Navy Federal Introduces 17-Month Add-On CD Special, 3.25% APY
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 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Certificates with a term greater than one year: Forfeiture of all dividends on the amount withdrawn for 180 days or since the date of purchase or renewal (whichever is less).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 readers racecar and rockies for their Forum posts last week, which provided advance notice and accurate details about Navy Fed’s newest offering.
Special 40-month IRA/ESA Certificate
Navy Fed’s Special 40-month IRA/ESA Certificate (3.75% APY) 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.”
| APY | MIN | MAX | INSTITUTION | PRODUCT | DETAILS |
|---|---|---|---|---|---|
| 3.75% | $50 | $150k | Navy Federal Credit Union | 40 Month IRA Special (Traditional, Roth, CESA, SEP) |
$100 IRA Bonus
Members who open their first IRA and deposit at least $100 in the new IRA no later than 45 days after account opening, will earn a $100 bonus. The bonus will be credited into the IRA account within 30 days of funding. The $100 bonus will be classified as a dividend and “will not be reportable as a contribution."
Availability
Navy Fed’s field of membership (FOM) includes individuals who are connected to the U.S. military, regardless of where they reside.
The "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.
- 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 CD or IRA/ESA Certificate Special can be done online or at any of 318 U.S. 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 5.52% (excellent) based on June 30, 2018 data. In the past year, Navy Fed has increased its total non-brokered deposits by $7.89 billion, an excellent annual growth rate of 13.08%. Please refer to our financial overview of Navy Federal Credit Union (NCUA Charter # 5536) for more details.
Navy Federal Credit Union is considered to be the largest credit union in the world. Headquartered in Vienna, Virginia, Navy Federal has grown from its initial seven members in 1933, with more than 8,100,000 members and assets in excess of $91 billion.
How the Specials Compare
When compared to 160 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 ranks first.
| Interest Rate | Length of Term | Credit Union/Bank |
|---|---|---|
| 3.25% APY | 17-Month Share Certificate Special ($50k max) | Navy Federal Credit Union |
| 3.10% APY | 15-Month CD Special | Premier America Credit Union |
| 3.04% APY | Online 19-Month CD | MutualOne Bank |
To search for the best CD rates, both nationwide and in state specific, please refer to our CD Rates Table page.
When compared to 146 similar length-of-term IRAs tracked by DepositAccounts.com that require a similar minimum deposit and are available nationwide, Navy Federal Credit Union’s 40-month IRA/ESA Certificate Special APY currently ranks first.
| Interest Rate | CD Length of Term | Credit Union/Bank |
|---|---|---|
| 3.75% APY | 40-Month IRA/ESA Certificate Special ($150k max) | Navy Federal Credit Union |
| 3.35% APY | 3-Year IRA | Mountain America Credit Union |
| 3.20% APY | 36-Month IRA Certificate | Connexus Credit Union |
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 1/7/2019.
Call customer service of your cc and ask to lower the ca limit to zero. All cc companies should allow you to do this despite what they preach.
The reprehensible practice to which you make reference is far too widely found amongst American financial institutions . . . though not all. They know EXACTLY what they are doing. I call it unvarnished stealing . . . . from their own customers and members. Sometimes you are able easily to short circuit the crediting delay with a telephone call . . . . . though not always. But in any event, such a crediting delay should not exist in the first place.
If that one day delay made you miss out on a deal somewhere else or something like that, I'd understand.
Been a member for years and never had such bad experiences with PenFed.
Checks? 6 withdrawals per month? Any limitations?
https://www.rightnotes.com/prospectus.pdf
https://firstclassdemandnotes.com/
I believe that the GM right notes program will eventually morph into something more like ALLY demand notes with up to 3 linked accounts, check writing ability and allowing 3rd party ACH pulls. For now though it is what it is a very limited place to park liquid cash.
Deplorable talks about these GM notes multiple times per day. What is the point?
These UNSECURED debt notes are risky if you read the prospectus. They are not savings account and that is why they are not called that.
You often seem to justify your actions. I'm working as a consultant and my wife still works. I enjoy life, have young children and have a good amount of savings, investments and 529s for my kids. Glad you retired and like to brag about it and your investments.
In part this is because I consider "add-on" CDs with rates that are at least decent, as somewhat rare. Therefore, their value as "rate insurance" may be as or even more important than their value as immediate income-producers. "Holding back", as you call it, gives me the option of assessing economic changes, and at some future time (near-future, of course since it's only a 17-month term after all), deciding whether to add more funds to this CD, or instead to use those funds to buy stocks/ETFs/equity funds if they have dropped enough.
