Navy Federal Adds 18-Month CD Special, 3.00% APY


UPDATE 8/19/19: The 5-year Certificate Special rate has fallen to 3.25% APY.

Deal Summary: Certificate Specials – 18-month (3.00% APY) and 9-month (2.50% APY), $1k minimum deposit.

Availability: Nationwide, but a military relationship required for membership.

At the beginning of the month, I stated, “It’s another good news Monday” at Navy Federal Credit Union (Navy Fed) because the 5-year Certificate Special rate had been increased to 3.50% APY on all deposit tiers.

3.00*%$1k-Navy Federal Credit Union5 Year Certificate
Rates as of October 22, 2019.

In that July 8 blog post, I wondered how long the 3.50% APY would last. Let me quote myself.

This offering was a surprise to me. With so many other banks and credit unions lowering their CD rates at the start of July, I had feared Navy Fed’s 3% rates would be disappearing. That did not happen last week, as the CD rates remained unchanged. Now with this new offering, Navy Fed has become the 5-year rate leader.

I received info about this CD from a Navy Fed official. I asked how long this offer will last. The official said that “as of now, we have no end date in mind.” Considering that Navy Fed’s competitors are offering much lower 5-year rates (for example, PenFed’s 5-year rate is only 2.45% APY), Navy Fed will likely be surprised about the demand. So I wouldn’t count on this offer lasting past July. That’s especially the case if the Fed cuts rates at its meeting on July 30-31.

It’s the Last Day of the Month

And there is more good news from Navy Fed: two competitive Certificate Specials. The 18-month (3.00% APY) and 9-month (2.75% APY) Certificate Specials can be opened with a minimum $1k “purchase amount” (Navy Fed’s term for a deposit), with “no maximum purchase amount.”

2.60*%$1k-Navy Federal Credit Union18 Month Certificate
2.60*%$1k-Navy Federal Credit Union18 Month IRA (Traditional, Roth, SEP)
2.60*%$1k-Navy Federal Credit Union18 Month ESA
2.25*%$1k-Navy Federal Credit Union9 Month Certificate
2.25*%$1k-Navy Federal Credit Union9 Month IRA (Traditional, Roth, SEP)
2.25*%$1k-Navy Federal Credit Union9 Month ESA
Rates as of October 22, 2019.

The Certificate Specials are also available as IRAs (Traditional, Roth, SEP, ESA), earning the same APYs with the same funding requirements.

As stated in Navy Fed’s Combined Certificate Disclosure, the Early Withdrawal Penalty reads as follows:

(a) If the term to maturity is one year (or less) for certificates, the amount forfeited is equal to the lesser of: (1) all dividends for 90 days on the amount withdrawn, or (2) all dividends on the amount withdrawn since the date of issuance or renewal.

(b) If the term to maturity is greater than one year, the amount forfeited is equal to the lesser of: (1) all dividends for 180 days on the amount withdrawn, or (2) all dividends on the amount withdrawn since the date of issuance or renewal.

Accrued interest can always be withdrawn without any penalty. According to Navy Fed’s Certificate Brochure,

Dividends on Navy Federal certificates are compounded daily and credited monthly. They’re posted to the account on both the last business day in the period in which they are earned and at maturity. Dividends that have been credited are available for withdrawal anytime without penalty.

Thanks to DA reader, SYC, for the Forum post of about Navy Fed’s latest hot deals.

Navy Fed’s Position on Certificate Rates

In the July 8 blog post, I offered some insight on Navy Fed’s aggressive stance on Certificate rates. Katie Miller, Senior Vice President of Savings Products, responded to my inquiry by stating,

"One benefit of membership with Navy Federal is the consistent way in which we reward loyalty. As a credit union, it is our mission to aggressively advocate for our members and set the gold standard with high savings dividends and low loan rates -- all for the sake of improving our members' financial well-being."

This feel-good response wasn’t exactly what I was looking for, so I turned my attention to Navy Fed’s financial data. At the end of the first quarter, Navy Fed reported $75.06 billion in loans and $77.21 billion in deposits, resulting in a loan-to-deposit ratio of 97.2%. That’s quite a bit higher than the average ratio (82.4%) for credit unions. When an institution has strong loan growth, there’s a need to increase deposits to fund the loans, which subsequently puts upward pressure on deposit rates. This may be the case with Navy Fed.

