Penn State Federal Credit Union

What Penn State Federal Credit Union does

Penn State Federal Credit Union is a member-owned, not-for-profit financial cooperative founded in 1959 and headquartered in Bellefonte, Pennsylvania, with a primary branch in State College. The institution serves Penn State University employees, students, alumni association members, and employees of partner companies through a full suite of personal and business banking products. Personal banking includes Freedom Checking, Thrift Checking, and Premier Checking; Basic Share Savings, Money Market, Holiday Club, Share Certificates, and IRAs; and lending products spanning auto loans (as low as 4.50% APR), home equity loans/lines of credit, mortgages originated through partner Member First Mortgage, personal loans, a Platinum Visa Rewards credit card, and educational loans through partner Sallie Mae. Business banking spans deposit accounts, business term loans, commercial real estate loans, lines of credit, commercial vehicle loans, and a Business Visa Platinum card.

The technology stack centers on Penny Online (web-based) and Penny Mobile (iOS/Android) digital banking, supplemented by chip-enabled Visa debit and credit cards, two-factor authentication, Co-Op Shared Branch network access with the newly launched IDCheck identity verification (May 2025), and add-on modules including GAP, Mechanical Breakdown Protection, Debt Protection, Wealth Management via a partnered global firm, and Benefits Plus discount membership.

Revenue is generated primarily through interest income on loans (net interest margin), deposit-account interest spreads, and account/transaction fees (maintenance, ATM, overdraft). Go-to-market is direct-to-consumer plus direct-to-SMB, distributed through one physical branch, the digital banking platform, and the nationwide Co-Op Shared Branch network. The membership model is lifelong once eligibility is established through Penn State or partner-company affiliation, and the institution emphasizes community sponsorship, scholarship programs, and local nonprofit partnerships as engagement mechanisms.

Name

Penn State Federal Credit Union

Legal name

Penn State Federal Credit Union

Website

https://pennstatefederal.com

Company type

Private

Founded year

1959

Operating status

Operating

Headcount range

11–50 employees

Short description

Penn State Federal Credit Union is a member-owned, not-for-profit financial cooperative founded in 1959, serving Penn State University employees, students, alumni, and partner-company employees in Pennsylvania with personal and business banking, lending, and digital channels.

Ownership category

akta.pro rank

Product category

Retail Banking (Credit Union)

NAICS

Credit Unions (522130)

SIC

Functions Related To Depository Banking, Nec (6099)

akta.pro primary industry

Student/University Credit Unions (FSABAEAJ)

Keywords

• Retail banking services
• Consumer lending products
• Credit union membership
• Digital banking platform
• Business deposit accounts

Headquarters

HQ city

Bellefonte

HQ country

United States

HQ region

North America

Offices2 records

Markets served

GTM type

B2B and B2C

Offering type

Services

Cost components

Personnel, Operations, Technology or R&D, Marketing or Sales, Infrastructure

Revenue model

1. Interest Income from Lending: The credit union generates primary revenue through interest earned on various loan products including auto loans, home equity loans, mortgages, personal loans, and business loans. Interest rates vary by product type and creditworthiness.
2. Account and Transaction Fees: Revenue generated from various account service fees including monthly maintenance fees for certain checking accounts, ATM fees from other institutions, overdraft fees, and transaction-based fees.
3. Deposit Account Interest Spreads: Income derived from the spread between interest paid on deposits (savings, checking, certificates) and interest earned on loans extended to members.

Pricing tiers

Go-to-market motion1 record

Distribution channels6 records

Marketing channels6 records

Core offering

Penn State Federal Credit Union is a member-owned, not-for-profit financial cooperative that provides personal and business banking products and services to the Penn State University community and partner companies. Its core offerings include deposit accounts (checking, savings, money market, share certificates, IRAs, youth accounts), consumer lending (auto, personal, home equity, mortgage, Visa credit card, student loans), business banking (business deposit accounts, bill pay, term loans, commercial real estate, lines of credit, commercial vehicle loans, business Visa), and digital banking through Penny Online and Penny Mobile.

