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 same APY with the same funding requirements.
At first glance, the fine print on the promotion page is slightly confusing.
Minimum purchase amounts of $10,000, $20,000, $50,000, and $100,000.
No maximum purchase amount.
This isn’t the first time I’ve questioned the four listed minimum purchase amounts. Many of NavyFed’s Certificates have tiered APYs based on the four minimum deposit levels, and the above quote is the default disclosure. The Celebration Certificate is an exception, earning 3.00% on all deposit levels. Long story short,
- The minimum opening deposit is NOT limited to $10k, $20k, $50k, or $100k.
- The Celebration Certificate can be opened with any amount of at least $1k.
- There is no balance cap.
- The Celebration Certificate does not have tiered APYs.
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Certificates with a one-year term or less: Forfeiture of all dividends on the amount withdrawn for 90 days or since the date of purchase or renewal (whichever is less).
Thanks to DA reader, ddbrege, for sharing this gem in the Forum.
17-Month Share Certificate Special
In early January, Navy Fed added a 17-month Share Certificate Special (3.25% APY, $50 min/$50k max), which is still available. The 17-month 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.
Unlike PenFed's nearly universal membership eligibility, Navy Fed’s field of membership is restricted to individuals who have a military connection, 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. Note: many people can answer "Yes" to the second question.
- 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 6.15% (excellent) based on September 30, 2018 data. In the past year, Navy Fed has increased its total non-brokered deposits by $7.84 billion, an excellent annual growth rate of 12.74%. 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 8,100,000 members and assets in excess of $95 billion.
How the Celebration Special Rate Certificate Compares
When compared to 191 similar length-of-term CDs tracked by DepositAccounts.com that require a similar minimum deposit and are available nationwide, Navy Federal Credit Union’s Celebration Special Rate 6-month Certificate APY currently tops the list.
The above rates are accurate as of 2/4/2019.
To search for the best CD rates, both nationwide and in state specific, please refer to our CD Rates Table page.