A prime army credit score union anybody can be part of

Abstract: Established in 1935, Pentagon Federal Credit score Union (PenFed) has an open-membership constitution and is the second-largest credit score union within the U.S. PenFed stands out for its extensive number of financial institution accounts and mortgage merchandise, its minimal charges on checking and financial savings accounts, and its low deposit necessities.

PenFed was ranked amongst our prime 10 credit score unions of the yr and 5 greatest banks and credit score unions for army.

PenFed presents a 0% curiosity, Free Checking account that has the fundamental options you may get with some other checking account. You solely must deposit $25 or extra to open Free Checking, however there is no minimal stability requirement and no month-to-month charges.

One factor to look out for with their checking accounts, nevertheless, is the overdraft safety phrases. For those who try an overdraft, PenFed will both draw from financial savings (with out charging you a payment) or, for overdrafts over $300, they could give you a line of credit score. However beware, that line of credit score comes with a 17.99% rate of interest.

Learn extra: Overdraft protection vs. overdraft safety: What is the distinction?

PenFed’s Entry America Checking account requires a bit of extra upkeep than the Free Checking choice, but it surely additionally pays 0.35% if you carry a stability between $20,000 and $50,000. To keep away from a $10 month-to-month upkeep payment, you could both preserve a every day stability of $500 or make a $500 direct deposit every month.

You may change into a PenFed member by depositing simply $5 to their Common Financial savings account. However there aren’t many benefits to picking this account over their different financial savings product (Premium On-line Financial savings) for the reason that APY is simply 0.05% and the account lacks stand-out options.

Learn extra: 7 credit score unions anybody can be part of

One other pathway to membership at PenFed is to open their Premium On-line Financial savings account and deposit at the least $5. This account is the higher of the 2 financial savings choices because it pays 2.90% APY on all balances.

• Cash Market Certificates: Just like a standard certificates of deposit, these accounts require a minimal opening deposit of $1,000.

• IRA Certificates: This account mixes the options of a CD and an IRA with sure tax advantages, relying on IRA kind.

• Coverdell Training Certificates: You may open a Coverdell certificates with simply $500 and contribute as a lot as $2,000 a yr. In contrast to different forms of CDs, returns on these certificates should not taxed in the event that they’re used for training functions.

Learn extra: What’s a share certificates?

• Energy Money Rewards Visa Signature Card: This cash-back card earns 1.5%-2% on all purchases with no annual payment.

• Pathfinder Rewards Visa Signature Card: PenFed’s journey rewards card presents as much as 4 factors on purchases and a wide range of journey perks for an annual payment of $95.

• Platinum Rewards Visa Signature Card: Cardholders earn factors on gasoline, groceries, eating places, and extra with this $0 annual payment rewards card.

• Gold Visa Card: PenFed’s stability switch card offers you 0% APR on transfers for 15 months, with a 3% stability switch payment. After the introductory supply ends, APR on the cardboard jumps as much as 17.99%.

• Residence: PenFed presents typical mortgages, VA loans, FHA loans, jumbo loans, refinancing, and HELOCs. Their typical mortgages can be found for credit score scores round 650 or greater with charges beginning at 6.26% APR and origination charges ranging as much as $1,995.

• Auto: Loans can be found for brand new and used automobiles and auto refinancing. New automobile loans vary from $15,000 to $150,000 and charges begin at a low 4.09% APR. PenFed additionally presents a car-buying service, hole insurance coverage, and prolonged warranties.

• Private: Loans as much as $50,000 can be found with no collateral and no origination charges. Charges vary from 8.99% to 17.99%.

• Pupil: PenFed does not straight supply pupil loans, however they are going to submit your pupil mortgage utility to Sparrow, a partnering on-line mortgage market.

If low charges are your precedence, PenFed is a strong choice to contemplate. This credit score union has each checking and financial savings accounts that include $0 month-to-month charges, no matter your deposit quantity. PenFed additionally has no utility payment for auto loans, and members can select from 85,000 fee-free ATMs.

Professionals:

• Anybody can be part of: In contrast to most credit score unions, anybody can be part of PenFed, no matter the place they reside or work. You simply must deposit at the least $5 in a PenFed financial savings account.

• No month-to-month account charges: PenFed has each a checking and a financial savings choice that include no month-to-month upkeep charges.

• Massive ATM community: If you cannot make it to a department, you may nonetheless use certainly one of over 85,000 fee-free ATMs to entry your accounts.

Cons:

• Some overdrafts are topic to 17.99% curiosity: An overdraft of $300 or extra is topic to approval and could be transformed right into a line of credit score with a hefty 17.99% curiosity cost hooked up.

• Larger financial savings and CD charges can be found elsewhere: Though the credit score union presents some high-yield deposit accounts, their charges aren’t as excessive as another banks and credit score unions.

PenFed’s hours of operation are considerably restricted. They’re open and out there for customer support Monday to Saturday, 8:00 a.m. to eight:00 p.m. (ET). This is how one can attain out for assist:

• Member Service: 1-800-247-5626

• Mortgage and residential fairness functions: 1-800-970-7766

• Normal correspondence: Field 1432, Alexandria, VA 22313-2032

For digital banking, members can use Zelle for on-line transfers or obtain PenFed’s iPhone or Android apps, each of that are rated over 4 stars by customers. Nonetheless, a handful of latest critiques say the apps could be very gradual and account notifications are inconsistent.

Learn extra: 10 greatest cellular banking apps of 2025

PenFed Credit score Union has a robust give attention to supporting members of the army. Its PenFed Basis is a nonprofit company that provides grants to service members and helps veteran-owned companies and entrepreneurs.

PenFed additionally donates to organizations that serve army members, resembling Canine Companions and Keen Warriors, and the credit score union actively seeks to rent members of the army.

The simplest approach to change into a PenFed member is to submit a web-based utility for a financial savings account after which deposit $5 to your account. You may also change into a member by making use of for an auto mortgage or mortgage, since PenFed units you up for membership through the utility course of for these loans.

Sure, PenFed is a Nationwide Credit score Union Administration (NCUA) insured credit score union. Your deposits are protected as much as the federal restrict.

The ABA routing quantity for PenFed is 2560-7844-6.

PenFed membership is open to anybody. To hitch, it’s essential to open a financial savings account and deposit at the least $5.

Navy Federal Credit score Union is the biggest credit score union within the U.S., adopted by PenFed.