A top military credit union anyone can join

Summary: Established in 1935, Pentagon Federal Credit Union (PenFed) has an open-membership charter and is the second-largest credit union in the U.S. PenFed stands out for its wide variety of bank accounts and loan products, its minimal fees on checking and savings accounts, and its low deposit requirements.

PenFed was ranked among our top 10 credit unions of the year and 5 best banks and credit unions for military.

PenFed offers a 0% interest, Free Checking account that has the basic features you might get with any other checking account. You only need to deposit $25 or more to open Free Checking, but there’s no minimum balance requirement and no monthly fees.

One thing to look out for with their checking accounts, however, is the overdraft protection terms. If you attempt an overdraft, PenFed will either draw from savings (without charging you a fee) or, for overdrafts over $300, they may offer you a line of credit. But beware, that line of credit comes with a 17.99% interest rate.

Read more: Overdraft coverage vs. overdraft protection: What’s the difference?

PenFed’s Access America Checking account requires a little more maintenance than the Free Checking option, but it also pays 0.35% when you carry a balance between $20,000 and $50,000. To avoid a $10 monthly maintenance fee, you need to either keep a daily balance of $500 or make a $500 direct deposit each month.

You can become a PenFed member by depositing just $5 to their Regular Savings account. But there aren’t many advantages to choosing this account over their other savings product (Premium Online Savings) since the APY is just 0.05% and the account lacks stand-out features.

Read more: 7 credit unions anyone can join

Another pathway to membership at PenFed is to open their Premium Online Savings account and deposit at least $5. This account is the better of the two savings options since it pays 2.90% APY on all balances.

• Money Market Certificates: Similar to a traditional certificate of deposit, these accounts require a minimum opening deposit of $1,000.

• IRA Certificates: This account mixes the features of a CD and an IRA with certain tax benefits, depending on IRA type.

• Coverdell Education Certificate: You can open a Coverdell certificate with just $500 and contribute as much as $2,000 a year. Unlike other types of CDs, returns on these certificates are not taxed if they’re used for education purposes.

Read more: What is a share certificate?

• Power Cash Rewards Visa Signature Card: This cash-back card earns 1.5%-2% on all purchases with no annual fee.

• Pathfinder Rewards Visa Signature Card: PenFed’s travel rewards card offers up to four points on purchases and a variety of travel perks for an annual fee of $95.

• Platinum Rewards Visa Signature Card: Cardholders earn points on gas, groceries, restaurants, and more with this $0 annual fee rewards card.

• Gold Visa Card: PenFed’s balance transfer card gives you 0% APR on transfers for 15 months, with a 3% balance transfer fee. After the introductory offer ends, APR on the card jumps up to 17.99%.

• Home: PenFed offers conventional mortgages, VA loans, FHA loans, jumbo loans, refinancing, and HELOCs. Their conventional mortgages are available for credit scores around 650 or higher with rates starting at 6.26% APR and origination fees ranging up to $1,995.

• Auto: Loans are available for new and used cars and auto refinancing. New car loans range from $15,000 to $150,000 and rates start at a low 4.09% APR. PenFed also offers a car-buying service, gap insurance, and extended warranties.

• Personal: Loans up to $50,000 are available with no collateral and no origination fees. Rates range from 8.99% to 17.99%.

• Student: PenFed doesn’t directly offer student loans, but they will submit your student loan application to Sparrow, a partnering online loan marketplace.

If low fees are your priority, PenFed is a solid option to consider. This credit union has both checking and savings accounts that come with $0 monthly fees, regardless of your deposit amount. PenFed also has no application fee for auto loans, and members can choose from 85,000 fee-free ATMs.

Pros:

• Anyone can join: Unlike most credit unions, anyone can join PenFed, regardless of where they live or work. You just have to deposit at least $5 in a PenFed savings account.

• No monthly account fees: PenFed has both a checking and a savings option that come with no monthly maintenance fees.

• Large ATM network: If you can’t make it to a branch, you can still use one of over 85,000 fee-free ATMs to access your accounts.

Cons:

• Some overdrafts are subject to 17.99% interest: An overdraft of $300 or more is subject to approval and can be converted into a line of credit with a hefty 17.99% interest charge attached.

• Higher savings and CD rates are available elsewhere: Although the credit union offers some high-yield deposit accounts, their rates aren’t as high as some other banks and credit unions.

PenFed’s hours of operation are somewhat limited. They’re open and available for customer service Monday to Saturday, 8:00 a.m. to 8:00 p.m. (ET). Here’s how you can reach out for support:

• Member Service: 1-800-247-5626

• Mortgage and home equity applications: 1-800-970-7766

• General correspondence: Box 1432, Alexandria, VA 22313-2032

For digital banking, members can use Zelle for online transfers or download PenFed’s iPhone or Android apps, both of which are rated over four stars by users. However, a handful of recent reviews say the apps can be very slow and account notifications are inconsistent.

Read more: 10 best mobile banking apps of 2025

PenFed Credit Union has a strong focus on supporting members of the military. Its PenFed Foundation is a nonprofit agency that offers grants to service members and supports veteran-owned businesses and entrepreneurs.

PenFed also donates to organizations that serve military members, such as Canine Companions and Willing Warriors, and the credit union actively seeks to hire members of the military.

The easiest way to become a PenFed member is to submit an online application for a savings account and then deposit $5 to your account. You can also become a member by applying for an auto loan or mortgage, since PenFed sets you up for membership during the application process for these loans.

Yes, PenFed is a National Credit Union Administration (NCUA) insured credit union. Your deposits are protected up to the federal limit.

The ABA routing number for PenFed is 2560-7844-6.

PenFed membership is open to anyone. To join, you must open a savings account and deposit at least $5.

Navy Federal Credit Union is the largest credit union in the U.S., followed by PenFed.