In June, I mentioned that Navy Fed has been growing at a fast pace. Last quarter, their asset level surpassed $100 billion, making Navy Fed the largest credit union in the nation, by far. The combination of strong loan growth and Navy Fed’s large size may make it possible for Navy Fed to maintain these competitive Certificate rates for a while.

Funding and Accessing Maturing Funds

When opening a Navy Fed Certificate online, the easiest way to fund a Certificate is probably is through a transfer from an existing Navy Fed checking, savings, or Money Market Savings account. An ACH transfer initiated by another institution may be the quickest way to get the funds into your Navy Fed liquid account. Once the funds are received, a Certificate can be opened using the online application, which allows you to specify that funds be pulled from that Navy Fed account.

An easy way to receive matured Navy Fed Certificate funds is to have the funds transferred to any existing Navy Fed checking, savings or Money Market Savings account. There is a 21-day grace period following maturity before the Share Certificate automatically renews.

Note – Navy Fed has restrictions on ACH debits from its savings account. Navy Fed’s Electronic Funds Transfer Agreement and Disclosure reads in part,

When you originate an ACH transfer at another financial institution, please note that your Navy Federal savings account may only receive ACH credits. Checking accounts may receive ACH credits and debits. MMSAs may receive ACH credits and debits in accordance with the limitations set forth in the MMSA agreement.

If you plan to pull funds from Navy Fed using the ACH service of another institution, you should consider opening either the Money Market Savings account or one of Navy Fed’s checking accounts.

Beneficiaries and Trust Accounts

Unlimited beneficiaries (with assigned percentages) can be named, with name, address, DOB, and Social Security numbers required for each beneficiary. To designate beneficiaries, refer to Navy Fed’s Payable on Death (POD) and Deposit Trust Accounts Form. This form can also be used to open accounts under a legal trust; Navy Fed calls that type of account a “Deposit Trust Account.”


Unlike PenFed's nearly universal membership eligibility, Navy Fed’s field of membership (FOM) is restricted to individuals who have a military connection, regardless of residency status.

As I described in a 2017 blog post, Navy Fed’s FOM has expanded and, while a military connection is still required, many more people are now eligible to join. The most recent group added are individuals with family members who were affiliated with the military at any time.

Navy Fed’s "Become a Member" page lists the various ways to qualify for membership.

Active Duty, Retired and Veterans – Service members in all branches of the armed forces are membership-eligible, including:

  • Active Duty members of the Army, Marine Corps, Navy, Air Force, Coast Guard, and Ait National Guard.
  • Delayed Entry Program (DEP)
  • DoD Officer Candidate/ROTC
  • DoD Reservists
  • Veterans, retirees, and annuitants

Family Members – Individuals with parents, grandparents, spouses, siblings, children (adopted and step), grandchildren, or household members who at any time were affiliated with the military or are already Navy Fed members are also eligible to join.

Department of Defense (DoD) Civilians – Any DoD civilian employee, U.S. government employees/contractors assigned to DoD installations, and DoD retiree/annuitants are welcome to apply.

Joining Navy Fed and/or opening a Special Certificate can be done online or at any of 331 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, with a Texas Ratio of 5.38% (excellent) based on March 31, 2019 data. In the past year, Navy Fed has increased its total non-brokered deposits by $10.28 billion, an excellent annual growth rate of 15.38%. 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 8,400,000 members and assets in excess of $103 billion.

How the Special Certificates Compare

When compared to 151 similar length-of-term CDs tracked by that require a similar minimum deposit and are available nationwide, Navy Federal Credit Union’s 18-month Special Certificate APY currently ranks first.

When compared to 191 similar length-of-term CDs tracked by that require a similar minimum deposit and are available nationwide, Navy Federal Credit Union’s 9-month Special Certificate APY currently ranks third.

The above rates are accurate as of 7/31/2019.

To search for the best CD rates, both nationwide and in state specific, please refer to our CD Rates Table page.

