The Pentagon Federal Credit Union provides information about its certificate rates on its website, PenFed.org, where it offers three certificate types: IRA CDs, money market certficates, and Coverdell Education Savings Certificates, as of July 2015. PenFed membership is available to U.S. citizens with a military or government affiliation.Continue Reading
An IRA CD is purchased with funds set aside in either a traditional or Roth IRA account. PenFed members can invest in IRA CDs with terms ranging from one to seven years, with the annual percentage yield increasing as the term grows longer. IRA CDs enjoy FDIC protection up to $250,000 and a federally guaranteed interest rate.
PenFed members can open a money market certificate with a minimum deposit of $1,000. Rates increase with the length of the certificate term and range from six months to seven years. Rates are locked in as of the date of purchase, with dividends paid either monthly or when the certificate matures. The FDIC insures money market certificates, a form of bank deposit, up to $250,000.
Coverdell Education Savings Certificates are investments made on behalf of a defined beneficiary for the sole purpose of funding the beneficiary's education expenses. Contributions are limited to $2,000 for each beneficiary, and the investor may only use Coverdell funds to pay certain qualified education costs.Learn more about Personal Banking