Navy Fed’s New Competitive Special Certificate: 5-Month ($10K Max)
Deal Summary: 3% APY 5-month add-on CD, Maximum deposit $10k.
Navy Federal Credit Union’s (Navy Fed) has come out with another high-rate add-on certificate special. This new one has a 3.00% APY with a term of 5 months. The downside is a maximum balance of only $10k. Thus, if you’re not already a Navy Fed member, this special may not be worth the effort. However, if you’re already a Navy Fed member with enough extra cash sitting in savings or checking accounts, this is easy money. Just log into Navy Fed’s online banking and open the CD with money from one of your Navy Fed checking, savings or money market accounts. If your initial deposit is $10,000, you’ll earn about $125. That’s $83 over what you would earn in a 1% savings account.
The features of this special CD are similar to Navy Fed’s past 17-month and 20-month CD specials. Minimum deposit is $50. It’s not available for IRAs or ESAs. Deposits can be made anytime subject to the maximum balance. Only one special 5-month CD is allowed per member. I was told by a CSR that it’s really a maximum deposit of principal, and not a maximum balance. If you specify the CD to redeposit the interest, the balance (principal plus interest) may exceed $10,000. Only the principal cannot exceed $10,000.
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Certificates with a one-year term or less: Forfeiture of all dividends on the amount withdrawn for 90 days or from the date of purchase or renewal (whichever is less).
Thanks to DA reader, Anon456, for posting on this CD in the DA Forum.
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.
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.
Note, there used to be a backdoor to Navy Fed membership through the San Diego Council of the Navy League. However, this ended in May. Joining the Navy League will no longer qualify you for Navy Fed membership.
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 5.41% (excellent) based on March 31, 2017 data. In the past year, Navy Fed has increased its total deposits by $6.9 billion, an excellent annual growth rate of 13.23%. 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 $81 billion.
How the Certificates Compare
When compared to the 194 similar length-of-term CDs tracked by DepositAccounts.com that are available nationwide, Navy Fed’s 5-month CD is way out in front for a $10k deposit.
Another alternative to this special CD is an internet savings account. DollarSavingsDirect’s savings account currently has a 1.40% APY. If this rate holds for 5 months, you’ll earn about $58 for a $10k balance. With a $10k initial deposit in this Navy Fed 5-month CD, you’ll earn about $125. That’s $67 more than what you would earn at DollarSavingsDirect (assuming the savings account rate remains at 1.40% APY).
The above rates are accurate as of 7/31/2017.
To find the best CD rates, both nationwide and state specific, please refer to our CD rates table, or our Rates Map page.
Now when they decide to come up with a 3%er with no cap, @ 3 to 5 yrs, than I'll say they're keeping up.
BTW I like NF, and am glad they opened a local branch close enough for me to go to and Yes I do use them :).
In any event, the NFCU website has very easy and straightforward online CD account opening capability. There is no need to endure the hassle of a telephone call.
Gosh, five credit unions! I belong to twenty-three credit unions. This situation is going to start presenting problems and annoyance the moment I no longer have interest in money. So far, though, it's all good.
I do think it's a good deal for exiting members with extra $$ tucked in their savings.
Just think about all the paper work they have made for themselves. 10 - 10K deposits and they get $100K or 2 50K deposits or 1 100K deposit and they still get 100K but with only 1/10th of the paperwork!
PENFED shows this on the non Ira accounts only but not on the Ira accounts, and NAVY shows it on the Ira accounts only and not on the non Ira accounts? Not sure why they do not take the extra effort to show beneficiaries on all accounts. Someday maybe?
NFCU is one of those "must join" credit unions. They are forever running CD specials of one sort or another. When I joined there was a special CD happening. Because of the time it took to solidify my membership it was a close shave. I ended up getting that CD on the very last day. But either way I would have been fine because I really joined owing to confidence more specials would be coming along. And sure enough, NFCU brought out still another special CD within a month or two after I became a member. And now they are doing it yet again. NFCU features a veritable parade of special CD offerings.
So bottom line best thing to do is to join if you can, whenever you can. If you get this 5 month deal fine, if not still fine. There were any number of NFCU special CDs I missed out on before I joined. Needed to put a stop to that and finally I did, once I finally found a way in.
This SPECIAL is probably a whopping $20 difference rather than sitting in a money market somewhere at 1.5%. Still, it only take a few minutes (about the time spent on this blog post) to make it happen. Better than clipping coupons.
I've just edited this post to add that the "Edit" link is just to the right of your comment number.