Related Pages: 1-year CD rates, 5-year CD rates, nationwide deals

UCLA   |     |   Comment #1






UCLA   |     |   Comment #2
Curious   |     |   Comment #3
Anyone have any experience selling a brokered CD? I may need the funds and the market price of it is about $1500 over par......But I have heard these are still extrememly difficult to sell? regardless of where the price is?
Mak   |     |   Comment #5
#3... Not difficult at all for me... I have some with Vanguard and I can check in my account to see what I can get, if I want to try and get more than what they offer me I can call Vanguard and have them put in the price I want to try and get.
Curious   |     |   Comment #7
Thanks Mak! Good to know.....So you can actually set the price yourself? I just figured you had to go with whatever the value showing on my account is. I would be fine selling for less as I may need the cash......happy really to just get all my principal........On average how long does it usually take to find a buyer?
Mak   |     |   Comment #9
Curious... first of all ask your broker.....second it all depends what you are asking, if your ask is too high it won't sell.
Curious   |     |   Comment #12
Thanks Mak......One more question? I assume I continue to get interest until the day it sells? (Pro rata)
Mak   |     |   Comment #15
Ric   |     |   Comment #11
I've had a couple of CDs with Schwab where the principle (market) value has increased as interest rates went down. I've sold them and pocketed the increase over par. Since there is no prepayment penalty there is no loss in selling them before maturity. I've then reinvested the money in similar CDs at equal or higher rates In credit unions that offer equal or better rates. It's an incredible way to double your returns, but unfortunately most brokerages recently offer CDs at lower rates then you can find by shopping on
Curious   |     |   Comment #13
Thanks Ric- My CD's are with Schwab too so that's good to know....I will probably call their fixed income dept directly for help......Appreciate it.
111   |     |   Comment #14
Ric, comment # 11 - a question. In the bond world, doing what you describe with brokered CDs would be selling the bond on the secondary market at a premium (above-par) price. The difference between the price you sold at and par would be your capital gain, and if a long-term capital gain would get preferential tax treatment, just as stock long-term capital gains do.

With your brokered CDs, does the IRS consider this increase over par that you pocket to be a capital gain?
Mak   |     |   Comment #16
#111... I know you didn't ask me but .....if it's in a taxable account it's a capital gain.
me1004   |     |   Comment #4
I sure wish this were an add-on CD. I would like to open it now at minimum in order to hold the rate for a CD maturing beginning of January. Oh well.

BTW, to clarify the Availability map above, it isn't quite accurate. Navy Fed does NOT have a branch in all those states marked in the darker yellow. That appears to be counting any state with a Navy Fed ATM as a branch. (And Navy Fed is not part of the shared branch system.) For instance, there is no Navy Fed branch in New Jersey, not even military branches, only Navy Fed ATMs.
QED   |     |   Comment #6
The highest yielding add-on CD of which I'm currently aware is being offered by GTE  Financial. They have a five year 3.3% APY CD with unlimited add ons permitted. The huge negative of the GTE offering is its $100,000 minimum to get going. That is a monstrous barrier for a great many people, especially compared for example with the very reasonable $1000 minimum required for the NFCU five year CD which offers a higher APY. Of course the NFCU product is not an add on . . . . but still.
proximus18   |     |   Comment #10
me1004 ---- 2100 Route 38 Cherry Hill, NJ and Colts Neck, NJ 07722 are definitely walk-in full service branches.
me1004   |     |   Comment #23
I just checked back at Navy Fed. Gee, now their map is showing differently than I saw a couple days ago! Yes, there are those two branches in NJ! Why did they not show a couple days ago?

Thank you for correcting!

I note, the Colts Neck one is listed at on that military base -- do you know if that is accessible to the public?
y??   |     |   Comment #8
Already took advantage of their new 18Mo, 3.0% APY CD offer Monday morning when it first came out. Have always gotten excellent service every time I have dealt with NFCU. Their CSRs know their stuff and have a dedicated dept handling CDs!
jimdog   |     |   Comment #17
This 3% 18 Mo. is a great rate and I just loaded up on one. One trick is the 1,000 CD amount is the same as the 100,000 rate so it makes sense to open a large CD, such as a 100,000 with the 1,000 min. on the certificate. Currently, if you withdraw an amount that reduces your CD below it's minimum you must close the entire CD. That way, say if you needed 10,000, you don't break the CD minimum (100,000) and then pay a big penalty on closing the CD. .
Nothing   |     |   Comment #18
But you still pay EWP too if closed!
jimdog   |     |   Comment #19
small penalty on 5,000 vs. 100000 when a CD is closed.
Nothing   |     |   Comment #20
Using your numbers..5% is not small to me. 360 days ewp is not small change
jimdog   |     |   Comment #22
only 180 day penalty
QQQ   |     |   Comment #21
Yesterday was the closing day of July. Today is the first day of August. Some good news:

