Ronald Sumners/Shutterstock.com

Advertiser Disclosure: The credit card offers that appear on the website are from companies from which this site receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). This site does not include all credit card companies or all available credit card offers.

American Express is a Bankrate advertising partner.

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.
  • 12-month balance transfer until December 31, 2018, with 3% balance transfers fee
  • After that, a variable APR of 11.74 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 has a variable APR of 15.24% to 25.24%, so for those who qualify for lower interest rates, it’s hard to beat PenFed’s variable APR of 11.74% – 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.

CARD SEARCH: Get a travel rewards credit card that pays more today.

Other PenFed reward cards

PenFed offers two other rewards credit cards. The 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.

This editorial content is not provided or commissioned by any of the referenced financial institutions or companies. Opinions, analysis, reviews or recommendations expressed here are the author’s alone, not those of any financial institutions or companies, and have not been reviewed, approved or otherwise endorsed by any such entity. All products or services are presented without warranty. Bankrate.com is an independent, advertising-supported publisher and comparison service. This post contains references to our partners, and Bankrate may be compensated in exchange for featured placement of certain sponsored products and services, or your clicking on certain links posted on this website.