Sunday , July 14 2024

A+ Federal Credit Union

A+ Federal Credit Union

A+ Federal Credit Union was established in 1949 by a gathering of 50 educators during a gathering at Zilker Park in Austin. Over seventy years later, A+FCU has over 174,000 members throughout the community, over $2 billion in assets, and 22 branch locations.

PenFed Credit Union Certificate (CD) Rates

Pentagon Federal Credit Union, better known as PenFed, offers Money Market Certificate terms ranging from six months to seven years. Share certificates are the credit union equivalent of certificates of deposit (CDs) found at banks. PenFed’s certificate rates tend to be competitive among the best CD rates from online banks and credit unions. Rates range from 0.40% APY for a six-month certificate to 1.10% APY for a seven-year certificate. There’s a $1,000 minimum deposit requirement to open a certificate.

Here’s an overview of PenFed Credit Union’s Money Market Certificate rates. Rates are accurate as of September 16, 2021.

In addition to the Money Market Certificate terms and rates shown above, PenFed Credit Union also offers IRA certificates and Coverdell Education certificates.

Overview of PenFed Credit Union Certificates

PenFed Credit Union’s Money Market Certificates require a minimum opening balance of $1,000. Dividends are compounded daily and posted to the account monthly, except for six-month certificates. Six-month certificates earn dividends on a simple interest basis—this means that dividends are paid only on the principal amount (not principal plus dividends) and are paid only on the date when the six-month CD matures.

If you need to pull money out of your PenFed Credit Union certificate during the term, before it reaches its maturity date, you will have to pay a penalty for early withdrawal. For six-month certificates, the early withdrawal penalty is the loss of the most recent 90 days’ dividends earned. For terms longer than six months, the early withdrawal penalty depends on how recently you opened the certificate before redeeming.

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If you make an early withdrawal within 365 days from the opening date of the certificate, the penalty is the last 365 days of dividends earned. If you redeem the certificate after 365 days from the opening date, the penalty is 30% of the gross amount of dividends that would have been earned if the certificate had reached maturity.

Notably, after maturity, there is no grace period to decide what to do with your funds, as you’ll find at many other institutions. Instead, when you open your certificate, you can choose your maturity option. Here are the options:

  • Transfer your money to another PenFed account
  • Roll over your money into a new certificate
  • Get a mailed check
  • Transfer your money via ACH

You can change this renewal selection at any time during the term, before the certificate’s maturity date.

How Much Can You Earn With PenFed Credit Union’s Certificate Rates?

Before you decide to open a PenFed Credit Union Money Market Certificate, it’s important to calculate how much you can earn.

Here’s what you can earn with PenFed Credit Union’s certificates with a $10,000 investment, assuming the earnings are compounded daily:

How PenFed Credit Union’s Certificates Compare

PenFed Credit Union’s certificates are competitive with the best CD rates and are significantly higher than the national averages for CDs, according to data from the FDIC. The credit union’s $1,000 minimum deposit is less than what some of the best online banks and credit unions require.

Depending on the term and your overall goals for your savings, PenFed’s certificates could be a good choice. Just make sure you understand the rules for automatic renewal. Unlike most banks and credit unions, PenFed Credit Union has no grace period for deciding what to do with your money after the maturity date. Instead, you must select what to do with your principal and any dividends earned when you open the certificate (although changes can be made at any time before the maturity date).

Also, watch out for early withdrawal penalties. PenFed’s withdrawal penalties for longer-term certificates are somewhat steep.

As always, if you want to get the best certificate or CD rate possible, make sure to shop around. Check rates at multiple credit unions and banks so you can get the highest possible return on your savings.

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About PenFed Credit Union

PenFed Credit Union was established in 1935. It has $25 billion in assets and two million members worldwide, with members located in all 50 states, the District of Columbia, Puerto Rico, Guam and Okinawa. This credit union’s membership was originally limited to military and civilian government employees and their families (PenFed is short for Pentagon Federal), but now this Virginia-based credit union has an open national membership charter. Anyone who meets the geographic requirements and deposits at least $5 in a new savings account can join. PenFed Credit Union is federally insured by the National Credit Union Administration (NCUA).

Frequently Asked Questions (FAQs) What is a share certificate?

Because they’re membership-based, credit unions use slightly different terminology than banks. Share certificates function in the same way certificates of deposits do at banks. These are a type of dividend-paying time deposit account. With traditional certificates, you get a guaranteed dividend rate if you commit to leaving your money in the certificate for a specific term.

What are the pros and cons of certificates?

Certificates are generally considered one of the safest places to put your savings. Like checking and savings accounts, certificates are protected up to a certain amount at NCUA-insured credit unions. You also get a fixed dividend rate for the length of your certificate’s term. Yet you want to be aware of the pros and cons.

Unfortunately, many major credit unions and banks are offering relatively low returns in the near-zero interest rate environment. Although other investments may be riskier than certificates, you may get a better return on your money by investing elsewhere. And keep in mind that certificates offer less liquidity than other deposit accounts. If you pull money out of the certificate before the term is up, you generally will have to pay an early withdrawal penalty.

Do all certificates charge an early withdrawal penalty?

No. Some banks and credit unions offer no-penalty CDs or certificates, which let you take money out of the account on a more flexible basis. But these no-penalty certificates may also pay lower dividends than a regular CD.

Are PenFed’s certificates safe?

Yes, PenFed is insured by the NCUA (charter #227). Its certificates are insured up to $250,000 per depositor, for each account ownership category, in the event of credit union failure.

