April 2022 – Forbes Advisor


Editorial Note: We earn a commission on partner links on Forbes Advisor. Commissions do not affect the opinions or ratings of our editors.

Navy Federal Credit Union offers several standard certificates, with terms ranging from three months to seven years. Stock certificates are the credit union equivalent of certificates of deposit (CDs) found in banks. Navy Federal’s certificate rates tend to be quite competitive with other credit unions and online banks. Rates range from 0.40% APY for a three-month certificate to 0.90% APY for a seven-year certificate. These rates require a minimum deposit of $1,000.

Here is an overview of Navy Federal Credit Union standard certificate pricing. Rates are correct as of March 4, 2022.

Slightly higher rates are available for a minimum deposit of $100,000, with APYs on all terms increasing by 0.05%.

In addition to standard certificates, Navy Federal Credit Union also offers EasyStart certificates, with a minimum deposit of $50 and terms ranging from six months to 24 months. Credit Union’s EasyStart Special Certificate has a 12 month term and pays 3.00% APY, but only on deposits up to $3,000 and only for customers who have a Navy Federal checking account and direct deposit . With all EasyStart certificates, you have the flexibility to add money at any time.

Overview of Navy Federal Credit Union Certificates

Navy Federal Credit Union requires a minimum opening balance of $1,000 for its standard certificates. EasyStart certificates have a minimum deposit requirement of less than $50, but these pay slightly lower rates than standard certificates. Dividends are compounded daily and credited monthly.

If you withdraw money from your Navy Federal Credit Union certificate before the end of the term, you will be charged an early withdrawal penalty. For certificate terms of one year or less, the early withdrawal penalty is the lesser of all dividends for 90 days on the amount withdrawn or all dividends on the amount withdrawn since the date of issue or renewal. For certificate terms longer than one year, the early withdrawal penalty is the lesser of all dividends for 180 days on the amount withdrawn or all dividends on the amount withdrawn since the date of issue or renewal.

How Much Can You Earn With Navy Federal Credit Union Certificate Rates?

Navy Federal certificate rates are significantly higher than the rates offered by many major national brick-and-mortar banks. Here’s what you can earn with Navy Federal Credit Union Standard Certificates with an investment of $10,000, assuming earnings are compounded daily:

Navy Federal Credit Union Certificate Comparison

According to FDIC data, Federal Navy certificate rates are significantly higher than national average CD rates and are competitive with some of the best CD rates.

The minimum deposit is only $1,000, which is lower than some banks require. And, depending on the term, you can find better APY with Navy Federal Credit Union than even some of the best online banks can offer. If a minimum deposit of $1,000 is too high for your savings goals, Navy Federal also offers EasyStart certificates, which you can open with a minimum deposit of $50, but these pay slightly lower rates than standard certificates.

To get the best possible rate, be sure to shop around and compare rates from multiple banks and credit unions.

About Navy Federal Credit Union

Navy Federal Credit Union was founded in 1933 and is a member-owned, nonprofit credit union that serves service members, veterans and their families. It also serves Department of Defense personnel. The credit union has more than 10 million members and 346 branches worldwide. Navy Federal accounts are insured by the National Credit Union Administration (NCUA), up to $250,000 per member.

To be eligible for Navy Federal Credit Union membership, you must be a current or retired member of the armed forces, an immediate family member of a member of the armed forces, or a civilian or retired employee of the Department of Defense . Department of Defense contractors assigned to U.S. Government installations and U.S. Government employees assigned to Department of Defense installations may also participate.

Frequently Asked Questions (FAQ)

What is a stock certificate?

Because they are membership-based, credit unions use slightly different terminology than banks. Share certificates work the same way as certificates of deposit in banks. This is a type of term account that pays dividends. With traditional certificates, you get a guaranteed dividend rate if you commit to leaving your money in the certificate for a fixed term.

What should you consider before opening a stock certificate?

Before you put money in a certificate, think about when you might need access to the money and what you want to use that money to accomplish. Certificates are often good for short-term savings goals, like saving for a down payment on a house, a new car, or a vacation fund. While it is true that longer-term certificates generally offer higher APYs, you may be able to earn a greater return on your savings during this time by investing in different assets.

How does a stock certificate work?

When you open a share certificate, you agree to leave your money deposited in the fund for a certain period of time. The credit union agrees to pay you a fixed APY on your savings for as long as your money is on deposit. With most traditional certificates, you must pay an early withdrawal penalty if you withdraw your money before the end of the term.

Are share certificates safe?

Certificates are generally considered one of the safest places to put your savings. If you choose a credit union like Navy Federal that is insured by the NCUA, your savings are protected, up to $250,000 per depositor, for each class of account ownership, in the event the credit union fails. The Navy Federal Credit Union is insured by the NCUA (charter #5536).


Previous Six Tips from Idaho Credit Unions to Improve Your Credit Score - Dailyfly.com Lewis-Clark Valley Community
Next Are credit unions ideal for Gen Z?