Dedicated to Deposits: Deals, Data, and Discussion

Navy Federal's CD Rates Fall But Remain Competitive

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Navy Federal Credit Union

The info that I was told on Friday was correct. Navy Federal Credit Union did lower its CD and IRA CD rates late yesterday or early this morning. The good news is that the cuts weren't too bad. Rates only fell by 10 to 15 basis points, and many of the rates are better than what PenFed is offering. Perhaps there's some competition between these two credit unions. Below is a list of these new CD yields along with the old yields:

  • 3.55% APY 7-year CD $20K minimum (was 3.66%)
  • 3.00% APY 5-year CD $100K minimum (was 3.15%)
  • 2.90% APY 5-year CD $20K minimum (was 3.00%)
  • 1.45% APY 18-month CD $10K minimum (was 1.55%)

The above yields are listed in Navy Federal's deposit rates page as of 9/06/2010.

The early withdrawal penalty is similar to PenFed's: 6 months of interest for the 5-year and 12 months of interest for the 7-year. Note, the penalty is only on the amount of the principal withdrawn and it won't eat into the principal.

In the rate sheet, you may notice the 2.90% APY for a 1-year CD. This isn't a typical CD. It's the EasyStart Certificate which has balance cap of $3,000 along with several hoops to jump through.

Navy Federal expanded their field of membership in 2008, but it's still not easy to join if you don't have a military connection. You can now be eligible if you have some connection with not just the Navy but also with the Army, Marine Corps and Air Force. Please refer to their Eligibility Checklist for the full details. Unlike Pentagon Federal Credit Union, there isn't an easy way for people without a military connection to join.

For more details about joining Navy Federal and opening and closing Navy Federal certificates, please refer to this May 2008 post.

Branches are located around the US and the world. Navy Federal is federally insured by the NCUA (Charter # 5536). It has $41.48 billion in assets and is the largest credit union in the nation.


  Tags: Navy Federal Credit Union, CD rates, IRA rates

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