PenFed drops its 5-year CD down to 2%

We all knew this was coming. The Pentagon Federal Credit Union was offering a 5-year insured CD at 3% in the months of December and January, but now has pushed that rate down to 2%, still a good rate but not above-market.

PenFed’s 7-year CD also was paying 3% but now has re-set to 2.25%.

It was a good deal while it lasted, and I am sure it brought PenFed a lot of new customers, which was probably its strategy. I was one of them, as I explained in a previous post.

BankRate.com says the average 5-year CD is paying 1.5%, but there are some outliers, such as Barclays and EverBank at 2.12%.

 

 

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