CD Review Bank: PenFed Credit Union Insurance: NCUA to $250K Last updated: 2026-06-27

PenFed 5-Year CD Rate (2026)

Quick take: PenFed Credit Union 5-Year Money Market Certificate pays ~4.05% APY — competitive with Navy Federal but with open membership (anyone can join). $1,000 minimum, NCUA-insured to $250K. Early withdrawal forfeits all dividends earned to date.

Hero stats · PenFed 5-Year Money Market Certificate CD

APY

4.05%

Insurance

NCUA

Min Deposit

$1,000

EWP

All dividends earned to date (up to 365 days)

As of

2026-06-27

PenFed CD rates — full term ladder

The 5-year money market certificate CD highlighted on this page is one of several terms PenFed offers. Here's the full ladder so you can compare:

Term	APY
6-Month	3.50%
1-Year	4.40%
2-Year	4.20%
3-Year	4.15%
5-Year	4.05%
7-Year	3.95%

Rates as of 2026-06-27. PenFed repricing tends to follow Fed funds moves within 1-3 weeks. Confirm current rate on the PenFed site before funding.

Pros and cons

Pros

Open membership — anyone can join
5-Year Money Market Certificate APY (4.05%) competitive with credit-union peers
NCUA insured to $250K
Strong digital banking experience
Multiple ACH funding options

Cons

5-Year APY (4.05%) trails MYGAs (~5.50%) by ~145bps
Early withdrawal can forfeit all dividends to date
Membership requires a small initial deposit in PenFed savings
Limited branch network compared to Navy Federal
Customer service hold times can be long during rate-change periods

How the PenFed 5-Year Money Market Certificate CD compares to peers

At the 5-year money market certificate term, here's how this CD stacks up against the most-shopped competitors:

Bank	5-Year Money Market Certificate APY
PenFed	4.05%
Navy Federal	4.10%
Marcus	4.00%
Ally	4.00%

For a broader view of top 5-year money market certificate rates across 30+ banks and credit unions, see Best 5-Year CD Rates 2026.

When a MYGA beats this CD

A Multi-Year Guaranteed Annuity (MYGA) is the insurance-industry equivalent of a CD: lock a fixed rate for a fixed term, principal-protected. Right now at the 5-year term, A-rated carriers are paying ~5.50% — versus PenFed's 4.05%.

Math at $250,000 over 5 years (using simple annual compounding):

PenFed 5-Year Money Market Certificate CD @ 4.05%: $304,895 ending balance
5-year MYGA @ 5.50%: $326,740 ending balance
Difference: $21,845 in favor of the MYGA

MYGAs also defer tax on interest until withdrawal — CDs are taxed annually as ordinary income whether you touch the interest or not. The trade-off: MYGAs have a fixed surrender schedule (usually with 10%/yr free withdrawal); CDs have shorter penalty periods. For taxable retirement money you don't plan to touch, the MYGA almost always wins. See CD vs MYGA Comparison for the full breakdown.

Lock in now or wait?

Short answer: lock in at least a portion now. The 2026 rate curve is inverted at the long end — short-term CDs pay more than long-term ones, which historically signals the Fed is near a cutting cycle. If you wait for "better" rates, you risk reinvesting at lower rates 6-12 months from now.

Practical move: ladder. Put 1/3 in a 1-year CD or MYGA, 1/3 in a 3-year, and 1/3 in a 5-year. You capture today's still-elevated rates on the long end while keeping liquidity rolling.

FAQ — PenFed 5-Year Money Market Certificate CD

What is the current PenFed 5-Year Money Market Certificate CD rate?

As of 2026-06-27, the PenFed Credit Union 5-Year Money Market Certificate CD pays approximately 4.05% APY. Rates change frequently — confirm on the PenFed website before opening.

Is the PenFed 5-Year Money Market Certificate CD FDIC-insured?

Yes. PenFed Credit Union is NCUA-insured up to $250,000 per depositor, per ownership category. Couples with joint accounts get $500,000 of coverage.

What is the minimum deposit for the PenFed 5-Year Money Market Certificate CD?

$1,000. If you have more to deposit, FDIC coverage caps at $250,000 per depositor per bank — split large balances across multiple institutions if needed.

What is the early withdrawal penalty?

All dividends earned to date (up to 365 days). Withdraw before maturity and the penalty is deducted from your interest (or principal if interest isn't enough). Plan your maturity date carefully.

Can I add money to my PenFed CD after opening?

No — like most traditional CDs, this is a single-deposit account. To add funds, you must open a new CD at the rate available at that time.

What happens at maturity?

PenFed typically gives you a 10-day grace period to withdraw, change terms, or accept auto-renewal at the current posted rate. Set a calendar reminder — auto-renewal often locks you in at a worse rate.

Should I pick a CD or a MYGA at this term?

At the 5-year money market certificate term, a MYGA from an A-rated insurance carrier currently pays around 5.50% — meaningfully above this CD. MYGA interest is tax-deferred (CDs are taxed annually). Trade-off: MYGAs have surrender schedules; CDs have shorter penalty periods. For taxable retirement money, the MYGA usually wins. See CD vs MYGA Comparison.

Before you lock in — get the MYGA comparison

Hans Goldstein, independent licensed insurance producer.

If you're considering the PenFed 5-Year Money Market Certificate CD, you should see what a 5-year MYGA from an A-rated carrier pays at the same risk level. Often it's 50-150 basis points higher, with tax deferral.

Drop your info and you'll get a written side-by-side: this CD vs. the top 3 MYGAs at the same term, with end-of-term math at your actual deposit amount. No pitch, no follow-up calls unless you ask.

Hans Goldstein · 213-414-2808 · NPN 20602398, independent licensed insurance producer appointed with multiple A-rated carriers

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Disclosure

This review reflects publicly posted bank rates and approximate APYs as of 2026-06-27. CD rates change frequently — confirm current rates directly with PenFed Credit Union before opening an account. This article is general information for educational purposes; it is not a personalized recommendation, solicitation, or offer of any specific banking or insurance product. PenFed Credit Union is FDIC- or NCUA-insured to the limits stated; coverage is per depositor, per ownership category. Hans Goldstein is an independent licensed insurance producer (NPN 20602398) appointed with multiple A-rated annuity carriers; he is NOT a bank employee, broker-dealer, or registered representative, and is not paid by PenFed Credit Union for this review. No compensation has been received from PenFed Credit Union in connection with this content. MYGA comparisons reference rates from A-rated carriers as of the date stated; carrier rates change monthly. Always read the actual CD disclosure or annuity contract before purchasing.