Navy Federal Credit Union is offering a special 2.25% APY 30-month CD and IRA CD. Minimum deposit is $10,000. Early withdrawal penalty is 180 days of interest. This CD is listed in the credit union's certificates rates page as of 11/18/2010.
Navy Federal also lists another special CD that may look like a good deal at first (2.90% APY 1-year EasyStart Certificate). However, if you read the conditions, you'll see it's not that great. The maximum deposit is $3,000, and it requires that you have direct deposit in your checking account.
For standard CD rates, the top rate is 3.15% APY for a 7-year term and a $20K minimum deposit as of 11/18/2010. Navy Federal often has long-term CD rates comparable to what PenFed offers. However, currently PenFed has the best long-term CD rates.
When I last opened a Navy Federal CD in 2007, I was able to open it online. I first transferred money into my Navy Federal savings account via Ally Bank's ACH service. Once the money was available in the savings account, I opened the CD and selected the savings account as the source of the funds.
How It Compares
As a comparison to internet banks as of 11/18/2010, I'll use the more common 36-month (3-year) CD. The best 36-month CD rate is 2.05% APY at Bank of Internet USA. For credit unions with easy membership, the best 36-month CD rate is 2.27% APY at Melrose Credit Union.
Former USA Fed Members
For those who tried to join USA Fed before it merged into Navy Federal, I hope things went well. USA Fed application process was slow, and then Navy Federal slowed things down some more. It was reported that Navy Federal was reviewing USA Fed members who had recently joined via the Prime Meridian Association. Based on one reader's report, it appears that Navy Federal is allowing them in. I received an email from the reader last week after she received her Navy Federal debit card and PIN.
For former USA Fed members, Navy Federal had offered them two good CD deals: 1) a 5.00% APY 12-month CD with a $5K maximum deposit, and 2) a rate bump of 0.50% APY on any new standard certificate rate.
Navy Federal Membership
I was hoping Navy Federal would add USA Fed's field of membership which included the Prime Meridian Association members. However, that did not happen. Navy Fed's FOM appears the same as before. Essentially, you need some military connection. Please refer to their Eligibility Checklist for the full details.
Navy Federal Overview
Branches are located around the US and the world.
Navy Federal has an overall health score at DepositAccounts.com of 3 out of 5 with a Texas Ratio of 48.94% (average) based on June 2010 data. It's the largest credit union in the nation with $41.48 billion in assets and $30.00 billion in deposits. Please refer to our financial overview of Navy Federal Credit Union for more details. The credit union is federally insured by the NCUA (Charter # 5536).
Searching for the Best CD Rates
To search for the best nationwide CD rates and the best CD rates in your state, please refer to the CD rates section of DepositAccounts.com.