Advertising Disclosure
  1. Home
  2. Community
  3. Ask
  4. Navy Federal Credit Union CD Rates

Navy Federal Credit Union CD Rates

MineSweeper
  |     |   68 posts since 2021

I wonder if NFCU will respond to Pen Fed's recent increase in CD Rates. NFCU usually responds to PENFED who they view as a threat to losing business. Their financials indicate they have an excess of deposits but those same customers may have other credit union products such as credit cards, auto loans and low interest money market deposits. I think we will see NFCU's response in the next couple of weeks. Any thoughts on this comment?

  Post an answer
4


Answers
111
  |     |   672 posts since 2019
Sorry, Choice, gotta disagree somewhat. As a Navy customer since about 2010 here's the way I look at it, which is basically the way I look at most FIs I deal with.

First, one thing I give you credit for is that you at least make an effort to understand what the FI's viewpoint is (Navy in this case) - or at least what you think it might be. (So many posters on this site feel they are somehow "entitled" to "higher rates"... Entitled by whom? Well, I don't know, and apparently neither do they.)

BUT - one can't forget that the customer's viewpoint is important too. Case in point from my own experience - in 3/2018 I started a 64-month 4% CD with a FI. At that time that rate was clearly in the top 1% nationally of rates for that term. However as time progressed, the then-current CD offerings from that FI became increasingly less competitive relative to the overall CD marketplace of the day. When that CD matured a few months ago I took the $ and ran, since they had no offerings that were competitive in the then-current CD marketplace (I plan to close that account soon).

In doing so, I didn't make my decision based upon whether that particular FI "wanted to/should raise rates", or whether it "needed the funds". Instead I noted that on a relative basis that FI had certainly "come down in the world" in terms of its CD rates viz-a-viz the rate marketplace of the day, and I made my decision to exit based upon what better rates were available in that marketplace for my funds.

So yes, I think that if Navy continues their plunge into non-competitiveness, they'll eventuality regret it. Especially if they reach PenFed-like levels. The fact that PenFed is (apparently) having to increase rates to crawl back out of their abyss is perhaps a harbinger for Navy.
Reply
5
choice1
  |     |   370 posts since 2023
111. Thanks, nice insight. Most neglect to mention that PenFed was/is under increased scrutiny since the private regulatory letter was issued to them awhile back…reported/buried in WSJ article and DA. It is not a role model (EWP and rates over the years as a starter ) but I keep a token amount there to keep membership active. Glad about your experience at some other FI
Reply
2
choice1
  |     |   370 posts since 2023
Why does anyone reasonably think Navy wants to/should raise rates? They don’t need the funds nor are funds leaving to any serious degree…in my view. And I’m advised of no change tomorrow…first Monday of the month.
Reply
3
rockies
  |     |   295 posts since 2018
In response to "I wonder if NFCU will respond to Pen Fed's recent increase in CD Rates."

My answer is "no". Here are some of the thoughts I shared on this general topic in early September.
https://www.depositaccounts.com/community/ask/54764-nfcu-care-da-readers.html
Reply
2
Rickny
  |     |   1,296 posts since 2017
It's is (in many cases) very easy to more cash deposits to different institutions. So of your not happy, just move your funds to another institution. A while back everyone praised Penfed and things changed as they grew. Now it looks like Navy is to big.
Reply
2
TheRealMAGA
  |     |   23 posts since 2023
I have a small Roth IRA here at NFCU. It’s like $20k - &30k. I put like $20k in a 18 mo certificate. Interest comes in monthly at about $100 per month which I’m thrilled with. My question is do they have inactive fees on accounts? I got nailed at Andrews a while back because of it. Cost me a couple of months and now I’m more cautious about these type of fees!
Reply
2
choice1
  |     |   370 posts since 2023
I stop into a branch monthly and get what i call a top level summary sheet on various accounts…one pager. It has various columns with one called account status…I have only noticed over the years that membership account has been labeled “inactive “ and I moved $1 from the checking into it…never looked into what it means. As to several IRA/CD accounts most don’t get touched but all collect more interest and never had one go inactive.
Reply
1
njs
  |     |   71 posts since 2019
What happened with Andrews? I have never encountered inactivity fees at larger institutions for just having cds. I do have a smaller local CU where I had to deposit a couple bucks in my share account every two years to avoid an inactivity fee even though I had a jumbo cd ira there.
Reply
2
Ally6770
  |     |   4,290 posts since 2010
A customer service person told me a while back that the decision about if and when and what to do with rates is made on the third Wednesday of the month.
Reply
2


The financial institution, product, and APY (Annual Percentage Yield) data displayed on this website is gathered from various sources and may not reflect all of the offers available in your region. Although we strive to provide the most accurate data possible, we cannot guarantee its accuracy. The content displayed is for general information purposes only; always verify account details and availability with the financial institution before opening an account. Contact [email protected] to report inaccurate info or to request offers be included in this website. We are not affiliated with the financial institutions included in this website.