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The nation’s third-largest credit union has just unveiled a credit card that pays 2 percent cash back on all purchases, and charges no annual fee.
If you don’t mind the legwork, Pentagon Federal Credit Union’s offer is a decent one.
CARD SEARCH: Going on vacation? Take a card that charges no foreign transaction fee.
To qualify for the PenFed Power Cash Rewards Visa Signature®Card ,you’ll have to become a member of this credit union. Membership is open to military personnel and their families, but anyone can join by first joining one of two non-profit groups, Voices for America’s Troops or the National Military Family Association. A one-time $17 fee applies.
Members must open a savings account with a $5 minimum deposit. That’s enough to earn you 1.5 percent cash back on purchases with your Power Cash card. Earn 2% cash back if you have a checking or military service.
Other features include:
- A $100 sign-up bonus if you spend $1,500 in the first 90 days of card ownership.
- 0% APR promo balance transfer rate for 12 months with 3% balance transfer fee now through March 31, 2019
- After that, a variable APR of 11.99 to 17.99 percent will apply
- No foreign transaction fees.
How the card stacks up
You can compare Power Cash rewards program with likes of the Citi Double Cash Card and the Discover it® Cash Back, the only other programs offering 2-for-1 rewards on everyday spending.
The Double Cash card pays 1 percent back on purchases and then another 1 percent back as you pay your bill. Both have the same balance transfer fee of 3 percent, but the Citi Double Cash card has a longer 18 months interest-free. The Citi Double Cash Card has a variable APR of 15.74% – 25.74%, so for those who qualify for lower interest rates, it’s hard to beat PenFed’s variable APR of 11.99% – 17.99%.
The Citi Double Cash Card also comes with some great travel protections that PenFed doesn’t offer, but it also has a foreign transaction fee of 3 percent, making a card like the PenFed Power Cash possibly the more economical choice for travel abroad.
The Discover it® Cash Back offer is only good for the first year of card ownership. After that, you’ll earn 1% on all purchases. Enroll every quarter to earn 5% cash back on up to $1,500 in purchases made in various categories throughout the year.
Other PenFed reward cards
PenFed offers two other rewards credit cards. The PenFed Platinum Rewards Visa Signature® Card pays 5 times points at the gas pump, 3 times at the supermarket and 1 point on other purchases. The Premium Travel Rewards American Express card offers 5 times points on all airfare purchases and 1 point everything else.
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