This requires, as you stated, "some luck", but probably not as much as individual stock-picking, and in my experience it is more lucrative than a simple hard-coded CD ladder.
Best thing for everyone is to call their 888 toll-free number. Those reps usually (not always, but usually) do it right. Years of experience has shown that in the branch, it's done wrong virtually 100% of the time, and actually makes this worse because you have to wait until everything is forwarded (by mail) back to the head office to then realize it was done wrong. Use their 888 number.
But to establish membership and open a share account? I did this about a year ago in a branch and got it done in one day as Sylvia pointed out. Even opened the Roth IRA there and got the $100 bonus for the Roth, even though the employee had never heard of a Roth before. :) I think she later said "This is a great idea, maybe I should open a Roth account too." :) Luckily she did everything correctly, but it took a few phone calls and a lot of time. On the other hand, establishing membership was quick and routine for them I think.
So, I know NFCU is still working on requests from 2018 and I think she might have given you some good advise. However, apparently I'm not handling my own problem very well.
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although this one is not a IRA, it is still capped at 50K.
Good deal for the "short term and lower deposit amount" crowd like younger people just starting out saving and have a set amount they can do without for a short time, not too good for retired type that use these things as income.
One thing that concerns me with these short terms is locking up funds for that short time and find rates back in the dumps right after, in other words stuck again dealing with lower rates because of greed and "waiting" for that perfect rate. But a year or so I guess wouldn't be that worrisome, and better than a MM,.
Right now I have 2 7yr 3.1%ers that are now down to just under 2yrs to go. And want to open a new one at least 5yrs at a somewhat good rate even if under 4% for now. . I don't go outside my local walk in area, so no need to start with some CU in Alaska.
Like I said I chase rates up to a point, and I like staying local, the rates are OK for the area, and I do OK with what I do, and if things go wrong, I know where to go and whom to see. I Only do CD's , no stocks, bonds, PM's, IRA's 401K.or 999 CC accounts to manage, or what ever else is out there. And I still have to watch my gross income at this point.
But I know what you mean :)
That has been my thoughts for some time with everyone jumping on great short term rates right now with hopes of higher rates in the future. There are no guarantees. Just like the stock market, it's all a gamble!
HYPOTHETICALLY SPEAKING, SO I HAVE $10K IN THE CD RIGHT NOW AND THAT WILL MAKE ME AROUND $27 WHOLE DOLLARS A MONTH!!! IF I WERE TO MAKE OUT AT $50K THEN I WOULD BE MAKING AROUND $133 A MONTH (NOT TO MENTION DIVIDENDS GROWTH)!!!
HERES WHAT YOU DO. OPEN THE CD, AND SET ASIDE MONEY EACH MONTH FOR THE CD. IF YOU ARE AGGRESSIVE WITH SAVINGS THEN ADD EVEN MORE. MAKE SURE YOU SET YOUR DIVIDENDS TO DEPOSIT INTO THE CD ITSELF. MAX OUT AT $50K? YOUR MONEY WILL STILL GROW EACH MONTH ON ITSELF. THE CD MAX OUT AT $50K FOR THE MEMBER TO TRANSFER BUT THE DIVIDENDS WILL STILL DEPOSIT INTO THE CD. BASICALLY YOU WILL SEE YOUR CD WELL OVER $50K. YOUR MONEY WILL LITERALLY MAKE MONEY ITSELF BY YOU DOING NOTHING.
MY STORY? IM JUST A RANDOM NFCU MEMBER WHO CONSTANTLY RESEARCH CDS. RIGHT NOW I HAVE $25K IN THE CD. I PLAN TO RAISE IT TO $50K IN THE NEXT FEW MONTHS. CURRENTLY IT WILL MAKE ME AROUND $67 A MONTH OR $2.23 A DAY. TALK ABOUT MAKING MONEY IN YOUR SLEEP. IM SURE YOU ARE THINKING I HAVE A TON OF MONEY BUT ALL IT REALLY COMES DOWN TO IS DISCIPLINE AND LIVING BY YOUR MEANS. I STARTED WITH NOTHING SO IT IS DOABLE.
NOW IF THERE ARE ANY CDS BETTER THAN WHAT NFCU OFFERS LET ME KNOW! UNTIL THEN THIS IS THE BEST DEAL I CAN FIND! ALSO TALK TO A NFCU REPRESENTATIVE, THEY WILL EXPLAIN IT ALL TO YOU. FOR THE LONGEST I MAXED OUT ON CD AND THOUGHT THE DIVIDENDS COULDN'T DEPOSIT INTO ITSELF OR IT WILL BE LOST. I WAS WRONG, THAT LEAVES OPPORTUNITY FOR EVEN MORE GAINS! ALSO CHECK OUT THE 12 MONTH CD FOR 3.44% WITH $3K MAX. THAT MAKES $8.60 A MONTH. IT ALL ADDS UP. TAKE ADVANTAGE OF IT ALL!!! LEAVE A COMMENT ON YOUR THOUGHTS!! THANKS!!
