PenFed Offers Five Year CD at 3.04% APY
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PenFed Offers Five Year CD at 3.04% APY

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Pentagon Federal Credit Union (PenFed) upped the rate on its 5 and 7 year money market certificates (CDs) to 3.04% APY, the first return to 3% in a long while for the 5 year term.

Pentagon Federal Credit Union upped the rate on its 5 and 7 year CDs (called money market certificates by PenFed) to 3.04% APY, the first return to 3% in a long while for the 5 year term. That is by far the best 5 year CD rate (check table) with CIT Bank offering the next highest rate at 2.05% APY. The 3% rate is also available in a 7 year money market certificate. In general, I have been arguing against longer-term CDs because I believe that rates are on the rise and it doesn't make sense to lock-in for a long term at a lower rate. But 3.04% is pretty attractive and savers looking for a little extra yield may find this worthwhile. The average 5 year CD rate is 1.079% APY and the BestCashCow Savings Booster Calculator shows that moving money into the PenFed 5 year CD will result in an additional $8,255 in savings on $50,000 over a 10 year period.

Try calculating the extra money you would generate putting money into a PenFed CD.

Almost anyone can join PenFed. Membership is open to those serving in the military or veterans as well as those belonging to a qualifying organization. In general, anyone can become a member by joining one of the participating organizations for a nominal fee. Organizations open to all individuals include National Family and Military Association ($20 one-time fee) or Voices for America's Troops ($15 one-time fee). This is a two for one as you can join worthy organizations and also be eligible to become a PenFed member and take advantage of their competitive rates.

Share Certificates can be opened online, via phone or at a PenFed branch

Pentagon Federal Credit Union is the third largest credit union in the United States with over $15 billion in assets. All deposita re NCUA insured up to the limit of $250,000 per individual.

Thanks to Shorebreak for letting us know about this rate increase!

 

Sol Nasisi
Sol Nasisi: Sol Nasisi is the co-founder and a past president of BestCashCow, an online resource for comprehensive bank rate information. In this capacity, he closely followed rate trends for all savings-related and loan products and the impact of rate fluctuations on the economy. He specifically focused on how rates impact consumers' ability to borrow and save. He also has authored a wee

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Today's Highest Online CD Rates

Bank Product Term Interest Rate (APY)
Navy Federal Credit Union 1-Year 0.95% APY with $100,000 minimum
TotalDirect, a division of City National Bank of Florida 1-Year 0.85% APY with $25,000 minimum
Connexus 1-Year 0.81% APY with $5,000 minimum
Navy Federal Credit Union 3-Year 1.10% APY with $100,000 minimum
Brix Direct, a division of Cross River Bank 3-Year 1.01% APY with $50,000 minimum
Connexus 3-Year 1.00% APY with $5,000 minimum
Primary Bank 5-Year 1.30% APY with $1,000 minimum
Navy Federal Credit Union 5-Year 1.25% APY with $100,000 minimum
Gateway First Bank 5-Year 1.15% APY with $25,000 minimum

See More Online CD Rates →

Comments

  • Sol

    February 12, 2014

    The rate has dropped. Five year CD is now paying 2.02% APY. Hopefully some of you got in on the deal while it lasted.

  • Sol

    February 12, 2014

    The rate has dropped. Five year CD is now paying 2.02% APY. Hopefully some of you got in on the deal while it lasted.

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