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Navyfed -- One Penalty-Free Withdrawal Discontinued for EasyStarts

racecar
  |     |   551 posts since 2014

It looks like NavyFed quietly got rid of their temporary "One Penalty Free Withdrawal" perk on their 18 month EasyStart Add-On CDs over the last few days. The rate's still the same (4.59/4.70) but the language about allowing one penalty-free early withdrawal from these CDs if opened during the promo period, has been removed and replaced with just the standard "Penalties may apply for early withdrawals from certificate accounts."

For those who opened one or more of these up during the "one penalty free withdrawal" promo period, you'll still be allowed one penalty-free withdrawal (partial or full) for each of these CDs you opened during that period. But any you open up now will no longer have that perk.

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17
MineSweeper
  |     |   68 posts since 2021
I did not expect the one penalty free withdrawal to last very long as members could shift money from their money market accounts to this product making this offer very expensive for NFCU. I would not be surprised if this rate for the Easy Start Certificate will not be available after the end of May when Military Appreciate month will end.
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2
alan1
  |     |   867 posts since 2015
racecar -- you wrote: "It looks like NavyFed quietly got rid of their temporary "One Penalty Free Withdrawal" perk on their 18 month EasyStart Add-On CDs over the last few days."

Where did you "look"?

From the website of Navy Federal Credit Union:
"Watching your money grow is pretty satisfying. Now you can give your money an even bigger boost with our 18-Month EasyStartSM Share Certificate. And, we’re waiving the penalty if you need to make a one-time early withdrawal after opening it."
(bold in original)
https://www.navyfederal.org/campaigns/savings/a31772-lp.html
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8
mariafalter
  |     |   162 posts since 2010
The new account’s Disclosure agreement doesn’t mention 1 penalty-free withdrawal. However, a CSR assured me that there is a note on my account about this promotional feature.
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4
choice1
  |     |   343 posts since 2023
I echo Alan1s find also…I’m going by a branch today
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2
racecar
  |     |   551 posts since 2014
alan1, Interesting, the language is now back up on the website. It was not there in the middle of the night last night when I decided to check if they were still available (I even tried to call them in the middle of the night to verify, but of course got a recording that the CD Dept was closed at that hour).

Sure enough, the language is back this morning. Good catch, alan1. Sorry folks, I obviously wouldn't have posted had the website shown that it was still available. Maybe they were doing something to the website in the middle of the night.

I'm sure lots of people have opened them ... though probably just at $50 as insurance if rates drop. The rate isn't great compared to many 5%+ liquid accounts, but ironically it's sadly in line with a lot of 18mo CDs out there now (there are better 18mo specials, but the typical 18mo CD is now around that range). I opened 2 at the minimum, so in case I ever need to use one temporarily then drain it, I'd still have a 2nd. Though chances of it being useful for me are slim, one doesn't really "lose" anything for $50 @ 4.7% as insurance just in case, so probably good to have a couple.

Glad to see they're still available!
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5
DaveJ
  |     |   40 posts since 2016
I opened one this am after seeing your note, but did see on the website that 18 month easy open still had the 1 penalty free withdrawal. I sent a secure message to NavyFed to verify the details. This was their answer to me.(I like to have a paper trail). "Navy Federal Response 05/22/2024 :
Thank you for using Navy Federal's eMessaging Service, Mr. Johnson. We are happy to assist you. That is correct, the 18 Month EasyStart has no maximum capacity and allows for additional deposits anytime in the term. Additionally, you are allowed one penalty-free withdraw for the first occurrence. If you have further questions, please let us know. Have a lovely week!"
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4
choice1
  |     |   343 posts since 2023
Went to a branch today…the 18 CD still available

However tried to make a one time withdrawal (and close out first account) from existing 18 month CD to fund a new 18 mo CD…a little too complicated for that rep…I guess .  Just opened a duplicate 

Also, did an IRA distribution to a charity…they were talking about a fee…I said no way. Got check payable to charity and no fee

Be careful out there
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racecar
  |     |   551 posts since 2014
@choice
Sounds like your branch is like mine, where they're all complete morons. I don't care if they're friendly, only that they know what they're doing. Through the years I've found it best never to do important transactions at a branch -- just call the 888 number. You'll (usually) get someone who knows what they're doing, and will do it correctly.

I recently did the same thing myself (close out one I opened when the promo first started, just to open a new one with a later maturity date). The phone rep was great; I explained what I wanted to do, and the rep completed everything flawlessly.
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