Navy Federal CD Update: 17-Month Special Ends, Standard Rates Up

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Deal Summary: New certificates rates. Noteworthy ones include 12-month (1.30% APY), 18-month (1.45% APY) and 24-month (1.60% APY), Minimum $100k.

Availability: Easy membership requirement

As they say, all good things must come to an end, and that’s the case with Navy Federal Credit Union’s (Navy Fed) special 17-month certificate. This was the add-on certificate with a 2% APY. It’s no longer available as of April 30th. If you already have this certificate, don’t forget that it allows add-on deposits up to $50k. I’m actually surprised it lasted as long as it did. Navy Fed first offered this special in December 2016.

On a positive note, Navy Fed raised their certificate rates. The new short-term certificate rates are the most competitive. These include the 12-month (1.30% APY), the 18-month (1.45% APY) and the 24-month (1.60% APY). The new long-term certificate rates are not as competitive. The new Jumbo 5-year certificate only earns 2.05% APY. These rates require a $100k minimum deposit. Deposits of $1k to $100k earn rates 5 basis points lower.

Below is a summary of the certificate rate changes including the new and old rates. These are the Jumbo rates that require a $100k minimum deposit. For a $1k minimum deposit, the new rates are 5 basis points lower. There is no stated balance cap.

  • 1.30% APY 12-month (was 1.15%)
  • 1.45% APY 18-month (was 1.25%)
  • 1.60% APY 24-month (was 1.55%)
  • 1.70% APY 36-month (was 1.65%)
  • 1.85% APY 48-month (no change)
  • 2.05% APY 60-month (was 1.90%)
  • 2.10% APY 72-month (was 1.95%)
  • 2.15% APY 84-month (was 2.05%)

The above rates also apply to IRA and ESA certificates.

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Certificates with a one-year term or less: Forfeiture of all dividends on the amount withdrawn for 90 days or from the date of purchase or renewal (whichever is less).

Certificates with a term greater than one year: Forfeiture of all dividends on the amount withdrawn for 180 days or since the date of purchase or renewal (whichever is less).

Certificates with a term of five years or greater: Forfeiture of all dividends on the amount withdrawn for 365 days or since the date of purchase or renewal (whichever is less).

Availability

In February, Navy Fed expanded its field of membership, allowing many more people to join. All veterans of the U.S. Armed Forces are now eligible. In addition, if your immediate family member had ever been in the military (even if they’re now deceased), you are eligible to join. Please refer to my February blog post for more details.

If you still can’t qualify using this new veteran path to membership, there’s a backdoor to membership that I first reported on in December. You can qualify for Navy Fed membership by joining the San Diego Council of the Navy League. Anyone can join the San Diego Navy League. I have more details in this blog post.

UPDATE 5/15/17: Navy Fed has removed this backdoor to membership. Joining the Navy League, San Diego Council will no longer qualify you for Navy Federal membership.

Navy Fed has an online membership application. The application guides you through membership qualifications. The first question asks:

Are you or have you ever been affiliated in any way with the Armed Forces, DoD, Coast Guard or National Guard?

Joining Navy Fed and/or opening Certificates can be done online or at any of 295 branches located in 30 different states, the District of Columbia, and Guam.

Credit Union Overview

Navy Federal Credit Union (NCUA Charter # 5536) has an overall health grade of "A" at DepositAccounts.com, with a Texas ratio of 6.54% (excellent) based on December 31, 2016 data. In the past year, Navy Fed has increased its total deposits by $6.87 billion, an excellent annual growth rate of 14.07%. Please refer to our financial overview of Navy Federal Credit Union 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, to over 6.8 million members and assets in excess of $79 billion.

How the Certificates Compare

I’ll just compare Navy Fed’s three most competitive certificates: 12-month, 18-month and 24-month.

When compared to the 211 similar length-of-term CDs tracked by DepositAccounts.com that are available nationwide, 23 banks and credit unions have CDs with higher rates. Below is a sample of these showing how they compare to Navy Fed’s 12-Month Jumbo Certificate.

Interest RateCD Length of TermCredit Union/Bank
1.50% APY12-Month Certificate ($5k min)Connexus Credit Union
1.46% APY12-Month eCD ($10k min)Virtual Bank
1.30% APY12-Month Share Certificate ($100k min) Navy Federal Credit Union

When compared to the 151 similar length-of-term CDs tracked by DepositAccounts.com that are available nationwide, 9 banks and credit unions have CDs with higher rates. Below is a sample of these showing how they compare to Navy Fed’s 18-Month Jumbo Certificate.

Interest RateCD Length of TermCredit Union/Bank
1.60% APY15-Month Certificate Special ($5k min)NASA Federal Credit Union
1.55% APY18-Month CD ($10k min)Popular Direct
1.45% APY18-Month Share Certificate ($100k min) Navy Federal Credit Union

When compared to the 201 similar length-of-term CDs tracked by DepositAccounts.com that are available nationwide, 8 banks and credit unions have CDs with higher rates. Below is a sample of these showing how they compare to Navy Fed’s 24-Month Jumbo Certificate.

Interest RateCD Length of TermCredit Union/Bank
1.70% APY24-Month Certificate ($5k min)Connexus Credit Union
1.65% APY24-Month CD ($500 min)Northern Bank Direct
1.60% APY24-Month Share Certificate ($100k min) Navy Federal Credit Union

The above rates are accurate as of 5/1/2017.

To find the best CD rates, both nationwide and state specific, please refer to our CD rates table, or our Rates Map page.

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

Comments
deplorable 1
deplorable 1   |     |   Comment #1
Got in just under the wire on this deal. Hopefully there will be higher rates 17 months from now. I'm planning on keeping a account open with them just in case they offer some more good CD deals in the future.
hank
hank   |     |   Comment #3
they periodically have good rates. I still have their 7 year cd paying 2.8. I thought it was risky at the time but it turned out to be pretty good. That was 2012
klink
klink   |     |   Comment #2
With your info and advise I too got in on this. Now I'm doing all I can to reach the 50K limit and should be able to do so with 6 mos. remaining. Thanks Ken.
Navy Fed Adds 2.00% APY 17-Month Special Certificate
Availability: Nationwide, but with membership requirements (military relationship). Update: A new path to Navy Fed membership has been identified. Please refer to this post for details.

Navy Federal Credit Union’s (Navy Fed) 20-month Special Certificate is no longer available, but the Credit Union has filled the void with a new 17-month Special Certificate, which earns the same 2.00% APY as the 20-month did. The minimum opening deposit has been raised to $50, but the balance cap is now $50k (as opposed to the $20k for the 20-month), with additional deposits...

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