Has anyone dealt with the Pentagon Federal Credit Union? Their rates look very agreeable and we are thinking of moving IRAs there?
I would be very suspicious.
Why do they call themselves the Pentagon Federal Credit Union? Although it is perfectly legal for them to use the word 'pentagon' and the word 'federal' in their name, I believe they do so in order to confuse people into thinking that they are some sort of goverement agency. They are not.
A lot of people seem to think that if a company has the word 'American' or 'Veteran' or 'National' in it, it is a goverment agency and is completley safe and legit.
Also check out http://www.pentagonfoundation.org
Their website says:
The Pentagon Federal Credit Union Foundation is a nonprofit institution organized under IRS code 501(c)(3). Administrative costs are covered by the Pentagon Federal Credit Union, therefore 100% of all contributions go directly to programs.
Click here to Contribute Now...
They go on to solicit donations from their website.
None of this seems right to me.
You are right to do more research on them. How did you come to find out about them? Did they call you?
Here is a link that might be useful: Petagon Federal Credit Union Foundation
Having 'Pentagon' in the name roughly identifies the population which may become members. (Membership is restricted in order to avoid illegal competition with banks.)
Having 'Federal' in the name identifies it as having a ferderal charter, rather than a state charter.
There are over 4000 federally chartered credit unions, and over 7000 state chartered credit unions.
PFCU has a good reputation with all current and former Pentagon employees I know who are members. Many became members to get away from growing fees which banks charge.
In order to join the PFCU, you must be a federal employee or past military service. there is a q'aire you must answer to determine eligibility to become a member. It is not just for Pentagon employees. It is completely legit and is known for having lower fees. I would not hesitate to use them at all.
We also use USAA. They have our mortgage, c/c's, car insurance and some IRA's. We have never had a problem with them. USAA is only for current and past military people and their families. I have never served, but my husband did, so I am eligible for any type of account there too.