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Special 30-Month CD and IRA Rate at Navy Federal Credit Union

POSTED ON BY

Navy Federal Credit Union

Navy Federal Credit Union is offering a special 2.25% APY 30-month CD and IRA CD. Minimum deposit is $10,000. Early withdrawal penalty is 180 days of interest. This CD is listed in the credit union's certificates rates page as of 11/18/2010.

Navy Federal also lists another special CD that may look like a good deal at first (2.90% APY 1-year EasyStart Certificate). However, if you read the conditions, you'll see it's not that great. The maximum deposit is $3,000, and it requires that you have direct deposit in your checking account.

For standard CD rates, the top rate is 3.15% APY for a 7-year term and a $20K minimum deposit as of 11/18/2010. Navy Federal often has long-term CD rates comparable to what PenFed offers. However, currently PenFed has the best long-term CD rates.

When I last opened a Navy Federal CD in 2007, I was able to open it online. I first transferred money into my Navy Federal savings account via Ally Bank's ACH service. Once the money was available in the savings account, I opened the CD and selected the savings account as the source of the funds.

How It Compares

As a comparison to internet banks as of 11/18/2010, I'll use the more common 36-month (3-year) CD. The best 36-month CD rate is 2.05% APY at Bank of Internet USA. For credit unions with easy membership, the best 36-month CD rate is 2.27% APY at Melrose Credit Union.

Former USA Fed Members

For those who tried to join USA Fed before it merged into Navy Federal, I hope things went well. USA Fed application process was slow, and then Navy Federal slowed things down some more. It was reported that Navy Federal was reviewing USA Fed members who had recently joined via the Prime Meridian Association. Based on one reader's report, it appears that Navy Federal is allowing them in. I received an email from the reader last week after she received her Navy Federal debit card and PIN.

For former USA Fed members, Navy Federal had offered them two good CD deals: 1) a 5.00% APY 12-month CD with a $5K maximum deposit, and 2) a rate bump of 0.50% APY on any new standard certificate rate.

Navy Federal Membership

I was hoping Navy Federal would add USA Fed's field of membership which included the Prime Meridian Association members. However, that did not happen. Navy Fed's FOM appears the same as before. Essentially, you need some military connection. Please refer to their Eligibility Checklist for the full details.

Navy Federal Overview

Branches are located around the US and the world.

Navy Federal has an overall health score at DepositAccounts.com of 3 out of 5 with a Texas Ratio of 48.94% (average) based on June 2010 data. It's the largest credit union in the nation with $41.48 billion in assets and $30.00 billion in deposits. Please refer to our financial overview of Navy Federal Credit Union for more details. The credit union is federally insured by the NCUA (Charter # 5536).

Searching for the Best CD Rates

To search for the best nationwide CD rates and the best CD rates in your state, please refer to the CD rates section of DepositAccounts.com.


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

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Comments
5 comments.
Comment #1 by Anonymous posted on
Anonymous
Should there be concern that this union is not FDIC insured?

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Comment #2 by Anonymous posted on
Anonymous
Thanks for giving information of this special offer.

3
Comment #3 by Anonymous posted on
Anonymous
Anonymous - #1:  None of the Credit Unions are insured by FDIC, because the FDIC insurance is available only for banks. 

NCUA insurance is to Credit Union what FDIC insurance is for the banks, and Navy has NCUA insurance.  So it is no concern at all.

4
Comment #4 by Anonymous posted on
Anonymous
First of all, thanks for publicising the USAFed/NFCU merger.  Otherwise, I would have missed out on this outstanding opportunity to join NFCU by exploiting the USAFed/Prime Meridian connection. I also would have missed out on the special offers that NFCU is making to former USAFed members.

 I suspect that NFCU didn't add Prime Meridian to its FOM because the latter was literally created by USAFed and located at its headquarters. Although USAFed may have been able to bend the NCUA FOM rules in this manner, I suspect that NFCU may have considered it wiser to avoid any potential controversy. Banks have long been complaining about CUs using this approach for adding members. Since NCFU as grown exponentially within well defined FOMs, I doubt if it had any incentive to add Prime Meridian as a FOM.

1
Comment #5 by Anonymous posted on
Anonymous
Thanks from me also, for posting about the NavyFed/USAFed merger. However I've been pretty disappointed in NavyFed so far. They seem to be, shall we say, not too organized a credit union -- and this has nothing to do with the merger. For instance, I got all my membership stuff OK, but filled out my application at the local branch, for them to send it along with other paperwork (including for an ATM card). The ATM paperwork went through OK, but somehow membership never received my filled out form from the local branch. The local branch doesn't keep them, they send them in the mail. It's been almost a month, and I got a letter saying they need my form or else there will be IRS penalties (??) and stuff like this. So I had to go to the branch today again, fill out another form (and I'm not crazy about there being two versions of the same form floating around), and this time I stood there while the employee faxed it to them -- so I could KEEP a copy of it to FAX yet again if they once more "don't receive it." Another thing: with NavyFed's CU Card (ATM card), the only way the PIN can be changed is by them sending you a whole other card. I was told by a rep that I could call an 800 number to activate or change the PIN -- that's not true. It's such a waste, you have to literally throw away your old card and they'll send you another with your new selected PIN in it. Even the rep on the phone when I finally got the right info agreed it was really a waste of time and resources. They tell you to keep your card until the new one comes, and then cut it up and throw it away. Plus even a year ago or so, we were told by NavyFed's call center that a parent in the military would qualify him and his kids, even if he's not getting a pension from having served. But wasting a trip to a branch later on, we found out you have to be getting a pension or qualify in certain other ways, not just having served (my father served for just one year and was honorably discharged -- at the time he served, they allowed 1 year enlistments -- but that didn't qualify him). So if you want to put up with ineptitute, it might be worth it. I joined mainly to get my foot in the door while I could, especially since there's also a branch not too far away. But I'm happy at my main credit union (another CU) where I bank, and will just keep Navy in case they start offering some good deals. Still, just be aware that they can be pretty backward and hopeless at times...

 

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