As DA reader, carolynwo, noted in a Forum post, Navy Federal Credit Union (Navy Fed) has a new 17-month Share Certificate Special (2.25% APY, $50 min/$75k max) in their product line. The new Special also allows unlimited additional deposits (up to $75k) throughout the term. According to the fine print on the promotion page, there is a limit of one 17-month Special per member.
The current 17-month Special has an APY that is 100 bps lower than was offered January 2019, but the balance cap is $25k higher. A year ago, there were eight other CDs with similar terms with yields between 3% and 3.15%. Now there are five other nationally-available CDs with similar terms with yields of 2.25% and none that have higher yields. So Navy Fed’s Special may not be quite as competitive as last year, but it’s close.
As stated in Navy Fed’s Certificates brochure, the Early Withdrawal Penalty reads as follows:
Certificates with a term greater than one year: Forfeiture of all dividends on the amount withdrawn for 180 days or since the date of purchase or renewal (whichever is less).
Many thanks to DA reader, carolynwo, for yesterday’s Forum post about Navy Fed’s newest offering.
Special 37-month IRA/ESA Certificate
Navy Fed’s Special 37-month IRA/ESA Certificate (3.00% APY) was added to the product line in early December and is still being offered. Like the 17-month Share Certificate Special, the IRA/ESA is limited to one per member and can be opened with a $50 minimum, but has a higher balance cap of $150k. The add-on feature allows for unlimited additional deposits any time during the term, but is “subject to the maximum balance and IRS contribution limits.”
|3.00%||$50||$150k||Navy Federal Credit Union||37 Month IRA Special (Traditional, Roth, SEP)|
|3.00%||$50||$150k||Navy Federal Credit Union||37 Month ESA Special|
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.
A balance of at least one share ($5) is required to establish and maintain membership.
Credit Union Overview
Navy Federal Credit Union has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 6.12% (excellent) based on September 30, 2019 data. In the past year, Navy Fed has increased its total non-brokered deposits by $13.9 billion, an excellent annual growth rate of 20.03%. 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 8,800,000 members and assets in excess of $110 billion.
How the Certificate Special Compares
When compared to 156 similar length-of-term CDs tracked by DepositAccounts.com that require a similar minimum deposit and are available nationwide, Navy Federal Credit Union’s 17-month Share Certificate Special APY currently shares the top spot with five other nationally available 18-month CDs.
To search for the best CD rates, both nationwide and in state specific, please refer to our CD Rates Table page.
How the IRA Certificate Special Compares
When compared to 154 similar length-of-term IRAs tracked by DepositAccounts.com that require a similar minimum deposit and are available nationwide, Navy Federal Credit Union’s 37-month IRA/ESA Certificate Special APY currently ranks first.
To search for the best IRA rates, both nationwide and in state specific, please refer to our IRA Rates Table page.
The above rates are accurate as of 2/4/2020.