Pentagon Federal Credit Union Update

For years now I’ve been extolling the virtues of Pentagon Federal Credit Union, primarily for it’s Platinum Cash Rewards VISA.  Although many of the benefits of the card have eroded over the years, the key components of this card have been a constant.

The first is the 5% cash back you get at any gas station where you pay at pump.  As the price of gas has risen through the years, so too has the benefit.  In 2012 we spent $1681.61 on gasoline.  5% equates to $84 saved.  That’s the equivalent of 2 free fill ups per year.  I’ll take it.

The second component is automatic reward redemption in the form of an adjustment to your bill.  No quarterly enrollments to forget.  No points expiration.  Nothing.  It’s AUTOMATIC.

If you want to read a more complete review, that’s here.  If you just want to go get the card, click below.

PenFed Visa® Platinum Cash Rewards Card

But this post really isn’t about the credit card, it’s about the awesome CD rates that you can get at Pentagon Federal Credit Union.  Many do not know that years ago Pentagon Federal Credit Union was known as one of the best places to get CD’s.  They had bonus rates during the holiday that were incredible.  Unfortunately those offers have long ago gone the way of the buffalo along with all the other good interest rates.  But, for today’s new economy Pentagon Federal Credit Union has returned to top of my list as a good place to build your CD ladder.

Check out these rates (as of Jan. 2)!

  • 2.00% APY 7-year
  • 1.90% APY 5-year
  • 1.85% APY 4-year
  • 1.85% APY 3-year
  • 1.60% APY 2-year
  • 1.25% APY 1-year

The sweet spot to me is at 2 years.  Personally, I would be concerned about rising interest rate risk with any CD beyond 2-3 years.

The only minor pain is that you have to join Pentagon Federal Credit Union by making a one-time donation to one of their affiliated organizations.  At this point, that is a simple and painless process that is well worth the rewards you will reap over time.

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