PenFed Credit Union
When you’re on active duty or part of a military family, your financial needs are likely always in flux. From overseas duty stations to deployments and fluctuating pay schedules, military life demands flexibility from your bank.
Pentagon Federal Credit Union (or PenFed) might not be exclusively for service members anymore, but it still offers quite a few perks designed with military life in mind.
PenFed’s Military Roots
PenFed has deep roots in the defense world. Founded in 1935 as the War Department Federal Credit Union, it initially served those with a common bond in national defense. It has since acquired a number of other credit unions, which allow it to expand its services nationwide to non-military members.
However, it still maintains a strong focus on serving the military community. That connection shows up most clearly in the kinds of loans and services it prioritizes, such as VA home loans, flexible checking accounts, and protections under the Servicemembers Civil Relief Act (SCRA). Today, PenFed is said to be the second largest federal credit union in the country, with nearly 3 million members.
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PenFed Programs and VA Loans
PenFed has worked to make the lending process easier for active-duty buyers who may be dealing with deployment, relocation, or inconsistent internet access. One major benefit of PenFed is the elimination of lender origination fees on VA loans.
In past promotions, it has offered highly competitive rates on VA mortgages (sometimes for as low as 5 percent APR in the past), though these vary with the market. You can apply for a loan online, upload all your documents digitally, and even manage the whole thing remotely, which is a lifesaver if you’re overseas or otherwise traveling.
PenFed’s conventional loans are designed for many borrowers and come with flexible fixed-rate and adjustable-rate options. It requires a minimum down payment percentage for qualified buyers. Additional benefits include the ability to lock in your interest rate for up to 60 days while you shop for a home and access to complementary and discounted homeowner services after purchase. PenFed also services your home loan for life.
Checking and Savings for Military Life
PenFed offers checking and savings products designed for a broad range of members, including those constantly on the move. Its Access America Checking account, for example, includes early direct deposit, which lets military members get paid up to two days sooner. That feature alone can be helpful during transitions between duty stations or after coming off leave.
There are no maintenance fees if you maintain a $500 balance (at press time) or set up a monthly direct deposit of at least $500. For deployed members or those living in remote areas, PenFed’s mobile app offers full access, including mobile check deposit, bill pay, and transfers. PenFed also partners with CO-OP and Allpoint ATM networks, giving you access to over 85,000 ATMs worldwide (including those in retailers like Target or CVS) with no surcharge.
Auto Loans and Credit Cards with Military-Friendly Perks
PenFed has run promotions as low as 1.99 percent APR for qualified buyers—though again, rates change frequently. What’s more relevant for military members is that PenFed works with buyers who might not have a long civilian credit history or need to finance a car during a cross-country relocation.
It also understands the challenges of getting approved for financing when you’ve moved a lot or have varying BAH levels. PenFed’s car-buying service even helps members find vehicles near their new duty station.
As for credit cards, PenFed offers several with cashback and travel rewards, including options with no annual fees. For service members who travel frequently or spend a lot on base, these rewards can be worth it.
SCRA Protections and Deployment Support
PenFed honors the Servicemembers Civil Relief Act (SCRA), which can significantly reduce your interest rates on eligible loans and credit cards while you’re on active duty. You can submit documentation online or through secure messaging, and many members report smooth processing with minimal hassle.
It has also created a few internal policies to support deployed members, like waiving certain fees and allowing for power-of-attorney account access for spouses or family members.
Eligibility for Military Members and Civilians Alike
PenFed used to require military affiliation, but in recent years, it’s opened its membership to anyone who opens and maintains a basic savings account with a $5 minimum deposit.
If you’re currently serving or have served in the military, or you’re a government employee (or a family member), you’re eligible. Aside from military-related eligibility, if you live or work in a qualifying area or join one of over 50 eligible associations, you can become a PenFed member. Applications are available online.
PenFed Customer Support Services
PenFed offers support by phone, secure online messaging, and chat through their website. While the credit union doesn’t have 24/7 phone support, their hours have in the past been typically 7 a.m. to 11 p.m. ET on weekdays, with shorter hours on weekends.
PenFed also has a dedicated mortgage and loan servicing line, which helps if you need to speak with someone who understands the ins and outs of VA loans or deployment-related requests.
PenFed Foundation Offers Support to Military Members Beyond Banking
While the PenFed Credit Union offers loans and accounts, the PenFed Foundation plays a different role, and it’s one military families should know about. This nonprofit arm was founded in 2001 and focuses entirely on helping military service members, veterans, and their families build financial stability.
One of its biggest programs is Military Heroes, which offers grants for veterans facing housing insecurity, especially those who are wounded or disabled. The foundation also runs a Veteran Entrepreneur Investment Program (VEIP) that helps veteran-owned businesses grow through education, mentorship, and access to funding when you’re transitioning out of the military and thinking about starting your own business.
There’s also emergency financial assistance available in some cases, particularly for post-9/11 veterans in crisis.
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