Navy Federal Offers 6-Month CD Special, 3.00% APY
On Saturday, Punxsutawney Phil did not see his shadow, leading to predictions of another dismal six weeks of winter. Perhaps Navy Federal Credit Union’s (Navy Fed) new Celebration Special Rate 6-month Certificate (3.00% APY, $1k minimum) can help you weather the prospect of more ice, snow, and frigid temps.
The Celebration Certificate is also available as an IRA (Traditional, Roth, SEP, ESA), earning the same APY with the same funding requirements.
At first glance, the fine print on the promotion page is slightly confusing.
Minimum purchase amounts of $10,000, $20,000, $50,000, and $100,000.
No maximum purchase amount.
This isn’t the first time I’ve questioned the four listed minimum purchase amounts. Many of NavyFed’s Certificates have tiered APYs based on the four minimum deposit levels, and the above quote is the default disclosure. The Celebration Certificate is an exception, earning 3.00% on all deposit levels. Long story short,
- The minimum opening deposit is NOT limited to $10k, $20k, $50k, or $100k.
- The Celebration Certificate can be opened with any amount of at least $1k.
- There is no balance cap.
- The Celebration Certificate does not have tiered APYs.
As stated in Navy Fed’s Certificates brochure, the Early Withdrawal Penalty reads as follows:
Certificates with a one-year term or less: Forfeiture of all dividends on the amount withdrawn for 90 days or since the date of purchase or renewal (whichever is less).
Thanks to DA reader, ddbrege, for sharing this gem in the Forum.
17-Month Share Certificate Special
In early January, Navy Fed added a 17-month Share Certificate Special (3.25% APY, $50 min/$50k max), which is still available. The 17-month Special features unlimited additional deposits (up to $50k) throughout the term. According to the fine print on the promotion page, there is a limit of one 17-month Special per member.
Availability
Unlike PenFed's nearly universal membership eligibility, Navy Fed’s field of membership is restricted to individuals who have a military connection, regardless of where they reside.
Navy Fed’s "Become a Member" page has a series of questions to determine membership eligibility.
You must be able to answer "Yes" to one of the following questions to qualify for Navy Federal Credit Union membership. Note: many people can answer "Yes" to the second question.
- Are you or have you ever been affiliated in any way (includes Active Duty, reservists and retired personnel) with the Armed Forces, DoD, Coast Guard or National Guard?
- Do you have a family member (grandparents, parents, spouses, siblings, grandchildren, children and household members) who at any time was affiliated with the military?
- Do you have a family member (grandparents, parents, spouses, siblings, grandchildren, children and household members) who is already a Navy Federal member?
Joining Navy Fed and/or opening a Celebration Special Rate Certificate can be done online or at any of 322 branches located in 30 different states and the District of Columbia.
Credit Union Overview
Navy Federal Credit Union has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 6.15% (excellent) based on September 30, 2018 data. In the past year, Navy Fed has increased its total non-brokered deposits by $7.84 billion, an excellent annual growth rate of 12.74%. Please refer to our financial overview of Navy Federal Credit Union (NCUA Charter # 5536) for more details.
Headquartered in Vienna, Virginia, Navy Federal Credit Union is considered the largest credit union in the world. Founded in 1933 as the Navy Department Employees’ Credit Union of the District of Columbia, Navy Federal has grown from its initial seven members to more than 8,100,000 members and assets in excess of $95 billion.
How the Celebration Special Rate Certificate Compares
When compared to 191 similar length-of-term CDs tracked by DepositAccounts.com that require a similar minimum deposit and are available nationwide, Navy Federal Credit Union’s Celebration Special Rate 6-month Certificate APY currently tops the list.
The above rates are accurate as of 2/4/2019.
To search for the best CD rates, both nationwide and in state specific, please refer to our CD Rates Table page.
https://www.doctorofcredit.com/master-list-no-fee-no-apr-balance-transfers/
The BankAmericard has no cap on their balance transfer offer other than your available credit line. You can also re-allocate credit lines with them. Next best is Chase Slate $15,000 cap for balance transfers every 30 days so you can do a max of $30,000 for sure. Credit card re-allocation is also allowed with Chase. It looks like the AMEX everyday card removed the $7,500 bt cap but they don't allow re-allocation at this time. NFCU has no bt cap other than your credit line not sure about re-allocation with them yet. ESL FCU gives you a $100 bonus plus 1% bonus on the balance transfer itself if you can join the CU:
https://www.esl.org/personal/credit-cards/rewards-visa-signature-credit-card/curewards
Navy also offers Speedway where you can fund certificate by authorizing funds to be withdrawn from an outside checking account by phone. More info on Speedway and all transfer options here, https://www.navyfederal.org/account-management/transfers.php
Pics or it didn't happen
Most 1 year only pay 3%, this almost two times!
