Navy Federal Credit Union (Navy Fed) has a very nice certificate special. Members can receive a 0.50% (50 basis points) increase to the prevailing certificate dividend rate on a new share certificate purchase. IRAs, ESAs, and renewing certificates are not eligible for this offer. This promotion is not currently listed at Navy Fed’s website. Some readers mentioned that they received notice of this offer from a Navy Fed email. When I called yesterday, I was told the offer was only for members in Western states. Apparently, they received so many inquiries about the offer, Navy Fed decided to open it to all members. I confirmed this with a call late yesterday. Thanks to DA readers who emailed me and commented about this deal.
According to the Navy Fed CSR, the promotion is valid only for March, but they reserve the right to end the offer at any time. When you open the CD, you must use the promotion code CERT2015. Members are allowed to use this promotional code only once.
I was told by the CSR that you can open the CD special at a branch, by phone or on the website. If you apply on the website, I was told that you’ll want to use the "open now" button for "Members without Account Access". This application has a promo code box where you can enter CERT2015 (see snapshot of application). It doesn’t offer an option to fund the account with an ACH transfer. The only option listed is to fund the account with money in one of your Navy Fed liquid accounts. I was told that you can fund the special CD with an ACH transfer if you call. To ensure the special CD is opened correctly, I think it’s wise to call.
If Navy Fed’s currently listed CD rates hold, this bonus rate makes most all of Navy Fed’s CDs a very good deal. With a deposit between $20K and $100K, you can earn the following bonus rates as of 3/5/2015:
- 2.70% APY 7-year CD
- 2.60% APY 6-year CD
- 2.50% APY 5-year CD
- 2.05% APY 3-year CD
- 1.80% APY 2-year CD
- 1.60% APY 18-month CD
- 1.40% APY 1-year CD
You can earn an extra 5 basis points for deposits of at least $100K. Deposits between $1K and under $20K earn a rate that’s 5 basis points less.
The early withdrawal penalty is up to 180 days of interest for terms over one year and up to five years. It’s up to 365 days of interest for terms over five years, and up to 90 days of interest for terms of one year and under. Please refer to Navy Fed’s Combined Certificate Disclosures (pdf) for the full details.
Unlike PenFed’s almost universal membership eligibility through joining an association, Navy Fed’s membership is strictly for individuals who are connected to the military.
Navy Fed’s "How to Become a Member" page very clearly qualifies individuals through a series of questions.
Credit Union Overview
Navy Federal Credit Union has an overall health grade of "A+" at DepositAccounts.com, with a Texas ratio of 5.52% (excellent) based on December 31, 2014 data. In the past year, Navy Fed has increased its total deposits by $4.13 Billion, an excellent annual growth rate of 10.32%. Please refer to our financial overview of Navy Federal Credit Union for more details.
Navy Federal Credit Union (NCUA Charter # 5536) is considered to be the largest credit union in the world. Headquartered in Vienna, Virginia, Navy Fed has grown from its initial seven members in 1933, to over 5 million members and assets in excess of $63 Billion.
How the CD Rates Compare
All of the terms that I listed above easily beat the best CDs that are nationally available from other credit unions and banks. To review the best nationwide CD rates and the best CD rates in your state, please refer to our CD rates table.