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Overall PenFed credit union rating

Pros and cons

Pentagon Federal Credit Union Premium Online Savings Account

The Pentagon Federal Credit Union Premium Online Savings Account account pays a solid interest rate — but you can find higher rates elsewhere. Pentagon Federal Credit Union only requires Pentagon Federal Credit Union Premium Online Savings Account to open a savings account, and the credit union doesn’t charge monthly fees.

The main downside is that your money will compound monthly, whereas many institutions’ savings accounts compound your interest daily and pay monthly.

Pentagon Federal Credit Union Access America Checking Account

Not all checking accounts pay interest, so it’s nice that you can earn interest with Pentagon Federal Credit Union Access America Checking Account — but you must receive monthly direct deposits of $500 or more to earn it. 

Pentagon Federal Credit Union charges a Pentagon Federal Credit Union Access America Checking Account – Fees Display, although you can waive the fee if you maintain a $500 daily balance or receive monthly direct deposits of $500 or more. If you’d like to open a checking account that doesn’t charge monthly service fees, the credit union also has a free checking account — but you won’t earn any interest.

Pentagon Federal Credit Union Money Market Certificate

Don’t be thrown off by the term “money market certificate.” A Pentagon Federal Credit Union Money Market Certificate serves basically the same purpose as a CD: You open an account for a set amount of time, lock in a rate, and can either access the money when the term ends or pay a fee to access funds early.

PenFed CD rates are pretty high — just know that it doesn’t compound interest on its 6-month term. Depending on how much money is in your CD, this may or may not make a significant difference in how much you earn.

Pentagon Federal Credit Union Money Market Savings

The Pentagon Federal Credit Union Money Market Savings account will send you paper checks, but the account doesn’t come with a debit card. You can also find a higher interest rate elsewhere, especially if your balance is under $10,000. All in all, the money market account is a weak link for Pentagon Federal Credit Union.

How Pentagon Federal Credit Union works 

Pentagon Federal Credit Union has over 85,000 free ATMs nationwide. It has around 50 branch locations in Washington, DC, and the following US states:

• California
• Florida
• Georgia
• Hawaii
• Maryland
• Nebraska
• New Jersey
• New Mexico
• New York
• North Carolina
• Pennsylvania
• Texas
• Virginia

The credit union also has branches on military bases in Guam, Puerto Rico, and Japan.

You’re eligible if you have served in the military or work at qualifying associations or organizations. But the easiest way to join is to simply open a savings account with a $5 minimum deposit.

To contact customer service with questions, call Monday through Friday, 7 a.m. to 11 p.m. ET. Or call Saturdays from 8 a.m. to 11 p.m. ET, or Sundays from 9 a.m. to 5:30 p.m. ET.

The credit union’s mobile app is rated 4.2 out of 5 stars in the Google Play and Apple stores.

You can also contact customer service via email, snail mail, or fax, but there is no live online chat option.

Your Pentagon Federal Credit Union accounts are federally insured by the NCUA for $250,000, or $500,000 for joint accounts.

Pentagon Federal Credit Union trustworthiness and BBB score

The Better Business Bureau gives Pentagon Federal Credit Union an A+ rating. A good BBB rating signifies a company responds effectively to customer complaints, has honest advertising practices, and is transparent in how it handles business.

The credit union doesn’t have any public scandals. 

Pentagon Federal Credit Union vs. Navy Federal Credit Union

Your choice between the two financial institutions may likely come down to two main factors: membership eligibility and branch locations.

At Navy Federal, you must be tied to the armed forces or have a family member who is already a member of the credit union. You can also be a Department of Defense civilian employee, veteran, or extended family member. However, you may have access to more branches. Navy Federal has a branch network with 247 locations around the world, including ones on some military bases. 

Meanwhile, Pentagon Federal Credit Union makes it easy for anyone to join — simply donate $5 to a foundation. However, it only has 50 branches in the US and on military bases. 

Pentagon Federal Credit Union  vs. Alliant Credit Union

Both Alliant Credit Union and Pentagon Federal Credit Union offer an easy way to become a member. Simply donate $5 to a foundation and you’ll be eligible to become a member.

If you need to regularly visit a branch location to manage your account, Pentagon Federal Credit Union will be a better option for you than Alliant. Alliant is an online-only institution so you’ll have to be comfortable with online and mobile banking. 

See Insider’s list of the best savings accounts »

Frequently asked questions

What is Pentagon Federal Credit Union?

Pentagon Federal Credit Union, also known as PenFed, is a financial institution with branches in 13 US states, Guam, Puerto Rico, and Japan. You can also open online accounts from anywhere in the US. 

Can anyone use Pentagon Federal Credit Union?

Yes, anyone can use Pentagon Federal Credit Union. Credit unions usually require membership to open an account, and PenFed allows you to become a member if you open a savings account with at least $5. 

Is PenFed Credit Union a real bank?

Yes, PenFed Credit Union is a real bank. A credit union is technically different from a bank, but it is just as safe for your money. PenFed is federally insured by the NCUA and has 50 branches in the US and on military bases.

Is Pentagon Federal Credit Union insured?

Yes, Pentagon Federal Credit Union is federally insured by the NCUA. Credit unions that are federally insured keep your money safe regardless of what happens to the financial institution. Individual bank accounts are insured for up to $250,000.

Is Pentagon Federal Credit Union a good credit union?

Yes, Pentagon Federal Credit Union is one of the best credit unions. It’s a good option if you want to earn competitive interest rates on savings accounts or certificates. Note the early withdrawal penalties for CD terms, though.

Where can I deposit cash into my Pentagon Federal Credit Union account?

You can deposit cash into your PenFed account at any branch, or at one of over 85,000 fee-free ATMs in the US. Pentagon Federal Credit Union has branches in California, Florida, Georgia, Hawaii, Maryland, Nebraska, New Jersey, New Mexico, New York, North Carolina, Pennsylvania, Texas, Virginia, and Washington, DC. It has branches on military bases in Guam, Puerto Rico, and Japan.