Product overview

Penn State Federal Credit Union is a member-owned financial institution serving the Penn State community since 1959, offering a comprehensive suite of personal and business banking products through both traditional branch services and digital channels. The personal banking platform centers on Penny Online (web-based) and Penny Mobile (iOS/Android app) providing 24/7 access to accounts. Core deposit products include multiple checking options (Freedom Checking with free bill-pay, Thrift Checking, Premier Checking), savings accounts (Basic Share, Money Market, Holiday Club), Share Certificates with competitive rates, and IRA accounts. Lending products span auto loans, home equity loans/lines of credit, mortgages via partner Member First Mortgage, personal loans, Visa credit cards with tiered cash-back rewards, and educational loans through Sallie Mae. Business banking includes various deposit accounts, Penny Business Bill Pay, term loans, commercial real estate financing, lines of credit, commercial vehicle loans, and business Visa cards. Add-on services include GAP protection, Mechanical Breakdown protection, Debt Protection, Wealth Management consultation, Financial Calculators, Benefits Plus membership discounts, scholarship programs, and Co-Op Shared Branch/ATM network access with IDCheck identity verification. The digital ecosystem emphasizes security through chip cards, security codes, and mobile deposit capabilities.

Differentiator

Problem solved

Functional benefit

Products and services

• Penny Online Web-based online banking platform for members to view balances and transactions, access E-Statements, transfer funds, pay bills, and apply for loans 24/7.
• Penny Mobile Mobile banking application for smartphones and tablets allowing mobile deposits (up to $5,000 daily limit), loan payments, balance checks, transaction viewing, fund transfers, bill payment, and branch/ATM location services.
• Penny Bill Pay Online bill payment service integrated with Penny Online, allowing one-time or recurring payments to any payee with automatic memory of account information. Included free with Freedom Checking; $5/month for other checking accounts.
• Freedom Checking No minimum balance checking account with free Visa debit card, free bill-pay, free e-statements, unlimited surcharge-free CU$ ATM access, and unlimited check writing for individual members.
• Thrift Checking Consumer checking account with $100 minimum balance requirement and $8 below minimum balance monthly fee.
• Premier Checking Consumer checking account requiring $2,000 minimum balance with $10 below minimum balance fee, earning dividends on $2,000+ balances, and offering Visa debit or ATM card at no monthly fee.
• Basic Share Savings Required membership savings account with $5 minimum balance, no withdrawal fees, 0.35% APY, and overdraft coverage capability for Penn State Federal checking accounts.
• Money Market Share Account Tiered dividend savings account with $1,500 opening deposit, free first order of 30 checks, and no-charge check writing ability, with APY up to 1.25% on balances of $100,000+.
• Holiday Club Account Savings account with October-to-October terms where the balance transfers to Basic Share Savings and becomes available on October 1.
• Share Certificates Fixed-term certificate of deposit investments with terms from 6 to 60 months, $500 minimum, insured by NCUA. Limited-time special rates available (e.g., 6 Month: 3.55% APY; 12 Month: 3.75% APY).
• Individual Retirement Account (IRA) Retirement savings accounts available in Traditional, ROTH, and Educational IRA varieties, offered in both certificate and accumulative terms with various term lengths and minimum balance requirements.
• Kid's Club Savings Savings account for children birth to age 12 requiring adult joint owner, $5 minimum balance, with ATM card, small prizes on deposits, $1 birthday bonus, and $5 bonus for every $100 in deposits reached.
• Teen Club Savings Savings account for ages 13-17 with adult joint owner requirement, $5 minimum balance, ATM card, financial education classes, and eligibility for Visa Debit Card with checking account upon completing Teen Classes.
• Auto Loans Vehicle financing for new vehicles (cars, trucks, vans, SUVs, motorcycles, motorhomes with less than 10K miles) and used vehicles, with terms up to 84 months and full coverage insurance required. Rates as low as 4.50% APR (new vehicles, <10,000 miles, 2025-2026).
