PenFed CD Rates | SmartAsset.com (2024)

Your Details Done

by Lauren Perez Updated
We maintain stricteditorial integrity in our writing and assessments.This post contains links from our advertisers, and we may receive compensation when youclick these links. Any opinions, analyses, reviews or recommendations expressed in thisarticle are those of the author’s alone. | Advertiser Disclosure
We maintain stricteditorial integrity in our writing and assessments.This post contains links from our advertisers, and we may receive compensation when youclick these links. Any opinions, analyses, reviews or recommendations expressed in thisarticle are those of the author’s alone. | Advertiser Disclosure

PenFed CD Rates | SmartAsset.com (1)

PenFed 6-Month Money Market Certificate

3.00% APY

Historically, credit unions offer better interest rates than traditional banks. This remains true with PenFed Credit Union which offers some of the best certificate of deposit rates around. These rates compete well with its bank competitors.

Luckily you’ll have a variety of terms to choose from. Money Market Certificates come as nine different term lengths, from six months to seven years long. Coverdell Education Savings Certificates offer six different terms from one to seven years. These options allow you to find the accounts that work best for your financial situation and savings goals.

To calculate how much interest you could earn with a CD, try using SmartAsset's CD calculator.

PenFed Money Market Certificates

The PenFed Money Market Certificates work as the credit union’s standard CDs. You have a number of term options to choose from, each with a high interest rate. This means you can see immense growth in your savings no matter which term you choose.

PenFed calculates dividends daily and pays them monthly. Whichever you choose, it can be paid by adding it back into the certificate, transferred to another account or sent in check form.

Money Market Certificates Minimum Deposit APY
6 Month $1,000 3.00%
12 Month $1,000 4.00%
15 Month $1,000 4.00%
18 Month $1,000 4.00%
2 Year $1,000 4.00%
3 Year $1,000 3.40%
4 Year $1,000 3.20%
5 Year $1,000 3.20%
7 Year $1,000 3.00%

PenFed Coverdell Education Savings Certificates

Coverdell Education Savings Certificates are meant to help you save for education expenses. This includes elementary, secondary and college costs like books and tuition. With a minimum deposit of $500, it’s easier to get started with these certificates than with a Money Market Certificate. There is also a $2,000 maximum yearly contribution to Coverdell Education Savings Certificates.

A big plus of these accounts is that they generate tax-free earnings. This allows you to really spend all your earnings on future education costs.

Coverdell Education Savings Certificates Minimum Deposit APY
1 Year $500 3.90%
2 Year $500 3.90%
3 Year $500 3.30%
4 Year $500 3.10%
5 Year $500 3.10%
7 Year $500 2.90%

6-Month Money Market Certificate Interest Rate Comparison

' + this.chart.series[0].yData[this.value].toFixed(2) + '%

'; }, useHTML: true, style: { fontSize: '16px', fontWeight: '400', lineHeight: '1.25', color: '#333', whiteSpace: 'normal' }, y: 35 } }, yAxis: { offset: 5, labels: { align: 'right', formatter: function() { return this.value + '%'; } } }, plotOptions: { column: { borderWidth: 0 } }, responsive: { rules: [{ condition: { maxWidth: 368 // note: corresponds to chart container width (not screen width) }, chartOptions: { xAxis: { labels: { style: { fontSize: '14px' } } } } }] } }; // Create comparison bar chart with custom options var interestChart = new smartasset.charts.ComparisonBarChart('interest-rate-chart', 'National Average', '6-Month Money Market Certificate', smartasset.charts.MED_GRAY, smartasset.charts.GREEN, customOptions); interestChart.start(); // Populate data var series = [ { y: (nationalApy === 0) ? 0.25 : nationalApy }, { y: apy } ]; $interestRateChart.highcharts().series[0].setData(series, true); } } createInterestChart(); }());

Overview of PenFed CDs

PenFed is a credit union, which means you need to be a member of the credit union in order to open an account. You can join PenFed based on your employment, volunteerism or military affiliation. You may also be able to join if you know someone who is already a PenFed member. If you qualify, then you can become a PenFed member and start earning at its high rates.

While PenFed does offer two certificate of deposit account types, you may only use a Coverdell Education Savings Certificate to pay for education expenses. Still, you can open multiple Money Market Certificates if big savings is what you’re looking for. To really maximize your savings, open a few accounts at the same time, each with a different maturity date. That way, you can have a certificate payout in six months, 12 months, two years and four years from now, for example. This practice is called a CD ladder. It helps you set up a steady stream of income over the months. Just be careful of overstretching your current funds so you don’t end up with all your money tied up in a certificate and none in your actual checking account.

