CD Rates of 3.00 Percent Offered by PenFed
Finally! After about 5 years I can write about a bank or credit union actually increasing their CD rates by a big margin. Pentagon Federal Credit Union recently increased the rates they pay on several certificate accounts (certificates of deposit). The largest increase in CD rates was on PenFed's 5 year and 7 year accounts.
Until about two days ago, PenFed had 5 year CD and 7 year CD rates of just above 2.00 percent. Now the rates have been increased to 3.00 percent with an APY of 3.04 percent. With the increase in these rates, PenFed has blown away the competition. It will be interesting to see if any other credit unions or banks follow with higher CD rates.
Long term CD rates weren't the only rates that were increased. PenFed also increased 2 year CD rates to 1.40 percent with an APY of 1.41 percent. The prior 2 year CD rate was at 1.25 percent with an APY of 1.26 percent. 3 year CD interest rates were increased to 2.00 percent with an APY of 2.02 percent. 4 year rates were increased to 2.20 percent with an APY of 2.22 percent.
PenFed now has the best CD rates for most CD terms on our rate lists. As with any credit union, to open a PenFed money market certificate (CD account) you have to be a member. There are also membership requirements to open an account. You can find out more by going to penfed.com.
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