PenFed Credit Union Certificates Review

PenFed Credit Union Certificates is offered by PenFed Credit Union, a credit union founded in 1935 and based in Tysons, VA. PenFed Credit Union Certificates is available in 50 states (and Washington, DC).

• Small selection of CD account types. PenFed only offers traditional and IRA CDs.
• Very high APY. This account offers an annual percentage yield of up to 1.1%, which is much higher than the national average for a certificate account.
• $1,000 minimum deposit. This is a typical minimum initial deposit for the certificates we track.
• Wide selection of certificate terms. PenFed allows you to create a certificate ladder by spreading your cash across certificates with different terms. This combines the benefits of frequent access to funds and higher rates of return on your savings.

Are certificates from PenFed Credit Union federally insured?

Yes, your PenFed Credit Union accounts are insured up to $250,000 per share owner for each account ownership category. The National Credit Union Administration (NCUA), a federal agency, administers the insurance fund and regulates federally insured credit unions. The fund is backed by the full faith and credit of the U.S. Government.

What types of certificates does PenFed Credit Union offer?

• Traditional certificates. These certificates pay a fixed dividend if you deposit a fixed amount of money for a specific term. Once the maturity date arrives, you have the option of cashing out or rolling over the certificate for another term.
• IRA certificates. An IRA certificate is a type of IRA that consists entirely of certificates. In general, you can invest in certificates in any IRA, but PenFed offers a certificate that is specifically for retirement.

What certificate rates does PenFed Credit Union offer?

PenFed offers an APY starting at 0.55% and ranging up to 1.1%. APY stands for annual percentage yield and shows the dividend paid by the certificate after taking into account compounding.

What is the minimum deposit to open a certificate account with PenFed Credit Union?

PenFed requires a minimum deposit of $1,000 to open an account.

What is the grace period for PenFed?

PenFed does not have a grace period. A grace period is a period of time during which you can withdraw the money in your certificate without paying an early withdrawal penalty. A grace period starts the day after a certificate’s maturity date, or the final day a certificate is opened. Standard certificates renew automatically at the same term if you don't withdraw your money after the grace period. Note that the new rates probably won’t be the same as the original.

What types of fees, such as early withdrawal penalties, does PenFed charge?

Financial institutions don't typically charge many fees on certificates. However, most charge a fee if you choose to withdraw your money before the term ends.

PenFed Credit Union does not charge an early withdrawal fee.