Once you make your deposit into your certificate account, you won’t be able to make any withdrawals or additional deposits until it reaches maturity. If you really need to access those funds, you can make an early withdrawal although at a cost. To make an early withdrawal from a Money Market Certificate, you’ll need to first make a request in writing. Certificates funded by ACH do not allow for withdrawals within the first 60 days of account opening. For six-month accounts, you’ll have to forfeit all your earnings if the withdrawal is made within 90 days of account opening. After those 90 days, your penalty equals 90 days of interest earned. If you make an early withdrawal within the first year on an account longer than six months, you’ll have to forfeit all the dividends you earned. Any withdrawals after one year assess a penalty of 30% of what would have been earned had you held the certificate to maturity.

Coverdell Education Savings Certificates assess a slightly different early withdrawal penalty. You still must provide your early withdrawal request in writing. If you withdraw within the first year of account opening, you’ll have to forfeit all the dividends you earned. If you make a withdrawal after that first year, the penalty equals 30% of the interest your account would have earned had it been held to maturity.

Your PenFed certificates are NCUA-insured up to legal limits instead of being insured by the FDIC.

Compare PenFed to Other Competitive Offers

How Much You Earn With PenFed Certificate of Deposits Over Time

With just about the highest rates around, PenFed guarantees a big boost in your savings no matter which account you open. If you’re not saving toward education, you’ll open a Money Market Certificate, which means you have to deposit at least $1,000. This does limit potential customers who don’t have at least $1,000 to set aside responsibly. However, higher deposits result in higher final balances since there is more to grow.

To snag the highest PenFed certificate rates, you’ll want to open longer-term accounts. This can earn you hundreds, or even thousands, in savings. However, it also means that you have to wait for the long-term account to mature, which can reach as high as seven years.

Plus, PenFed compounds interest daily. This means your interest grows faster and more efficiently by building on itself every day. So your deposit will earn interest today, all that money will earn interest again tomorrow and so on. This is the fastest way to grow your deposit as opposed to compounding weekly or even monthly.

How PenFed CDs Rates Compare to Other Banks

Another credit union with excellent rates is Navy Federal Credit Union (NFCU), which offers a variety of certificates and rates. The minimum you need to deposit is also $1,000. However, larger deposits (think $100,000) can earn at higher interest rates. The rates we’ve given below correlate to the $1,000 minimum tier. Its rates compete well with PenFed’s, even reaching so high as a 3.80% APY on a 5-year account. Do note that NFCU has its own membership requirements that are more limited to military members and their families.

A close interest rate competitor, although not a credit union, is Marcus by Goldman Sachs. Marcus is an online bank which allows it to offer such high rates. You do need at least $500 to open a Marcus CD, which does open up the account to more customers than a $1,000 minimum.

CD Account PenFed (Money Market Certificates) Navy Federal Credit Union Marcus by Goldman Sachs Chase
6 Month 3.00% - 5.10% 0.01%
1 Year 4.00% 4.80% 5.00% 0.01%
3 Year 3.40% 4.00% 4.15% 0.01%
5 Year 3.20% 3.80% 4.00% 0.01%

Should You Get a PenFed CD Account?

If you qualify for PenFed membership, you should consider opening a certificate account. These accounts have some of the best rates around, even when compared to online banks. You’ll want to take advantage of your membership by using these great rates to really boost your savings. Plus, if you foresee education expenses in your future, the Coverdell Savings Certificates allow you to save toward those costs tax-free.

Save more with these rates that beat the National Average

  • CDs

Unfortunately, we are currently unable to find savings account that fit your criteria. Please change your search criteria and try again.

Searching for accounts...
PenFed CD Rates | SmartAsset.com (2)

As of

Marketing Disclosure

Unfortunately, we are currently unable to find savings account that fit your criteria. Please change your search criteria and try again.

Searching for accounts...
PenFed CD Rates | SmartAsset.com (3)

As of

Marketing Disclosure

'; } // Add in tracking pixels if not suppressed var trackingPixels = ''; if (!smartasset.page.suppressThirdPartyScripts) { for (var trackingPixel in account.trackingPixels) { trackingPixels += 'PenFed CD Rates | SmartAsset.com (4)'; } } // Remove tracking pixels in the "link text" if suppressed if (smartasset.page.suppressThirdPartyScripts) { // Remove all "img" elements linkText = smartasset.analytics.removeTrackingPixels(linkText); } // SA-10931 'sa-table-more-padding' added to Bankrate listings, likely a temporary fix var isBankrate = account.source === 'bankrate'; return '

