PENFED CREDIT UNION MONEY MARKET ACCOUNTS
ACCOUNT NAME MINIMUM OPENING DEPOSIT MONTHLY FEE ANNUAL PERCENTAGE YIELD (APY)
Cash Market Financial savings $25 $0 0.05%  $0 to $9,999

0.10%  $10,000 to $99,999

0.15%  $100,000+

(As of March 15, 2021)

Financial savings Accounts

PenFed Credit score Union has a Common Financial savings account and an online-only choice. The Common Financial savings account will be opened with $5 and has no month-to-month charges with digital statements. In case you select paper statements, there’s a price of $1 per 30 days.

The Premium On-line Financial savings account is a high-yield financial savings account with a aggressive dividend fee (although it’s not as excessive as the perfect charges going) and no month-to-month charges. There’s a $5 minimal to open this account as properly.

PENFED SAVINGS ACCOUNTS
ACCOUNT NAME MINIMUM OPENING DEPOSIT MONTHLY FEE ANNUAL PERCENTAGE YIELD (APY)
Common Financial savings $5 $0 0.05%
Premium On-line Financial savings $5 $0 0.45%
(As of March 30, 2021)

Cash Market Certificates

Credit score unions use the time period “cash market certificates” as a substitute of “certificates of deposit (CDs).” PenFed Credit score Union has cash market certificates starting from six months to seven years. A minimal deposit of $1,000 is required to open an account.

Cash market certificates are additionally out there for particular person retirement accounts (IRAs) and Coverdell training financial savings accounts for faculty. The required minimal deposit for a Coverdell account is decreased to $500.

At maturity cash market certificates will renew robotically until you chose the nonrenewal choice. When this occurs the funds can be robotically deposited into a daily financial savings account.

PENFED MONEY MARKET CERTIFICATE RATES
TERM MONEY MARKET CERTIFICATES APY IRA CERTIFICATES APY COVERDELL EDUCATION SAVINGS CERTIFICATES APY
Six Months 0.25% N/A N/A
One Yr 0.45% 0.40% 0.40%
15 Months 0.45% N/A N/A
18 Months 0.45% N/A N/A
Two Years 0.50% 0.45% 0.45%
Three Years 0.55% 0.50% 0.50%
4 Years 0.60% 0.55% 0.55%
5 Years 0.70% 0.65% 0.65%
Seven Years 0.75% 0.70% 0.70%
(As of March 15, 2021)

In case you withdraw from the cash market certificates previous to maturity, there’s a penalty dependent on the time period chosen. The penalties appear to be stiffer than what different banks cost for a similar time period.

PENFED MONEY MARKET CERTIFICATES EARLY TERMINATION PENALTIES
TERM PENALTY
Six Months or Much less Inside 90 days or much less, the penalty is all dividends earned.

After 90 days, the penalty is 90 days curiosity.

Extra Than Six Months Through the first 12 months, all dividends are forfeited.

After the primary 12 months, the penalty is 30% of what would have been earned if held to maturity, to not exceed dividends earned.

(As of March 15, 2021)

Credit score Playing cards

PenFed has three bank card decisions for its members. All three don’t have any annual price and provide a 12-month 0% steadiness switch promotion for brand spanking new accounts. Members can choose from a low annual proportion fee (APR), money again, or rewards, relying upon their wants.

  • PenFed Gold Visa Card
  • PenFed Platinum Rewards Visa Signature Card
  • PenFed Energy Money Rewards Visa Signature Card

Different Monetary Merchandise Supplied by PenFed Credit score Union

Along with the deposit merchandise listed above, PenFed Credit score Union members even have entry to the next services:

PenFed Credit score Union Buyer Service

Customer support is out there by telephone (1-800-247-5626) Monday by means of Friday from 7 a.m. to 11 p.m. EST. Through the weekends dwell customer support is out there from 8 a.m. to 11 p.m. EST on Saturday and 9 a.m. to five:30 p.m. on Sunday.

PenFed Credit score Union is out there by safe messaging on line and thru its cellular app 24 hours a day. Members can obtain its cellular app for Apple (4.1 stars, 5,300 scores) and Android (4.4 stars, 11,389 scores). 

As a result of it’s a credit score union, its deposits are insured by the Nationwide Credit score Union Affiliation (NCUA) as a substitute of the Federal Deposit Insurance coverage Company (FDIC).

Learn how to Financial institution With PenFed Credit score Union

In case you’d prefer to financial institution with PenFed Credit score Union, changing into a member is straightforward. Now that it has opened its constitution, membership is out there to any American or everlasting resident who needs to open an account.

You possibly can open an account on line or by visiting one of many PenFed Credit score Union branches. The web-only financial savings account can solely be opened on line.


Verdict

Membership with PenFed Credit score Union was restricted to individuals who have shut ties to the navy and the federal authorities. Because it opened its constitution to permit extra folks to affix, its engaging services at the moment are out there to each American. PenFed Credit score Union affords aggressive charges and costs on its checking, on line financial savings, and cash market certificates. It affords a full suite of deposit and lending services which are akin to bigger banks. So long as you don’t want a bodily department close by, you’ll be able to carry out your whole banking wants on line, by means of its app, or on its companion community of ATMs.

Methodology

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  1. Apple.com. “PenFed Cellular.” Accessed July 10, 2020.

  2. Google.com. “PenFed.” Accessed July 10, 2020.