Navy Federal CD Rates Are Worth Looking At for April 2020

Navy Federal CDs offer above-average rates and flexibility.

Ranked as the world’s largest credit union, Navy Federal Credit Union has much to offer its members. Along with an extensive network of Navy Federal locations and ATMs — as well as 24/7 access to mobile and online banking services — NFCU boasts a number of financial products and services, including loans, credit cards and certificates of deposit.

Navy Federal offers a variety of CDs — from special options to standard certificates — to suit your financial needs. For standard CDs, minimum deposits start at $1,000. Terms range from three months to seven years.

Here’s a quick overview of Navy Federal CD rates to help you decide which CD might be right for you:

Navy Federal CD Overview

Navy Federal has several CD options to choose from, with terms ranging from three months to seven years. And you can open one with as little as $50. Here’s what else you need to know about Navy Federal CDs:

Navy Federal CDs at a Glance: April 2020
TypeTermsMinimum DepositRate
Standard Certificate3 months-7 years$1,000Up to 1.80% APY
3-Year Variable Rate Certificate3 years$500Up to 1.57% APY
EasyStart Certificate6-24 months$50Up to 1.50% APY
Special EasyStart Certificate12 months$50Up to 3.50% APY

More on Savings: Best Online Savings Accounts for Earning High-Yield Profits

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Who Are Navy Federal CDs Best For?

Navy Federal CD rates are well above the national average. Here are the pros and cons of Navy Federal CDs, plus a look at who might want to open one — and who should pass:

Pros

  • You can add money to the variable rate and EasyStart CDs.
  • Above-average interest rates
  • Insured by the National Credit Union Administration
  • Variable-rate CD enables you to increase your interest rate

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 member of one of these groups to join Navy Federal.
  • Special EasyStart Certificate has a maximum balance of $3,000

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Who Might Want To Open a Navy Federal CD?

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 or variable rate 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 members who want to build up their savings. These CDs allow you to start with a low minimum deposit and add money at any time. 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.

CDs are risk-free — you can’t lose money on CDs — so they’re an excellent choice for anyone who is nearing retirement or is retired and wants to avoid market volatility.

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Who Might Want To Pass on Navy Federal’s CD Options?

Those who don’t meet the criteria for opening a Navy Federal CD will have to take a pass. Those who prefer in-person access but don’t live near a branch should also look elsewhere. That said, Navy Federal does have branches on or near many military bases as well as around Washington, D.C.; Hampton Roads, Virginia; San Diego; and Jacksonville, Florida.

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.

You might also want to pass on Navy Federal CDs if you’re looking for a higher return. CDs have relatively low returns compared to mutual funds, for example. Folks who are decades away from retirement might want to consider a long-term investment vehicle with the potential for more growth. An experienced financial professional can help you decide what’s right for you.

More on CDs: Investing In Certificates of Deposit — The Ultimate Guide

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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

Once you’ve joined Navy Federal, you can open a CD online, by phone, 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 at least 20 days before it matures. Unless Navy Federal receives instructions from you stating otherwise, the CD will automatically renew with the same terms. You can make penalty-free adjustments up to 21 days after your CD matures.

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More on Navy Federal

More CD Rates

Rates are subject to change. Information on accounts is accurate as of April 1, 2020. 

This content is not provided by Navy Federal Credit Union. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by Navy Federal Credit Union.

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About the Author

Cynthia Measom is a Texas-based writer specializing in finance, business, parenting and education. With almost a decade of online writing experience, her work has appeared on websites such as Chron.com, The Bump and The Motley Fool. Measom received a Bachelor of Arts in English from the University of Texas at Austin.