The interest rate for the NFCU five year and eighteen month certificates has held steady . . at least for today.
Unusual Activity
Unusual Activity   |     |   Comment #24
Hope they keep this deal open until the end of August or even into September. Have some CD's coming due. Andrews 17 month looks attractive also.
Anonymous   |     |   Comment #25
Received an em from Navy offering to renew my CD today, which is maturing in September, with any of their current rates, including the 18 month and 5 year. I did so thinking the rates might be lower by September.
Unusual Activity
Unusual Activity   |     |   Comment #26
Better grap it because Trump has rubbed Powell's nose in the dirt on this and expect more rate decreases. I would say 2 and maybe 3 coming based just on currency.
Anonymous   |     |   Comment #27
Received same email so called them. Was told renewing now does not guarantee today's rates and it's going to be prevailing rate at the actual renewal. Anyone verify this one way or another please?
Anonymous   |     |   Comment #28
You're correct - just called them. They really intended to send the emails to members with maturing CD's in August but even then the rate is not guaranteed to be in place all of August. My CD is renewing in September and I had them remove the renewal. They said they will be sending out a clarifying email. Thx for the heads up!
Why?   |     |   Comment #29
Why have NFCU CD's been absent from the DA CD lists?
#30 - This comment has been removed for violating our comment policy.
Bob   |     |   Comment #31
Does interest stop accruing once the balance of the CD reaches 150k. Or are total deposits simply limited to 150k. My 40 month term ends April 2022. My current NFCU balance is 2k. I have 200k of IRA deposits maturing later this month
Hard Pull
Hard Pull   |     |   Comment #33
Hang tight, this is the right place to ask!
Bob   |     |   Comment #32
Does interest stop accruing once the CD balance reaches 150k. Or are deposits simply limited to a total of 150k. My 40 month term ends April 2022
Navy Federal Offers Very Competitive 5-Year CD
UPDATE 8/19/19: The 5-year Certificate Special rate has fallen to 3.25% APY.

Deal Summary: 5-Year Certificate, 3.50% APY, $1k minimum.

Availability: Nationwide, but a military relationship required for membership.

It’s another good news Monday at Navy Federal Credit Union (Navy Fed). The 5-year Share Certificate rate has been increased to 3.50% APY on all tiers. Minimum deposit is $1k. There is no maximum deposit. This is just a standard type of Certificate. There are no special features. For example, add-on deposits are not allowed until maturity.

Continue Reading
Navy Federal Adds 10-month Special CD, 2.75% APY w/Add-Ons
Deal Summary: 10-Month Special Certificate, 2.75% APY, $50 minimum, additional deposits up to $100k total balance.

Availability: Nationwide, but a military relationship required for membership.

It’s a good news/bad news Monday at Navy Federal Credit Union (Navy Fed). Might as well do the bad news first: Navy Fed’s 6-, 17-, and 40-month Special Certificates are no longer available.

The good news is there’s a new 10-month Special Certificate that can be opened with a minimum $50 deposit, but its 2.75% APY isn’t as competitive as the APYs offered...

Continue Reading
Navy Federal Offers 6-Month CD Special, 3.00% APY
Deal Summary: Celebration Special Rate 6-Month Certificate, 3.00% APY, $1k minimum deposit.

Availability: Nationwide, but a military relationship required for membership.

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...

Continue Reading
Navy Federal Introduces 17-Month Add-On CD Special, 3.25% APY
Deal Summary: 17-month Share Certificate Special, 3.25% APY, $50 minimum/$50k maximum deposit, additional deposits up to $50k.

Availability: Nationwide, but restricted to those with a military relationship.

Navy Federal Credit Union (Navy Fed) has added a 17-month Share Certificate Special (3.25% APY, $50 min/$50k max) to their product line. The new 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.

As stated in Navy Fed’s Certificates...

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Navy Federal Debuts 40-month IRA Certificate Special
Deal Summary: 40-month IRA/ESA Certificate Specials, 3.75% APY), $50 min/$150k max deposit, unlimited additional deposits.

Availability: Nationwide, but with membership requirements (military relationship)

Navy Federal Credit Union (Navy Fed) has a “Featured Products” tab on its Certificate Rates page, which includes an ever-changing array of special products. In addition to its signature 12-month Special EasyStartSM Certificate and a Special 24-Month Certificate (3.00% APY), Navy Fed is currently featuring a Special 40-month IRA/ESA Certificate earning 3.75% APY. This IRA/ESA can be opened with a $50 minimum and is capped...

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