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Pentagon Federal Credit Union has around 50 branch locations in the US and on military bases in Guam, Puerto Rico, and Japan.
Pentagon Federal Credit Union; Alyssa Powell/Business Insider
The bottom line: If you prefer a credit union over a bank, Pentagon Federal Credit Union is a good choice. It’s easy to become a member regardless of where you live in the US. You’ll also earn a higher interest rate with Pentagon Federal Credit Union bank accounts than with the average bank account,. However, other online banks may still offer more competitive interest rates.
Overall credit union rating
FeatureInsider rating (out of 5)Savings4.25Checking3.5Money market account3.75CD3.75Trustworthiness 5Total:4
Pros and cons
ProsCons
Higher interest rate on savings accounts and share certificates than other accounts at brick-and-mortar financial institutions
Interest earned on your checking account balance
CD terms longer than five years
Other online banks may offer higher interest rates on savings accounts or CDsInterest compounded monthly, not dailyMust qualify to earn interest on your checking account balanceLow interest on money market accountMonthly fees for the checking account (possible to waive them)
Pentagon Federal Credit Union Premium Online Savings Account
The Pentagon Federal Credit Union Premium Online Savings Account account pays a solid interest rate — but you can find higher rates elsewhere. Pentagon Federal Credit Union only requires Pentagon Federal Credit Union Premium Online Savings Account to open a savings account, and the credit union doesn’t charge monthly fees.
The main downside is that your money will compound monthly, whereas many institutions’ savings accounts compound your interest daily and pay monthly.
Pentagon Federal Credit Union Access America Checking Account
Not all checking accounts pay interest, so it’s nice that you can earn interest with Pentagon Federal Credit Union Access America Checking Account — but you must receive monthly direct deposits of $500 or more to earn it.
Pentagon Federal Credit Union charges a $10 monthly fee, although you can waive the fee if you maintain a $500 daily balance or receive monthly direct deposits of $500 or more. If you’d like to open a checking account that doesn’t charge monthly service fees, the credit union also has a free checking account — but you won’t earn any interest.
Pentagon Federal Credit Union Money Market Certificate
Don’t be thrown off by the term “money market certificate.” A Pentagon Federal Credit Union Money Market Certificate serves basically the same purpose as a CD: You open an account for a set amount of time, lock in a rate, and can either access the money when the term ends or pay a fee to access funds early.
Beware that early withdrawal penalties are high for shorter-term certificates. Pentagon Federal Credit Union charges 365 days interest for an early withdrawal for certificates of 12 months or more. That’s not so bad for a seven-year term, but it’s steep for a one-year term.
Pentagon Federal Credit Union Money Market Savings
The Pentagon Federal Credit Union Money Market Savings account will send you paper checks, but the account doesn’t come with a debit card. You can also find a higher interest rate elsewhere, especially if your balance is under $10,000. All in all, the money market account is a weak link for Pentagon Federal Credit Union.
How Pentagon Federal Credit Union works
Pentagon Federal Credit Union has 68,000 free ATMs nationwide. It has around 50 branch locations in Washington, DC, and the following US states:
CaliforniaFloridaGeorgiaHawaiiMarylandNebraskaNew JerseyNew MexicoNew YorkNorth CarolinaPennsylvaniaTexasVirginia
The credit union also has branches on military bases in Guam, Puerto Rico, and Japan.
You’re eligible if you have served in the military or work at qualifying associations or organizations. But the easiest way to join is to simply open a savings account with a $5 minimum deposit.
To contact customer service with questions, call Monday through Friday, 7 a.m. to 11 p.m. ET. Or call Saturdays from 8 a.m. to 11 p.m. ET, or Sundays from 9 a.m. to 5:30 p.m. ET.
The credit union’s mobile app is rated 4.2 out of 5 stars in the Google Play and Apple stores.
You can also contact customer service via email, snail mail, or fax, but there is no live online chat option.
Your Pentagon Federal Credit Union accounts are federally insured by the NCUA for $250,000, or $500,000 for joint accounts.
Pentagon Federal Credit Union trustworthiness and BBB score
The Better Business Bureau gives Pentagon Federal Credit Union an A+ rating. A good BBB rating signifies a company responds effectively to customer complaints, has honest advertising practices, and is transparent in how it handles business.
The credit union doesn’t have any public scandals.
Pentagon Federal Credit Union vs. Navy Federal Credit Union
Your choice between the two financial institutions may likely come down to two main factors: membership eligibility and branch locations.
At Navy Federal, you must be tied to the armed forces or have a family member who is already a member of the credit union. You can also be a Department of Defense civilian employee, veteran, or extended family member. However, you may have access to more branches. Navy Federal has a branch network with 247 locations around the world, including ones on some military bases.
Meanwhile, Pentagon Federal Credit Union makes it easy for anyone to join — simply donate $5 to a foundation. However, it only has 50 branches in the US and on military bases.
Pentagon Federal Credit Union vs. Alliant Credit Union
Both Alliant Credit Union and Pentagon Federal Credit Union offer an easy way to become a member. Simply donate $5 to a foundation and you’ll be eligible to become a member.
If you need to regularly visit a branch location to manage your account, Pentagon Federal Credit Union will be a better option for you than Alliant. Alliant is an online-only institution so you’ll have to be comfortable with online and mobile banking.
Frequently asked questions
What is Pentagon Federal Credit Union?
Pentagon Federal Credit Union, also known as PenFed, is a financial institution with branches in 13 US states, Guam, Puerto Rico, and Japan. You can also open online accounts from anywhere in the US.
Can anyone use Pentagon Federal Credit Union?
Yes, anyone can use Pentagon Federal Credit Union. Credit unions usually require membership to open an account, and PenFed allows you to become a member if you open a savings account with at least $5.
Is Pentagon Federal Credit Union insured?
Pentagon Federal Credit Union is federally insured by the NCUA. Credit unions that are federally insured keep your money safe regardless of what happens to the financial institution. Individual bank accounts are insured for up to $250,000.
Is Pentagon Federal Credit Union a good credit union?
Pentagon Federal Credit Union is a good option if you want to earn competitive interest rates on savings accounts or certificates.
You’ll want to take note of the early withdrawal penalties for CD terms, though. The penalty may be high depending on which term you choose.
Where can I deposit cash into my Pentagon Federal Credit Union account?
Your options will depend on where you live. Pentagon Federal Credit Union has branches in California, Florida, Georgia, Hawaii, Maryland, Nebraska, New Jersey, New Mexico, New York, North Carolina, Pennsylvania, Texas, Virginia, and Washington, DC. It has branches on military bases in Guam, Puerto Rico, and Japan.
If you don’t live by a nearby branch, Pentagon Federal has over 85,000 fee-free ATMs throughout the US.