Information on Pentagon Federal Money Market Savings Account
The Pentagon Federal Credit Union money market savings account offers credit union members the chance to earn interest on their deposits while keeping funds liquid. Credit unions are not-for-profit member-owned associations. Consequently, credit unions are often able to offer higher rates on deposit accounts than for-profit banks. However, in order to open an account at Pentagon Federal Credit Union, you must meet the membership eligibility guidelines.
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Money Market Savings Account
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You can open a money market savings account at PenFed with just $25, and the credit union enforces no minimum balance requirements and charges no monthly maintenance fees. You earn interest on your deposits, and as of 2011, PenFed has four interest rate tiers: below $10,000, below $50,000, below $100,000 and above $100,000. People in the highest deposit tiers earn the most interest. Interest rates, like rates on most money market accounts, are variable.
Withdrawals
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PenFed enforces no minimum withdrawal requirements, and you can access your money market savings account at an automated-teller machine, by making in-branch withdrawals or by writing checks. Federal regulations limit the number of withdrawals you can make from a money market account to six per monthly statement cycle. However, ATM withdrawals are unlimited. If you exceed the maximum number of monthly withdrawals, you incur a penalty fee and according to federal regulation, if you repeatedly go over the limit, the credit union must convert your money market to a checking account.
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Federal Insurance
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PenFed belongs to the National Credit Union Administration, a federal agency that regulates credit unions. The NCUA provides federal deposit insurance for accounts held at PenFed and other credit unions. Coverage works on a per member basis as opposed to a per account basis. You receive $250,000 of deposit insurance coverage from the NCUA. If PenFed becomes insolvent and you have funds in excess of $250,000 in your money market or other accounts, you stand to lose those funds.
Membership
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Members of the United States military and armed services as well as other federal employees are eligible to join PenFed. Members of the American Red Cross, military associations and certain private companies contracted by the federal government are also eligible to join. If you are an immediate family member, legal guardian or roommate of a credit union member, you can join PenFed. If you do not qualify for membership, you can pay to become a member of the National Military Family Association or the Voices For America's Troops since members of both organizations are eligible to become PenFed members.
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