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6.00% 84-Month CD at a Multi-State CU (Navy Federal)


Navy Federal Credit Union is offering a 6.00% APY 7-year share certificate. The minimum deposit for this rate is $20K. An APY of 5.75% is available for a minimum deposit of $1,000. These rates are also available for IRA certificates. The early withdrawal penalty is up to 1-year of interest.

This deal isn't as good as their 6.25% 18-month CD special that was offered last summer. For those who want to lock in rates for the long-term, it's a good deal compared to what most banks and credit unions are offering. With an inverted yield curve, it's difficult to find 7-year CD rates above 5.50%. Pentagon FCU has a 7-year CD at 5.42% APY. KeyDirect has a 5.30% APY 7-year CD.

The field of membeship includes all active, reserve and retired Department of the Navy personnel and their family members. See site for details. The membership application is available online.

Navy Federal has branches around the US and the world.

Navy Federal is NCUA insured. It's the largest US credit union. It has over $25 billion in assets and over 2.7 million members.
Bozo   |     |   Comment #1
Navy Federal and USAA are basically in direct competition. If you are, or were, in the Navy, you probably belong to USAA.

USAA has offered a 7 year CD very close to 6% for months. However, you have to pony up $175,000 to get that rate.

Navy Federal is just eating USAA's lunch with the lower buy-in.

Competition is good.

Thanks to Banking Guy for this wonderful blog.

Banking Guy, you single-handedly are ruining bank margins.

Have a nice weekend,


Banking Guy
Banking Guy   |     |   Comment #2
Yes, USAA also has some good rates on 7-year CDs: 5.70% with $250 min, 5.86% with $95K min and 5.97% with $175K min.

Too bad USAA now restricts new membership to only those with military affiliation and those who live in Bexar County, Texas. But like you said, the membership is no more restrictive than Navy FCU.
matt   |     |   Comment #3
Why does this not appear in the "84-Month Certificate of Deposit" section of the weekly summary but only in the "CD Specials at Local Credit Unions/Banks Over the Last Two Months" section? Seems like Navy Federal could be in the mix of the 1-, 2-, 3-, 4-, 5-, and 7-year certificates (esp. the longer ones).

(Sorry I haven't been able to figure out reasons one category would trump the other.)
Banking Guy
Banking Guy   |     |   Comment #4
I try to include banks/credit unions in the top lists that have wide availability (in which most anyone can join). I break these lists into 3-mo, 6-mo, ... 84-mo groups.

Since the Navy FCU seems pretty strict on a Navy affiliation, I considered it more of a local deal rather than an national deal. It's actually more of a national deal with membership restrictions (With so many members, I wonder if there isn't some easy way for everyone to join???)

Also, I've tried to keep the top list with CDs that can be opened with $10K or less. CDs with larger deposit requirements I've been putting in the "High Rate with Conditions" list.

But Navy's long-term CDs with $1K mins are still very competitive, and it is a national deal (albeit with membership restrictions). So you make a good point. I may add these to my national top lists (I definitely could use some better 7-year CD rates).
matt   |     |   Comment #5
Thanks for the explanation. Could go either way, but Navy Federal certainly has its membership limits. Looks like there could be ~700k Department of Navy Personnel (facts). Add in the contractors, Navy-assigned gov't, and retirees, and family (the big grabber), and we're well into the millions. But how many of the 300M Americans qualify? Not sure. The latest Statement of Financial Condition on the NCUA website lists 4.7M or so, which is a smaller potential field than is identified by some of the ones that aren't as federal (such as BECU). I'll let you figure out if they're wide enough.
Banking Guy
Banking Guy   |     |   Comment #6
Here's a comment that a reader left about joining Navy FCU:

"Anyone wishing to to advantage of some of the fine rates offered by the Navy FCU mightg be well advised to call their membeship nmber directly instead of trying to sign on on their web page.
On the web page I could not find any qualifying section but by calling they were happy to sign me up on the basis of prior military service (40 years ago).
They could not have been friendlier or more anxious to help find some way to enable my membership. Seems to be more ways to join than web site indicates."