Military Veterans and Family Members Now Eligible To Join Navy Fed
This week Navy Federal Credit Union made a nice change to their field of membership. Veterans of the Armed Forces who were honorably discharged are now eligible to join the credit union. Previous to this change, an active member, a retiree or annuitant of the Armed Forces were eligible to join, but someone with just a “veteran” status was not eligible.
You can see this change at Navy Fed’s eligibility page. In this page it leads you through a series of questions to determine eligibility. The first question now states:
Are you or have you ever been affiliated in any way with the Armed Forces, DoD, Coast Guard or National Guard? This includes Active Duty, reservists, veterans and retired personnel.
If you answer “yes” to this question, it then asks:
Are you currently Active Duty, Reserve or Guard for the DoD or Coast Guard?
If you answer “no” to this question, it then asks:
Are you an honorably discharged Veteran of the Armed Forces?
If you answer “yes” to this question, it then says you are eligible to join:
Congratulations! You're eligible for membership with Navy Federal.
Family Members of the Military Are Also Eligible
In addition to veterans, people with family members who at any time were affiliated with the military are eligible to join. However, this can’t be done online. You have to apply by phone or at a branch. This should make it easy for many more people to join. I think most people have at least one immediate family member who has served in the Armed Forces. Remember that immediate family members include grandparents, parents, spouses, siblings, grandchildren, children and household members.
You can see this path to joining at Navy Fed’s eligibility page. by first answering “no” to the first question above. This leads you to the following question:
Do you have a family member who at any time was affiliated with the military? Family members include grandparents, parents, spouses, siblings, grandchildren, children and household members.
If you answer “yes” to this question, it asks the following question:
Is your military-affiliated family member already a Navy Federal member?
If you answer “yes” to this, it says you’re eligible to join and gives you a “join now” button that allows you to join online. If you answer “no” to this, it says the following:
Please call 1-888-842-6328 or visit a branch for further assistance.
I called that number, and I confirmed that if your immediate family member had ever been in the military (even if they’re now deceased), you are eligible to join. You just have to apply by phone or at a branch. It can’t be done online. I asked if there was any documentation Navy Fed might need to indicate that your family member was in the military. The CSR stated that you might need to provide a DD 214 form which is issued upon a military service member’s retirement, separation, or discharge from active duty in the Armed Forces.
Thanks to DA member itserich for posting on this news in the DA forum.
The Backdoor to Membership
UPDATE 5/15/17: Navy Federal Credit Union has removed this backdoor. Joining the Navy League, San Diego Council will no longer qualify you for Navy Federal membership.
If you’re not a veteran and if you don’t have an immediate family member who has ever served in the Armed Forces, the backdoor to Navy Fed membership appears to still be available. Please refer to this blog post for the details.
Hot CD Deal Is Still Available
Navy Fed’s CD special is still available as of 2/9/2017. This CD special has a 2.00% APY for a 17-month term. It also allows add-on deposits. The only downside is that the maximum balance allowed is $50,000. Please refer to this blog post for the details.
This offer, including the stated Annual Percentage Yield (APY), is effective December 5, 2016. Navy Federal reserves the right to end or modify this offer at any time. Members can open a limited number of Special 17-Month Certificates; one share certificate and one IRA certificate. Each Special 17-Month Certificate has a $50 minimum and a $50,000 maximum balance. Additional deposits are allowed at any time, subject to the maximum balance. Penalties apply for early withdrawals from certificates.
https://www.navyfederal.org/products-services/checking-savings/certificates-rates.php
Im a member of Penfed, isn't that good enough ?
Then you go to the application page. I did not dive deeper than the first page, but it would not appear a DD 214 is required.
As a bit of trivia, the application page does require your SSN. After 1970, the uniformed services adopted the SSN as a "universal identifier", Before that, one had a "service number".
Back in 1965, LBJ decided everybody in uniform needed a little color on their dress uniforms, so the DoD invented the National Service Medal, awarded to all in uniform in 1965 or thereafter.
They are a terrible institution to have for your main banking institution. You will regret it later if you have your main checking account or loans there. I won't go into detail here (read many of the reviews of Navy here at DA for many of their problems), but in a nutshell, their entire banking system is backwards, problems (that can only be "fixed" by the head office) occur constantly, and their policies are very bad for the member compared to other credit unions.
That said, there ARE reasons to join if you're careful what kind of accounts you have at Navy -- namely, CDs and Credit Cards. For these two products, Navy can often be better than other CUs -- but be aware of problems and messups when opening accounts, assigning beneficiaries, etc.
For CDs: (1) They occasionally offer very good CD specials and rates. (2) On their IRA CDs (IRA CDs only) you can make additional deposits (up to your allowed yearly contribution) during certain months of the year, even though it's a CD. (3) Even in a normal (locked) CD, you can take out any amount of the interest that you've earned so far penalty-free. (4) The early withdrawal penalty on CDs 5 Years or less is 180 days, very mild (it's more for CDs over 5 years).
And for credit cards: they offer some good product. For the cheapest, fee-free card, the best is actually from PenFed, NOT Navy (PenFed's PROMISE Visa), but Navy does offer some very good no-foreign-transaction-fee cards, such as their NavyFed CashBack Rewards Visa, where you get 1.5% cash back on EVERYTHING you buy across the board (all categories), and as soon as the charges post, the cashback is available for you to either put in your savings account or pay back a little of your bill.
But again, you are just asking for trouble if you decide on a checking account or loan with them. Other people may disagree, but this is years of experience with Navy talking, and they haven't improved at all (please research the good and bad about them by looking at their reviews here). So like with anything, it may be more convenient to have everything in one place, but it's not always smarter. Navy is terrible as your "main bank" but has some very appealing offerings in their CDs and credit card lineups. Hope this helps some new people considering Navy.
Again, Congress may do anything (or nothing) in regards to a "clampdown" on the scope of credit union membership, but only some reasoning as to why you might presently expect that would allow us to evaluate the assertion.
I have an issue with a local credit union that I am a member of that spends excessively on advertising when nearly everyone in the area has heard of them 5+ years ago.
But, I don't have much say in the matter.
I could close my account I guess and I probably will because I don't really need them.
They used to have a 3% rewards checking but now its only 2% and Ive determined its just not worth the extra work for the extra 1%.
Don't get your logic in regards to excessive advertising "when nearly everyone in the area has heard of them 5+ years ago". One can have heard of a Financial Institution (i.e. credit union) but not be aware of current rates and products (and promotions) which might entice the non-participating to consider membership and continuing members to expand their business, - not to mention any influx of new residents who may not have heard of it.
In any case you do have a vote in board of director elections to express any displeasures with current policy, - and why close an existing RCA when that 2% could become 3% again?
You talk as if your whole little bubble (and everything inside it) is a completely static entity.
All the federal regulations and requirements also play a part in bogging down the new membership application approval process.
https://www.navyfederal.org/account-management/transfers.php