Navy Federal Credit Union has changed its CD rate tiers and it has added a new 6-year term. Also, some CD rates are higher. In the past, there were only 3 rate tiers for CDs: $1K, $20K and $100K. In addition, the $100K tier didn't have the highest rates for terms over 5 years. There are now 5 rate tiers: $1K, $10K, $20K, $50K and $100K. Below are the new rates for the $100K minimum deposit as listed at the Navy Federal certificates rates page as of 5/1/2012:
- 2.75% APY 7-year CD
- 2.50% APY 6-year CD
- 2.25% APY 5-year CD
- 1.85% APY 4-year CD
- 1.60% APY 3-year CD
- 1.25% APY 2-year CD
- 1.15% APY 18-month CD
- 1.05% APY 1-year CD
- 0.90% APY 9-month CD
- 0.80% APY 6-month CD
- 0.70% APY 3-month CD
The $50K tier has long-term CD rates that are 10 basis points lower. For the short-term CDs (terms of 2 years and shorter), the rates are 5 basis points lower. The rates drop 5 basis points for each of the lower tiers. These same rates also apply to IRAs.
For those who plan to deposit at least $100K, this is a nice change. Before this change, the highest 7-year CD rate was 2.70% APY for a $20K minimum deposit. The 7-year CD rate for a $100K minimum is now 2.75% APY, but it's only 2.60% APY for a $20K minimum.
The addition of the 6-year term is also a nice change. For those who plan to deposit at least $100K, they can earn 2.50% APY for the 6-year CD. That's the same rate as PenFed's 7-year CD.
One thing I just noticed on Navy Federal's certificate application (pdf) that it shows a different early withdrawal penalty for Jumbo certificates. However, this application appears to be an old version that doesn't take into account the new terms and tiers. I'll have to investigate if there are any updates to the early withdrawal penalties.
Unlike PenFed, there's no association that can be joined to qualify for Navy Fed membership. To be eligible to join Navy Fed, you must have some connection with the military. This includes Navy, Army, Marine Corps and Air Force. Please refer to their Eligibility Checklist for the full details.
Navy Federal Overview
Navy Federal Credit Union branches are located around the US and the world.
Navy Federal is the largest credit union in the nation with $46.93 billion in assets and $33.64 billion in deposits. It has an overall health score at DepositAccounts.com of 5 stars (out of 5) with a Texas Ratio of 8.24% (above average) based on December 2011 data. 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).
How These CD Rates Compare
The highest 7-year CD rate that's available to everyone is 2.50% APY at Pentagon Federal Credit Union. The best 5-year CD rate is 2.25% APY at McGraw-Hill Federal Credit Union and Affinity Plus Federal Credit Union. These rates are accurate as of 5/1/2012.
Searching for Top CD Rates
To search for nationwide CD rates and CD rates in your state, please refer to the best CD rates section of DepositAccounts.com.