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Navy Federal Credit Union offers an extensive network of branches and ATMs, plus a number of financial products and services, including loans, checking accounts, savings accounts, credit cards and certificates of deposit.
Keep reading to learn more about the CD rates and offerings at Navy Federal.
Navy Federal CD Rates
Navy Federal has several CD options to choose from, with terms ranging from three months to seven years. You can open one with as little as $50. Navy Federal CD dividends are compounded daily and credited monthly, and early withdrawal penalties do apply, according to term length. Here’s a look at the different types of CDs Navy Federal offers.
| Type | Term | Minimum Deposit | APY |
|---|---|---|---|
| Standard Certificate | 3 months to 7 years | $1,000 | Up to |
| EasyStart Certificate | 12-24 months | $50 | Up to |
| Special EasyStart Certificate | 12 months | $50 |
Navy Federal Standard Certificate Rates
Navy Federal offers tiered rates for its Standard Certificates depending on your initial deposit and term length. The rates in the following table are broken down by the required minimum deposit. Savers with more to deposit can often tap into slightly higher rates.
| Term | APY with $1,000 Minimum | APY with $20,000 Minimum | APY with $100,000 Minimum |
|---|---|---|---|
| 3 months | |||
| 12 months | |||
| 18 months | |||
| 24 months | |||
| 3 years | |||
| 5 years | |||
| 7 years |
Navy Federal EasyStart Certificate Rates
Here is a look at the rates that Navy Federal offers for its EasyStart CDs.
| Term | APY |
|---|---|
| 12 months | |
| 18 months | |
| 24 months |
Pros and Cons of Navy Federal CDs
Here are some pros and cons to keep in mind when considering opening a Navy Federal CD.
Pros
- You can add money to the EasyStart and Special EasyStart CDs.
- Above-average interest rates
- Insured by the National Credit Union Administration
- Higher balance can unlock higher rates
Cons
- Early withdrawal penalties of up to 365 days of dividends, depending on the term
- You must have a Membership Share Savings account to open other accounts.
- You must be a member of the armed forces, a veteran, a Department of Defense employee or a family or household member of one of these groups to join Navy Federal.
- Special EasyStart Certificate has a maximum balance of $3,000
Who Is a Navy Federal CD For?
Given the excellent Navy Federal CD rates, anyone who is eligible for membership might want to open a Navy Federal CD. The flexible options make it a good fit. Those who already have money in savings might want a standard certificate. These are good if you know you won’t need to access the money right away.
The EasyStart certificates could be a good fit for individuals who want to build up their savings. These CDs allow you to start with a low minimum deposit and add money at any time. This gives you a chance to take advantage of an excellent interest rate while also growing your savings.
You’ll want to be mindful of avoiding the early withdrawal penalty, but if you have trouble keeping your savings in your savings account, an EasyStart certificate could be the encouragement you need to start accumulating savings. For example, if you have a big purchase goal on the horizon, you could open a CD with your term length in mind. This will help prevent you from accidentally spending your savings on your way toward a big goal.
CDs are risk-free — you can’t lose your insured funds — so they’re an excellent choice for anyone who is nearing retirement or is retired and wants to avoid market volatility. The interest you earn on a CD might not outpace inflation. The result is diminished purchasing power when your CD matures. But a CD is certainly better than allowing your funds to collect dust in a traditional savings account.
Beyond the CD offerings, Navy Federal is a full-service credit union with plenty of benefits to offer members. If you decide to join, you might be able to tackle all of your banking needs in a single place.
Who Should Pass on a Navy Federal CD?
Those who don’t meet the criteria for Navy Federal membership will not be able to open a CD with the credit union. Additionally, those who prefer in-person access but don’t live near a branch should also look elsewhere. You can scope out other top CD rates with GOBankingRates.
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Another group of people who might want to pass are those who anticipate needing immediate access to funds. CDs are meant for longer-term savings, which is why they have withdrawal penalties. You can work around withdrawal charges by laddering CDs so that the maturity dates are staggered. That way, you always have a CD that’s maturing soon so you can withdraw the money as needed.
If you might need the money before the maturity date, a CD is usually not a good idea. Instead, you might find a better fit through a high-yield savings account. A high-yield savings account offers a worthwhile way to grow your funds without giving up regular access.
How To Open a Navy Federal CD
Before you can open a Navy Federal CD, you need to join the credit union. You can join online, by phone or in person at a branch. Here’s what you’ll need:
- Your Social Security number
- A valid government ID
- A credit card or bank account number and routing number to fund your account
The credit union requires you to open a Membership Share Savings account with a minimum balance of at least $5. Once you’ve joined Navy Federal, you can open a CD online, through the Navy Federal mobile app or by visiting a branch. You can add funds to eligible CDs through those methods as well.
Once you have a Navy Federal CD, you will receive a notice before it matures. Unless Navy Federal receives instructions from you stating otherwise, the CD will automatically renew with the same term and at the current rate. You can make penalty-free adjustments up to 21 days after your CD matures. If you want to pull your funds after maturity, make sure to act before the grace period expires. Otherwise, you could face an early withdrawal penalty.
Final Take
If you are looking for a new CD account, Navy Federal deserves a look. It offers CDs ranging from three months to seven years with reasonable opening deposits. Its rates are competitive, and deposits are insured by the National Credit Union Administration.
FAQ
Here are the answers to some of the most frequently asked questions regarding CD rates.
- Who has the highest-paying CD right now?
- CD rates will vary depending on the term, but some of the highest-paying three-year CDs can be found at First Internet Bank and Popular Direct.
- What is the best 12-month CD rate?
- Some of the best 12-month CD rates can be found at Bread Savings and First Internet Bank.
- What are the current rates for CDs at Navy Federal?
- The rates for CDs at Navy Federal vary depending on the term, type and opening deposit, but they can go up to 5.30% APY.
- Does Navy Federal have good CDs?
- Navy Federal Credit Union offers above-average rates for eligible members. Additionally, a large range of CDs gives you an opportunity to choose a CD that meets your unique needs.
Sarah Sharkey contributed to the reporting for this article.
Rates are subject to change; unless otherwise noted, rates are updated periodically. All other information on accounts is accurate as of June 10, 2024.
Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.
