About Ken Tumin

Ken Tumin founded the Bank Deals Blog in 2005 and has been passionately covering the best deposit deals ever since. He is frequently referenced by The New York Times, The Wall Street Journal, and other publications as a top expert, but he is first and foremost a fellow deal seeker and member of the wonderful community of savers that frequents DepositAccounts.

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1.80*%$100k-Navy Federal Credit Union3 Year IRA (Traditional, Roth, SEP)
OTHER TIERS: 1.76% $1k - $100k
0.85*%$100k-Navy Federal Credit Union9 Month IRA (Traditional, Roth, SEP)
OTHER TIERS: 0.80% $1k - $100k
Accounts mentioned in this post. Rates as of August 19, 2017.

Nice IRA CD Features at Navy Federal Credit Union


I’m still waiting on Navy Federal Credit Union to offer CD and IRA CD rates comparable to PenFed’s latest rates. Navy Federal does currently have two special offerings, but they’re nothing like what PenFed is offering. One is a 3-year CD with yields ranging from 1.45% for a $1K minimum to 1.55% for a $100K minimum. The other is a 9-month CD with yields ranging from 0.75% for a $1K minimum to 0.85% for a $100K minimum. These rates are listed in Navy Federal’s certificates page as of 1/6/2014.

Even though Navy Federal doesn’t have the best rates, there are still reasons why you may want an IRA CD with Navy Federal. IRA CDs at Navy Federal have two nice features. These features are not mentioned on Navy Federal’s website, but they have been mentioned many times by several readers. I just confirmed with a Navy Federal rep this morning that these features are still in place. Unfortunately, these features only apply to IRA CDs (CDs held inside an IRA or other retirement-type account.)

First, Navy Federal allows deposit additions to any IRA CD from the start of January through April 30th. This allows you to get the same rate as an existing IRA CD which can be very nice in today’s interest rate environment. Minimum additional deposit is $500. The additional funds may be IRA rollover funds, new IRA contributions or funds from another account already in your IRA.

Second, in the year when an IRA CD holder reaches age 70.5, funds may be withdrawn from any IRA CD with no early withdrawal penalty. In addition to withdrawing more than the Minimum Required Distributions (MRD) without penalty, this allows one to consolidate funds in one Navy Federal IRA CD into another Navy Federal IRA CD without an early withdrawal penalty. This can allow you to take advantage of a higher-rate IRA CD. It’s important to note that IRS rules can take effect and taxes may be owed if funds are withdrawn from the IRA. If funds remain inside the IRA (like if IRA CD funds are withdrawn into an IRA savings account) and there is no MRD issue, you shouldn’t have to worry about taxes.

PenFed doesn’t allow add-on deposits to IRA CDs, but it does have a nice early withdrawal feature on IRA CDs. PenFed allows partial withdrawals without penalties as long as $1,000 remains in the original IRA CD and you’re over 59.5. This allows you to transfer funds from a low-rate IRA CD to a higher-rate IRA CD. I have more details in this PenFed post.


Unlike PenFed, there's no association that can be joined to qualify for Navy Federal 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 $55 billion in assets and $40 billion in deposits. It has an overall health grade at DepositAccounts.com of an A+ with a Texas Ratio of 5.43% (excellent) based on September 2013 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).

Related Pages: Navy Federal Credit Union, CD rates, IRA rates

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Hoody   |     |   Comment #1
Boy I'm with you on hoping they at least come close to PenFed. I'm too far from a walkin branch and I don't like not being able to do that. One is 2+ hrs north in Alexandria, and one is 3 hrs south around Ft Bragg.

I have 2 CD's with them now, a 2yr and a 3yr,  nothing to shout about but they are better than any local bank and I at least have a small branch I can go to. I asked the staff to look into what's going on with PenFed and see if they can't raise their rates, but who knows. Most times I think they kept rates in competition between them.
Anonymous   |     |   Comment #2
Navy Fed better get off their rears since I moved a decent chunk of IRA funds from them to Penfed. More is coming in the next few days. I can't help being angry because this is a real pain to do but feeling forced to do so because I am getting 5x the yield plus no penalty for pulling it out if I want. Will leave a little bit in because I do not want to lose membership rights which is stricter than Penfed. Moving money to Penfed is a no brainer especially IRA money if your over 59 and a half.
Anonymous   |     |   Comment #3
Consider the "pain" as payment to yourself for doing the necessary legwork. The increased yield you'll receive is money in YOUR pocket! If you make an extra $1000 in interest, spend 4 hours moving paperwork then your hourly pay for the effort is...$500/hour.   
Anonymous   |     |   Comment #4
Math check...try $250/hour.
Anonymous   |     |   Comment #5
Thank you for the over 70 1/2 info. Was able to take 3 IRA CD's ranging from 1.54% to 1.8% and roll them all into one IRA CD at 3.05% without penalty.
Anonymous   |     |   Comment #6
The Navy Federal Credit Union, on page 10 on the most recent version, dated July 2013 of the Traditional IRA Disclosure Agreement indicates the early withdrawal penalties for certificates of deposit, and then indicates exceptions to these penalties, as follows:

"Penalty Exceptions: Penalties will not be applied to any of the following: (a) withdrawals of dividend payments only, (b) withdrawals subsequent to the death of any owner of the IRA Certificate, (c) withdrawals made as a result of the voluntary or involuntary liquidation of the Credit Union, or (d) withdrawals of Required Minimum Distributions (RMDs) (Traditional and SEP IRAs only)"

Therefore, from the current disclosure document, the Navy Federal Credit Union will permit Required Minimum Distributions prior to maturity, but there is no written disclosure or other indication  that it will permit unlimited withdrawals from a certificate of deposit after the holder of the certificate turns 70 1/2 years old.  Of course, a RMD can be made from one certificate or institution to cover the aggregate RMD required based on the total value of IRA assets. Thus, to the extent that the RMD exceeds the value of the certificate, clearly the entire balance of the certificate can be withdrawn without penalty.  However , this is a function of the value of the certificate withdrawn as being less than the RMD.  As  I read  the Navy Federal Credit Union disclosure, the penalty free certificate withdrawals cannot exceed the RMD required for all IRA assets.

 Please advise as to whether there is language somewhere else that I have missed in my analysis. 
Anonymous   |     |   Comment #7
It's too bad that Navy still discriminates against veterans!