My intent was very simple, Get The Information Out! It's a really good deal! I am very accustomed to writing all caps because my line of work requires it. Also, I was super excited when I found out and wanted to help others by providing information on it. That's why I used all caps.
Now, how I am rude, offensive, in need of correction of "poor behavior," etc... is beyond me. I actually took the time to research, read through the terms and agreement, perform calculations and write a post to help others..
Also I agree with the 3.75% IRA post! That's also a really good idea! High dividends, additional deposits, it's a steal. I currently have TSP and will look into opening one. ^^
The point of responding to poor behavior is to try and correct the behavior. It's called negative reinforcement.
There is a quote that sort of applies here "The Only Thing Necessary for the Triumph of Evil is that Good Men Do Nothing". Although I would not necessarily call posting in an offensive manner Evil, it is rude. Particularly when it continues and its easy to correct.
My point was to simply try to clean up the board & make it better for everyone. I can't help myself and use sarcasm a lot in that endeavor. What was the point of your post? To attack those who would prefer an easier to read board?
I have long believed that if everyone were required to pick a username and stick with it and if the board had a mute button, it would make things better for everyone.
Just because mgmt has other things to focus on does not mean its a bad idea. If I knew how to set up such things, I would offer to do it for free. I do not.
I do know that many boards have such features.
We have a handful of people who can only be considered trolls. They change monikers with every post and seem to only be here to create problems.
I have used a single username here for years.
My comment to Ken would be...wouldn't it be easier to remove the problem posters than to have to delete dozens of their posts every week?
It's an okay deal, nothing spectacular. I put in $50 but probaly won't add to it. Remember everyone, to go and set you "Directions Upon Maturity" now, so you don't forget later on (since it's almost a given that an auto-renew will be at a non-promotion rate). If the online choices aren't what you want (some, but not all options are available online for you to do yourself) you can call, and tell a telephone rep where you want it to go upon maturity.
it can be opened with 50 bucks Now and then added to
or are you worried about enrollment to NFCU
Sign up now its only $50, don't miss a great opportunity
If that option fails just transfer the balance to another credit card and request a "credit balance refund check" or have them wire or ACH directly to your bank if they allow it.
Tip: Don't do this with a American Express card! I have seen many people having issues with them.
When in doubt just call the receiving card and ask them how they handle a over payment. Good luck and may the force be with you!
I've never had a bank or a credit union reject the deposit of one of these checks - but then again, I don't think I ever tried to deposit any of them back to Navy itself. If I were in your situation, and I knew for an absolute fact that Navy would not accept the deposit of it's own balance transfer check for this CD, I would probably deposit that check to another bank or CU that would accept the check. (Again, I've never had a problem depositing these checks form Navy to other banks/CUs.) Then when the check clears, transfer funds from that account to your Navy CD. A hassle, yes, but maybe not as much as the "overpay another credit card" route.
In any case, keep in mind that if you have a 12 month offer like I do, you will have a mismatch between the period before your rate skyrockets (12 months), and the 17-month timeframe of this CD.
First, though, you should fund the CD with $50 to get it started in case the offer is pulled.
Not including dragging this thread Off Topic
1. Pay the entire balance off with existing liquid funds before the 0% rate expires.
2. Open another card with a 0% no fee bt offer and pay it off with the second card thus extending the term past the 17 month CD.
Also keep in mind that the date that the 0% rate expires is NOT always the due date on the card. It is best to call and ask exactly what date the 0% rate ends on.
HA HA... No underestimating the bravado exhibited here...
In reality, genuine High Rollers don't even know this site exists, much less waist any of their time commenting on it. Although it is invaluable to us peons.
However, if you boys' toilets ever clog up with the same stuff you're spreading on this website, I suggest you give old Joe a call - if you can afford him!
This website deals mainly with "deposit accounts". When starting deposit accounts, one thing people have to sort through is of course the different ways such accounts might be funded. Over time, many comments here have touched on funding methods different than simply bringing a bucket of cash to a bank and asking to start a CD or savings account - although, of course, that's one way and I've done that many times.
