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For Navy Federal -New Wording On Qualifing Direct Deposit

marcal
  |     |   52 posts since 2011

I was looking at the special 12 month easy start certificate with 5.3% apy and $3000 limit and saw new qualification for possible direct deposit. This is from the web site.

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Limit one Special EasyStart Certificate per member. The Special EasyStart Certificate has a $50 minimum balance and a $3,000 maximum contribution limit. Additional deposits are allowed at any time subject to the maximum contribution limit. Certificate owner(s) age 18 and older must have direct deposit* or a payroll allotment and a Navy Federal checking account within 90 days of the certificate issue date. If these requirements have not been satisfied by the 90th day, your Special EasyStart Certificate dividend rate will be adjusted to the prevailing dividend rate of the 12-month EasyStart Certificate for the remainder of the certificate's term. At maturity, the Special EasyStart Certificate will automatically renew and any amount exceeding the $3,000 maximum contribution limit will be transferred to your Membership Savings Account unless instructed otherwise.

*You may qualify for direct deposit if you have (1) a recurring ACH from employer, military pay, or certain government agency pay or benefits in your name that is deposited into a Navy Federal deposit account where you are Primary or Secondary Owner; OR (2) Mobile deposits, ATM deposits, or Branch deposits totaling at least $500 and recurring for at least three out of four consecutive months that are deposited into Navy Federal deposit accounts where you are Primary Owner; OR (3) monthly Non-payroll ACH totaling at least $500 and recurring for at least three out of four consecutive months that are deposited into Navy Federal deposit accounts where you are Primary Owner; OR (4) monthly Non-payroll ACH totaling at least $500 and recurring for at least three out of four consecutive months that are deposited into Navy Federal deposit accounts where you are Secondary Owner. ?

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racecar
  |     |   628 posts since 2014
Thank you for the heads up. Unfortunately it seems Navy's definition of "Direct Deposit" isn't consistent (not surprised), and depends on the product you want. As you posted, the "direct deposit" disclosure for the Special CD indeed gives many more options, including non-payroll options.

But the definition of what counts as a "direct deposit" on Navy's credit card disclosure remains the old version (one can get a higher cash back rate if they have direct deposit) and is different than that for the CD. Their definition of "direct deposit" for the credit cards still reads as:

"To be eligible to receive 1.75% cash back on net purchases with your cashRewards card, you must either currently have direct deposit at Navy Federal or must set up and maintain direct deposit at Navy Federal. Direct deposit is defined as a recurring ACH from your employer, military pay, or certain government agency pay or benefits deposited into your Navy Federal deposit account. You will start earning 1.75% cash back once we confirm you have direct deposit at Navy Federal."

I'm not surprised NavyFed is inconsistent, and expect their CC definition never to change. Good news for those interested in the special CD but not for those who want the higher cash-back w/o an employer DD.
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SamFam
  |     |   34 posts since 2020
The direct deposit can be any amount. I have $1.00 direct deposited from my employer each month and I get the higher CC cash back.
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MineSweeper
  |     |   68 posts since 2021
Marcal

To avoid having to manually transfer your dividends to another internal or external account when the special 12 month certificate matures you can set-up the dividends to be deposited monthly. If you do this you will miss out on compounding but you will recapture some of what you lost when the dividends are deposited in the account you select. Another tip would be to open two special Easy Start Certificates if your spouse is a NFCU member. That way you can get the higher dividend on $6,000. My wife and I have done this for many years and the dividends are automatically sent to the account I select. Since the total amount of the dividends is relatively small I transfer the dividends from both easy start special CD's to my Active Duty Checking account and then monthly transfer the dividends to an external account. Works great and it is all in automatic. Hope this information is helpful.
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marcal
  |     |   52 posts since 2011
I also opened the special easy start for my grandchildren with myself as joint owner when Navy offered a bonus on minor membership. These accounts also get the higher rates.
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Ratesaver
  |     |   187 posts since 2013
Wow , thanks for the info because I have a cd coming due and was going to transfer it to my savings account and then to penfed and now I have to go to the navy fed to get the check. This said I did transfer money from my savings before and it worked... I think it may have to do with the amt. of the cd. I have a substantial amt. this time so ?????
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w00d00w
  |     |   360 posts since 2012
IMO, Navy FCU really needs to eliminate the direct deposit requirement for Special EasyStart Certificates if they're keeping the max investment at $3K. seems to me they are overthinking it and making it unnecessarily complex
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