I just got an e-mail from Pentagon Federal Credit Union announcing that their 3 year CD pays 5% APY (rate effective June 1- June 29). It's sort of a strange rate schedule, as their 3, 4, 5 and 7 year CDs now all have the same APY. In a rising rate environment, I'm not sure who would opt for the longer term...

Anyway, I can personally vouch for PenFed -- we've had CDs there for close to 2.5 years and have never had a problem. I have no idea if this is the best deal going, but it beats the heck out of the averages on Bankrate.com. Note that, like all credit unions, you have to meet their criteria for membership. In this case, however, that's pretty easy to do. Even if you're not affiliated with the military in any way, you can simply join the National Military Families Association (NMFA). The NMFA requires a $25 annual membership fee, but you don't have to maintain your membership beyond the first year in order to remain a member of PenFed. And you can sign up for the NMFA over the phone with PenFed when you're opening your account, which makes it really easy.

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"PenFed 3 Year CDs at 5% APY" was first published at fivecentnickel.com