' }; // Method to track tab clicks and initialize nanoScroller depositRatesBlock.tabClick = function() { var $this = $(this); var tabType = $this.data('tab'); smartasset.analytics.track("deposit-mini-rates-tab-click", { tab: tabType } ); // initialize nanoScroller when tab content is viewed for the first time, allowing table to expand to full height // check data-nano-scroll-init if tab was already initialized var $tabPanel = $this.closest('.tab-container').find('[data-product=' + tabType + ']:not([data-nano-scroll-init])'); // initialize nanoScroller when tabs are switched $tabPanel.find('.nano').nanoScroller(); // set data-nano-scroll-init to true to avoid re-initializing again $tabPanel.attr('data-nano-scroll-init', true); }; // Tracks and redirects user clicks on table listings depositRatesBlock.lenderClick = function(url, source, company, product) { // Savings Endpoint Tracking smartasset.savingsvehicles.miniLenderClick( { url: url, source: source, company: company, product: product } ); }; // this flag ensures we do not trigger the "view-savings-block" event more than once var flag_trigger_view = true; // // The JS "entry point" for the savings rates block // smartasset.hooks.register("onInputsLoaded", function() { // Only need to run the logic for displaying the block has not yet been displayed if (!depositRatesBlock.initialized) { depositRatesBlock.savingsMiniRatesTable = smartasset.tables.initializeRatesTable('savingsMiniRatesTable', undefined, '.savings-rates-table', {isMiniRates: true}); depositRatesBlock.cdMiniRatesTable = smartasset.tables.initializeRatesTable('cdMiniRatesTable', undefined, '.cd-rates-table', {isMiniRates: true}); depositRatesBlock.displayBlock(); } else { depositRatesBlock.updateRatesTable(depositRatesBlock.cachedDataSavings, 'savings'); depositRatesBlock.updateRatesTable(depositRatesBlock.cachedDataCds, 'cd'); } // SA-5618 -- send "view-savings-block" event if (flag_trigger_view) { // send event smartasset.analytics.track("view-savings-block"); // set flag to false to prevent sending multiple view events for the same widget-load flag_trigger_view = false; } }); // On CD Rates Pages makes CD tab the default when the page loads $(document).ready(function () { if(depositRatesBlock.smartReviews.productType === 'CD'){ $(".deposit_rates-block .tab-container").easytabs({ defaultTab: "[data-tab='cd']", updateHash: false, animate: false }); } });

PenFed CD Rates | SmartAsset.com (2024)

FAQs

PenFed CD Rates | SmartAsset.com? ›

One local credit union has a CD paying 6% APY. To open a 6% APY CD, you may need to meet certain eligibility requirements. There are also banks and credit unions with CDs paying over 5% APY, which are available nationwide.

What are the current CD rates at PenFed? ›

PenFed Credit Union Certificate (CD) Rates: July 2024
Certificate TermAPYMinimum Deposit
15 Months4.00%$1,000
18 Months4.00%$1,000
24 Months4.00%$1,000
36 Months3.40%$1,000
5 more rows
Jun 3, 2024

What is the best CD rate for $100,000 today? ›

Compare the Best Jumbo CD Rates
InstitutionRate (APY)Minimum Deposit
Connexus Credit Union5.25%$100,000
CD Bank5.20%$100,000
State Department Federal Credit Union5.20%$100,000
Finworth5.20%$50,000
11 more rows

Can you get 6% on a CD? ›

One local credit union has a CD paying 6% APY. To open a 6% APY CD, you may need to meet certain eligibility requirements. There are also banks and credit unions with CDs paying over 5% APY, which are available nationwide.

Where can I earn 5% on a CD? ›

Highest current CD rates (overall)
Institution nameAPYTerm length
CFG Bank5.00%18 months
LendingClub Bank5.00%18 months
My eBanc5.00%18 months
Newtek Bank5.00%18 months
31 more rows

Which federal credit union has the highest CD rates? ›

Compare the Best CD Rates
InstitutionRate (APY)Minimum Deposit
Vibrant Credit Union5.50%$5
Greenwood Credit Union5.50%$1,000
INOVA Federal Credit Union5.40%$200
USAlliance Financial5.40%$500
15 more rows

Who is paying the highest interest rate on CDs? ›

The highest certificates of deposit (CDs) rates today are offered by Merchants Bank of Indiana (5.92%), First Federal of Lakewood (5.61%), Maries County Bank (5.51%) and Shoreham Bank (5.50%). You can see the full list of the highest-paying CDs here.

Are there any 7% CDs? ›

While there aren't any financial institutions paying 7% on a CD right now, there are other banks and credit unions that pay high CD rates. Compare today's top CD and savings rates.