• Personal Loans Unsecured consumer loans for purposes including consolidation, computer, furniture, moving, vacation, holiday, ATV and boat purchases, ranging from $500 to $50,000 with terms up to 60 months. Rates as low as 9.99% APR.
• Home Equity Loans Home equity installment loans for amounts of $5,000 to $806,500, allowing borrowing up to 80% of appraised value with repayment terms up to 120 months, free autopay, and no origination fee (limited-time offer). Available only on residences in Pennsylvania.
• Home Equity Line of Credit Revolving credit line using home equity with loan amounts of $5,000 to $806,500, 10-year draw period with interest-only payments, then 5-year fixed-rate repayment term, variable rate based on Wall Street Journal Prime minus 0.50%.
• Access Credit Line Overdraft protection line of credit ranging from $200 to $50,000 with no annual fee, revolving credit, and automatic repayment from Penn State Federal account.
• Mortgages (via Member First Mortgage) Mortgage products through partner Member First Mortgage including fixed and adjustable rate mortgages, conventional and government loans (FHA, RD/USDA, VA), affordable down payment programs, competitive rates, and easy online application.
• Platinum Visa Rewards Credit Card Consumer credit card with 8.9% to 17.9% APR, no annual fee, 25-day grace period, and tiered cash back rewards (0.25% on first $5,000, 0.50% on $5,000.01-$10,000, 1.00% on $10,000.01+).
• VISA Chip Debit and Credit Cards Chip-enabled Visa debit and credit cards with enhanced security through embedded microchip technology, accepted worldwide as chip or magnetic stripe, with daily transaction limits of $300 for PIN-based purchases.
• Educational Loans (via Sallie Mae) Student loan products through partnership with Sallie Mae for undergraduate and graduate students, including Smart Option Student Loan, Graduate School Loan, MBA Loan, Medical School Loan, Dental School Loan, and Law School Loan.
• Basic Business Share Savings Business savings account with $5 minimum to open and $100 minimum to earn 0.35% APY dividends.
• Non-Profit Organizational Checking Business checking for non-profit organizations with no minimum balance, no monthly service fee, dividends on balances over $2,000, and 100 free transactions per month.
• Deluxe Business Checking Business checking requiring $5,000 average daily balance to avoid monthly service fee, with dividends on balances over $5,000 and 300 free transactions per month.
• Business Share Certificates Business certificate of deposit investments with terms from 6 to 60 months and $500 minimum, with special limited-time rates up to 3.75% APY.
• Penny Business Bill Pay Online business bill payment service allowing accounts payable management, delegated payment responsibilities, customizable permission controls, and detailed reporting.
• Business Term Loans Secured and unsecured term loans for business equipment financing and improvements with competitive rates and no pre-payment penalties.
• Commercial Real Estate Loans Financing for purchase or refinance of single or multi-family investment properties and commercial buildings with flexible repayment terms and no pre-payment penalties.
• Business Lines of Credit Short-term financing bridging accounts receivable and accounts payable with secured or unsecured options and monthly interest-only payments on outstanding balances.
• Commercial Vehicle Loans Business vehicle financing with up to 100% financing on consumer-type vehicles for combined business/personal use and commercial vehicles, with no pre-payment penalties.
• Business Visa Platinum Credit Card Business credit card with no annual fees, competitive interest rates, customized credit limit controls, unlimited number of cards, and 24/7 account management.
• Wire Services Electronic funds transfer service for sending and receiving domestic and international wire transfers on behalf of members.
• Co-Op Shared Branches and ATMs Access to thousands of shared branch locations and surcharge-free ATMs through the Co-Op credit union network for deposits, withdrawals, loan payments, transfers, and money orders.
• IDCheck Identity verification tool for Co-op Shared Branch transactions using smartphone camera to scan ID and capture selfie, generating a 6-digit access code for secure transaction completion.

Quantifiable outcome

• Auto loan rates as low as 4.50% APR
• +2 more outcomes

Named customers2 records

Segments3 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature6 records

Partnerships

Six partnerships are on record, tiered core and minor.

