When compared to the best CD rates, Navy Federal Credit Union Standard Certificates are a good but not exceptional offering. Navy Fed certificates pay more than the national average, but their short of the most competitive rates offered.
You might still find a few options at the credit union worthwhile if you're already a member — namely the 1-year standard certificate and CD specials.
Learn more about Navy Federal Credit Union share certificates, below.
Current NFCU CD Rates
Navy Federal Standard Certificates
The Navy Federal Credit Union Standard Certificate pays 1.50% to 4.05% APY (Annual Percentage Yield). It has a tiered interest rate system so you'll earn more with higher deposits. Right now, you won't earn the best rate unless you have at least $100,000.
Navy Federal Credit Union's best CD rate is on its 10-Month Special Certificate which pays 4.35% APY.
| CD Term | $1k Minimum APY | $20k Minimum APY | $100k Minimum APY |
| 3 months | 1.50% | 1.50% | 1.55% |
| 1 year | 4.00% | 4.00% | 4.05% |
| 18 months | 3.80% | 3.80% | 3.85% |
| 2 years | 3.60% | 3.60% | 3.66% |
| 3 years | 3.70% | 3.70% | 3.75% |
| 5 years | 3.50% | 3.50% | 3.55% |
| 7 years | 3.50% | 3.50% | 3.55% |
Navy Federal EasyStart Certificate Rates
The Navy Federal Credit Union EasyStart℠ Certificate pays 3.55% to 4.30% APY. Here are the interest rates for each term:
| EasyStart CD term | APY |
| 1 year | 3.95% |
| 1-year special EasyStart certificate | 4.30% |
| 18 months | 3.75% |
| 2 years | 3.55% |
Navy Federal SaveFirst Account Rates
The Navy Federal Credit Union SaveFirst Account has most lenient minimum opening deposit requirements. It pays 0.40% APY, so the rate isn't great — but you get to choose your own term length between three and 60 months, and unlike with most CDs, you can contribute more money after opening the account.
Overview of Navy Federal Credit Union CDs
Navy Federal Credit Union (federally insured by the NCUA) is one of the best institutions for the military. It pays good rates on most share certificates — what credit unions call CDs. The credit union is also a great choice for general banking. Most notably, its Navy Federal Free Active Duty Checking™ Account has no monthly service fee and also offers ATM refunds of up to $20 per month.
Who is Eligible for Navy Federal CDs?
To open Navy Federal Credit Union bank accounts, you must meet certain membership requirements. To qualify for membership, you must be part of one of the following groups:
- Active-duty, retired, or veteran military members. You're eligible if you're an active-duty member of the Air Force, Army, Coast Guard, Marine Corps, National Guard, Navy, and SpaceForce; joined the Delayed Entry Program; are a Department of Defense officer candidate or in the ROTC; are a Department of Defense reservist; or a veteran, retiree, and annuitant.
- Department of Defense civilians. You're eligible if you are a civilian employee, a U.S. government employee who does DoD installations, a DoD contractor who does U.S. government installations, or a retiree and annuitant.
- Family members. You can join if you are a family member of an eligible military member. This includes parents, grandparents, spouses, siblings, children (including stepchildren and adopted children), grandchildren, and household members.
Types of CDs offered by Navy Federal
Navy Federal Credit Union has three types of CDs: Standard, EasyStart, and SaveFirst. Your CD rate and minimum deposit will depend on which type of CD you open.
The Navy Federal Credit Union Standard Certificate is the bank's traditional share certificate. It pays a fixed interest rate and has a $1,000 to $100,000 minimum opening deposit.
The Navy Federal Credit Union EasyStart℠ Certificate lets you make additional deposits during the term. You only need $50 to open an account.
If you have a checking account that receives qualifying direct deposits, you qualify for the 1-year special EasyStart Certificate. This certificate offers the best CD rate at the credit union, but you'll only be able to deposit up to $3,000.
Lastly, Navy Federal Credit Union also has a Navy Federal Credit Union SaveFirst Account. You can open this CD with only $5, and make additional deposits anytime during the term.
