Pentagon Federal Credit Union
Pentagon Federal Credit Union ("PenFed") is a non-profit credit union that serves 1.2 million members 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.
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.
PenFed offers competitive CD rates, which is ideal for holding all or part of an IRA (that you wish to invest in CDs).
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.
Some forum members have had poor experiences obtaining PenFed mortgages. See: Experience with PenFed refinance
Penfed also offers mortgages. All fixed rate mortgages have a 1% origination fee. In addition to 10-, 15-, 20-, and 30-year fixed rate mortgages, PenFed also has a unique 5/5 ARM product. 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.
Rebate credit card
PenFed offers a competitive reward credit card, the PenFed Platinum Rewards Visa Signature® Card, 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.
- ↑ Pentagon Federal Credit Union, viewed June 23, 2014.
- ↑ Deposit Anywhere
- ↑ Money Market Certificates
- ↑ IRA Certificates
- ↑ Mortgage Overview - All Rates, under the "Fixed" tab.
- ↑ 5/5 Adjustable Rate Mortgage (ARM), viewed June 23, 2014.
- ↑ Mortgage Overview - All Rates
- ↑ PenFed Platinum Rewards Visa Signature® Card