May is Military Month. To mark the occasion, Navy Federal Credit Union (Navy Fed) has added two Certificate Specials: a 5-year (3.00% APY) and an 18-month (2.25% APY). Both can be opened with a $1k minimum deposit, with no stated balance cap. Unlike past Navy Fed Certificate Specials, additional deposits are not allowed.
Note: While the promotion page states "Minimum deposit $1k up to $100k," the fine print reads, "No maximum purchase amount." The fine print also lists minimum deposits of $1k, $10k, $20k, $50k, and $100k, but the Certificate Specials do not have tiered APYs.
The Certificate Specials are also available as IRAs (Traditional, Roth, SEP, ESA), earning the same APYs with the same funding requirements.
I have to admit, I’m a bit disappointed with the Certificate Specials. Some of DA’s readers are more than a little disappointed, as indicated by their comments. Sometimes reality just can’t match our hopeful anticipation of more deals like the now-expired 32-month IRA CD Special (2.75% APY) or the 15-month CD Special (2.25% APY), which ended some time ago.
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Certificates with a term greater than one year: Forfeiture of all dividends on the amount withdrawn for 180 days or since the date of purchase or renewal (whichever is less).
Certificates with a term of five years or greater: Forfeiture of all dividends on the amount withdrawn for 365 days or since the date of purchase or renewal (whichever is less).
Not to be confused with PenFed's almost universal membership eligibility, Navy Fed’s membership is strictly for individuals who are connected to the military, 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.
- 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?
Credit Union Overview
Navy Federal Credit Union has an overall health grade of "A" at DepositAccounts.com, with a Texas Ratio of 6.66% (excellent) based on December 31, 2017 data. In the past year, Navy Fed has increased its total non-brokered deposits by $7.12 billion, an excellent annual growth rate of 12.77%. 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 7,500,000 members and assets in excess of $90 billion.
How the Certificate Specials Compare
When compared to the 183 similar length-of-term CDs tracked by DepositAccounts.com that require a similar deposit and are available nationwide, Navy Federal Credit Union’s 5-Year Certificate Special APY currently ranks second.
When compared to the 156 similar length-of-term CDs tracked by DepositAccounts.com that require a similar deposit and are available nationwide, Navy Federal Credit Union’s 18-Month Certificate Special APY currently ranks seventh, 25 bps behind the term category leader.
The above rates are accurate as of 4/30/2018.
To search for the best CD rates, both nationwide and in state specific, please refer to our CD Rates Table page.