Credit Union Identified in Fired Employee IT Revenge Case

Juliana Barile, who deleted more than 21 gigabytes of data as an act of revenge when fired from her job, was employed at the $7.9 million Penn South Federal Credit Union in New York City.

When prosecutors announced Barile pleaded guilty to one felony count of computer intrusion last month, they did not identify the credit union, her title or for how long she worked there. Court documents only identified the credit union in New York, New York, “an entity the identity of which is known to the United States Attorney” of the Eastern District of New York based in Brooklyn.

Customarily, credit unions are identified in federal court documents when they are victimized by criminals or those charged with crimes committed against financial institutions. However, in this case, federal prosecutors and the U.S. Attorney’s office did not respond to CU Times’ request to explain why the credit union’s identity was not disclosed in any court documents, including the information document that detailed Barile’s crime, the plea deal, a press release, and a 60-minute transcript of the court hearing on Aug. 31 when the former employee pleaded guilty.

A source who spoke on the condition of anonymity, noted that Matthew Barile, who is believed to be related to Juliana Barile, has served on Penn South’s board of directors since at least 2012, according to its NCUA profile reports.

From June 2012 to December 2017, Matthew Barile served as Penn South’s board chair, and in 2018 and 2019, he was the board’s vice chair. The credit union’s 2020 profile report shows that Matthew Barile was a supervisory committee member, and he remained on that committee through the end of the March 2021. He is not listed as a board member or as a supervisory committee member, according to Penn South’s profile report filed with the NCUA at the end of the second quarter.

Penn South’s part-time President/CEO Robert Pillartz did not respond to three phone and three email messages requesting comment.

Juliana Barile’s attorney declined comment when reached Thursday.

Two days after she was fired on May 19, she remotely accessed the credit union’s file server from her Brooklyn home, and within 40 minutes, she deleted more than 20,000 files and 3,500 directories, totaling 21.3 gigabytes of data, according to court documents.

The deleted data included files of mortgage loan applications and the credit union’s anti-ransomware protection software. Barile also opened confidential files, including documents containing board minutes of the credit union.

“In an act of revenge for being terminated, Barile surreptitiously accessed the computer system of her former employer, a New York Credit Union, and deleted mortgage loan applications and other sensitive information maintained on its file server,” Acting U.S. Attorney Jacquelyn M. Kasulis said in a prepared statement when Barile’s guilty plea was announced on Aug. 31.

Penn South’s loan portfolio lists 172 real estate loans/lines of credit worth $5,339,847 and seven unsecured loans/lines of credit worth $122,812, according to its June 30 Call Report. Additionally, the credit union’s previous Call Reports show that Penn South exclusively provides mortgage loans and lists no other loans in its portfolio for new or used vehicles, student, credit card, personal, or payday alternative loans.

On the day Barile was fired, someone at Penn South requested from its IT support firm that it disable her access to the credit union’s computer system, but it was not disabled, according to court documents.

Although Penn South did back up some of the data that Barile deleted, prosecutors said the credit union has spent more than $10,000, so far, to remediate the IT issues.

Even though prosecutors said in a press release that Barile can face up to 10 years in prison, transcripts of her plea hearing indicate that prosecutors are expected to recommend a prison sentence of six to 12 months.

During the court hearing, Barile made the following statement: “On or around May 25 of 2021, I logged into the credit union’s computer with my credentials and deleted shared files. This occurred after termination, when I did not have authorization to log in or touch any of the information. I am guilty of the charges and I’m pleading guilty to it.”

Interior Federal Credit Union staff volunteer at the 2021 Credit Union 

Interior Federal Credit Union, the official credit union of the Department of the Interior, participated in the 2021 Credit Union Cherry Blossom 10 Miler – a national event raising over $180,000 for Children’s Miracle Network Hospitals.

Each year, the Credit Union Cherry Blossom Ten Mile Run brings together credit unions from across the country with a shared vision of fund raising and helping children. Nationwide, credit unions are the 3rd largest fundraisers for Children’s Miracle Network Hospitals further demonstrating their strong commitment to their communities and underscoring the positive impact that credit unions make to consumers.

“As a Credit Union, it’s important to us to make a difference in our member’s lives and be part of the community to show our support and drive to be better.” said, Bailie Larson, Interior Federal Credit Union Contact Center Manager, who also ran in this year’s race.

This year, Interior Federal Credit Union sponsored a mile marker on the race route, while Interior FCU staff volunteered their time passing out water bottles to runners at the finish line. Interior Federal Credit Union is dedicated to making the community a better place to live and work. Grounded in community involvement, Interior Federal Credit Union believes the best way to get to know their members is community service and philanthropic efforts.

“As members of the nationwide credit union community, we love to participate when we can. For 3 years now, we have been happy to be a sponsor of the annual credit union cherry blossom race and have our staff volunteer their time on race day. We always enjoy our time spent on national park grounds and the memories we make as a team.” said, Mike Merryman, Interior Federal Credit Union President/CEO.

Interior FCU is driven to give back to the community, serving as a resource to improve and enrich lives by involving its generous employees. The credit union continues their commitment to this goal by selecting organizations to sponsor or volunteer with monthly. Interior Federal Credit Union’s Marketing Coordinator, Lauren Newcomb, said “…volunteering not only brings a positive impact on our community, but also brings our credit union staff together.”

About Interior Federal Credit Union

Interior Federal Credit Union began in 1935 and maintains two branch locations, located in Reston, VA and Washington DC. Interior FCU is available nationwide with 5,600 shared branch locations and 55,000 surcharge free ATMs.  Members enjoy 24/7 service through Interior FCU’s 4.8 star rated mobile app.

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