Where can I get 7% interest on my money? ›

As of July 2024, no banks are offering 7% interest rates on savings accounts. Two credit unions have high-interest checking accounts: Landmark Credit Union Premium Checking with 7.50% APY and OnPath Credit Union High Yield Checking with 7.00% APY.

Can you negotiate CD rates with your bank? ›

Yes, you may be able to negotiate rates on jumbo CDs depending on how much you deposit, the term and the financial institution offering the CD. It doesn't hurt to attempt to negotiate a better interest rate for your jumbo CD. The more money you plan to deposit, the better your chances of getting a better rate.

Should I lock in a CD now or wait? ›

How CDs work. Unlike traditional or high-yield savings accounts, which have variable APYs, most CDs lock your money into a fixed interest rate the day you open the account. That's why if you suspect that interest rates will soon drop, it can be a good idea to put money in a CD to preserve the high APY you would earn.

How high will CD rates go in 2024? ›

Key takeaways. The national average rate for one-year CD rates will be at 1.15 percent APY by the end of 2024, McBride forecasts, while predicting top-yielding one-year CDs to pay a significantly higher rate of 4.25 percent APY at that time.

Who has the highest 12 month CD rate today? ›

Best 1-Year CD Rates
  • Nuvision Credit Union – 6.00% APY*
  • USAlliance Financial – 5.40% APY.
  • NexBank – 5.40% APY.
  • TotalDirectBank – 5.35% APY.
  • Abound Credit Union – 5.30% APY.
  • Northpointe Bank – 5.30% APY.
  • Prime Alliance Bank – 5.30% APY.
  • CFG Bank – 5.30% APY.

What is the current CD rate at Citibank? ›

Citibank CD Rates vs. Other Top Banks
CD Term LengthCitibank CD APY*Discover CD APY*
1-year CD2.00% for balances below $100,000 3.00% for balances of $100,000 or more (fixed-rate CD) 0.05% (no-penalty CD)4.70%
2-year CD2.00%4.00%
3-year CD2.00%3.75%
5-year CD2.00%3.75%
2 more rows
Jun 25, 2024

What is the highest CD rate at Capital One? ›

The annual percentage yield (APY) on a Capital One 360 CD ranges from 3.90% to 5.00% and varies by term length. The rate is fixed, unlike with a traditional savings account. This allows you to lock in a rate and determine how much interest you'll earn over the term.

Which brokerage has the best CD rates? ›

Summary of best CD rates

LendingClub: 5.20% APY for 10-month CD. NASA Federal Credit Union: 5.15% APY for 15-month certificate. Synchrony Bank: 5.15% APY for 13-month CD. Sallie Mae Bank: 5.15% APY for 1-year CD.

Where are the highest CD rates now? ›

Here are Bankrate's top picks for banks with the best CD rates.
  • Barclays Bank — 6 months - 5 years, 3.50% – 5.00% APY, no minimum deposit.
  • Capital One — 6 months - 5 years, 3.90% – 5.00% APY, no minimum deposit.
  • Citizens Access — 1 year - 5 years, 3.35% – 5.00% APY, $5,000 minimum deposit.

What are the interest rates at PenFed? ›

Current Rates
AccountsAnnual Percentage YieldDividend Rate
$1,000 minimum balance to open
Six Month3.00%2.99%
1 Year4.00%3.93%
15 Month4.00%3.93%
37 more rows

Are PenFed CDs compounded daily? ›

Once purchased, the rate is locked in for the term of your certificate. Certificate dividends are compounded daily and credited monthly.

Who is offering 5 CD rates? ›

Best CD rates of August 2024
  • Alliant Credit Union: Earn up to 5.20% APY.
  • Ally Bank®: Earn up to 4.50% APY.
  • Barclays®: Earn up to 5.00% APY.
  • BMO Alto: Earn up to 5.15% APY.
  • Bread Savings™ (formerly Comenity Direct): Earn up to 5.25% APY.
  • LendingClub: Earn up to 5.15% APY.
  • Marcus by Goldman Sachs®: Earn up to 5.10% APY.

Top Articles
Latest Posts
Recommended Articles
Article information

Author: Sen. Emmett Berge

Last Updated:

Views: 5545

Rating: 5 / 5 (80 voted)

Reviews: 95% of readers found this page helpful

Author information

Name: Sen. Emmett Berge

Birthday: 1993-06-17

Address: 787 Elvis Divide, Port Brice, OH 24507-6802

Phone: +9779049645255

Job: Senior Healthcare Specialist

Hobby: Cycling, Model building, Kitesurfing, Origami, Lapidary, Dance, Basketball

Introduction: My name is Sen. Emmett Berge, I am a funny, vast, charming, courageous, enthusiastic, jolly, famous person who loves writing and wants to share my knowledge and understanding with you.