PenFed Credit Union Review: Full Service And Solid Rates

PenFed Credit Union is one of America’s largest federal credit unions. It offers a full range of products, including checking & savings accounts,  credit cards, mortgages, loans, and more. 

This PenFed review will focus primarily on the credit unionsh deposit products. We’ll let you know who is eligible to become a member, how its savings accounts compare, pros and cons, and more. 

Who Is PenFed?

Pentagon Federal Credit Union, or PenFed for short, is a full-service federal credit union. It was created in 1935 and has nearly three million customers with over $31 billion in assets. PenFed is headquartered in McLean, Virginia. Membership was once restricted to those connected to the military or federal government but it’s now open to the general public. 

PenFed services all 50 states, including the District of Columbia, Guam, Puerto Rico, and Okinawa (Japan). They are federally insured by NCUA and are an Equal Opportunity Lender. In addition to PenFed checking and savings accounts, members can also access home, car, credit card, and student loan products.

See our review of PendFed’s student loan refinancing product.

What Do They Offer?

PenFed offers a wide range of checking and savings accounts, along with a network of 85,000+ ATMs. You can bank online or through their mobile app or visit one of over 50 branches across the U.S. Here’s a closer look at its top deposit accounts. 

Checking Accounts

PenFed Free Checking

Bank 24/7 with PenFed’s Free Checking account. There are no monthly maintenance fees and transactions are unlimited. You can access early direct deposit, and access cash at PenFed’s network of 85,000+ fee-free ATMs. There is a minimum deposit of $25 required to open an account. 

Key Features: 

• Free checking account
• Non-interest bearing
• Unlimited transactions
• Online bill pay
• Early direct deposit  
• Deposit cash at your favorite stores  
• Access to over 85,000 ATMs 
• New account comes with freebox of checks
• $25 minimum opening deposit 

Check out PenFed Free Checking here >>

Access America Checking Account

PenFed’s Access America Checking offers a modest amount of interest on account balances. To qualify, you’ll need to set up a direct deposit of $500 or more. As with the free checking, there is a $25 minimum opening deposit. There is a $10 monthly fee, but it is easily waived if you set up a monthly direct deposit of $500 or more, or maintain a daily balance of at least $500.

Key Features:

• $10 monthly fee (waivable) 
• Unlimited transactions 
• Deposit cash at your favorite stores
• Online bill pay 
• Direct deposit 2 days early 
• Free box of checks with new account
• Overdraft protection available (subject to approval)

You can earn 2% Cash back on all Power Cash Visa® Credit Card purchases, and/or 4X points on all travel plus a $95 annual fee waiver with your Pathfinder Visa® Credit Card, by pairing your checking account and credit cards. 

Premium Online Savings Account

The Premium Online Savings Account pays 2.80% APY on all balances and only requires a $5 deposit. There are no monthly fees. However, there also is no ATM access.

Regular Savings Account

The Regular Savings Account pays only 0.05% APY on all balances. But in exchange for giving up that interest, you gain ATM access. However, if you can get by with transferring money to your checking account before making a withdrawal, the Premium Savings Account is clearly the way to go.

Money Market Certificates

If you’re looking for a little extra interest and are able to lock in your deposit balance for a fixed period, you might want to consider a money market certificate. With a minimum deposit of $1,000, you can choose from the following rates and terms: 

Your money must remain in the certificate until maturity or you’ll pay an early withdrawal penalty. Dividends are compounded daily and paid monthly.

Mobile App

The mobile app for PenFed checking and savings includes all of the features you’d expect from full-service credit unions. You get instant check deposits, bill pay, ability to send money to almost anyone, account management, and the ability to transfer funds between your PenFed accounts.

Are There Any Fees?

PenFed’s Access America Checking Account has a $10 month fee if certain minimums aren’t met. To avoid the fee, you’ll need to keep a minimum balance of $500 or set up a $500 monthly direct deposit.

Here are few additional transaction fees that you could encounter with PenFed:

• Stop payment: $20
• Non-sufficient Funds (NSF): $30
• Out-of-network ATM fee: $1.50
• Foreign transaction fee: 2%

How Does PenFed Compare?

For a full-service credit union, PenFed is hard to beat. It offers the kinds of low fees and solid interest rates that we typically only see from online-only banks.

Plus, if you qualify to become an Honors Advantage member (either through military service or by opening a PenFed checking account), you’ll get 2% cash back on all your PenFed Power Cash Rewards Visa® Card purchases.

But it should be noted that PenFed doesn’t currently pay any cashback on debit card transactions like some other banks do. Here’s a quick look at how PenFed compares to other top banking options.

How Do I Open An Account?

You can open a PenFed account on its website or visit a local branch if you have one near you to apply for membership. If approved, you’ll need to deposit at least $5 to open an account. 
To open an account online, select the Join Now button in the top right corner of the website homepage. From there, follow the instructions to complete the process. You will need to provide your Social Security Number and create a secure online password. Once your account is open, you can link your account at another financial institution to fund your new PenFed account. 

Is My Money Safe?

Yes, money deposited with PenFed is federally insured by the National Credit Union Administration (NCUA). Like FDIC insurance for banks, NCAU insurance protects up to $250,000 of credit union member deposits per account.

How Do I Contact PenFed?

You can get in touch with PenFed’s customer service team by phone or secure message. Their member service numbers are 724-473-6333 or 1-800-247-5626.

Customer service representatives are available at the following times:

• Monday – Saturday: 8:00 AM – 8:00 PM (ET)
• Sunday: Closed

As is fairly common with credit unions, PenFed has been known to provide better customer service than most national full-service banks. It currently has a 3.4/5 rating on Trustpilot with over 1,500 reviews. 

Is It Worth It?

If you’re looking to open a checking or savings account with a full-service credit union, PenFed Credit Union is worth considering. It pays a competitive APY on savings, and you can open a free checking account with access to a large network of fee-free ATMs. If you prefer to bank in-person, just make sure that you live close to a PenFed branch location. If you’re looking for the best possible interest rate on your savings, many online banks, including CIT Bank and Axos Bank, offer higher rates.

 Get started with PenFed Credit Union>>

PenFed Features