However another way is, when the rate environment or unexpected personal circumstances dictate, to decide whether to "break" an existing CD and suffer the EWP in order to start a new one would be financially wise. (Now some folks completely refuse to ever do this, and more power to them if that's their choice. But, others do choose to take EWPs into account when starting a CD.) In any case, though, isn't that method of funding possibly "difficult" or "sensitive"? In fact, Ken Tumin's website itself has a couple of online calculators designed to make this very process easier, so at least SOMEONE must think there's some level of difficulty or sensitivity involved!
Yet another way of funding deposit accounts is to consider whether, and at what point in time, to move funds from riskier assets like stocks, bonds (and many other assets), to the relatively safe harbor of CDs or savings accounts. Whatever your personal views on asset allocation between more and less risky assets, whether or not stock picking makes any sense, etc., etc. - the one thing that cannot be said is that these decisions about CD funding are not "sensitive" or difficult" in terms of risk assessment.
So, frankly these credit card procedures are not off-topic because they simply involve ways to fund deposit accounts, and they're no more "difficult to do successfully" than some other methods of funding deposit accounts.
Need to double check, but It was my understanding that transfer checks are viewed as a cash advance (and 0% BT offer does not apply to cash advances).
Did not mention in original post that I have a different CD that will mature in April and will either hold as cash in Ally 2% high yield savings account or open a 11 month no penalty CD (currently 2.3%) to use in payback of BT. May look for a higher paying liquid account. I will push transfer the money to my NFCU checking approximately 2 weeks before BT expires & pay it. PS - I have never paid credit card interest as never been late or short on payments.
Another strategy I use is to find a 0% no fee bt offer that will give you checks NFCU for example and instead of paying it off at the end of the term with cash get another card with a 0% no fee bt that does NOT issue checks(Chase Slate 15 month 0% bt for example) and pay NFCU card off with the Chase Slate by ACTUALLY doing a real balance transfer. This way you never even need to go the credit card over payment route at all. It takes some planning you have to time it just right as you have a limited window of time for the BT's 30-60 days or so and you have to wait for them to post 2-3 weeks.
Just a heads up for folks. While opening up this CD I selected "TRANSFER TO SHARE SAVINGS XXXXX" during the account opening process so I figured I was good to go. Then while opening my first IRA CD(40 mo. 3.75%) with them I went to update the maturity instructions and saw that my 17 month promo CD was still set to auto renew! Same deal for my wife's account.
I thought I would just let everyone know to check your maturity instructions by clicking on the CD and look to the right and there is a "MATURITY INSTRUCTIONS" link. It never hurts to double check so you don't get stuck in some low rate renewal.
Navy does have a generous grace period of 21 calendar days. During that time, dividends would continue to accrue. It's a nice feature deserving of recognition.
This CD is set to auto renew to an 18 month, I believe. Interest rate then could be higher or lower. Grace period of, say, 1 week and forfeiture of interim dividends if you bail are more common.
How often do they offer these CD deals (IRA/non - IRA)?...………
Once a year, every quarter, every time rates rise?
I'm assuming the IRA CD can be transferred to an IRA savings account at maturity, but I don't have this maturity option available yet in the instructions (don't have an IRA savings account established yet at NFCU).
1. Put it into a Roth/IRA savings
2. Renew into another Roth/IRA CD or CD special(if one is available)
3. Do a direct(trustee to trustee) transfer to another financial institution where you have a existing Roth/IRA thus not creating a taxable event if you are under 59.5.
I think we have to call to update specific maturity instructions for the IRA's as not all
options are available online.
Have the maturing IRA CD dump to this account
Then do with it as you wish at future date
NFCU’s disclosure for the Roth runs 10 pages, the traditional IRA 11 pages. For those interested, https://www.navyfederal.org/pdf/applications-forms/ira-certificates/NFCU_602AD.pdf and
https://www.navyfederal.org/pdf/applications-forms/ira-certificates/NFCU_602D.pdf
All CDs are advertised with APYs that take into account the effect of compounding by having the dividends kept in the CD where they continue to earn interest.
Why do you smart *** 's continue to horn in on all the treads with useless comments!
I have some funds from a Penfed CD that just matured and some more funds next week from NASA CU. Not eligable for Navy but will keep checking this site for options.
The alternative I have is to just go with a 3.25 5yr CD with a maximum insured amount that would yeald more on a monthly basis than the 40m @3.75 capped at 150k.
In this area its as good as it is and with my low speed lifestyle it works.
Also figured I have 3 of those 3.1 % CD's coming due in 2 yrs now. so its going to be another interesting time by end 2020 on rates again. I'm just glad I'm getting to the end time and won't need to be all that concerned anymore. Probably won't even bother going out any longer than a year no matter the rate since the medical mafia will have both hands out, smirk.