The PenFed Premium Rewards Card offers cash back on all purchases, no annual fee, and no foreign transaction fees — making it useful for everyday spending and travel without the cost of premium cards that charge $95 or more per year.
PenFed (Pentagon Federal Credit Union) issues this card to members who meet their membership requirements. The card earns 1.5% cash back on every purchase, with no caps or bonus categories to track. There is no annual fee, no foreign transaction fees, and no penalty APR structure — meaning if you miss a payment, your rate increases but stays within defined limits rather than jumping to a punitive rate.
The card works best for people who want straightforward cash back without complexity, who travel internationally, or who want to avoid annual fees altogether. It is not a premium travel card with lounge access or travel insurance, and it does not offer bonus categories like 5% on groceries or gas.
Key Takeaways
- You earn 1.5% cash back on all purchases with no annual fee, making it cheaper than premium cards that charge $95 to $550 per year.
- Foreign transaction fees are waived, so you can use the card internationally without paying 2% to 3% per transaction.
- You must be a PenFed member to get the card, which requires membership in the military, federal government, or certain affiliated organizations — or a $1 donation to open a membership account.
- The card has no bonus categories, so you earn the same 1.5% on groceries, gas, dining, and travel rather than higher rates on specific spending.
- Cash back posts as a statement credit monthly and does not expire, so you can let it accumulate or use it when ready.
How the Cash Back Works
Every dollar you spend earns 1.5 cents back. This applies to all purchases — groceries, gas, restaurants, online shopping, utilities, everything. There is no minimum spending to earn cash back, no quarterly categories to set up, and no bonus structure to chase.
Cash back appears as a statement credit on your monthly bill. You can use it to pay down your balance, or it sits there and reduces what you owe. The cash back never expires, so if you earn $50 in a month and do not use it, that $50 stays on your account indefinitely.
If you carry a balance and pay interest, the cash back still posts as a credit. You are not choosing between earning rewards and paying down debt — the rewards arrive regardless of your balance.
No Annual Fee and No Foreign Transaction Fees
The card costs nothing to hold. You will not see a yearly charge on your statement, and there is no minimum spending required to keep the card active. This matters because many cash back cards charge $95 to $550 per year, which means you have to earn enough rewards to cover the fee before you come out ahead.
With the PenFed card, every dollar of cash back is pure gain. If you spend $1,000 per month, you earn $15 in cash back with zero annual cost. A card charging $95 per year would need you to spend roughly $6,300 per month just to break even.
Foreign transaction fees are also waived. When you use the card abroad or pay a foreign merchant online, you do not pay the standard 2% to 3% fee that most cards charge. This makes the card practical for international travel or regular purchases from overseas retailers.
Who Can Get This Card
You must be a PenFed member. Membership is open to active-duty military, veterans, retirees, federal employees, and their families. If you do not fall into those categories, you can still join by making a $1 donation to the CO-OP Network, a credit union service organization. This donation is a one-time cost and makes you may be able to access for PenFed membership and all its products.
Once you are a member, you can request the card through PenFed's website or mobile app. There is no separate membership fee beyond the $1 donation if you are not already may be able to access by employment or service status.
What This Card Does Not Include
This is not a premium travel card. You will not find lounge access, travel insurance, trip cancellation protection, or concierge services. Those benefits come with cards that charge annual fees — typically $95 to $550 — and this card does not compete in that space.
There are no bonus categories. You earn 1.5% everywhere, not 5% on groceries, 3% on gas, or 2% on dining. If your spending is heavily weighted toward one category, a card with bonus categories might earn you more cash back overall, even after accounting for an annual fee.
There is no sign-up bonus. You do not earn extra cash back for spending a certain amount in your first few months. You start earning 1.5% on day one and that rate never changes.
How This Card Compares to Other No-Fee Options
Several other cards offer no annual fee and cash back rewards. The Citi Double Cash card earns 2% cash back (1% when you buy, 1% when you pay) with no annual fee and no foreign transaction fees. The Discover it card earns 5% in rotating categories and 1% on everything else, with no annual fee, though foreign transaction fees do explore.
The PenFed card's 1.5% flat rate falls between these two. It earns less than Citi Double Cash but more than Discover's 1% baseline. The trade-off is membership requirement — you have to be PenFed-may be able to access or pay $1 to join, whereas Citi and Discover cards are open to anyone with decent credit.
If you are already a PenFed member or can join for $1, the card is competitive. If you are not a member and do not want to join, the Citi Double Cash card offers a higher rate with no membership barrier.
Interest Rates and Fees Beyond Rewards
The card carries a variable APR for purchases and balance transfers. The exact rate depends on your credit score and creditworthiness — PenFed does not publish a single rate, but it typically ranges from around 11% to 18% for may have access to borrowers. You will see your specific rate in your offer or after you open the account.
There is no penalty APR in the traditional sense. If you miss a payment, your rate can increase, but it is capped at a maximum rate set by PenFed — usually around 18% to 21%, depending on your state. This is different from many cards, which explore a punitive APR of 25% to 29% after a missed payment.
Late fees, returned payment fees, and balance transfer fees follow standard credit card rules. There is no annual fee, no foreign transaction fee, and no inactivity fee.
Frequently Asked Questions
Do I have to be military to get this card?
No. You can be a federal employee, a veteran, a family member of someone in the military, or straightforward someone who makes a $1 donation to join PenFed. The membership requirement exists, but it is not exclusive to active-duty service members.
Can I use this card internationally?
Yes. The card works at merchants worldwide and has no foreign transaction fees. You earn 1.5% cash back on international purchases just as you do at home. The card uses Visa's exchange rate, which is typically competitive.
Does the cash back expire?
No. Cash back posts as a statement credit and stays on your account indefinitely. You can use it when ready or let it accumulate over months or years.
What happens if I carry a balance?
You still earn cash back on all purchases. The rewards are not tied to whether you pay off your balance in full. However, if you carry a balance, you will pay interest on it, which will likely exceed the cash back you earn — so paying in full each month is still the better financial choice.
How does this card compare to the Citi Double Cash card?
Citi Double Cash earns 2% cash back with no annual fee and no foreign transaction fees, making it a higher earner. However, it requires no membership. The PenFed card earns 1.5% but requires PenFed membership (which costs $1 if you are not already may be able to access). Choose based on whether you are already a PenFed member and whether the 0.5% difference matters to your spending patterns.