Pentagon Federal Credit Union

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Pentagon Federal Credit Union ("PenFed") is a non-profit credit union that serves 1.2 million members[1] in the Air Force, Army, Coast Guard, Department of Homeland Security, Department of Defense, defense-related companies, and the Veterans of Foreign Wars. It was Federally chartered in 1935. They offer a variety of financial services including checking and savings accounts, certificate of deposit (CDs), mortgages and credit cards.

Membership eligibility

Anyone can join if they are in the United States Military & Uniformed Services, an employee of a qualifying organization, an employee of the United States government, or meet the qualifications listed in How Are You Eligible For PenFed Membership?.

One can also join by paying a $20 membership fee to the National Military Family Association, or $15 to the Voices for America's Troops.

Deposit Anywhere Checking Accounts

Deposit Anywhere, for on-line banking, includes check scanning capabilities. The Deposit Anywhere service can be used in conjunction with a scanner to deposit up to $5,000 per member per day. Members will need to scan the front and back of their check to receive immediate credit without having to mail the check to a PenFed location for processing.[2]


PenFed offers competitive CD rates, which is ideal for holding all or part of an IRA (that you wish to invest in CDs).[3]

IRA early withdrawals

There are no penalties for early withdrawal if you take a partial withdrawal or qualified distribution. However, there are early redemption penalties for non-qualified withdrawals.[4]

Other products


Penfed also offers mortgages. All fixed rate mortgages have a 1% origination fee.[5] In addition to 10-, 15-, 20-, and 30-year fixed rate mortgages, PenFed also has a unique 5/5 ARM product.[6] The 5/5 ARM offers:

  • Adjustable Rate Mortgage with a low rate that only adjusts every 5 years for 30 years
  • Rate would adjust up to 2% or our prevailing rate, whichever is the lowest
  • Maximum lifetime adjustment that will not exceed 5% above the initial rate

Because the rate only adjusts every five years, with a 2% cap, the 5/5 ARM is a good alternative to the more common 5/1 ARM offered elsewhere. PenFed also offers 5/1 and 15/15 ARM.[7]

Rebate credit card

PenFed offers a competitive reward credit card, the PenFed Platinum Rewards Visa Signature® Card,[8] which gives 5% rebate for gas paid at the pump, 3% for supermarket purchases, and 1.00% for everything else. Rebate is automatically credited to statement every month.