He wrote: "Most 1 year only pay 3%, this [almost] two times!"
In Comment #21 he seems to affirm this misunderstanding: "3% for 6 months, not 1.5."
Maybe you can better explain this to him, deplorable ?
Tell him that if he opens the 6 month CD at the 3% annual rate, with the minimum $1,000, at the end of the six months (when the CD matures) he will have approximately $1,150.
$30/2 = $15 so $1,015 after 6 months or $1,000 x .015(1.5%) = $1,015 either way works out the same. You just can't say you are only earning 1.5% though because you will be closing the CD and putting that cash somewhere else for the next 6 months.
With an annual yield of 3%, after 6 months the gain on $1,000 would be (approximately) $15.
Actually a little less, since an APY of 3% -- compounded monthly -- implies a monthly rate of around 2.4663% . . . Which, doing the math on $1,000, yields $14.89 after 6 months.
Only after a full 12 months at the monthly rate would you obtain your full 3% annual percentage yield of $30
https://www.youtube.com/watch?v=wE8nNUASSCo
Highly inconvenient. Almost a show-stopper for me.
https://www.navyfederal.org/account-management/ach.php
and for the fees associated with the checking account:
https://www.navyfederal.org/pdf/applications-forms/savings-checking/401C_Everyday_Checking.pdf
NFCU is rigid and unorthodox in a number of areas of their banking practices. Nothing at NFCU should be taken for granted based on your banking experiences elsewhere.
Almost a show stopper? I agree with you. NFCU is annoying at BEST!! And their "special" ways of doing things can blindside a member at any time. The people running NFCU must be real pieces of work, believing they know better and do things right while the rest of the banking industry is wrong.
But, I am getting a little break from winter with highs of 71, 73 and 72 the next 3 days. Back down to 30 saturday night but I am hoping no more hard freezes this winter. (Probably not realistic)
Changed my mind about Navy. NASA has better specials.
NAVY would not take me because of no military connection.
That is important because when your CD matures, like mine does today, I cannot buy another special CD without adding new money. I did not even consider ACHing it in from either side just because I have always done shared branch deposits and with ACH I tend to lose a day or two's interest. When I write a check, I tend to gain 1-3 days interest. That's not significant on $10k but on more it can be.
I even spend for a stamp to snail mail deposits when I can't do shared branch.
I have always opened my nasa cds by phone when I get home from the shared branch. (I am not a big cell phone user. I could do it on the way home but I'd rather save my minutes and call when I get home. Also I can ask them to turn off the auto-renew)
I think the default on these special CDs is they automatically force you into a regular rate CD at the end of the term unless you say otherwise. Several credit unions do that and one would not even let me turn that off saying it was too soon to do it. NASA I think.
I have read that you can open the CD online and it becomes effective when you fund it within 10 days. I am unsure if you can open it and fund it 9 days later and get interest for those 9 days. Seems unlikely but I have not tried it.
I would do a 6 month at 3% if I qualified and already had an account. I am hesitant to open lots of new accounts because when I was contemplating a Premier CU account before it died, people were getting rejected for having too many recent bank accounts or chexsystem inquiries.
If one uses the grace period and then changes their mind after 9 days, does he get interest for those 9 days or not? At what rate?
1 year is the time period to have used shared branch such that you don't need permission. And 2 CDs requires $20k in new money.
To me, losing any interest for an ACH is unacceptable unless its for small amounts.
*Assume, for the purpose of argument, you check the box that represents that a family member was "affiliated with the military". How, in heaven's name, would NFCU (or anyone else, for that matter) verify this representation?
The Banks pay taxes is their main complaint. They (the government aka banks?) dont mind paying the Chinese interest.
Contrast this with "Penfed's got great rates for EVERYONE" ... they are even advertising that.
By contrast, I'm sure Schwab shareholders have plenty of reason to be upset that Vanguard, as a mutual company, also basically operates as 'not-for-profit,' Yet, Vanguard membership is open to anyone and they are the largest mutual fund company in the world.
Schwab shareholders have the option of converting to a non profit.
Fair competition is not a justified reason. The real reason is obvious, and it is petty.