PenFed CD Rates: June 2025

PenFed offers money market, IRA, and Coverdell certificates with decent rates

Fact checked by Michael Rosenston

If you’re interested in potentially growing your cash savings at a faster rate, the money market certificates from PenFed Credit Union might be worth considering. These share certificates with rates of up to 3.20% are similar to the best certificates of deposit (CDs) available through many traditional and online banks. 

Members can open IRA certificates and Coverdell education savings certificates as well, both of which have the backing of National Credit Union Administration (NCUA) insurance. 

Compare PenFed CD Rates

When you research the rates and features that other credit unions and banks have to offer, you’ll be better prepared to decide if a savings certificate from PenFed Credit Union makes sense for you.

PenFed CDs: Key Features

In addition to PenFed Credit Union’s CD rates, it’s wise to evaluate the other features of its savings certificates. Of course, the potential to earn an attractive annual percentage rate (APY) on your savings matters. Yet there are other details that should influence your decision regarding whether or not to open an account as well. 

PenFed share certificates come with a $1,000 minimum deposit requirement (Coverdell education savings certificates have a $500 minimum). These requirements could be restrictive for some savers, depending on the amount of cash they have available and their savings goals. 

Like traditional CDs, the credit union’s money market certificates, IRA certificates, and education savings certificates all feature early withdrawal penalties. Depending on the terms of your account and how early you redeem your certificates, PenFed’s early withdrawal penalties may be a bit harsh. You could lose between 30% and 100% of your interest earnings if you withdraw the cash from your account before its maturity date arrives.

Pros and Cons of PenFed Credit Union CDs

Pros

• Competitive rates

• Credit union benefits

Cons

• Few branches

• Membership required

Pros Explained

• Competitive rates: Interest rates on PenFed certificates, which are up to 3.20% are higher than many other rates.
• Credit union benefits: Members of credit unions generally enjoy perks of better customer service and better rates than bank customers.

Cons Explained

• Few branches: This federal credit union has a small number of branches (around 50 in total), which could be a drawback for people who prefer in-person banking.
• Membership required: To qualify for PenFed's certificates, you must be a member of the credit union. However, PenFen has an open charter and, therefore, anyone can join. 

About PenFed Credit Union

Pentagon Federal Credit Union, better known as PenFed, was established in 1935. PenFed Credit Union, an open-charter credit union that anyone can join, offers a variety of financial services to its members. With more than 2.9 million members and nearly $35.4 billion in assets, the almost 90-year-old financial institution is the second-largest federal credit union in the United States. 

PenFed is a credit union rather than a bank. So, you must become a member of the financial institution before you can open a money market certificate and enjoy the other benefits of using a credit union. Anyone can join. 

PenFed offers a number of other perks to its members, like competitive rates on its high-yield checking account and online savings account, along with easy options to qualify for monthly maintenance fee waivers. 

Alternatives to PenFed CDs

• High-yield savings accounts: If you’re willing to open an online savings account elsewhere, you may be able to earn higher rates than what PenFed CDs offer. See the best high-yield savings account rates to compare how much you could earn.
• High-yield checking accounts: You may find relatively high rates with some checking accounts. Be aware of their requirements and limits. The best high-interest checking accounts give you easy access to your money.
• Certificates of deposit (CDs): You can also choose from a range of CDs from other financial institutions.
• Money market account: Money market account can also provide a return on your savings. Check the best money market account rates to see how it compares.
• Treasury securities: These government-backed bills, notes, and bonds sometimes offer even higher rates than CDs and may be more liquid.

Frequently Asked Questions (FAQs)

Does PenFed Charge an Early Withdrawal Fee?

If you withdraw cash from a PenFed money market certificate, IRA certificate, or Coverdell education savings certificate before its maturity date, you’ll have to pay an early withdrawal penalty. Depending on your CD’s term and how early you withdraw cash from your account, that penalty could range anywhere from 30% to 100% of your dividend earnings. 

In general, it’s best to only consider depositing your savings in a CD or a share certificate if you’re confident you can leave the money in the account until it reaches maturity. If you think you might need access to your cash on a more frequent basis, a high-yield savings account or a money market account might be a better fit for your financial needs.

How Do You Open a PenFed CD Account?

Before you can open an account with PenFed, you’ll need to become a member of the credit union. You can apply online for membership (a process that involves opening either a Regular Share savings account or a Premium Online Savings account with the credit union). PenFed will perform a soft credit inquiry to confirm your identity when you apply for membership. 

Once you’re a member of the credit union, you can apply to open one of PenFed’s savings certificates—a money market certificate, an IRA certificate, or a Coverdell education savings certificate. You can complete your application for a savings certificate online, over the phone, or in person at a branch. 

Are PenFed CD Rates Guaranteed?

PenFed’s Money Markey Certificates work the same way that CDs work. The cash you deposit in a money market certificate with PenFed features a fixed interest rate. Therefore, the credit union guarantees a fixed return on your savings, provided you leave the deposit in your account for the full term and don’t withdraw any money early.

Are PenFed CDs FDIC-Insured?

All three types of savings certificates that PedFed Credit Union offers feature the security of insurance from the National Credit Union Administration (NCUA). The NCUA is the equivalent of the Federal Deposit Insurance Corporation (FDIC) for credit unions. As a result, you can rest easier knowing the deposits you make with the credit union are federally insured for up to $250,000.

Your Guide to CDs

• What Is a Certificate of Deposit (CD)?
• What Is a Brokered CD?
• What Is a CD Ladder?
• Pros and Cons of CDs
• How to Invest With CDs
• How to Open a CD
• How to Close a CD
• CDs vs. Annuities
• CDs vs. Stocks
• CDs vs. Mutual Funds
• CDs vs. ETFs
• CDs vs. Savings Accounts
• Short-Term vs. Long-Term CDs
• CD Rates News
• Best 1-Year CD Rates
• Best 18-Month CDs
• Best Jumbo CD Rates
• Best 6-Month CD Rates
• Best 3-Month CD Rates
• Best Bank CD Rates

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