Over the weekend Navy Federal Credit Union (Navy Fed) added a 30-month Certificate Special (2.50% APY). Update: This special has expired.
The minimum deposit is $5K and there is no balance cap.
As stated in Navy Fed’s Certificate Brochure, the Early Withdrawal Penalty reads as follows:
If the term to maturity is greater than one year, the amount forfeited is equal to the lesser of:
(1) all dividends for 180 days on the amount withdrawn, or
(2) all dividends on the amount withdrawn since the date of issuance or renewal.
IRA Special and Bonuses
Navy Fed is also offering a 20-month IRA Special Certificate (2.00% APY). This IRA (Traditional, Roth, and SEP) can be opened with as little as $20, with a $20K balance cap. Additional deposits are allowed at any time, but are subject to IRS contribution limits.
A $100 bonus is available when you open your first IRA at Navy Fed.
Offer only available to members who open their first IRA plan and deposit a minimum of $100 in their new IRA account no later than 45 days after account opening.
Once funds have been deposited to the IRA, Navy Federal will credit the bonus directly into your new IRA account within 30 days.
A transfer or rollover from another financial institution or qualified retirement plan into a new Navy Fed IRA will receive a 0.50% bonus increase to the prevailing rate. A minimum of $5K rollover or direct transfer is required to qualify for the 50 basis point bonus.
Many thanks to DA reader, muniman, who posted these deals in the Forum.
Not to be confused with PenFed's almost universal membership eligibility, 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.
You must be able to answer "Yes" to one of the following questions to qualify for Navy Federal membership.
- Are you currently serving as an Active Duty or reservist personnel for the DoD, Coast Guard, or National Guard?
- Are you a Military Officer Candidate?
- Are you a Military Recruit and/or part of the Delayed Entry Program (DEP)?
- Are you a Department of Defense Civilian?
- Are you a retiree receiving an annuity from the DoD, Coast Guard, or National Guard?
- Are you a U.S. government Civilian (including Coast Guard) assigned to a DoD installation?
- Are you a DoD contractor assigned to a U.S. government installation or facility?
- Are you a family member of one of the previously mentioned individuals?
Navy Fed has a new "Quick Application" for current members to use when opening a new certificate or IRA.
Credit Union Overview
Navy Federal Credit Union has an overall health grade of "A" at DepositAccounts.com, with a Texas ratio of 5.67% (excellent) based on September 30, 2015 data. In the past year, Navy Fed has increased its total deposits by $4.39 Billion, an excellent annual growth rate of 10.09%. 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 Federal has grown from its initial seven members in 1933, to over 5.9 million members and assets in excess of $71 Billion.
How the CD/IRA Compares
When compared to the 134 similar length-of-term CDs tracked by DepositAccounts.com that are available nationwide, Navy Federal Credit Union's 30-month CD Special currently ranks first.
When compared to the 67 similar length-of-term IRAs tracked by DepositAccounts.com that are available nationwide, Navy Federal Credit Union's 20-month IRA Certificate Special currently ranks first.
The above rates are accurate as of 12/7/2015.
To search for nationwide CD rates and CD rates in your state, please refer to the CD rates section of DepositAccounts.com.