Grow your savings with decade-high dividend returns
Certificates and premium online savings provide safe, reliable way to achieve your financial goals.
SAN ANTONIO, VA (November 3, 2023) — Many Americans are feeling the stress of inflation with the rising cost of food, housing, consumer goods, travel and other expenses. Interest rates have risen rapidly over the past year and that’s good news in terms of growing the money you set aside for savings.
Now is a great time to save. 18 months ago, it would take a deposit of $100,000 in a PenFed Credit Union 1.00% APY, 1-year Certificate to earn $1,000 in dividends. Today, just over $19,000 dollars is needed to earn $1,000 in dividends with PenFed’s 5.25% APY1 1-year Certificate. PenFed Members also earn 3.00% APY2 Premium Online Savings — that’s 6x the national average3 with a minimum $5 investment. Rates are subject to change and available for a limited time.
PenFed Certificate Rates
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6-Month – 3.00% APY
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1-Year – 5.25% APY
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15-Month – 5.35% APY
Saving with Certificates
A certificate is the credit union version of a certificate of deposit (CD) typically found at a bank. Like a CD, a credit union certificate is an account that locks in your money and earns dividends over a period of time. How much you earn depends on the financial institution, your deposit amount, and the length of your term.
Along with a high yield, one of the main benefits of a certificate is that it offers a guaranteed return, unlike some other types of accounts. That’s why certificates are a safe investment option. With a credit union, your money is protected by the National Credit Union Administration (NCUA) up to $250,000.
How a Certificate Works
When you open a certificate account, you select a term, typically ranging from several months to several years. The money you deposit into that account is then locked in until the end of the term (known as the maturity date). If you choose to withdraw your money before the maturity date, you’ll pay an early withdrawal penalty. This penalty may either be a flat fee, or a percentage based on the length of time before your maturity date.
11 APY = Annual Percentage Yield. Rates are accurate as of November 1, 2023. Rates are subject to change and are fixed for the term of the certificate. Certificates dividends compound daily and credited monthly. The minimum balance to open a certificate is $1,000. Penalty will be imposed for early withdrawal. This will reduce earnings on the account. For all certificates funded by ACH, funds cannot be withdrawn within the first 60 days of the account opening.
22 APY (Annual Percentage Yield) is accurate as of November 1, 2023, and is subject to change at any time. Fees may reduce earnings. $5 minimum to open the account. Premium Online Savings account holders must agree to electronic delivery of account opening disclosures and monthly statements.
33 Sourced directly from: https://www.fdic.gov/regulations/resources/rates. Rates are accurate as of October 16, 2023.
Learn more about certificates and three strategies for investing here.
Saving with a Premium Online Savings Account
A Premium Online Savings Account is a savings product, that earns a higher yield than traditional savings. PenFed Premium Online Savings features no monthly maintenance fee, higher APY and free online transfers. This makes this type of account more popular with people who have larger balances they would like to earn dividends on while and still having the flexibility to access their funds and make large purchases.
With a credit union, your money is protected by the National Credit Union Administration (NCUA) up to $250,000.
Learn more about Premium Online Savings here.
About PenFed Credit Union
Established in 1935, Pentagon Federal Credit Union (PenFed) is America's second-largest federal credit union, serving 2.9 million members worldwide with nearly $34.6 billion in assets. PenFed Credit Union offers market-leading certificates, checking, credit cards, personal loans, mortgages, auto loans, student loans, and a wide range of other financial services with members' interests always in mind. PenFed Credit Union is federally insured by the NCUA and is an Equal Housing Lender. To learn more about PenFed Credit Union, visit PenFed.org, like us on Facebook and follow us @PenFed on X. Interested in working for PenFed? Check us out on LinkedIn. We are proud to be an Equal Employment Opportunity Employer.