• Member First Mortgage LLC (MFM)coreChannel Partner/ Reseller/ DistributorMember First Mortgage LLC serves as the mortgage partner for Penn State Federal Credit Union, providing mortgage originations and servicing. MFM is a Licensed Mortgage Lender/Servicer located at 616 44th Street SE, Grand Rapids, MI (NMLS ID: 149532). They offer fixed and adjustable rate mortgages, conventional and government loans (FHA, RD/USDA, VA), and affordable down payment programs. Local mortgage originator Jennifer Bachowski is located at the 1937 North Atherton Street branch.
• Sallie Mae BankcoreChannel Partner/ Reseller/ DistributorPenn State Federal partners with Sallie Mae Bank to provide student loans for undergraduate and graduate students. Products include Smart Option Student Loans, Graduate School Loans, MBA Loans, Medical School Loans, Dental School Loans, Graduate School Loans for Health Professions, and Law School Loans. Features competitive variable and fixed interest rates with no origination fee or prepayment penalty.
• Co-Op Credit Union NetworkcoreTechnology or IntegrationCo-Op Shared Branches and ATMs network provides Penn State Federal members access to thousands of convenient branch locations nationwide for deposits, withdrawals, loan payments, transfers, and money orders. Enhanced IDCheck verification system launched May 1, 2025 adds identity fraud protection for shared branch transactions.
• Global Wealth Management Firm (Local CFPs)minorStrategic or Co-development PartnerPenn State Federal partners with a global wealth management firm to provide financial planning services to members. Two local Certified Financial Planners help with college planning, estate planning, income tax planning, insurance planning, investment planning, and retirement planning. Consultations are provided at no cost or obligation.
• Benefits PlusminorChannel Partner/ Reseller/ DistributorBenefits Plus membership program offers exclusive discounts on groceries, travel, and everyday products and services. Program costs $7.00 per month and provides savings opportunities for members and their families.
• Various Local Companies (Employer Partners)coreChannel Partner/ Reseller/ DistributorPenn State Federal partners with local companies to offer employee membership benefits at no cost to employers. Benefits include unlimited educational materials, free financial seminars, updates on products and services, discounts on auto and home insurance, regular visits from credit union staff, and dedicated credit union contacts for employee questions.

Scale indicators4 records

Recent moves6 records

Expansion highlights6 records

Direct peers

• First Commonwealth Federal Credit Union: Pennsylvania community credit union offering deposit, lending, and digital banking services in overlapping central-PA markets. Comparable size and product set to Penn State Federal.
• SchoolsFirst Federal Credit Union: Credit union serving school employees and affiliated communities with deposit, lending, and retirement products. Closely analogous employer/affinity-based membership structure.
• Members 1st Federal Credit Union: Pennsylvania-headquartered community credit union with a multi-branch footprint and similar personal/business banking suite. Closest regional direct competitor given overlapping geography and product breadth.
• Belco Community Credit Union: Community credit union headquartered in the Harrisburg/central Pennsylvania region, offering similar retail deposit and consumer lending products. Directly comparable as a Pennsylvania-based community cooperative competing for the same membership demographic.
• UFCU (University Federal Credit Union): University-affiliated credit union serving a higher-education community with full personal banking and student lending. Comparable university-community membership model and product positioning.
• PSECU (Pennsylvania State Employees Credit Union): Pennsylvania-based, membership-gated credit union serving a defined employer/affinity community with full personal and consumer lending products. Highly comparable operating model to Penn State Federal's closed community charter.
• Citadel Federal Credit Union: Pennsylvania-headquartered credit union offering consumer and business banking, mortgages, and digital channels. Comparable mid-sized community credit union with similar product breadth.

Broad incumbents

• Navy Federal Credit Union: Largest U.S. credit union by assets, serving a defined military-affiliated community with the same cooperative member-ownership model. Comparable operating structure but vastly larger scale and product breadth.
• BCU (Baxter Credit Union): Large employer-affiliated credit union offering consumer banking, lending, and digital channels. Comparable affinity-based membership model with significantly broader scale.

Emerging players

• Connexus Credit Union: Digital-forward credit union with strong online/mobile banking, competitive nationwide deposit products, and consumer lending. Comparable digital-banking trajectory and competitive overlap in consumer deposits.

Market position

Strengths4 records

Weaknesses4 records

Competitive moat5 records

Key risks6 records

Key highlights7 records

Customer concentration

• Facebookfacebook.com/PennStateFederal
• LinkedInlinkedin.com/company/penn-state-fed-credit-union

Revenue estimate

Valuation estimate

Number of profiles

Profiles17 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Penn State Federal Credit Union