PenFed Credit Union Review

Proudly serving over 2.8 million members, PendFed Credit Union’s goal is to continue providing members with the premium quality banking products and services they’ve had since they opened their doors in 1935. Nevertheless, we’d never expect anyone to sign up for a financial institution sight unseen. So, here is an overview of everything you can access by joining PenFed.

What is PenFed Credit Union?

In case you’re unfamiliar, PenFed is America’s second-largest federal credit union. With millions of members worldwide and $36.6 billion in assets as of June 30, 2022, the credit union continues to flourish, thanks to its loyal members. Offering market-leading certificates, checking, credit cards, personal loans, mortgages, auto loans, and student loans, as well as a wide range of other financial services, their goal is to continue to grow to meet the needs of their members from all walks of life.

How Does PenFed Credit Union Work?

PenFed is a credit union. This means they are a member-owned financial institution. Although members must apply, anyone can get accepted. With a minimum deposit of $5, users can begin their journey with the credit union. This makes everyone who joins both PenFed customers and owners! Moreover, the organization uses the money deposited to make loans to other credit union members, making financing more accessible.

Credit Union vs. Banks

If you are new to credit unions, you may wonder about the difference between these financial institutions and banks. Here are some of the most notable differences:

Members Served: Banks mainly serve random customers who live in the area; credit unions may help only members of a particular organization or demographic.
Branches: Banks will almost always have multiple branches to visit in person, while some credit unions are only available online.
CD and Savings Rates: Banks typically have CD and savings rates lower than the national average, while credit unions usually offer rates above that national average.
NCUA Insurance: Credit unions are backed by the U.S. government, while various organizations often endorse banks.
Communal Connections: Credit unions are often far more likely to be connected to the community and give back to their members and multiple companies and organizations in the area.

What Services Does PenFed Credit Union Offer?

If you are wondering about the types of services offered, you’ll be excited to find that they provide a wide range of products such as:

Checking

PenFed offers a free checking account and an Access America checking account. The former offers no monthly fees, no minimum balance, no monthly maintenance fee, and the freedom to never worry about maintaining a minimum balance.

On the other hand, the Access America account offers services for those with higher balances, allowing you to earn up to 5X the national average1 on your funds with direct deposit and easily waive the $10 monthly maintenance fee.

Savings

PenFed also offers several types of savings accounts, such as:

Premium Online Savings: This savings account offers high APY for a great return, a $5 minimum to open, a 2.70% annual percentage yield on all balances, and online servicing.
Money Market Certificates: This savings account offers terms from 6 months to 7 years, a 4.65% Annual Percentage Yield, and 15 Month Terms.
Regular Savings: This savings account offers a 0.05% Annual Percentage Yield on all balances, easy ATM access, a $5 minimum to open, and phone and online banking services.
Money Market Savings: This savings account offers free checks for easy access and a 0.15% Annual Percentage Yield on all balances above $100K.

Certificates

PenFed offers the following types of certificates:

Money Market Certificates: For as little as $1,000, these certificates provide a 6-month to 7-year maturation period and a 4.70% Annual Percentage Yield.
IRA Certificates: For as little as $1,000, these certificates offer a 1-year to 7-year maturation period and a 4.50% Annual Percentage Yield.
Coverdell Education Savings Certificates: For as little as $500, this certificate provides a 1-year to 7-year maturation period and a 4.35% Annual Percentage Yield.

Credit Card

PenFed offers various credit cards with APRs, bonus points, and more. Some of the cards offered are:

Gold Card Visa
Power Cash Rewards Visa Signature® Card
Platinum Rewards Visa Signature® Card
Pathfinder® Rewards Visa Signature® Card

Other PenFed Credit Union Services

PenFed, also offers other services, such as the following:

IRAs

Here are the types of IRAs offered at PenFed:

Traditional: These IRAs offer tax-deductible contributions, no taxes until distribution, and a required minimum distribution beginning at age 73.
Roth: These IRAs offer tax-free distributions and no minimum required distributions.
Simplified Employee Pension (SEP): The ability to deduct yearly contributions, no taxes until distributions, and a required minimum distribution beginning at age 73.

Auto Loans

If you need an auto loan, PenFed allows you to earn a $350 bonus on auto loans when purchased through their Car Buying Service, rates as low as 4.89% APR, and additional cash incentives from select manufacturers.

Mortgage and Home Equity

Need a mortgage? Members can take advantage of Rates starting at 5.625% (APR 5.775%) and various home-buying loans to suit their unique financing needs.

Personal

PenFed offers rates as low as 7.74% APR if you need a personal loan.

Student Loans and Refinancing

If you need help managing or refinancing your student loans, PenFed offers fixed rates starting at 7.74% APR and a quick and easy application process.

What are the Advantages of PenFed Credit Union?

Wondering why you should join PenFed? They offer:

Fewer fees
More financial products and services
An array of online resources
Open membership
24/7 access
Exclusive membership discounts
A financial hardships center
And More

How Does PenFed Credit Union Compare?

As America’s second-largest federal credit union, PenFed Credit Union offers members access to a massive financial suite of tools that regular banks do not.