Navy Federal CD Rate Pros and Cons
Navy Federal CD Rate Pros
- Good interest rates on most terms
- Navy Federal Credit Union CD interest compounds dividends daily
- Three types of CDs to choose from
- Terms as long as seven years
- Relatively low minimum opening deposits
Navy Federal CD Rate Cons
- You must qualify for membership with Navy Federal before opening a CD
- Pays low rates on 3-month terms and SaveFirst accounts
- Standard-to-high early withdrawal penalties
Navy Federal CD Alternatives
Navy Federal CDs vs. USAA CDs
USAA Fixed Rate CD are good on certain terms. The bank pays up to 2.25% APY The best rate between the two institutions may depend on which term you choose, but also keep in mind that you're more likely to find a higher rate at Navy Fed.
USAA does have some specialty CDs that let you adjust the interest rate during your term and make additional deposits — but the rates aren't nearly as high as what Navy Federal offers.
Navy Federal CDs vs. PenFed CDs
Pentagon Federal Credit Union is another credit union for military families. It has certificates with rates up to seven years that pay 3.00% to 3.65% APY. Both credit unions pay good CD rates overall, but the best rate between the two will depend on which term you choose.
PenFed doesn't have any specialty CDs like Navy Federal does. It's also worth noting that although PenFed CD rates are high overall and compound interest daily on most terms, its 6-month CD doesn't compound interest at all.
What Influences Navy Federal CD Earnings
Navy Federal Credit Union can adjust CD rates at any time. To get a competitive interest rate on a Navy Federal Credit Union, be mindful of upcoming Fed meetings since the Fed's decisions can impact CD rate trends. You can maximize your CD earnings by avoiding early withdrawal penalties and selecting your CD term carefully.
Role of Federal Reserve
At Fed meetings, the Federal Open Market Committee makes decisions about monetary policy. It can adjust the federal funds rate, which can influence whether a bank provides more competitive CD offerings. Generally, banks offer higher CD rates when the Fed has rate hikes and lower rates when the Fed announces rate cuts.
CD Early Withdrawal Penalties and Term Selection
Navy Federal Credit Union CDs have an early withdrawal charge if you take money out before the account term ends. Here is an overview of Navy Federal Credit Union's early withdrawal charges:
- For certificates under a year, the penalty is up to 90 days of dividends
- For certificates between one year and under five years, the penalty is up to 180 days of dividends
- For certificates of five years or more, the penalty is up to 365 days of dividends
Since the credit union's early withdrawal penalties detract from your overall CD earnings, you'll want to avoid taking out money from a CD before it matures.
Choosing a CD based on your financial goals can help you set a timeline and figure out a suitable term that will allow you to keep money until CD maturity.
Should You Get a Navy Federal CD?
Navy Federal CD rates are high for select terms. Specifically, its just short of the best 1-year CD rates and some of its CD specials are also pretty solid overall.
Navy Federal Credit Union also offers a good variety of CD terms and types. If you're looking to build a CD ladder, Navy Fed may be worth considering because it has some of options than you won't find at other financial institutions, like 7-year terms.
Why You Should Trust Us: How We Reviewed Navy Federal CDs
To review Navy Federal Credit Union certificates, we used Business Insider's certificate of deposit methodology.
We evaluate the company's ethics, security, mobile app, miscellaneous features, and customer service. Then we look at certificates' interest rates, minimum deposits, variety of terms, and early withdrawal penalties.
We give each category a rating between 0 and 5. We use a weighted average to get our star rating, which means we weigh certain features, like interest rates and fees, at a higher weight percentage than others. We understand that these areas can more heavily impact a person's overall banking experience.
We use a scale of one to five stars for our CD rating, with one star indicating a low score and five stars indicating a high score.
Navy Federal Credit Union CD FAQs
Navy Federal Credit Union CD rates pay 1.50% to 4.05% APY. These are typically more competitive than average CD rates for most terms. The credit union also offers add-on CDs, but the rates vary significantly between the type of account and term you choose.
NFCU CD rates can adjust CD rates at any time. It may have more competitive CD rates when the Federal Reserve raises the federal fund rate. If the Fed lowers the federal funds rate, CD rates may be lower.
The Navy Federal Credit Union Standard Certificate is the traditional CD offering, while the Navy Federal Credit Union EasyStart℠ Certificate and Navy Federal Credit Union SaveFirst Account are add-on CDs. Each type of CD has different minimum opening deposit requirements and term options.
Navy Federal Credit Union is federally insured by the NCUA. Up to $250,000 per depositor, per account ownership category is safe in a Navy Federal CD.
To open a Navy Federal CD, you must qualify for membership at the credit union. Navy Federal is specifically for military members and their families. You also must open the Navy Federal Credit Union Share Savings Account to establish membership at the financial institution.
