bank rates

Navy Fed Bucks Trend With Its CD Rates

Navey Federal Credit Union LogoNormally when we write one of these weekly reviews of CD rates at big institutions, we hint — sometimes strongly — that you’re better off taking your money elsewhere.

Big banks and, to a lesser extent, big credit unions typically offer terrible deals. They don’t really want your money if they have to pay for it.

Not so for Navy Federal Credit Union, the largest credit union in the United States by both membership and assets, with 4.3 million predominantly military members.

Can you find better deals elsewhere? Yes, but Navy Federal’s rates are fairly competitive.

At 1.50% APY, its 60-month CD pays just a quarter of a percentage point less than the term leader on our CD Rates Leaderboard and significantly more than the current average annual yield of 0.78% APY large banks and thrifts offer this week.

That deal is with a minimum deposit of $1,000. The rate jumps to 1.55% APY with a $20,000 minimum deposit and then to $1.60% APY at $100,000.

But this Virginia-based credit union’s highest rate is its 12-month Special EasyStart Certificate, which pays 3.00% APY.

This certificate of deposit has a minimum deposit requirement of just $50 and – here’s the rub – a $3,000 maximum balance. You also must have a checking account and direct deposit enabled with the credit union.

Navy Federal Credit Union’s standard CD rates require a $1,000 minimum deposit, and are all above average:

3-month CD rate is 0.45% APY versus an average rate of 0.11% APY. (Leaderboard leader is 0.46% APY.)

6-month CD rate is 0.55% APY versus an average rate of 0.15% APY. (Leaderboard leader is 0.88% APY.)

12-month CD rate is 0.75% APY versus an average rate of 0.25% APY. (Leaderboard leader is 1.05% APY.)

24-month CD rate is 0.95% APY versus an average rate of 0.38% APY. (Leaderboard leader is 1.25% APY.)

36-month CD rate is 1.15% APY versus an average rate of 0.48% APY. (Leaderboard leader is 1.50% APY.)

Membership is open to members, reservists, retirees and annuitants of the Army, Marine Corps, Navy and Air Force. Army and Air National Guard personnel are also eligible, as well as civilian employees and contractors of the Department of Defense and their family members.

Members can purchase certificates of deposit online, over the phone or in person at one of Navy Federal Credit Union’s 229 branches worldwide.

Learn more about Navy Federal Credit Union at www.navyfederal.org or call 888-842-6328.

Compare Navy Federal Credit Union’s returns with the best CD rates from scores of other banks in our extensive database.

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  1. Kathy at Bankaholic said:
    on April 15th at 08:25 am

    Navy Fed now pays 1.45% APY on its 36-month CD.