At a Glance
Rating Breakdown
Performance Overview
Scores out of 5, based on our editorial analysis
About PenFed Credit Union
PenFed and Navy Federal are frequently compared as military credit unions, but as of 2023 that comparison is misleading. PenFed opened membership to everyone; you no longer need any military connection whatsoever. Anyone can join by making a one-time $5 donation to the National Military Family Association during the application process. This makes PenFed functionally an online bank that happens to be structured as a credit union, which has a specific financial implication: credit unions are exempt from federal corporate income tax. That tax advantage flows directly into member rates, which is why PenFed can offer CD rates that compete with or beat the best online banks and auto loan rates that undercut nearly every commercial lender. The practical difference between PenFed and Navy Federal comes down to priorities. Navy Federal's primary advantage is its lending rates and member service, supported by 350+ branches. PenFed's primary advantage is its deposit rates (especially CDs and money market certificates) and its auto buying program, supported by only about 50 branches concentrated near military installations. If you need a full-service banking relationship with branch access, Navy Federal is stronger. If you want the best possible CD rates from a credit union with the structural tax advantage baked in, PenFed is the better choice. And unlike Navy Federal, anyone can walk through the door.
Key Features
Open Membership for Everyone
The $5 National Military Family Association donation during application is the only requirement. No military service, no federal employment, no family connections needed. PenFed processes this automatically so the joining experience is identical to opening an account at any online bank.
Top-Tier CD and Certificate Rates
PenFed Money Market Certificates (their CD equivalent) frequently offer the highest rates among all credit unions and compete directly with the best online bank CDs. The 5-year certificate is often the single highest rate available at any institution for that term length. The credit union tax advantage is the structural reason they can sustain this.
Auto Buying Program via TrueCar
PenFed's TrueCar integration provides pre-negotiated vehicle pricing that saves $1,000-$3,000 off MSRP. Combined with PenFed's already-low auto loan rates, this creates a compound savings that makes PenFed one of the best end-to-end auto purchase paths available. Most members never bother using this, which is a mistake.
VA Loan Leadership
PenFed is one of the top 5 VA loan originators in the country by volume. Their VA rates are consistently among the lowest available, with minimal lender fees. For eligible veterans, PenFed should be on every VA mortgage rate comparison shortlist alongside Navy Federal and USAA.
How It Works
Join with a $5 Donation
During the online application, PenFed will prompt you to make a $5 donation to the National Military Family Association. This establishes your credit union membership. No further eligibility documentation is needed.
Open a Savings Account
Deposit $5 into a Regular Savings account to establish your membership share. This $5 remains as your ownership stake in the credit union and earns dividends.
Compare Certificate Terms
Review PenFed's Money Market Certificate rates across terms from 6 months to 7 years. Their 5-year certificate is often the single best rate available for that duration.
Explore the Auto Buying Program
If you are purchasing a vehicle, use PenFed's TrueCar integration before visiting a dealership. Get a pre-negotiated price online, then apply for PenFed auto financing to stack savings on both purchase price and interest rate.
What They Do
- Checking Accounts
- Savings Accounts
- Money Market Certificates
- Credit Cards
- Auto Loans
- VA Mortgages
- Personal Loans
- Home Equity
Debt Types They Take On
- Access America Checking
- Premium Online Savings
- Money Market Certificates
- Money Market Savings
- Regular Savings
- IRA Certificates
Fee & Cost Structure
Regulatory & Trust
Review Summary
Notable Case Studies
Stacked Auto Purchase Savings
Member used PenFed's TrueCar program to negotiate $2,400 off MSRP on a $38,000 vehicle, then financed through PenFed at 4.49% APR for 60 months versus the dealer's 6.99% offer.
5-Year Certificate Rate Comparison
Saver compared 5-year CD/certificate rates across 8 institutions including Ally, Marcus, Synchrony, CIT Bank, and Navy Federal. PenFed's 5-year Money Market Certificate offered the highest rate.
Pros & Cons
Pros
- Open to everyone with a simple $5 donation, no military requirement
- Money Market Certificate rates frequently the highest available for long-term CDs
- TrueCar auto buying program saves $1,000-$3,000 off vehicle MSRP
- Credit union tax exemption structurally supports above-market member rates
Cons
- Checking account (Access America) earns no dividends and offers no competitive advantage
- Only about 50 branches, almost all near military installations
- Digital experience and mobile app lag behind Ally, Capital One, and other digital-first competitors
User Reviews (10)
Seriously underrated credit union
People sleep on PenFed because they think it's only for military. Anyone can join. And the rates blow the big banks out of the water on basically everything. Been a member 6 years no complaints.
Good rates but joining is confusing
You have to join some association or be in the military or something? I figured it out eventually but it took like 20 minutes just to become eligible. Once you're in though the rates are really competitive.
good
Good credit union. Would recommend.
Love PenFed
We've been members since my husband was stationed at Bragg. Certificates pay great rates and the auto loans can't be beat. Customer service has always been wonderful to us.
Certificate rates are good, everything else is just ok
I have a couple certificates here that pay well. The checking and savings accounts are nothing to write home about. App works fine. Not much else to say.
Best auto loan rate I found anywhere
Got a rate on my truck that was a full point lower than what my regular bank offered. The process was kind of slow with the membership thing but worth it for the savings.
Customer service went downhill
Used to be great. Now I wait forever on hold and when someone picks up they can't help with anything without transferring me. Had an issue with my mortgage payment getting applied wrong and it took THREE WEEKS to fix. Three weeks!
Website is awful
The online banking looks like it was built in 2005. Constantly logging me out. Bill pay is confusing. Tried to set up a transfer and it just... didn't go through? No error message, no confirmation, just nothing. Called and they said "try again." Cool thanks very helpful.
CD rates keep me here
I ladder my CDs with PenFed and they consistently offer some of the best rates out there. Just rolled one over at a great rate. Not flashy but solid and dependable which is what I want from my savings.
Mortgage was smooth
Refinanced through PenFed and the rate was excellent. Closing costs were reasonable too. Tony in the mortgage department was on top of everything. Would use again.
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Important Banking Disclaimers
- Annual Percentage Yields (APYs) shown are accurate as of the date of publication and are subject to change without notice. APYs may vary by region and account tier. Contact the bank directly for the most current rates.
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